Finance & Fury Podcast

Welcome to Finance and Fury’s ‘Say What Wednesday’ where we answer your questions on personal finance. Today’s question today comes from William who asked us to do an episode on Investment Bonds. Investment bonds - What are they? Investment vehicle - Not to be confused with bonds which are a (Debt instrument) investment (just in case the question was asking to cover these, I’ll do another episode on these too) An investment bond is technically a life insurance policy Nominate a beneficiary It is a long-term investment with features similar to a managed fund money is pooled with money from other investors and invested Designed to be held for at least 10 years Types Traditional Investment Bonds – what we will focus on in this episode. There are also, Education Bonds, and Funeral Plan bonds   Tax Treatments Tax effective for individuals with higher Marginal Tax Rates Internal Tax of 30% - Tax paid at company rate by the insurance company Net income reinvested If no withdrawals are made in the firs