The ever changing regulatory landscape is spurring investors to seek out alternative strategies to complement their superannuation.
Mr Derek Emery, General Manager of Distribution at Australian Unity Wealth & Capital Markets said that despite what is traditionally acknowledged as a low awareness product amongst investors, there had been a significant increase in adviser interest in investment bonds of late.
“We have certainly seen a spike in the popularity of investment bonds following the 1 July superannuation changes. Given their tax benefits and flexible withdrawal options more and more Australians are appreciating the relevance of investment bonds in their investment structures”, he said.
“While superannuation is still going to be the most tax effective way for the majority of people preparing for retirement, there is a growing focus on diversifying structures and providing alternative financial solutions for people who are at different stages of their lives.”
Greg Bird, National Strategy Manager Australian Unity Wealth & Capital Markets, said one example was the growing number of financial advisers using investment bonds to prepare their clients for retirement.
“We see financial advisers using investment bonds to assist clients capped out of super to find alternatives for investing excess cash, enabling retirement prior to superannuation preservation age, families managing intergenerational wealth transfer and parents hoping to bridge the rising gap in education funding”, he said.
Australian Unity’s Lifeplan Investment Bond has a highly recommended rating from Zenith Investment Partners and it remains the market leader for funds under management and fund inflows.
Lifeplan Investment Bond is issued by Lifeplan Australia Friendly Society Limited ABN 78 087 649 492, AFS Licence No. 237989. Information provided here is general information only and current at the time of publication and does not take into account the objectives, financial situation or needs of any particular investor. In deciding whether to acquire, hold or dispose of the product you should obtain a copy of the Product Disclosure Statement (PDS) and seek professional financial and taxation advice.
The Zenith Investment Partners (“Zenith”) Australian Financial Services License No. 226872 rating (assigned November 2017) referred to in this document is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at http://www.zenithpartners.com.au/RegulatoryGuidelines.
About Australian Unity Wealth & Capital Markets
Australian Unity’s Wealth and Capital Markets business provides customer-centred wealth solutions that support peace of mind, financial security and help people navigate confidently through life’s stages. It includes Australian Unity’s financial planning, investments, life & superannuation, trustee services and property capabilities.
About Australian Unity
Australian Unity is a national health, wealth and living mutual company providing services to almost one million Australians, including 280,000 members. Australian Unity’s history as a trusted mutual organisation dates back to 1840. It has grown organically—by continually evolving to provide the services and products needed by the communities it serves—as well as through successful strategic mergers and diversification in to new business activities.