Plan a Strategy with GNS Group for Benefit from Savings Plan

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Plan a Strategy with GNS Group for Benefit from
Savings Plan
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Many of us started off investing at a young age,
often through a Dollar mite Account at school.

• These early lesson in savings and earning
  interest for the first time set the foundation
  for a life time of savings, interest and
  ultimately reward.

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• It doesnt really matter if you are saving
  for a new car, a holiday, a house, the kids
  education or retirement. We all need to save
  money for purposes that are important to us.
• Thankfully, there are many different ways you
  can save.

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• Often the best approach becomes self-evident
  fairly quickly when you look at the purpose and
  time frame.
• Goals such as a holiday or a car might be
  shorter term goals and as such, a regular savings
  plan into a bank account or term deposit might be
  a good starting point.
• Thankfully there are many high interest
  internet savings accounts which give you
  flexibility with no minimum investment amount
  you can set up a regular direct debit to transfer
  some of your money (usually wages) into a high
  interest savings account. Whether its 50 per
  week or 50 a month, its just great to start
  somewhere.

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• When it comes to longer term goals such as
  savings for a house deposit or setting aside
  money to fund the kids education, there are
  plenty of options available.

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• We always recommend talking to one of the GNS
  Group Financial Advisers to work out the best
  plan of attack for your situation, but some of
  the things you might consider include

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• Theres nothing wrong with high interest savings
  account like we mentioned earlier, or term
  deposits for that matter, but you can also
  consider, Managed funds, which allow you to
  invest into professionally invested portfolios,
  give you the benefit of diversification,
  customised investment allocation and consolidated
  reporting.
• Investment bonds are a great option for those on
  the top marginal tax rate or saving for the kids
  education with a 10 year time frame to achieve a
  tax free return, they often have a role to play,

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• Investing into managed funds whilst a good
  strategy, can be further enhanced in some
  situations by the addition of a regular gearing
  facility. Borrowing to invest is not often front
  of mind for clients, but with the right timeframe
  and risk profile, can be a great way to enhance
  returns and can be tax effective as well.
• When it comes to the kids school fees using an
  education scholarship fund is an option to
  consider. Our general concern with this type of
  savings plan is the lack of flexibility and
  application of funding at the time of withdrawal
  for education purposes. If you already have a
  home loan, it can be very effective to direct
  your savings plan into the home loan. Instead of
  earning interest, you will save interest!

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• You also will not see your savings account
  increasing, but your home loan diminishing. If
  you have a re-draw account then you will see this
  type of account increasing in value. This
  strategy also benefits you by not having to worry
  about the Tax Man. Because no interest is earned,
  you dont have to pay tax.
• By way of example If your home loan interest
  rate is 5 and you have 10,000 in savings, this
  means you 500 less mortgage interest.

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• If you were to invest 10,000 and you earn a 5
  return you have made 500. However, the tax
  office will want a slice of this. Depending on
  your personal tax rate, you might see 100-250
  disappear in tax, so your real return may not be
  as great as simply paying off mortgage.
• For more information on how you can benefit from
  a savings plan and which strategy is best for you
  and your goals, please speak to one of our
  Financial Advisers today.
• http//gnsgroup.com.au/2015/12/savings-plan/