Just purchased InvestReady yesterday. However upon further reading of the BI, the first two years, they essentially reduced my premium to zero (effects of deduction) however subsequent year, the charges fell below 2% and so on.
Is this a good investment plan to begin with? The investment caters to my risk profile, and i have chosen 80% equity and 20% bond for a premium of 1k monthly for 20 years with free fund rebalancing (unlimited, FOC)
Hope to get an honest insight. Thnk youu
For InvestReady - Wealth only,
The best case scenario breakeven year will be at year 15 onwards,
There are Administrative charge of 0.7%/year, (up to 1.4%)
Supplementary charge of 1.8%/year, (up to 3.6%)
Surrender charge and premium shortfall charge decreasing from 100% to 5% from year 1 to 20, meaning you definitely have to hold more than 20 years;
and the respective funds management charges that you have chosen.
Manulife and relevant fund mangers have the rights to increase the charges with an advance written notice.
Taking into account TVOM, risk, all the fees and charges; and still able to earn the net returns that you are looking for, you can proceed with this.