I recently received an inheritance windfall and as I am well-funded in my superannuation, I'm thinking about how to invest it. Does UniSuper provide investment services outside of superannuation and if so what are they and how do they work?

Receiving an inheritance often comes with mixed emotions. It can be emotionally draining and this can make it difficult to decide what to do with your newfound financial responsibility.

Before acting it is important to think before you spend and not rush into making decisions immediately. Whilst it may be tempting to think of ways to spend the money, it is for many an opportunity to set up the future for not only them but also for the next generation.

Below are some things you can think about.

Ascertain your current financial situation and setting goals

  • Identify if these new funds can help you achieve your financial goals or whether you can afford to help other family members.
  • Prioritise often competing uses for the funds by making a list of where you would like the funds to go. 
  • Align both short and long-term financial goals for you, your spouse and your children/grandchildren, if you have them
  • Ascertain whether the funds allow you to prepare for an earlier retirement or whether to put provisions in place for future generations, or a bit of both.
  • Consider paying off debts, particularly any with high interest
  • If you are inheriting assets such as property or shares, decide how these assets fit with your current financial position and how should you be structured moving forward.

Investing

  • Consider how to invest to optimise the tax situation wherever possible
  • Determine a level of risk for your investments that is appropriate for you and what your financial goals are.
  • Consider establishing investment portfolios for the benefit of any children or grandchildren you have, such as to fund school or university fees.

Contributing into super

Consider how you can make effective use of the concessional (pre-tax) contribution cap of $25,000 per year for you or a partner or even your children.

Investing outside of superannuation

If you have utilised the contribution limits into superannuation or you need access to the funds sooner than retirement then investing outside of superannuation may become a relevant consideration. Some options to consider here include:

Managed Funds

A portfolio of managed funds, where your money is pooled together with other investors and which is managed by a qualified and experienced investment team. Managed funds can be a good way to diversify whilst allowing access to investments not generally available to individuals..

Separately Managed Accounts

A portfolio of shares which are managed by a professional team. This provides greater transparency of the underlying investments; as you can see at any time the exact shares and quantity of those shares that you have beneficial ownership of. They potentially offer some benefits in managing capital gains tax by knowing when the investments are sold compared to pooled managed funds. UniSuper advice can assist in the construction of the model portfolio; however engage direct share experts to provide individual share selections.

Investment Bonds

These can potentially be tax effective investments, as the earnings received by the investment company are taxed at the corporate tax rate (currently 30%) before being re-invested in the bond. If you are unable to contribute more into super but are looking for a long term investment that potentially offers tax-effective savings Investment Bonds may be worth considering as part of your portfolio. There is no tax on withdrawals from Investment Bonds after 10 years. These funds have a range of different investment options.

Whatever your investment needs are it is important to consider the risks and benefits of the various options and read the relevant product disclosure statement. UniSuper’s advisers can work with you to put a plan in place to meet your own immediate and long-term financial needs, and to provide you and those close to you with a solid foundation for the future.

Advice beyond super

To answer the second part of your question, yes, UniSuper does provide personal advice services on products outside of superannuation. We can help you with advice related to investment strategies, income planning, redundancy, wealth accumulation, insurance and debt management, as well as retirement and transition to retirement planning. Visit Advice beyond super to find out more. 

If you’d like to make an appointment, call us on 1800 UADVICE (1800 823 842) or email us at advice@unisuper.com.au.



The information contained in these responses are not legal, taxation or accounting advice. It is intended to provide general information only. It has been prepared without taking into account your objectives, financial situation or personal needs. Prior to making any investment decisions, you should speak with a financial adviser to consider whether this information is appropriate for your needs, objectives and circumstances. You should also obtain a copy of the relevant product disclosure statement (PDS) prior to making a decision regarding any investment in any financial product. Whilst care has been taken in the preparation of this information, the accuracy or completeness of the information is not guaranteed. This case study was prepared and issued by UniSuper Management Pty Ltd ABN 91 006 961 799, AFSL No: 235907, which is also the administrator of, and wholly owned by, the UniSuper Superannuation fund (ABN 91 385 943 850). UniSuper Limited (ABN 54 006 027 121) is the trustee of the fund. UniSuper Advice is operated by UniSuper Management Pty Ltd, which is licensed to provide financial product advice to members.

Answered by Craig Naylor

Craig-Naylor-560x315

Craig has over 16 years’ experience in the financial services industry.

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