The RAM Education Investment Plan operates as a Scholarship Plan in accordance with the Income Tax Assessment Act 1997. The product is issued by Centuria Life Limited, a leading Australian Investment and Life Insurance company. Real Asset Management is the Investment Manager of the benefit funds within the plan. The unique structure combines the benefits of long term investment in managed funds, with the taxation and estate planning benefits of a life insurance investment bond structure.

Benefits of a Managed Fund:

Access to professionally managed funds
Choice of asset class
Liquidity
Diversification

Benefits of a Life Insurance product:

Maximum 30% tax rate
Tax rebated for education expenses
Tax paid structure
Certainty for beneficiaries
Protection from creditors

Why the RAM Education Investment Plan?

Tax Effective

Enjoy the unique tax features including tax rebate for education expenses and concessional tax treatment for withdrawal of gains.

Control

Retains complete control of assets and beneficiary/student nominations at all times.

Estate Planning

Treated as a non-estate asset with the insurance company responsible for carrying out your binding beneficiary nominations.

Flexible

Capital can be withdrawn at any time tax free. Switch between investment options without incurring personal taxation issues*.

Asset Protection

Protection from bankruptcy proceedings to fund the education expenses ongoing.

Financial Privacy

Moving assets from investors name into the Insurance Company benefit funds.

*Investors cannot switch between the RAM US Dollar High Yield Hybrid Income Fund and Australian benefit funds.

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Investment Options

INVESTMENT OPTIONS	EXPECTED LONG TERM RETURN PRE TAX P.A.	INCOME / GROWTH
RAM AUSTRALIAN CREDIT FUND	4.0%	INCOME
RAM AUSTRALIAN HYBRID INCOME FUND	4.0%	INCOME
RAM USD HYBRID INCOME FUND	5.0%	INCOME
RAM REAL INCOME FUND	6% – 8%	INCOME + GROWTH
RAM AUSTRALIAN PROPERTY FUND	6% – 8%	INCOME + GROWTH
RAM MULTI-ASSET CLASS GROWTH FUND	8% – 10%	GROWTH

Investment Structure

Plan Owner

The Plan Owner is the legal owner of the investment bond and has full ownership and transaction rights. Any one over the age of 16 can invest in the plan, either in Individual names, jointly or via an entity such as a trust or company.

Nominated Student

Any individual can be nominated as a student by the Plan Owner. To be eligible for reimbursement they must have valid education expenses in approved courses only. Nominated student have no rights attached to the plan. Best tax benefits for 18+ age.

Plan Guardian

The Plan Owner can nominate a Plan Guardian to administer the plan upon their death, or alternatively the plan can be administered by the owner’s estate if no plan guardian is nominated. The Plan Guardian does not have the power to nominate an alternative student.

Beneficiaries

The Plan Owner can nominate a beneficiary, who will receive the proceeds of the plan on a tax-free basis, upon the death of the last nominated student, or once they have completed their studies.

Eligible Expenses

A wide range of education expenses and costs can be claimed within the plan, such as:pre-school, primary and secondary school courses, tertiary and higher education expenses including TAFE’s, Universities and Registered Training Organisations, books, HECS/HELP fees, uniforms, equipment and living away from home expenses etc.

Investment

The maximum investment amount is $5 million AUD per nominated student and for the investment plan in total. There is no minimum investment period. Money is invested in unit trusts called benefit funds which are governed by the Life Insurance laws and regulated by APRA.