NAB Equity Builder

For goal oriented investors looking for certainty.

There are some financial goals that emerge with greater clarity - specifically when the size and timing of the financial target are both known. Such targets might include:

• House deposit
• School fees
• A non-concessional superannuation contribution, or
• Funds to supplement a lifestyle change – prior to authorised access to any accumulated superannuation funds.

In the past, a margin loan may have been used for such a purpose, but if gearing levels are not managed carefully, an investor’s accumulated equity may be negatively impacted.

NAB Equity Builder can become a more stable place to accumulate equity, due to its no margin call structure, and the discipline of the regular principal repayment process. Equity is accumulated via additional contributions, progressively reducing both the gearing level, and the potential impact of negative market events closer to the target date.

There are risks associated with this product including falling prices, rising interest rates and falling returns. Find out more about the risks and benefits of a NAB Equity Builder.
 

NAB Super Lever

Have the desire to use leverage to grow your SMSF assets?

The ATO guidelines provided to all SMSF trustees places an expectation on fund trustees that they will balance diversification with the process of maximising returns for the fund. 

For funds over $1m, the borrowing capacity exists to build a portfolio of Limited Recourse Borrowing Arrangements (LRBAs). This means that a degree of diversification can be created, even though each loan arrangement is restricted to acquiring a single asset.

The maximum concessional contribution for each fund member is capped, and for some SMSFs, annual member contributions can seem to be a very slow mechanism to grow the value of the fund. The underlying performance of the fund starts to become the dominant driver of fund growth. 

The use of borrowed funds, for SMSFs with the relevant trust deed powers, can be another mechanism where an SMSF trustee can impact the gross value of assets operating within their superannuation fund.

With NAB Super Lever, SMSF trustees can:

• Borrow to invest into their SMSF
• Start with a small initial investment
• Interest payments may be tax deductible

While a margin loan can increase gains in a rising market, it can also magnify losses when the market declines. Find out more about the risks and benefits of a NAB Super Lever.