119. Investment Bonds

Welcome back to another episode of the 360 Money Matters Podcast! 

In this episode, we discuss investment bonds, explaining that they are: a tax-effective vehicle for investing money. The income associated with the investment is paid within the bond and taxed at a maximum rate of 30%, which can be lower than an individual’s taxable income. If the asset is held for longer than ten years, there is zero capital gains tax when selling it. We also emphasize that investment bonds do not form part of your assessable income or a person’s estate, making them useful for estate planning and asset protection purposes.

However, it’s important to note that investment bonds cannot protect assets in cases of separation or family law matters. Additionally, we highlight certain limitations, such as the necessity to hold the bond for at least ten years to maximize its tax benefits and the importance of adhering to contribution rules based on prior years’ amounts.

This podcast contains information that is general in nature. It does not take into account the objectives, financial situation, or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This information is provided by Billy Amiridis &  Andrew Nicolaou of 360 Financial Strategists Pty Ltd, authorized representatives and credit representatives of AMP Financial Planning – AFSL 232706


Episode Highlights

  • About investment bonds

  • The tax environment

  • Benefits associated with investment bonds

  • Positive and negative aspects of investment bonds

  • Timeframe and contributions of investment bonds

  • The 125 percent rule

  • Use of investment bonds for specific purposes

  • Investment options within investment bonds

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