Why investing surplus funds in super isn’t always the answer

With its favourable tax treatment superannuation is often the best place to invest excess funds.

But there may be times in your life when you have investment needs outside of super.

The most obvious is if you are over 65 and retired, and can no longer contribute to super.

But other circumstances can also see you looking for non-super savings or investment options.

Maybe you’ve downsized, made a sea or tree change, or are moving into a retirement village and you have surplus funds from the sale of your family home.

Perhaps you’ve come into an inheritance or sold a business or an investment property.

If you’ve reached the concessional cap of $25,000 per annum though, it may no longer be tax effective to make a contribution of these lump sums to your super.

For others, retirement is a long way off and you just don’t want to lock money away that you may need later. You might have some short-term financial goals like overseas travel or renovations.

Putting surplus funds in the bank may be simple, but it is not always the best option.

Today’s historically low cash returns mean inflation will erode your money faster than ever.

Investment platforms are another option to consider because you can choose from a broader range of investment options and access the expertise of experienced fund managers.

ifsinvest is an example – it’s brought to you by Industry Fund Services, which is wholly owned by 27 leading industry funds.

By using an investment platform like ifsinvest you can manage the risk/return profile of your money.

You can select from a range of portfolio models ranging from Cautious to Highly Aggressive, each providing a diverse asset allocation.

This way your investments can be easily aligned with your particular needs, circumstances and risk appetite.

Non-super investment platforms have many features you may be familiar with, such as the ability to draw regular monthly payments or to add regular savings.

They offer online access, even through mobile devices such as tablets and smart phones, and provide a consolidated view of your assets with comprehensive performance and tax reporting.

As a wealth creation strategy you can start investing in ifsinvest with just $1000* and invest additional funds from as little as $100 per month.

We’ve seen people set up accounts for infant children and establish a regular savings plan to help fund future needs, such as education. Increasingly they’re also being used to help save for a home deposit.

ifsinvest has a secure portal with fast, simple, intuitive navigation and is supported by a dedicated client care team.

Because the platform is easy to use, you can manage your investments yourself and save on financial planner fees.

Contact Industry Fund Services on 1300 734 496 or click here to find out more, or to request an information kit.

Important notes:
* You also need to maintain a balance of at least $2500 in your Cash Hub at all times.
All investments carry risk. Before deciding to invest, you should consider the following key risks:
• The value of investments will vary. You can lose money as well as make money.
• The level of returns will vary, and future returns will differ from past returns
• Returns are not guaranteed and investors may lose some or all of their money, and
• Laws change.
OneVue Wealth Services Limited ABN 70120380627 AFSL308868 (OneVue) is the product issuer of ifsinvest. Industry Fund Services ABN 54 007 016 195 AFSL 232514 (IFS) has entered an arrangement with OneVue to make ifsinvest available to you. IFS receives fees for its services. This information has been prepared by IFS as promoter and distributor of ifsinvest. It contains general information and does not take into account your personal objectives, financial situation or needs. We recommend that you consult a financial adviser if you require financial advice that takes into account your personal circumstances. It is important before deciding whether to invest that you read the Disclosure Documents and consider whether ifsinvest is suitable for you.
A copy of the Disclosure Documents can be obtained by calling 1300 734 496 or from the Documents and Resources tab of ifsinvest.com.au