Meet Jessica. She’s 38, lives in Sydney and works as a personal trainer. Like all Australians, part of Jessica’s income is contributed into a superannuation fund for her retirement.
However, Jessica wants to have a greater say with her investments. Through a mixture of inheritance and bonuses from bringing in new clients, she has more money she would like to invest. Also, Jessica would ideally like to make the most of any investment earnings now, and not have to wait until retirement.
Unfortunately, like a lot of people, Jessica has maxed out her super contributions. Super is a great way to build up money for retirement, but has constraints and doesn’t offer enough flexibility for investors who need it.
This is why Jessica chose Centuria LifeGoals, the simple, flexible and tax efficient investment solution giving investors the control they want. If like Jessica you have reached your super limits, LifeGoals could be a suitable option for you.
Super is a great way to invest for retirement and benefits from government support. However, it does have constraints, including:
It’s important to be able to invest in a way that suits you and reflects your financial situation, but these limits mean super is unable to offer many investors the flexibility they need.
Fortunately, Centuria LifeGoals is giving investors a simple, flexible and tax efficient way to supplement your super. Centuria LifeGoals does this with the increasingly popular investment bond structure (essentially a mixture of a managed fund and life insurance policy). The most exciting features of Centuria LifeGoals include:
A Centuria LifeGoals investment gives you the flexibility you need so you can invest in a way that suits you, adapting to your financial situation as it evolves. And in addition to this flexibility, Centuria LifeGoals is a tax efficient solution as well.
To show you how Centuria LifeGoals is already helping investors, let’s go back to Jessica’s scenario.
Jessica, from a number of income sources, had an additional $200,000 to invest but unfortunately had used up her super contributions. In addition, she wanted the flexibility to access her investment before retirement. Jessica creates flexible and effective workout plans for a living, and she wanted to have the same say with her investments. With a 10 year investment horizon in mind, Jessica chose to set up a Centuria LifeGoals account investing in the managed growth option to complement her existing super. She could afford to initially invest an additional $500 per month in the first year and throughout the next ten years plans to continue investing while meeting the 125% rule.
This would mean that when Jessica reaches 48, she would have contributed $399,517 and her Centuria LifeGoals investment would have grown to approximately $503,033 (after tax and fees). As she had met the 125% rule throughout, she would be able to access the entire sum without any additional tax to pay.
With Centuria LifeGoals, Jessica will be able to invest in a way that suits her and can now enjoy her wealth without having to wait until retirement. Jessica champions fitness and wellbeing for a living, and now thanks to Centuria LifeGoals she feels stronger than ever.
Not your investor profile? You don’t have to be like Jessica to benefit from Centuria LifeGoals. Everyone’s financial situation is different and Centuria LifeGoals is used for a wide range of financial goals.
To understand just how flexible Centuria LifeGoals can be, we’ve created an innovative new financial calculator (LIFT) to help you decide how to grow your investment by selecting LifeGoals investment options. By simply entering information about your current situation and your financial aspirations, the calculator instantly shows how Centuria LifeGoals could work for your own specific situation.
This scenario has been produced purely to illustrate how Centuria LifeGoals can be used by different investor profiles and are is fictional.
1. Source: Australian Tax Office as at 1 July 2020.
2. In years 9 & 10 this difference is discounted by one-third and two-thirds respectively.
LifeGoals can be used for a number of investment scenarios. Which investor profile are you?