IOOF WealthBuilder

An investment bond is a ‘tax paid’ investment.

This means that the tax on investment earnings are paid by the bond issuer at the current company tax rate of 30 per cent and after ten years from the start date, the investment is free of personal income tax in the hands of the investor.¹

• It's tax paid while invested, so there is no personal assessable income.
• Withdrawals made after the ten year tax period are free of personal income tax.
• If the investment is withdrawn within the ten year tax period, investors get a rebate for the tax already paid within the investment bond.
• Franked dividends reduce the amount of tax paid within the investment bond.
• Benefit from no personal capital gains tax upon withdrawal, or when switching between investment options.

1 Ten year period is defined as the end of the tenth year from the start date for tax purposes. This may be different to the initial investment date.

It can be used for a wide range of investment strategies including tax management, wealth accumulation, early retirement and estate planning.

IOOF WealthBuilder offers investors a comprehensive range of investment options to cater for different needs.

These options give you access to leading fund managers.

IOOF WealthBuilder has low investment minimums, making it possible for you to set up different bonds to suit different investment strategies. You can choose to open an IOOF WealthBuilder account with either:

• a one-off lump sum, or
• a regular savings plan.

With a regular savings plan, you don't have to wait until you have a huge lump sum to start saving for that great family holiday, special occasion or for their kids.

IOOF WealthBuilder’s features give you unparalleled flexibility when it comes to contributing or withdrawing your money. You can:

• invest using BPAY^®, cheque or through a regular savings plan
• use the regular savings automatic increase facility – this increases the regular savings investment amount each year in line with the maximum investment you can make under the 125 per cent rule – to maximise your  savings and the tax benefits
• access your money whenever it’s needed – either through a one-off withdrawal request or through the regular withdrawal facility.

You can borrow additional money to invest in IOOF WealthBuilder through the IOOF loan facility. This can be a very effective tool to accelerate your potential earnings.

The IOOF loan facility allows you to access an interest-only investment loan using your IOOF WealthBuilder investment as security. As with all loans, the capacity to borrow is based on the balance of the investment and the underlying assets.

Some other great features of the IOOF loan facility:

• there are currently no loan fees (establishment or ongoing) or stamp duty relating to the loan
• you repay the principal a specific point in time – for example when you withdraw your IOOF WealthBuilder investment.