The investment can be accessed at any time without restriction and may be an ideal solution for:

Building your wealth:

• Tax effective wealth accumulation.
• An alternative or complementary strategy to superannuation.
• Non super transition to retirement.

Supporting your loved ones:

• Investing for minors, such as children or grandchildren.
• Intergenerational transfer of wealth.
• Flexible Estate planning solutions.

Protecting your assets and benefits:

• Protection of business assets for the self-employed.
• May assist in eligibility for Seniors Health Care Card offered by Services Australia.

Highly Recommended by Lonsec.

 

“Lonsec considers the investment bond to be the preferred entry point to the sector. The issuer of the investment bond has competitive advantages in most areas of assessment in people, process and design, with no areas of material weakness.”  – Lonsec Research Pty Ltd

 

 

 

*Refer to the disclaimer below.

Please note: Ratings are only one factor to be taken into account when deciding whether to invest in a financial product.

Investment Options

“the investment menu comprises the largest proportion of Highly Recommended managed funds compared to other investment bond issuer peers rated by Lonsec.”

Flexibility and choice with up to 41 investment options. 

• 18 highly rated Australian and overseas Fund Managers.
• 13 low-cost index options.
• 8 pre-mixed diversified options; or
• Build your own portfolio from our 18 individual ‘sector specific’ options.

Learn more.

Tax Effective

The KeyInvest Life Events Bond is fully tax paid after the 10-year period.

• Maximum tax rate of 30% (taxed internally & not in the hands of the investor) and may be further reduced by tax credits.
• No tax to pay on earnings while you remain invested, and nothing to report to the ATO each year.
• Increase contributions by up to 125% per year and maintain eligibility for the ten-year paid rule.
• No Capital Gains Tax when switching between investment options or transferring ownership.

Regular withdrawals are permitted. Receive a 30% tax offset from the ATO, reducing the tax payable on withdrawals made during the 10-year period.

Flexible Features

“may be valued by certain investors and therefore may provide a layer of flexibility that enhance the appeal of an investment bond. Lonsec highlights these additional features do not come with extra administrative costs.” – Lonsec Research Pty Ltd

• Child Advancement Option – nominate a child to receive ownership on a selected date, on or before the child’s 25th birthday.
• Estate Planning through KeyPlanner – provides greater control over wealth transfer dates, events, nominations, distribution amounts and payment frequency.
• Progressive Investing (Dollar cost averaging) – progressively invest initial and minimal contributions with a minimum of $20,000.
• Auto-Rebalance Options – maintain a chosen portfolio weighting and remain aligned with your risk profile.
• Additional Flexible Beneficiary Nominations – re-distribution of a deceased beneficiaries nominated percentage through the ‘Joint Survivorship’ option or automatically include other family members through the ‘Down-the-line’ option.

Other Benefits

Simplicity and ease of use

• Start with as little as $500 and save monthly from $50.
• A set and forget investment- invest for a specific future life event.
• No preservation, work test rules, or the restrictions imposed on Superannuation.
• Reduced paperwork – earnings are not required to be declared in a personal tax return while you remain invested for the 10-year period, no need to track Capital Gains Tax, dividend payments and imputation credits.

Flexibility

• Funds can be used for any purpose.
• Full control and access to your funds at any time.
• Switch between investment options or transfer ownership at anytime without triggering a Capital Gains Tax event or resetting the 10-year tax paid rule.

Peace of Mind with Estate Planning

Where beneficiaries have been nominated;

• Proceeds do not form part of the estate**, avoiding the costs and time delays associated with probate.
• Funds are received at death, tax free, regardless of the relationship or how long the Bond has been in place.
• Beneficiary nominations are binding and do not need to be constantly renewed.
• The investment can be nominated to a child of any age you choose between ages 10 – 25 years.

**Notional Estate Rules apply in NSW

The rating issued 02/2023 KeyInvest Life Events Bond is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only, and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and for Financial Advisers to access the full report. © 2023 Lonsec. All rights reserved.