Transcript:
Setting Up an Investment Bond in Voyant
This video walks through the steps to set up an investment bond in Voyant.
Adding the Investment Bond
On your dashboard screen, click the green plus button, choose Savings and Investments, and select Investment Bond.
On the new screen, change the Type field to Investment Bonds and give your bond a name.
You have the option to specify if this is a new or existing bond. If it's an existing bond, select No and enter the details of the client's existing bond, including their current account balance, the year the bond was purchased, and more. This information allows Voyant to calculate the tax position of the bond.
For new bonds, select Yes.
Initial Funding of the Bond
Initially, a new bond is funded via a transfer, which I will get to shortly. First, let’s discuss future contributions.
Future Contributions
If you plan to make regular contributions into the bond, do this via the Contributions screen. Here, you can specify a dollar amount to contribute each year, or you can select the Maximum Allowed Contribution option, which will adhere to the 125% rule. We will use this option for the bond.
Note that these contributions will commence from year two of the bond. You can set the starting contribution date to year one, but note that the actual contributions will begin in year two.
For example, we will run these contributions until age 53.
Initial Contribution Setup
Now, let’s add the initial contribution into the bond via a transfer.
We will transfer funds into the Investment Bond from the client's cash holdings. The amount field should include the initial contribution plus any other contributions planned for year one.
Let’s assume the total contributions for year one are $115,000, scheduled for year one of the plan.
Setting the Rate of Return
The last step is to set the rate of return for the bond. To do this, go back into your investment bond and choose Growth.
For this example, let’s assume the bond will grow at 3% per year with dividends of 4%, and 35% of those dividends are franked dividends.
Reviewing the Bond Performance
You can check the yearly account balance and transactions of the bond in the Year View.
On this page, click on Investments; you will see the Investment Bond listed. You can move forward to future years. In year two of the bond, you will see that the 125% contribution limit is $18,750 and that this amount has been contributed into the bond for that year.
The right side of the screen will indicate how long the bond has been held.
As you progress to future years, you can start seeing the tax concessions that investment bonds attract.
Redemptions of the Bond
If you want to make a partial or full redemption of the bond, go back into your investment bond and select Planned Withdrawals.
Here, you will add a new withdrawal, giving it a name. For this example, I will fully redeem the bond by selecting All Available, with the redemption scheduled to occur at age 53 for this client.
You can check the redemptions of your bonds by revisiting the Year View and moving the slider to the year the redemption occurs. You will see that the investment bond is fully redeemed, and it will calculate the tax components of that redemption.
This information will also flow through to the client's individual tax position, which you can view on the Taxes tab.
Need Help?
If you have any questions regarding investment bonds or anything specific within Voyant, feel free to request support. You can do this by clicking on the client's name and selecting Request Support.