What can I expect during my first meeting with you?

During our first meeting, we’ll have a relaxed and open conversation about your financial situation, goals, and any concerns you might have. I’ll explain how I work, what you can expect from the process, and answer any questions you have. This meeting is all about understanding your needs and seeing if we’re a good fit to work together. It’s a no-pressure environment, focused on your financial well-being.

How do you tailor your financial advice to my specific needs?

I take the time to understand your unique financial situation, goals, and values. Based on this understanding, I create a personalized financial plan that includes specific recommendations tailored to your needs. In this plan, I’ll explain what each recommendation is, why it’s in your best interest, and how it can help you get ahead financially. My goal is to ensure you have a clear path toward achieving your life goals with confidence.

What is the cost of your financial planning services, and what does it include?

The cost of my financial planning services varies depending on the complexity of your needs, but I provide a clear breakdown of fees upfront. Typically, the service includes an initial consultation, a comprehensive financial plan tailored to your goals, and the implementation of the plan. I also offer ongoing support to ensure your plan stays on track as your life changes. The specific costs and services will be outlined in detail before we begin, so there are no surprises.

How do you help me save on taxes and grow my wealth?

I analyze your financial situation to identify opportunities for tax savings and wealth growth. By optimizing your investments, structuring your income efficiently, and leveraging tax-effective strategies, I help you reduce your tax burden and maximize your returns. My goal is to ensure that your money works harder for you, helping you grow your wealth over time while minimizing unnecessary costs.

What types of clients do you work with?

I work with a diverse range of clients, including professionals, families, and retirees who are serious about achieving their financial goals. Whether you’re looking to grow your wealth, plan for retirement, or manage your super, I tailor my services to meet your unique needs. My clients value personalized advice and a clear, actionable plan to help them navigate their financial journey with confidence.

How do you ensure my financial plan aligns with my long-term goals?

I start by understanding your long-term goals through detailed conversations and fact-finding. From there, I design a financial plan that’s specifically aligned with those goals, whether it’s superannuation planning, investment management, or retirement planning. I also regularly review and adjust your plan to ensure it stays on track as your circumstances and goals evolve. My focus is on creating a plan that not only meets your current needs but also adapts to your future aspirations.

What is your approach to managing investment risk?

I take a balanced approach to managing investment risk by first understanding your risk tolerance through a detailed assessment. Based on this, I recommend a diversified portfolio that aligns with your comfort level and financial goals. I provide examples of both high-growth and low-growth investments, explaining their potential risks and returns over the short and long term. My goal is to help you make informed decisions that balance risk with the potential for growth, ensuring your investments are aligned with your long-term objectives.

How often will we review my financial plan?

We will review your financial plan at least once a year to ensure it remains aligned with your goals and any changes in your circumstances. However, if there are significant life changes or market shifts, we can schedule additional reviews as needed. Regular reviews help us make necessary adjustments to keep your plan on track, so you can feel confident that your financial future is well-managed.

What makes My Wealth Choice different from other financial planning services?

At My Wealth Choice, I focus on providing personalized, unbiased advice that’s tailored to your unique needs and goals. Unlike some advisers who may push products for commission, I’m completely free from bias and do not take commissions, ensuring that my recommendations are solely in your best interest. I work closely with you to develop a plan that truly reflects your financial aspirations, and I prioritize building a relationship based on trust and transparency, so you always feel confident in the decisions we make together.

How do you stay up-to-date with changes in the financial landscape?

Staying up-to-date is a team effort at My Wealth Choice. I’m supported by a large, multi-experienced team from various aspects of financial planning, who all contribute to ensuring we are on top of the latest market trends, regulatory changes, and best practices. We regularly attend industry seminars, complete ongoing professional education, and collaborate to share insights. This collective expertise allows us to provide you with the most current and well-rounded advice, keeping your financial plan effective and aligned with your goals.

Will you receive any commissions from the products you recommend?

No, I do not receive any commissions from the products I recommend. My advice is completely unbiased, and my only focus is on what’s best for you and your financial goals. This approach ensures that the recommendations I make are solely in your best interest, without any influence from product providers. My commitment is to transparency and trust, so you can feel confident in the advice you receive.

How does My Wealth Choice handle my personal information and privacy?

At My Wealth Choice, your privacy is a top priority. We handle your personal information with the utmost care, using strict confidentiality protocols and advanced security measures to protect your data. We comply with all relevant privacy laws, and only share your information with third parties when necessary and with your consent. For full details on how we protect your privacy, please refer to our Privacy Policy available on our website.

What happens if my financial situation changes after we’ve created a plan?

If your financial situation changes, we can revisit and adjust your financial plan to ensure it still aligns with your goals and circumstances. Life is dynamic, and your financial plan needs to be flexible enough to adapt to any significant changes, whether it’s a new job, a major purchase, or changes in your financial priorities. I’m here to support you through these changes and ensure your plan continues to work for you.

Do you offer ongoing support after the financial plan is implemented?

Yes, I offer ongoing support to ensure your financial plan stays on track even after it’s implemented. We’ll regularly review your plan together, making adjustments as needed to keep up with any changes in your life or the financial landscape. My goal is to provide continuous guidance, so you can feel confident that your financial future is well-managed and aligned with your goals.

How do I get started with My Wealth Choice?

Getting started is simple! Just reach out to me via the contact form on my website or book your Financial Clarity Meeting to schedule an initial consultation. During this meeting, we’ll discuss your financial goals, current situation, and how I can help you. This first step is all about getting to know each other and determining if we’re a good fit to work together. From there, we’ll move forward with creating a personalized financial plan tailored to your needs.

What if I don't have time for a financial plan?

If you don’t have time for a financial plan, that’s exactly why you should hire me. You might be crushing it at work, making good money, and even managing a couple of investment properties, but I can help you take it to the next level. While you focus on your career and family, I’ll handle the complex financial details, ensuring that your wealth continues to grow and your financial goals are met. My goal is to free up your schedule by taking care of the research, planning, and implementation. This way, your finances are well-managed, and you can continue doing what you do best without worrying about the details.

What value can I expect from financial planning if I’m unsure about its benefits?

Financial planning provides you with a clear roadmap to achieve your financial goals, offering peace of mind and a sense of control over your future. It helps you make informed decisions about saving, investing, and managing your money more effectively. By working together, I can help you optimize your finances, reduce unnecessary costs, and position yourself for long-term success. Even if you’re unsure about the benefits, the clarity and confidence you gain from a well-crafted plan can be invaluable. Many clients find that the insights and strategies we develop together are worth far more than the initial investment.

Investment Bonds in Australia: A Strategic Tool for Tech Professionals

Mo Shouman
Aug 7
8 min read

Updated: Sep 11

Retirement planning for comfortable future

Understanding the Investment Bond Concept

High‑income professionals in Australia face some of the world’s highest marginal tax rates. Once annual taxable income exceeds around $180 000, the marginal tax rate climbs to 45 % plus the Medicare levy. Recent reforms such as the 15 % Division 296 tax on superannuation balances over $3 million have also prompted high‑net‑worth individuals to look for alternative wealth‑building Amid this landscape, investment bonds have re‑emerged as a versatile solution, especially for those seeking professional financial advisers in Sydney, Australia.

Investment bonds have an unfortunate name—they’re not standard bonds. In practice, they’re a versatile arsenal I deploy to help my tech-professional clients build and protect wealth.

Investment bonds (also called insurance bonds) combine a managed investment with a life‑insurance They are issued by companies and allow investors to select from a range of underlying portfolios—cash, fixed income, Australian equities or multi‑asset options. While legally life‑insurance policies, their primary purpose is tax‑effective investing rather than risk protection.

A common mistake Tech Professionals ALWAYS do and I solve

A common mistake I see tech professionals make—almost every time—is buying assets simply because they can afford them and then putting them in their own personal name. It feels easy, but it’s often the most expensive way to own things: you miss smarter tax outcomes, weaken asset protection, limit estate-planning options, and sometimes even reduce borrowing flexibility. I talk about this in my Wealth Bytes Podcast ( The only podcast dedicated to Tech Professionals).

This is where our financial planners in Sydney, Australia add value. My job is to flip that default. I help them choose the right ownership structure (personal vs. trust vs. company vs. super) based on goals, cash flow, risk profile, and timing - so every purchase pulls its weight. I walk through real examples in the episode - listen to it and see how a small change in “whose name” can make a big difference. I am always ready for the help whether its property investment advice, self-managed super fund advice, or early retirement planning in Sydney.

How the Structure Works – Without Going Into the Mechanics

Now back to the investment bonds. At a high level, when you put money into an investment bond you do not hold individual shares or managed funds directly. Instead, the bond provider pools money from many investors and invests it on their behalf. Investors can add funds each year; if they adhere to certain rules (discussed below) the accumulated earnings can eventually be withdrawn tax‑free. The provider, not the investor, handles all annual tax reporting and pays tax internally on the bond’s earnings. As a result, there is no need for you to file annual tax returns on the bond itself.

Key Features That Appeal to High‑Income Professionals

Flat 30 % Internal Tax Rate

Unlike direct investments where earnings are taxed at your marginal rate, investment bonds pay tax on earnings within the bond at a flat 30 % ( some of our portfolios taxed at 1.7%) For high‑income earners subject to the 45 % marginal tax rate, this internal tax treatment can make a substantial difference. Think about it a $10 000 gain inside a bond is taxed at 1.7%, leaving $$9,830 to compound, whereas the same gain outside the bond could face a 45 % tax, leaving only $5,500 Compounded over years, the difference is meaningful.

The 10‑Year Rule: Tax‑Free Withdrawals

Provided that the investment bond is held for more than 10 years, any withdrawal of earnings is tax‑free and is not included in your personal assessable. This rule distinguishes investment bonds from most other investment products: capital gains and income can be realised after a decade without further tax. If you make partial withdrawals before the 10‑year mark, the assessable portion of earnings is taxed at your marginal rate, but the bond provider credits a 30 % rebate representing tax already paid.

The 125 % Rule: Growing Contributions Without Resetting the Clock

To preserve the 10‑year tax‑free status, your contributions in each successive year must not exceed 125 % of the previous year’s. For example, if you invest $10 000 in year one, you can invest up to $12 500 in year two, $15 625 in year three, and so on. Exceeding the limit resets the 10‑year clock for the entire bond; sticking to it allows you to expand your investment gradually while keeping the original start date intact.

Flexibility Without Superannuation Restrictions

Investment bonds sit entirely outside the superannuation system. Consequently:

There are no contribution. You can invest large lump sums or smaller annual amounts (subject to the 125 % rule) without hitting annual concessional or non‑concessional limits.
There are no compulsory withdrawals or retirement age restrictions; you can access your money at any time (though early withdrawals may trigger tax on earnings).
Bonds avoid Division 296, the new 15 % tax on superannuation balances over $3 million.
On death, proceeds can pass directly to nominated beneficiaries without probate or additional , giving high‑income earners greater estate‑planning flexibility.

Estate Planning and Gifting Applications

Investment bonds are technically life‑insurance policies, which enables features not available in regular managed funds. You can name specific beneficiaries, and the bond pays out directly to them. Unlike testamentary trusts or wills, the proceeds usually bypass probate and reduce the risk of disputes. Bonds are therefore useful tools for:

Estate planning: transferring wealth to spouses, children or charities outside your will while retaining control during your lifetime.
Education funding: building dedicated portfolios for children or grandchildren; withdrawals after 10 years are tax‑free.
Future gifting: setting aside funds for philanthropic donations or to help family members purchase property or cover major expenses.

Privacy and Administrative Ease

Because the bond provider pays tax internally and handles all record‑keeping, investors do not receive annual tax statements or need to disclose earnings in their personal tax returns This can simplify life for busy professionals and reduces the chance of non‑compliance.

Why My High‑Income Professionals Are Taking Notice in 2025

Several trends have pushed investment bonds back into the spotlight:

Superannuation Changes and the $3 M Super Cap.

The Albanese government introduced a 15 % Division 296 tax on the portion of super balances exceeding $3 million from 2025. High‑net‑worth Australians are turning to investment bonds as a “clean, tax‑effective structure” unaffected by Division 296.

Concentration of High‑Income Earners.

According to the Australian Taxation Office, more than 16 % of Australians earn over $120 000 These individuals are hit by 37 % or 45 % marginal tax rates. The flat 30 % tax inside bonds provides immediate tax relief and smooths income across life stages.

Super Contribution Caps and Legislative Uncertainty.

Contribution limits make it difficult to significantly boost superannuation once salary exceeds certain thresholds. Bonds provide a parallel vehicle for excess savings. In addition, financial planners caution that favourable rules could change; there is speculation that the window to fund investment bonds under current conditions may narrow as policymakers look for new revenue

Preference for Flexibility.

High‑income professionals often value the ability to access capital for career breaks, entrepreneurial ventures or investment opportunities without age‑based restrictions. Bonds allow withdrawals at any time (with potential tax implications), giving more control than superannuation.

Illustrative Example

Consider Sam, a 45‑year‑old consultant earning $180 000 a year—solidly in the 45 % tax bracket. Sam has maxed out his super contributions but still has surplus income to invest. He decides to contribute $20 000 a year into an investment bond. If Sam adheres to the 125 % rule, after 10 years he can withdraw the accumulated earnings tax‑free, providing a pool of funds for early retirement, a child’s university fees or a property .

Had he invested in a regular managed fund, the ongoing earnings and capital gains would be taxed annually at his marginal rate, reducing the compounding effect. While the bond’s performance depends on market returns and fees, the tax advantages could make a substantial difference for someone in Sam’s position.

Considerations and Potential Drawbacks

Fees and Investment Choice. Bonds are often bundled products with management fees higher than those of simple index funds or exchange‑traded funds. Returns depend on the underlying investments and may lag low‑cost. Selecting a reputable provider and appropriate investment option is crucial.
10‑Year Commitment. The 10‑year tax‑free benefit encourages long‑term investing. Withdrawing within the first 10 years can trigger tax on earnings. Exceeding the 125 % contribution rule also resets the 10‑year clock. High‑income earners must ensure they can leave funds untouched or plan contributions carefully.
Market Risk. Investment bonds are not guaranteed; they rise and fall with financial markets. During prolonged downturns, the tax advantages may not fully offset investment losses.
Regulatory Risk. As Hudson Financial Partners warns, favourable treatment could come under political scrutiny. While bonds are currently outside Division 296 and superannuation caps, future governments might alter rules or tax rates.
Complexity and Product Variability. The marketplace includes many providers with different fee structures, investment options and features. Professional advice is essential to match products to your goals and risk tolerance.

Who Should Consider Investment Bonds?

Investment bonds are best suited to:

High‑income professionals on marginal tax rates of 37 % or 45 %. The flat 30 % tax provides immediate relief and can boost after‑tax returns.
Individuals who have maximised their superannuation contributions and seek additional tax‑effective savings vehicles.
Parents or grandparents planning long‑term education funding or gifts
People focused on estate planning or charitable giving, who want control over how and when beneficiaries receive funds, without the complexity of trusts
Those seeking income smoothing, such as professionals planning a sabbatical or early retirement.

Importantly, investment bonds should complement, not replace, superannuation. Super continues to offer concessional tax rates on contributions and earnings. Bonds become relevant once those limits are maximised or when additional flexibility and estate‑planning features.

Final Thoughts for High‑Income Earners

Investment bonds are not a panacea, but they offer a unique combination of tax efficiency, flexibility and estate‑planning benefits that resonates with many high‑income professionals. Their structure allows you to invest surplus income in a managed portfolio taxed at 30 %, with the potential to withdraw earnings tax‑free after 10 years. Because they exist outside superannuation, bonds avoid contribution caps and Division 296, provide direct beneficiary nominations and simplify tax reporting.

These features make them a compelling tool for individuals whose earnings subject them to the highest marginal tax rates. However, you should weigh the advantages against fees, market risk, the 10‑year commitment and the possibility of future legislative changes. Engaging a qualified financial adviser or wealth management advisor in Sydney can help determine whether investment bonds align with your wealth‑building strategy.

Ready to explore your investment bond and tax saving potential?

Book you Financial Clarity meeting today and receive a detailed report on your current financial picture along with personalized strategies to secure and improve it.

General Advice Warning: “The information in this article and the links has been prepared for general information purposes only and does not consider your personal objectives, financial situation or needs. It is not intended to provide commercial, financial, investment, accounting, tax or legal advice. You should, before you make any decision regarding any information, strategies, or products mentioned in this document, consult a professional financial advisor to consider whether it is suitable and appropriate for you and your personal needs and circumstances. Before deciding to acquire a financial product, you should obtain and read the Product Disclosure Statement (PDS) relating to that product, together with the Target Market Determination (TMD).

I hope you found this article beneficial. I’m Mo Shouman, a financial adviser with 20 years of experience helping professionals save on tax and grow their wealth. Book your financial clarity meeting below and discover how you can take your finances to the next level. I’m proud to be the only adviser who provides a detailed assessment of your financial position—whether you decide to work with me or not!

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