As the great superannuation debate of recent weeks continues to occupy our minds, it’s important that we are reminded of one of life’s truisms: with uncertainty comes opportunity.
It’s a timely reminder that for those of us currently accumulating wealth and of pre-retirement age, having a sole focus on superannuation may not be the answer.
There are alternative ways to accumulate wealth for retirement and diversify across tax structures – and one such opportunity is an Investment Bond.
Investment Bonds – also known as Insurance Bonds – are tax paid investments, the tax on investment earnings being paid by the provider at the tax rate of 30 per cent.
Investment Bonds are often used as a complementary strategy to superannuation given the superior flexibility they provide. There are no access restrictions and contributions can be made regardless of age and whether you are working or not.
There is also the ability to set up regular drawdowns – which may well offer tax rebates that can be offset against other income – to support any retirement income goals. Another significant advantage is that, as Investment Bonds are not governed by the Superannuation (SIS) legislation, beneficiaries nominated can be family, friends, charities, companies or trusts.
Remember too that there is no tax reducing the proceeds paid out, unlike the potential tax implications with superannuation death benefits.
Product providers of Investment Bonds have also shown innovation in creating their estate planning offerings by providing for flexibility in terms of how and when beneficiaries receive proceeds, be it an income stream or the traditional lump sum payment.
Perhaps, in these times of uncertainty, is the opportunity you’re after…is an Investment Bond that is ready to play a positive part in your future.
