Benefits of Annuities:
Diversified Investment Strategy

With a deferred variable annuity the range of investments available is virtually unlimited. The insurance policy can be opened in Australian dollars and all investments can be made in Australia if desired. But the policy can do so much more because it can invest in any tradable instrument, anywhere in the world, as long as an accurate value can be determined. This means that you can purchase shares, managed funds, hedge funds, exchange traded funds, etc. More exotic investments are also possible, such as shares in your own private company, property and sometimes even artwork or collectable cars. The policy investments can also be in any currency you wish (Australian Dollar, US Dollar, Euro, Pound, Swiss Franc, Peso, Rupiah, etc) which can spread investment risk or provide greater potential for a return through currency appreciation and investment diversification.

Liquidity is also important when making investments. With a deferred variable annuity, money can be added or withdrawn with a few days' notice. It is even possible to borrow against the value of the variable annuity. Also, should the entire capital within the policy be required, for example due to a change in financial circumstances, the annuity can be cashed in and the funds returned to the investor very quickly. It should be noted that there could be tax obligations arising out of any withdrawal or cashing in of a policy, either partial or in full. We are able to discuss the implications prior to any withdrawal with your accountant to ensure that any potential taxation obligations are minimized.