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.

Wealth Plus 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:
  • 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.

  • 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 Wealth Plus,  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 Wealth Plus,  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 Wealth Plus today to take the first step towards achieving your financial goals.

Why choose Wealth Plus?

Wealth Plus 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

    Wealth Plus 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 Wealth Plus 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 Wealth Plus 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 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.

  • 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 Wealth Plus?

Wealth Plus 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 Wealth Plus 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

    Wealth Plus 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 Wealth Plus 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 Wealth Plus investment option is right for you?

Wealth Plus 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, the four investment options.

Please note, we recommend seeking professional advice regarding your individual circumstances and whether the investment option(s) are appropriate for you.

Choose from our four Wealth Plus options:

Capital Guaranteed

The investment strategy of this capital guaranteed investment option is to invest in a diverse range of mainly cash and fixed interest assets with a low risk profile in order to provide a stable and consistent return to guarantee the capital.
Risk Level: Low
Low High
Type of Investment Allowable Range
Minimum Maximum
Fixed Interest Investments 0% 95%
Cash Investments 0% 100%
Mortgage Backed Investments 0% 5%
Australian Shares 0% 5%
Mortgages and Advances 0% 10%

Balanced

The investment strategy for this unit-linked investment option is to invest in a diverse range of defensive and growth assets with a low to medium risk profile. The investment objective is to return CPI +2% over the long-term with an allocation of growth assets (40%) and weighted towards defensive assets (60%).
Risk Level: Low to Medium
Low High
Type of Investment Allowable range
Minimum Maximum
Defensive Assets
Cash investments 0% 60%
Fixed Interest investments 20% 60%
Total Defensive Assets 40% 60%
Growth Assets
Equity 20% 50%
Property 0% 20%
Alternatives 0% 10%
Total Growth Assets 40% 60%

Growth

The investment strategy for this unit-linked investment option is to invest in a diverse range of defensive and growth assets with a medium risk profile. The investment objective is to return CPI +3% over the long-term with an allocation of defensive assets (40%) and weighted towards growth assets (60%).
Risk Level: Medium
Low High
Type of Investment Allowable range
Minimum Maximum
Defensive Assets
Cash investments 0% 40%
Fixed Interest investments 10% 40%
Total Defensive Assets 20% 40%
Growth Assets
Equity 30% 70%
Property 0% 30%
Alternatives 0% 15%
Total Growth Assets 60% 80%

High Growth

The investment strategy for this unit-linked investment option is to invest in a diverse range of defensive and growth assets with a medium to high risk profile. The investment objective is to return CPI +4% over the long-term with an allocation of defensive assets (20%) and weighted towards growth assets (80%).
Risk Level: Medium to High
Low High
Type of Investment Allowable range
Minimum Maximum
Defensive Assets
Cash investments 0% 20%
Fixed Interest investments 0% 20%
Total Defensive Assets 0% 20%
Growth Assets
Equity 50% 90%
Property 0% 30%
Alternatives 0% 20%
Total Growth Assets 80% 100%

Ethical

The investment strategy for this unit-linked investment option is to invest in a diverse range of defensive and growth assets with a low to medium risk profile, in entities that have high Environmental, Social and Governance (ESG) performance by: excluding entities and/or investments that are exposed to activities that carry significant negative ESG risks; excluding entities and/or investments with business activities that are not social responsible investments; and targeting entities and/or investments with high ESG ratings – as outlined by the Society’s policy on responsible investments. The investment objective is to return CPI +2% over the long-term with an allocation of growth assets (40%) and weighted towards defensive assets (60%).
Risk Level: Low to Medium
Low High
Type of Investment Allowable range
Minimum Maximum
Defensive Assets
Cash investments 0% 60%
Fixed Interest investments 20% 60%
Total Defensive Assets 40% 60%
Growth Assets
Equity 20% 50%
Property 0% 20%
Alternatives 0% 10%
Total Growth Assets 40% 60%

Unit Pricing

Date Balanced Growth High Growth
13 August 2021 $1.0425 $1.0665 $1.1006
6 August 2021 $1.0390 $1.0617 $1.0938
30 July 2021 $1.0331 $1.0544 $1.0829
23 July 2021 $1.0329 $1.0543 $1.0802
16 July 2021 $1.0237 $1.0430 $1.0705
9 July 2021 $1.0214 $1.0402 $1.0664
2 July 2021 $1.0197 $1.0386 $1.0653
30 June 2021 $1.0217 $1.0410 $1.0681
31 May 2021 $1.0104 $1.0267 $1.0484
30 April 2021 $1.0047 $1.0188 $1.0386
31 March 2021 $0.9922 $1.0060 $1.0202
28 February 2021 $0.9831 $0.9888 $0.9973
31 January 2021 $0.9897 $0.9970 $0.9980
31 December 2020 $1.0000 $1.0000 $1.0000

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
Withdrawal Fee
The fee for each withdrawal you make Nil Not applicable
Termination Fee
The fee when you finally close your account Nil Not applicable
Switching Fee¹
The fee for changing investment options Nil Not applicable
Management Costs
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. 0.75%

1.60%
Annual fee of 0.75% charged on the average balance of the Savings & Investment Capital Guaranteed Fund’s gross assets.
 
Annual fee of 1.60% charged on the average balance of the Savings & Investment Balance Fund; Savings & Investment Growth Fund; Savings & Investment High Growth Fund; and Savings & Investment Ethical Fund gross assets.
 
The Management Fee is calculated and deducted on a monthly basis and is inclusive of GST (as applicable) less any input tax credits (including approximate reduced input tax credits) that we in the underlying investment options may be entitled to claim.

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.

Wealth Plus

  • 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 contribute more than 125% of your previous year’s contributions, the start date of the 10 Year Tax Rule will be reset for tax purposes. 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.