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.

Find out more.

 

Key features of an investment bond include:

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.

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.

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.

What can an investment bond help you achieve?

An investment bond is a great way to:
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    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.

  • Grandpa and child on stairs talking

    An investment bond can support you to provide for future loved ones, tax free, with uncontested certainty and peace of mind. Naming your beneficiaries means there is no disputing your intentions and your investment will be distributed to your nominated loved one(s) without delay.

  • Father and son making an paper airplane

    An investment bond allows for the simple transfer of wealth to children, tax free.

    Through Foundation Plus, a carefully designed feature of a Foresters Financial Investment Bond,  you are able to grow your wealth effectively, before easily and securely passing it on to a child or grandchild when they reach an age of your choosing. Once the child receives the money, they can spend it however they like.

  • Two older ladies discussing over laptop

    All earnings are taxed at the current tax rate of 30%. Any investment income paid to you on withdrawal is tax-free in your hands after 10 years if you meet the 125% Contribution Rule.

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    An investment bond is a tax-effective way to save for a large purchase—like a house, a boat, a car, a caravan, or a large overseas holiday when you retire. You can also accelerate your savings through a regular savings plan, with the additional flexibility to access your funds at any time.

What can an investment bond help you achieve?

An investment bond is a great way to:
  • Grandpa and child on stairs talking

    An investment bond can support you to provide for future loved ones, tax free, with uncontested certainty and peace of mind. Naming your beneficiaries means there is no disputing your intentions and your investment will be distributed to your nominated loved one(s) without delay.

  • Two older ladies discussing over laptop

    All earnings are taxed at the current tax rate of 30%. Any investment income paid to you on withdrawal is tax-free in your hands after 10 years if you meet the 125% Contribution Rule.

  • Placeholder image

    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.

  • Father and son making an paper airplane

    An investment bond allows for the simple transfer of wealth to children, tax free.

    Through Foundation Plus, a carefully designed feature of a Foresters Financial Investment Bond,  you are able to grow your wealth effectively, before easily and securely passing it on to a child or grandchild when they reach an age of your choosing. Once the child receives the money, they can spend it however they like.

  • Placeholder image

    An investment bond is a tax-effective way to save for a large purchase—like a house, a boat, a car, a caravan, or a large overseas holiday when you retire. You can also accelerate your savings through a regular savings plan, with the additional flexibility to access your funds at any time.

These are some examples of common goals that an investment bond can help you to achieve. Apply for a Foresters Financial Investment Bond today to take the first step towards achieving your financial goals.

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.
  • 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.

  • Create positive impact in your community

    Feel good about your bond investments as they provide a socially responsible alternative to regular saving accounts under our Responsible Investment Policy.

  • 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.

  • Support your community while you save

    Part of your management fee from your market-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.

  • 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 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 market-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.

Which investment option is right for you?

Our Investment Bond has four simple options to make it easier for you to chose the right investment to suit your financial goals. Each option has a unique risk profile and investment strategy and the flexibility to choose one, or a combination of, investment options. Please note, we recommend seeking professional advice regarding your individual circumstances and whether the investment option(s) are appropriate for you.

Investment Options and Asset Allocations

Download the Investment Options and Asset Allocation extract, from our 1 July 2022 Product Disclosure Statement.

 

 

 

Unit Pricing

From 1 July 2022 we commenced daily unit pricing. Pricing is updated regularly – click here to download the most recent price.

For historical weekly unit pricing data, prior to 1 July 2022, click here to download.

Fees and Costs

View the Fees and Costs extract from our Product Disclosure Statement, from our 1 July 2022 Product Disclosure Statement.

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

  • 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.

  • 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.

  • 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.

  • 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.

  • Yes, if you change your mind for any reason, simply provide written notice of your intention to cancel your Wealth Plus 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.