Key Benefits Getting started is easy
Just $2,500 and $100 per month will Please call 1800 641 593 to make an appointment with an
get you started. ANZ Financial Planner to discuss a tailored plan to help you
achieve your financial goals.
With a modest outlay and low monthly contributions you can
start building your wealth sooner.
Visit our website.
Accelerate your returns. Information about the ANZ Regular Geared Savings Plan
and other Margin Lending products is available at
By adding borrowed money (also called leveraging or
gearing) to your own funds, you increase the total amount
of money working for you. With these additional funds,
you can diversify your portfolio, and potentially enjoy
higher investment returns sooner.
Leverage time, while you have it.
The discipline of regular contributions assists many people
in maintaining a steady investment strategy, which can
enable the achievement of your financial goals. The earlier
you start, the greater your potential returns. * You should seek your own professional advice concerning
the application of the taxation rules relevant to your particular
circumstances prior to implementing a gearing solution,
Dollar Cost Averaging. particularly as tax laws are subject to change.
Alleviate your concern over market fluctuations by investing This is published by Australia and New Zealand Banking Group
regular amounts consistently over time rather than making Limited ABN 11 005 357 522.
an initial lump sum investment and riding the roller coaster.
The information in this brochure is general information current at
the time of production. This material does not take into account your
Built in diversification.
personal needs and financial circumstances and you should consider
whether it is appropriate for you. Taxation laws are complex and their
Investing and gearing regularly into managed funds is an application may vary according to investors’ specific circumstances.
easy way to diversify your investment portfolio. ANZ recommends that you consult a financial adviser to determine
the implication of a regular geared savings plan on your particular
ANZ Financial Planners are representatives of Australia and
New Zealand Banking Group Limited (ANZ) ABN 11 005 357 522,
holder of an Australian Financial Services Licence. ANZ’s colour blue ANZ Regular Geared Savings Plan
is a trade mark of ANZ. Item No. 82113 06.2008 W134906
The power of now There are no maximum contribution restrictions for you, The ANZ Regular Geared Savings Plan uses Dollar Cost
How many times have you considered starting your own however, ANZ contributions are restricted by the Loan to Value Averaging through the regular investment facility.
investment portfolio? You may have heard about the benefits Ratio (LVR) of the managed funds you choose to invest in.
of investing and probably thought you should do something Dollar Cost Averaging
Different managed funds will have different LVRs, generally
about it. Well, you’re right. Getting started is probably the $1.20
ranging between 40% - 70%. If you invest in a managed
hardest and the most important step in investing.
fund with a 50% LVR for example, for every $500 that you $1.15
The sooner you start investing, the sooner your money contribute, ANZ can contribute up to a maximum of $500 $1.10
works smarter for you and the more time your investment (50% of the total $1,000 investment). For a full list of
approved managed funds and their LVRs, please go to $1.05
has to grow. price paid
Value of investing
How do you know when is the right time to invest? $0.95
If you want to start investing and are looking for a higher
Investments rise and fall over time. The key is to take
return than a standard savings plan, ANZ has a strategy that $0.90
advantage of any market movements to get better value Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
may help you reach your investment goals sooner.
for your money. Dollar Cost Averaging achieves just that
Creating wealth through gearing by using the market movements to help you buy more Tax Advantages
By adding borrowed money (also called leveraging or gearing) units when the prices are low, and fewer units when the Depending on individual circumstances, you may be able to
to your own funds, you increase the total amount of money prices are high. deduct interest expenses and borrowing fees for tax purposes*.
working for you. A larger portfolio may increase your income
through distribution payments and increase your investment
returns, but may likewise increase your losses. Show me how it works Relative potential gains over 10 years
Firstly, we have Jason who has $10,000 in savings
What is a Regular Geared Savings Plan? that he wants to invest in managed funds.
Jason Kate Keith
A powerful investment vehicle that combines regular monthly $125,000
contributions from you with a gearing strategy. Each month Secondly, we have Kate who also has $10,000 to invest
a nominated portion of your savings, together with funds in managed funds, but wants to make additional monthly $100,000
loaned to you by ANZ, are combined and funnelled into your contributions of $500.
choice of managed funds. $75,000
Finally, we show Keith who adds the advantages of an $58,016
How much can I invest? ANZ Regular Geared Savings Plan to his $10,000 savings $50,000
Many people believe they have to start an investment and $500 additional monthly contributions.
portfolio with a large lump sum. With ANZ’s Regular Geared Assumptions:
Savings Plan you can start with just a $2,500 contribution Calculations do not take transaction costs into consideration, but allow for payment of Capital
Gains Tax. Jason, Kate & Keith’s return is based upon an income rate of 4% per annum franked
and watch your wealth grow. at 80% (reinvested). Capital growth of 8% per annum. Loan interest is 10.50% per annum.
0yr 1yr 2yrs 3yrs 4yrs 5yrs 6yrs 7yrs 8yrs 9yrs 10yrs
Interest is paid monthly in arrears. Marginal tax rate of 46.5% (current top rate of 45% plus
1.5% Medicare levy).
Minimums Initial Initial Loan Monthly client ANZ Total monthly LVR Investment after repayment of any loan
contributions amount contributions contributions contributions (Gearing Ratio) After 5 Yrs After 10 Yrs
Your initial contribution $2,500
ANZ initial contribution $2,500 Jason 10,000 Nil Nil Nil Nil 0% $15,727 $25,407
Your monthly contribution $100 Kate 10,000 Nil 500 Nil 500 0% $52,926 $122,801
ANZ monthly contribution $100 Keith 10,000 10,000 500 500 1,000 50% $58,016 $143,901