Alternatives to AMP Growth Bond

blackmam8a24 on 21/06/2018 - 13:35

Hi all,

I have been investing in AMP's Growth Bond for more than 2 years now, and just very disappointed with the return rate. Last year the return rate is only at 0.86%, and similarly in the first year.

I have kept up-to-date with the financial world and changed my portfolio accordingly.

Growth bond is an investment option I chose so that after 10 years, you don't have to pay capital gain tax on the return and is a good option to invest in your kids.

Is anyone else having good experience with other companies and invest options?

Cheers,

Will

Financial

Comments

  • activ8newbs on 21/06/2018 - 14:54

    Growth bond is an investment option I chose so that after 10 years, you don't have to pay capital gain tax on the return

    How does that work?

  • blackmam8a24 on 21/06/2018 - 15:56

    The return is shit all compare to my super which is at around 10%.

  • jakeau on 25/06/2018 - 08:34

    What option is your money in?

    https://www.amp.com.au/amp/performance-and-unit-prices/inves…

    I’m not seeing returns bellow 1% over the last year for types other than cash and bonds.

    • blackmam8a24 on 25/06/2018 - 09:41

      I put in 4 different sections - none of them are conservative ones like cash. The yearly statement I got give me the return yeild of 0.86%.

      I don't know how they crunched their number on the PDS.

      Given their corporate scandal, I am relutant to invest my money in a company such as this one.

  • samjacksonau on 12/08/2018 - 11:20

    Hi,

    I am also looking for something similar. According to Barefoot Investor (2016) book, other options are LifePlan's NextGen and Austock Life's Imoputation Bond.

    I am waiting for 2018 edition to arrive and will see if there are any updates. There is another new book from Scott is also coming specifically for families which should have more details.

    I am also thinking of subscribing to his "Blueprint" which is supposed to have more details.

    • blackmam8a24 on 22/08/2018 - 14:27

      Nice Sam,

      I read that book also. Please let me know how you go with 'BluePrint' and which bond you ended up choosing.

      I'm cancelling AMP Bond as I am typing.

    • A M on 15/08/2019 - 07:56

      Hi Sam,
      I went with the GenLife LifeBuilder Bond containing 100% VDHG. Only about 2 month in, so no idea about performance yet.
      They use the wholesale Vanguard product so the fee is 0.29% + their 0.40% annual admin fee for GenLife = 0.69%.
      There is definitely a premium compared to the VDHG ETF (MER 0.27%), so you'd want to crunch the numbers and be sure there is an advantage to the Bond before taking the plunge. Usually that would be due to a high marginal tax rate, where the 30% company rate inside the Bond works out better, and the CGT-free feature after 10 years or more when closing it down.
      Regards,
      A

  • mrtin on 24/08/2018 - 07:23

    A return of under 1% net of fees and taxes (30%) doesn't sound right for a year where shares property have done quite well.

    • blackmam8a24 on 03/09/2018 - 08:52

      I know, it's quite ridiculous. My super had a return of 10% last year in comparison.

  • AlloAllo on 03/09/2018 - 14:56
    +1

    Performance can be found here:
    https://www.amp.com.au/amp/performance-and-unit-prices/inves…
    Over 12 months Balanced Growth returned 8.21% while All Growth returned 10.70%. On the other hand Cash Plus (the "Plus" bit is amusing) returned just 0.44%.

    • blackmam8a24 on 03/09/2018 - 16:55
      -1

      Lol, are you working for AMP?

      I don't know where the PDS pulls its figure from. My annual statement gives me less than 1% return. And my diversification of the assets aren't different to my super.

  • jetabe on 15/08/2019 - 06:51

    I have just started this now thinking about pulling out.
    Will look at others mentioned

  • Prince John Duggan on 27/11/2019 - 03:50
    +1

    Good day I have an investment with AMP Growth bond
    My returns are as follows with investment mix and make up of portfolio
    Year 1 2016 6.5% return
    Year 2 2017 9.8 % return
    Year 3 2018 5.9 % return
    My investment was made up of 50% Australian shares and 50% Balance growth
    So in reply to your query as to low return you should consider this mix for a better return.
    For year 4 I have diversified the investment mix and it is for 2019 posting a good return
    Investment mix as follows
    40% Australian shares 35% Balanced Growth 25% Infrastructure and property
    Warm regards to you john

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