Lifetime Income Fund Early Example

Below is a real life example of what's happened to the funds of one of the early investors in the Lifetime Income Fund after just over three months invested.

Investment Start date                                                                      18/12/2015
Invested                                                                       $150,000
He was aged 65
So the guaranteed tax paid drawn down rate is 5%
He started getting his Income Payments Immediately
Tax paid income he's been getting per fortnight          $288.46
There were seven fortnights from inception to 31 March 2016 so in total he has received tax free income of $2,019.22
   
Account value at 31 March 2016 is now: 
$159,452
How? Because of the performance of the underlying funds his money is invested in being included in his account.  

Lifetime Income Fund LogoSo it's working out pretty well so far!

I'd imagine that the investor is pretty happy, he's had his income and he has a guarantee he'll continue to receive that - for life.

His beneficiaries probably aren't aware of his investment but if he was to pass away they'd be considerably better of than if he'd left the money in the bank. So they shoud be happy.

The company providing the guarantee are also happy as there is more money to pay the income for longer which means they wont have to pay it and they'll make more money. So far it's a win for all parties.

There is no guarantee that the value of his fund will continue to grow. He is withdrawing money out each fortnight at the rate of 5% pa. There will certainly be periods where it will go down, indeed we expect it to go down most periods. However the above example shows how the performance of the underlying investments can more than make up for the fees being charged and income being drawn.

Click here to get more information on the Lifetime Income Fund then call Jonathan on 07 578 3863.

Tags: Annuities Retirement

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