Invest Smarter

Investment Growth Bond Strategy Papers

Saving for children and grandchildren

Investment bonds can help families provide children and grandchildren with a positive financial start in life. When investing for a child or grandchild the investment bond can be structured in a number of different ways.

1. Adult as owner and child as life insured

2. Adult as life insured and policy owner, and child as beneficiary

3. CommInsure IGB within a family trust

4. Child Advancement Policies

Tax-effective investing

When compared to superannuation at 15 per cent and a marginal tax rate of up to 47 per cent1, tax on earnings in an investment bond2 sits firmly in the middle at 30 per cent.

In addition, there are no capital gains tax implications if clients switch between investments or transfer ownership of the bond.

Tax solutions for high income individuals

Investment bonds can be used to provide high income individuals with a means to increase their wealth in a tax-effective manner.

Estate planning and wealth distribution

Investment bonds are increasingly being deployed as a strategic investment tool for estate planning.

Why? There is no tax payable on the death benefit payment and it can be paid to a broad range of beneficiaries such as extended family, unrelated individuals or charities.

Additionally, CommInsure offers a Death Benefit Guarantee that provides certainty as to the minimum amount that will be paid on the death of the last surviving life insured.

Benefit of guarantees

Safety and security are important considerations for many people, especially when the market is volatile. Which is why the CommInsure Investment Growth Bond offers two key features that help protect capital from market risk:

1. Investment option guarantees (available on 4 of the 9 investment options)

2. Death Benefit Guarantee

More strategies to follow in the upcoming weeks.

Contact a dedicated Retirement BDM

NSW/ACT/SA/WA/NT

Simon Felice

0416 037 066

simon.felice@cba.com.au

QLD/VIC/TAS

Vijay Mathew

0475 955 323

vijay.mathew@cba.com.au

1Including Medicare Levy.

2When it is held for 10 years and the 125% rule (where each year’s contributions do not exceed 125% of the previous year’s contributions) is met.

Things you should know:

Lifestream Guaranteed Income and CommInsure Investment Growth Bond are issued by The Colonial Mutual Life Assurance Society Limited (CMLA) ABN 12 004 021 809 AFSL 235035. ‘CommInsure’ is used under licence by CMLA. Please view our Financial Services Guide.

A Product Disclosure Statement (PDS) for the Lifestream Guaranteed Income annuity is available by clicking here and the CommInsure Investment Growth Bond PDS is available by clicking here, from your financial planner or by calling 1800 624 100 and should be considered before making any decision about the products.

CMLA has entered into a Joint Cooperation Agreement with AIA Australia Limited (AIA) and Commonwealth Bank of Australia (CBA) for the joint operation of the CMLA and AIA businesses. AIA is part of the AIA Group, the largest publicly listed life insurance group in the Asia Pacific region with a presence in 18 markets. Whilst CBA will remain the ultimate shareholder of CMLA, under the terms of the Joint Cooperation Agreement AIA will have an appropriate level of direct management and oversight of the CMLA business.

CMLA’s Privacy Policy

As part of operationalising the Joint Cooperation Agreement, CMLA has adopted the AIA Australia Group Privacy Policy

Neither the AIA Group nor the Commonwealth Bank of Australia Group (excluding CMLA) nor their subsidiaries, guarantee Lifestream Guaranteed Income annuities or the repayment of capital or interest by CMLA. Investments in Lifestream Guaranteed Income annuities are not deposits or other liabilities of the AIA Group nor the Commonwealth Bank of Australia Group (excluding CMLA) nor their subsidiaries.

Neither the AIA Group nor the Commonwealth Bank of Australia Group (excluding CMLA) nor their subsidiaries, guarantee the performance of the Investment Growth Bond or the repayment of capital or interest by CMLA. Investments in the Investment Growth Bond are not deposits or other liabilities of the AIA Group nor the Commonwealth Bank of Australia Group (excluding CMLA) nor their subsidiaries. Investment products are subject to investment risk including loss of income and principal invested as described in the PDS. CMLA as product issuer does not guarantee the performance of the Investment Growth Bond except as expressly stated in the PDS.

This is general information only and does not take into account your individual objectives, financial situation or needs. You should assess whether the information is appropriate for you and consider talking to a financial adviser before making any investment decision.  To apply for an annuity you need to complete the application process described in the PDS. The offer made in the PDS is only available to persons receiving the PDS within Australia. Applications from outside Australia will not be accepted.

Taxation considerations are general and based on present taxation laws and may be subject to change. CMLA is not a registered tax (financial) adviser under the Tax Agent Services Act 2009. You should seek tax advice from a registered tax agent or a registered tax (financial) adviser if you intend to rely on information, to satisfy the liabilities or obligations or claim entitlements that arise, or could arise, under a taxation law.

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