What Are Investment Bonds?

Finding the right investment option depends on your goals and financial situation. If you’re looking for an alternative to superannuation, saving for a specific goal, or ensuring your loved ones are financially protected, investment bonds could be the solution.

Investment bonds, also known as insurance bonds, are long-term savings plans where earnings are taxed at a maximum rate of 30% within the bond, meaning you don’t pay tax on the earnings personally. This can be especially beneficial for high-income earners whose marginal tax rate exceeds 30%, providing a tax-efficient way to save and invest.

Investment bonds offer great flexibility. If held for 10 years or more, withdrawals are tax-free — but you can also access your funds earlier if needed. These bonds are ideal for a variety of financial goals, such as:
– Supplementing retirement savings when you’ve maxed out super contributions
– Saving for a child’s education or as a future gift for grandchildren
– Estate planning, as you can nominate beneficiaries to receive the proceeds tax-free

If you’re considering investment bonds as part of your financial strategy, we’re here to help you understand if they’re the right fit for your objectives. Contact Us today to discuss how investment bonds can support your long-term goals.