An investment bond has no limits on how much—or how often—you can contribute to your investment, providing you meet the 125% Contribution Rule. You can access your funds at any time and by meeting the 125% Contribution Rule your investment income will become tax-free after 10 years.
What is an investment bond?
An investment bond is a flexible savings product that grows your money over time to help you achieve your long-term financial goals. This can be anything from helping you save for your dream home to supporting your child’s education, reducing your tax, or even starting a business.
You can typically choose to invest an amount upfront and/or in addition to frequent contributions over time, depending on your personal savings goal.
A Foresters Financial Investment Bond features all of these benefits with the additional inclusion of Foundation Plus – a long-term
tax-effective savings plan specifically designed to make it easy and effective to transfer wealth to a child.
Key features of an investment bond include:
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1.
1. Enjoy tax-free earnings and withdrawals
You pay no personal tax on investment earnings while your money is in the fund. Plus, your withdrawals after 10 years are tax-free^, subject to the 125% Contribution Rule.
In order to receive investment earnings tax-free after 10 years, you must meet the 125% Contribution Rule. In the first year of your bond, your contribution amount is uncapped. However, from the second bond year onwards, your contributions each year cannot exceed 125% of the previous year’s contributions
^Withdrawals before 10 years will be taxable but may receive a tax offset for tax already paid in the fund.
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2. Financially protect your loved ones and plan your estate
You can nominate a beneficiary anytime to receive the proceeds of the investment bond in the event of your death—tax free—without the hassle of a probate, will or a trust. No yearly renewal is required, and you can update your nominated beneficiary at any time.
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3.
3. Simple, wealth transfer to a child
When a nominated child reaches an age of your choosing, there is no capital gains tax paid on the transfer of the policy. Additionally, the start date of the 10-year rule retains from the start of your policy, so the child is closer to tax-free withdrawals from the fund.
Why choose a Foresters Financial Investment Bond?
Our Investment Bond is uniquely designed to offer a range of key benefits, in addition to supporting you to grow your wealth over time.
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Easy to get started
Our Investment Bond features one of the lowest initial contribution requirements available, so you can capitalise on a small investment today for peace of mind tomorrow. Simply start with as little as $500 with monthly contributions of just $60.
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Create positive impact in your community
Feel good about your Foresters Financial Bond investments as they provide a socially responsible alternative to regular saving accounts under our Responsible Investment Policy.
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Take the confusion out of maximising your investment
Your Investment Bond account can be configured to automatically take advantage of the 125% Contribution Rule, ensuring you never miss the opportunity to maximise your investment.
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Support your community while you save
Part of your management fee from your unit-linked investments is donated to the Foresters Financial Community Grants Account. Its purpose is to provide grants to Australian based charitable organisations that align with our objective of creating positive social change in the communities in which we all belong.
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Get committed support and experience when you need it
With over 170 years’ experience of supporting our members in their time of need, our friendly Australian based team is here to support you every step of the way.
Why choose a Foresters Financial Investment Bond?
Our Investment Bond is uniquely designed to offer a range of key benefits, in addition to supporting you to grow your wealth over time.
-
Create positive impact in your community
Feel good about your Foresters Financial Bond investments as they provide a socially responsible alternative to regular saving accounts under our Responsible Investment Policy.
-
Support your community while you save
Part of your management fee from your unit-linked investments is donated to the Foresters Financial Community Grants Account. Its purpose is to provide grants to Australian based charitable organisations that align with our objective of creating positive social change in the communities in which we all belong.
-
Easy to get started
Our Investment Bond features one of the lowest initial contribution requirements available, so you can capitalise on a small investment today for peace of mind tomorrow. Simply start with as little as $500 with monthly contributions of just $60.
-
Take the confusion out of maximising your investment
Your Investment Bond account can be configured to automatically take advantage of the 125% Contribution Rule, ensuring you never miss the opportunity to maximise your investment.
-
Get committed support and experience when you need it
With over 170 years’ experience of supporting our members in their time of need, our friendly Australian based team is here to support you every step of the way.
Unit Pricing
| Date | Balanced | Growth | High Growth | Ethical | ||
|---|---|---|---|---|---|---|
| 17 June 2022 | $0.940444 | $0.960162 | $0.969846 | $0.904432 | ||
| 10 June 2022 | $0.967675 | $0.960162 | $1.009472 | $0.929228 | ||
| 03 June 2022 | $0.981691 | $1.008924 | $1.032965 | $0.941718 | ||
| 27 May 2022 | $0.981219 | $1.005663 | $1.025658 | $0.940728 | ||
| 20 May 2022 | $0.976956 | $0.999524 | $1.018208 | $0.936472 | ||
| 13 May 2022 | $0.980649 | $1.002537 | $1.022196 | $0.938246 | ||
| 06 May 2022 | $0.984499 | $1.011989 | $1.037030 | $0.944609 | ||
| 29 April 2022 | $1.000472 | $1.031420 | $1.061018 | $0.959615 | ||
| 22 April 2022 | $1.002133 | $1.036175 | $1.066775 | $0.963215 | ||
| 15 April 2022 | $1.000372 | $1.031448 | $1.063617 | $0.965875 | ||
| 08 April 2022 | $1.000273 | $1.034020 | $1.067188 | $0.967999 | ||
| 01 April 2022 | $1.005807 | $1.039160 | $1.072963 | $0.971988 | ||
| 25 March 2022 | $1.001750 | $1.035230 | $1.067340 | $0.969442 | ||
| 18 March 2022 | $1.000852 | $1.030453 | $1.058173 | $0.967046 | ||
| 11 March 2022 | $0.990294 | $1.015905 | $1.043047 | $0.957105 | ||
| 04 March 2022 | $0.998160 | $1.023361 | $1.049144 | $0.964768 | ||
| 25 February 2022 | $1.002762 | $1.026245 | $1.053719 | $0.966009 | ||
| 18 February 2022 | $1.016564 | $1.042583 | $1.075862 | $0.977797 | ||
| 11 February 2022 | $1.020592 | $1.045996 | $1.080320 | $0.980361 | ||
| 04 February 2022 | $1.025290 | $1.050955 | $1.083367 | $0.986559 | ||
| 28 January 2022 | $1.017765 | $1.041007 | $1.069323 | $0.976956 | ||
| 21 January 2022 | $1.026474 | $1.050591 | $1.083038 | $0.987230 | ||
| 14 January 2022 | $1.038964 | $1.065395 | $1.103399 | $0.999852 | ||
| 07 January 2022 | $1.048101 | $1.080116 | $1.125274 | $1.000000 | ||
| 31 December 2021 | $1.053704 | $1.086191 | $1.132085 | |||
| 24 December 2021 | $1.053477 | $1.084880 | $1.130110 | |||
| 17 December 2021 | $1.048736 | $1.079766 | $1.122937 | |||
| 10 December 2021 | $1.052864 | $1.084122 | $1.128843 | |||
| 3 December 2021 | $1.043989 | $1.073014 | $1.114614 | |||
| 26 November 2021 | $1.046698 | $1.076883 | $1.120911 | |||
| 19 November 2021 | $1.048444 | $1.078161 | $1.123828 | |||
| 12 November 2021 | $1.045333 | $1.074100 | $1.117857 | |||
| 5 November 2021 | $1.044927 | $1.073309 | $1.116863 | |||
| 29 October 2021 | $1.029864 | $1.056218 | $1.097263 | |||
| 22 October 2021 | $1.034074 | $1.060430 | $1.098245 | |||
| 15 October 2021 | $1.032118 | $1.056084 | $1.090204 | |||
| 8 October 2021 | $1.030733 | $1.054421 | $1.087725 | |||
| 1 October 2021 | $1.028467 | $1.051159 | $1.081687 | |||
| 24 September 2021 | $1.041285 | $1.066353 | $1.101862 | |||
| 17 September 2021 | $1.046432 | $1.072304 | $1.109165 | |||
| 10 September 2021 | $1.044410 | $1.069475 | $1.104929 | |||
| 3 September 2021 | $1.047630 | $1.073474 | $1.110243 | |||
| 27 August 2021 | $1.047199 | $1.072767 | $1.108722 | |||
| 20 August 2021 | $1.047231 | $1.072672 | $1.107560 | |||
| 13 August 2021 | $1.042525 | $1.066529 | $1.100645 | |||
| 6 August 2021 | $1.038994 | $1.061670 | $1.093750 | |||
| 30 July 2021 | $1.033055 | $1.054424 | $1.082875 | |||
| 23 July 2021 | $1.032864 | $1.054340 | $1.080224 | |||
| 16 July 2021 | $1.023684 | $1.043003 | $1.070551 | |||
| 9 July 2021 | $1.021364 | $1.040224 | $1.066426 | |||
| 2 July 2021 | $1.019703 | $1.038553 | $1.065730 | |||
| 30 June 2021 | $1.021738 | $1.040988 | $1.068163 | |||
| 31 May 2021 | $1.010449 | $1.026655 | $1.048400 | |||
| 30 April 2021 | $1.004723 | $1.018846 | $1.038567 | |||
| 31 March 2021 | $0.992236 | $1.005966 | $1.020203 | |||
| 28 February 2021 | $0.983102 | $0.988845 | $0.997272 | |||
| 31 January 2021 | $0.989696 | $0.996967 | $0.997985 | |||
| 31 December 2020 | $1.000000 | $1.000000 | $1.000000 | |||
Fees and other costs
The table below shows fees and other costs that you may be charged. These fees and other costs may be deducted from your account balance, the returns on your investment or Wealth Plus assets as a whole. You should read all the information about fees and costs because it is important to understand their impact on your investment.
| Types of fee or cost | Amount | How and when paid | ||||
|---|---|---|---|---|---|---|
| Traditional Costs | ||||||
| — | Establishment Fee | |||||
| The fee to set up your initial investment | Nil | Not applicable | ||||
| — | Contribution Fee | |||||
| The fee on each amount contributed to your investment | Nil | Not applicable | ||||
| — | Commission | |||||
| Nil | Not applicable | |||||
| — | Exit Fee | |||||
| The fee when the total investment is payable | Nil | Not applicable | ||||
| — | Switching Fee | |||||
| The fee for changing investment options | Nil | Not applicable | ||||
| — | Buy/Sell Fee | |||||
| The transaction costs for buying or selling underlying assets in relation to investment options | Nil | Not applicable | ||||
| Management Costs | ||||||
| — | Foresters Financial Management Fee | |||||
| To cover the cost of administering the Fund. The Management Fee may vary from time to time in accordance with the Rules of the Benefit Fund. |
0.60%
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Accrued Daily in the unit price and paid monthly. |
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| — | Investment Management Fee | |||||
| To cover the cost of external investment management. |
0.055% to 0.385%
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Accrued daily in the unit price and paid quarterly: • Cash/Term Deposits 0.055% • Credit & Government Bonds 0.165% • Australian Shares 0.385% • International Equities 0.385% • Alternative Assets 0.385% | ||||
| — | Total Management Cost | |||||
|
0.985%
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Total estimated management costs per annum. |
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1. Your investment may incur transaction costs (buy/sell spread) which will be taken into account in the entry and exit price.
Frequently asked questions
For more information, or to find the answers to other questions you might have, please download the PDS or view our additional FAQs.
Investment Bond
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The 10 Year Tax Rule is a tax incentive specific to an investment bond, being an investment type of life insurance policy, that allows income in the Fund to be taxed at the ordinary life insurance business (‘Business’) tax rate (currently 30%) and paid for by the issuer.
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As an investor, you do not need to declare any income accrued on your investment in your tax return or keep any capital gains record whilst you are invested in the Fund.
When you make a withdrawal from the fund after 10 years, and after meeting the 125% Contribution Rule, income on your withdrawal is not assessable income and therefore does not need to be declared on your personal income tax return.
Unless in certain circumstances, any withdrawal within the first 10 years will result in some level of assessable income. The investor will need to declare the assessable income in their personal tax return in the year it was withdrawn. -
In order to receive investment earnings tax-free after 10 years, you must meet the 125% Contribution Rule. Whilst there is no limit as to the amount you can invest in the first year of your policy (this will set your benchmark), each following year you can make the same contribution you did the previous year plus an additional 25%, therefore totalling 125%. If you keep to the 125% contribution limit, then your withdrawals after 10 years will be tax free. This means that in order to withdraw your funds and have no assessable income, you will need to keep your investment for a further 10 years from this point. Otherwise, any income component of your withdrawals during this period will be assessable income.
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You can access your money at any time. If any withdrawals are made in the first ten (10) years, then investment earnings can be assessable income for personal income tax purposes subject to a tax offset amount.
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Yes, a child aged between 10 and under 16 years old is able to take out a policy in their name with parental or guardian consent. A child who is a policy owner is not allowed to make investment decisions, which includes switching, beneficiary nominations or transfer of ownership. The child will be the Life Insured listed on the policy.
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Yes, if you change your mind for any reason, simply provide written notice of your intention to cancel your Investment Bond investment and return your Certificate of Membership within thirty (30) days from the date of issue or such other period permitted by relevant legislation. Foresters Financial will then refund all money contributed (subject to any applicable local State or Territory laws) less any fees, taxes and applicable stamp duty, after adjustment for any movement in the value of your unit-linked investment options. The cooling off period does not apply to applications related to contributions, switching, savings plans, or after exercising rights or for wholesale, sophisticated or professional investors.
Helpful resources for our Investment Bond
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