Reduce the risk of losses through a tax efficient investment

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Christine, 50 years

 

Meet Christine

Christine is 50 years old and looking to retire within the next 20 years. She has built a successful business and pays personal tax at the highest marginal rate. She has a super fund and owns a portfolio of shares and term deposits outside of super.

 

The strategy

Reduce the risk of losses through a tax efficient investment

Christine's adviser suggests she invest a portion of her non-super assets into Future Safe to access sharemarket returns with a lower level of volatility. She can keep investing in shares as a core part of her investment strategy in the lead up to retirement, and still have peace of mind that any losses will be limited. As she is still working, and looking for a solution that may be tax efficient, the 10 year Investment Interval option will be considered.
 

6 key steps

Christine works with her adviser through 6 key steps to:

Step 1 & 2: Understand her retirement goals and choose an Investment Interval
Together with her adviser, Christine identifies her investment goal, which is to invest a portion of her non-super assets to access sharemarket returns with a lower level of volatility. She selects the 10 year Investment Interval.

Step 3: Choose a protection option
She chooses the -10% Floor option as she is able to sustain some annual losses and prefers the ability to have higher caps.

Step 4: Choose her investments
Christine and her adviser discuss the investment options and choose to invest in the S&P/ASX 200 Total Return Index.

Step 5: Choose her withdrawal amount and frequency
At the end of each year, the investment return will be credited or debited to Christine’s policy. She is able to withdraw the investment return but chooses to leave it in the policy to maximise tax benefits and avoid adverse tax consequences.

Step 6: Check in each year to review her strategy
Christine reviews the protection and investment choices every year with her adviser to ensure these continue to meet her needs and fits her investment objectives.

For a detailed view of Christine's investment journey, please download the full version

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