Broker Communications - Moving money off deposit - Why Zurich for Investment Bonds?

Broker Communications - Moving money off deposit - Why Zurich for Investment Bonds? https://zurichlifeireland.newsweaver.com/toolstohelpyou/ en-us 12 Sep 2023 11:51:41 IST 12 Sep 2023 11:51:41 IST https://zurichlifeireland.newsweaver.com/toolstohelpyou/rss.xml Newsweaver brokercomms@zurich.com (Zurich Life Assurance) support@newsweaver.ie (Newsweaver) 60 true No Title https://zurichlifeireland.newsweaver.com/toolstohelpyou/xzusk8loh7t?lang=en?rss=true 10 Mar 2022 12:00:00 GMT 467accb75a1a0050ec288976dccaad21 ARTICLE_1_COLUMN-clone-30809627-20200619-144553 intro text https://zurichlifeireland.newsweaver.com/toolstohelpyou/1wa22m0vyre?lang=en?rss=true Thanks to everyone who joined our ‘Moving money from deposit’ webinar – we had great engagement from Financial Brokers both during and after the call. Today I want to touch on a few of the points that we raised during the session, and also answer some of the questions that we received. As a starter, I think we are all very aware of the opportunity for customers to earn better returns by investing their money in multi-asset type funds over leaving money on deposit. A number of Financial Brokers brought up the 41% rate of exit tax (compared to the 33% rate of DIRT). This is a very valid query – exit tax is out of sync with other forms of taxation. But I would argue that given the potential for much higher returns on an Investment Bond over money on deposit, it is an argument worth making to a customer. If we look at a real life example of someone who invested €35,000 over 8 years ago then I think it makes a compelling story: 1st September 2015 Invested €34,653 (after levy, product allocations, etc). 100% in Active Asset Allocation (AAA) Fund. 31st August 2023 Policy value before tax: €54,218 Gain made: €19,565 Exit Tax (8th year deemed withdrawal): €8,021 Current value today: €46,697 Given than the equivalent deposit rates had been close to 0% over that same time period, it really make a good story for the customer. We are seeing interest rates rising – with local banks offering headline rates of >2% (before DIRT of 33%) so I’m sure some customers will be swayed by those – but the long-term argument for investing is compelling. And maybe 41% tax is taking the glass half empty view, 59% of any return is tax-free! None of us love tax but you’re only paying tax when you’re making money and paying some tax on some returns is better than paying no tax on no returns. To recap: One simple online application form No further admin, annual tax returns or tax payments Award winning investment management with >30yr track record Asset allocation and ongoing active management Range of investment options across different risk levels Tax deferred Clear and cost effective pricing Ability to withdraw funds at any time Online portal giving current value of investment both before and after tax Experience and financial stability of a global insurer 08 Sep 2023 12:00:00 IST 34d1a0cfe6d1d9e755b515a0f5267363 ARTICLE_1_COLUMN-clone-30809627-20200619-144553 Thanks to everyone who joined our ‘Moving money from deposit’ webinar – we had great engagement from Financial Brokers both during and after the call. Today I want to touch on a few of the points that we raised during the session, and also answer some of the questions that we received.   As a starter, I think we are all very aware of the opportunity for customers to earn better returns by investing their money in multi-asset type funds over leaving money on deposit. A number of Financial Brokers brought up the 41% rate of exit tax (compared to the 33% rate of DIRT). This is a very valid query – exit tax is out of sync with other forms of taxation. But I would argue that given the potential for much higher returns on an Investment Bond over money on deposit, it is an argument worth making to a customer.   If we look at a real life example of someone who invested €35,000 over 8 years ago then I think it makes a compelling story:   <table style="border-collapse: collapse; width: 100%; max-width: 100%; height: 153px; border-spacing: 0px; background-color: #ecf0f1; border: 1px solid #7E8C8D;" border="0" cellspacing="0" cellpadding="0"> <tbody> <tr style="height: 30px;"> <td style="width: 29.7154%; height: 30px; border-width: 1px; padding: 0px; border-color: rgb(126, 140, 141);">1st September 2015</td> <td style="width: 70.2846%; height: 30px; border-width: 1px; padding: 0px; border-color: rgb(126, 140, 141);">   Invested €34,653 (after levy, product allocations, etc).  100% in Active Asset Allocation (AAA) Fund. </td> </tr> <tr style="height: 123px;"> <td style="width: 29.7154%; height: 123px; border-width: 1px; padding: 0px; border-color: rgb(126, 140, 141);">31st August 2023</td> <td style="width: 70.2846%; height: 123px; border-width: 1px; padding: 0px; border-color: rgb(126, 140, 141);"> Policy value before tax: €54,218 Gain made: €19,565 Exit Tax (8th year deemed withdrawal): €8,021 Current value today: €46,697 </td> </tr> </tbody> </table>   Given than the equivalent deposit rates had been close to 0% over that same time period, it really make a good story for the customer. We are seeing interest rates rising – with local banks offering headline rates of >2% (before DIRT of 33%) so I’m sure some customers will be swayed by those – but the long-term argument for investing is compelling. And maybe 41% tax is taking the glass half empty view, 59% of any return is tax-free! None of us love tax but you’re only paying tax when you’re making money and paying some tax on some returns is better than paying no tax on no returns.   To recap: <ul type="disc"> <li>One simple online application form</li> <ul type="circle"> <li>No further admin, annual tax returns or tax payments</li> </ul> <li>Award winning investment management with >30yr track record</li> <ul type="circle"> <li>Asset allocation and ongoing active management</li> </ul> <li>Range of investment options across different risk levels</li> <li>Tax deferred</li> <li>Clear and cost effective pricing</li> <li>Ability to withdraw funds at any time</li> <li>Online portal giving current value of investment both before and after tax</li> <li>Experience and financial stability of a global insurer</li> </ul> Investment Bond https://zurichlifeireland.newsweaver.com/toolstohelpyou/22zblltv1wq?lang=en?rss=true Signature Free OnlineApply Data Capture form. 06 Sep 2023 12:00:00 IST 05bc762b8bf210fae88dccdc106285fc ARTICLE_2_COLUMN-clone-30809641-20230906-161543 Signature Free OnlineApply Data Capture form.  https://zurichlifeireland.newsweaver.com/v3files/shard1/57875/d3/97383919355d1fc4b62414.png Single Premium form https://www.zurichlife.ie/DocArchive/servlet/DocArchServlet?docId=DOC_19902 Regular Savings https://zurichlifeireland.newsweaver.com/toolstohelpyou/ha2ieu1rofv?lang=en?rss=true Signature Free OnlineApply Data Capture form 06 Sep 2023 12:00:00 IST 2e8015b38cd2c032f709dff945245baf ARTICLE_2_COLUMN-clone-30809641-20230906-161543 Signature Free OnlineApply Data Capture form https://zurichlifeireland.newsweaver.com/v3files/shard1/57875/84/787d3767b482ac2066b6a4.png Regular Premium form https://www.zurichlife.ie/DocArchive/servlet/DocArchServlet?docId=DOC_17040 Investment Bond sales aid https://zurichlifeireland.newsweaver.com/toolstohelpyou/1qwi7zn4pdf?lang=en?rss=true A little more risk is proving popular with savers in order to increase their chance of making a better return on their money. One popular alternative home to money held on deposit is an Investment Bond with Zurich. 06 Sep 2023 12:00:00 IST bf4ea6f357ec469130b4bce06615d8bb ARTICLE_1_COLUMN-clone-30809655-20200619-145237 A little more risk is proving popular with savers in order to increase their chance of making a better return on their money.   One popular alternative home to money held on deposit is an Investment Bond with Zurich. https://zurichlifeireland.newsweaver.com/v3files/shard1/57875/5c/0805fbc741ef5aabfe1c40.png Download consumer sales aid https://www.zurichlife.ie/DocArchive/servlet/DocArchServlet?docId=DOC_16774&docTag=L4USIGWHZC2E Overcoming the challenge of Time vs Timing https://zurichlifeireland.newsweaver.com/toolstohelpyou/158u4nen3qz?lang=en?rss=true Autoinvest from Zurich is a phased investment strategy, where you drip feed your funds into the market over a period of time. 17 Jan 2023 12:00:00 GMT 7d94ae865149dd46d438f0483e2313c9 ARTICLE_1_COLUMN-clone-30809627-20220316-095315 Autoinvest from Zurich is a phased investment strategy, where you drip feed your funds into the market over a period of time. https://zurichlifeireland.newsweaver.com/v3files/shard1/57875/21/8401069a32671820c69e56.png Download consumer flyer https://www.zurichlife.ie/DocArchive/servlet/DocArchServlet?docId=DOC_15916 Investment webinar playback https://zurichlifeireland.newsweaver.com/toolstohelpyou/13wqwhhsnys?lang=en?rss=true Watch the playback of our recent investment webinar where the team at Zurich discuss the options with regard to your clients lump sum savings and why we think they should consider an Investment Bond. Please note CPD does not apply when viewing the playback. 06 Sep 2023 12:00:00 IST 941aebc43271ab39501b649fa0998207 ARTICLE_1_COLUMN-clone-30809655-20210205-165529 Watch the playback of our recent investment webinar where the team at Zurich discuss the options with regard to your clients lump sum savings and why we think they should consider an Investment Bond.   Please note CPD does not apply when viewing the playback.  https://zurichlifeireland.newsweaver.com/v3files/shard1/57875/76/4bc8f78c682896789f4d03.png Watch webinar playback https://www.zurich.ie/broker-centre/news-and-insights/webinars/?commid=592966 Earn your business an additional €100 https://zurichlifeireland.newsweaver.com/toolstohelpyou/6dylyr4590m?lang=en?rss=true For every new Zurich Investment Bond customer that you submit online to Zurich, we will pay you a €100 bonus payment (on top of the normal product commission) based on the terms and conditions set out in the attached flyer. 06 Sep 2023 12:00:00 IST ece1b9c2f7fbbdb37e338a1cf9397243 ARTICLE_1_COLUMN-clone-30809627-20230906-162543 For every new Zurich Investment Bond customer that you submit online to Zurich, we will pay you a €100 bonus payment (on top of the normal product commission) based on the terms and conditions set out in the attached flyer. https://zurichlifeireland.newsweaver.com/v3files/shard1/57875/16/59da27a909d773673091ff.png Special offer flyer https://www.zurichlife.ie/DocArchive/servlet/DocArchServlet?docId=DOC_19901