NAB Equity Builder A new investment loan that could help you achieve your goals Achieving financial and lifestyle goals tends to cost money. Whether you’re saving a deposit for your first home, paying for school fees for your children, travelling or retiring early, smart wealth-building strategies can help you achieve these goals sooner. Borrowing to invest is a strategy most of us are familiar with. It’s how we buy property. You save a deposit and then borrow the rest to purchase a property. But did you know you can also borrow to invest in managed investments as a way to build wealth? NAB Equity Builder is a loan that lets you borrow money to invest in professionally managed and diversified investments. As you repay your loan over a specified time, your NAB Equity Builder facility could help you accumulate wealth in two ways. Firstly, as you pay down the loan, you increase your equity in the purchased investments. Secondly, the value of your investments may increase over time. Borrowing to invest can be a smart wealth building strategy but it's also important to remember that investment decisions can come with risks. 1) The value of your investments could rise or fall depending on the market. 2) And gearing can either magnify losses or gains. Chloe wants to save $200,000 in 10 years and could use the money towards a house deposit, school fees or a family holiday. She has $30,000 to invest and is unsure of the options available. She seeks advice and learns that, based on her income and assets, NAB can lend her $70,000. She now has $100,000 to invest on day one. This gives her a larger base from which to grow her money. Just like with a home loan, Chloe makes regular payments. After 10 years she’s paid back the $70,000 loan. Assuming she earns a 7% per annum return over 10 years, Chloe’s investment is now worth around $200,000. NAB Equity Builder gives you increased exposure to the share market from day one with more than 950 investment options to choose from, and a choice of your loan time frame, with early payoff possible. It’ll also provide you with a disciplined and goal-oriented savings program, as well as peace of mind knowing you don’t need to provide your home as security for your loan. You won’t have to worry about the threat of margin calls so you can stick to your financial plan without short-term volatility affecting your planned time in the market. At the end of the loan term, you’ll completely own the acquired investment portfolio and you can either keep it, cash it, or further invest. With the right planning and advice, you can start your journey towards achieving your goals today. Talk to your adviser or call us on 1300 135 145 to see if a NAB Equity Builder is right for you. nab.com.au/nabequitybuilder Case study assumptions The case study is based on a $30,000 investment and $70,000 loan. The principal and interest charges are repaid over a 10-year term with interest charged at 4.95% p.a. The investment of $100,000 is invested for a 10-year term and all income is re-invested over this term, resulting in 5% p.a. income return plus 2% growth return, which equals 7% p.a. total return. The case study example is hypothetical and for illustrative purposes only and should not be considered as advice. The names and features do not represent any particular person or real outcomes. There is no guarantee that the performance stated will reflect actual outcomes and will vary depending on assumptions used for calculation purposes. There are risks associated with gearing, which may make this strategy unsuitable for some investors, including that the value of your investments may rise or fall. The tax consequences of investing will depend on your particular circumstances. We recommend that you seek independent advice including professional tax advice before acting on any information in the case study. Important information This communication is provided by National Australia Bank Limited ABN 12 004 044 937 AFSL and AFSL 230 686. This information may constitute general advice. It has been prepared without taking into account an investor’s objectives, financial situation or needs and because of that an investor should, before acting on the advice, consider the appropriateness of the advice with regard to their personal objectives, financial situation and needs. Before making any decision about whether to acquire or continue to hold a financial product, you should obtain a copy of the relevant Product Disclosure Statement (PDS). Past performance is not a reliable indicator of future performance. The value of an investment may rise or fall with the changes in the market. Any opinions expressed in this communication constitute our judgement at the time of issue and are subject to change. We believe the information contained in this communication is correct and that any estimates, opinions, conclusions or recommendations are reasonably held or made as at the time of compilation. However, no warranty is made as to their accuracy or reliability (which may change without notice) or other information contained in this communication. This information is directed to and prepared for Australian residents only.