February 27th, 2008
Just what are investment bonds?
I live in Australia, and I know that there are many people who do not have a very good idea of what investment bonds really are. Explained very simply, these are financial instruments which are included in a category called tax paid investments. These types of bombs, as their name implies, are often used for investment purposes — because if by an investor for at least a 10 year period they will pay no additional tax and any earnings associated with the performance of the bond are not required to be reported to the government for income tax purposes. This makes them an ideal choice for the high net worth investor who is looking to minimize their tax obligations.