Manulife InvestReady III is a 101-wrapper investment-linked policy offering low minimum investments, flexibility, and direct unit trust investments. It boasts low fees and dividend options but lacks access to accredited investor funds. Ideal for new investors but may not offer the highest returns.
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Offers competitive growth with a 499.25% ROI over 30 years but lacks access to higher-performing accredited investor funds.
Low fees during the investment period, ranging from 1.4% to 2.5% per annum plus $5/month, and 0.7% to 1% per annum plus $5/month thereafter.
Features include low minimum investments, flexible investment periods, direct unit trust investments, dividend-paying options, partial withdrawals, top-ups, and premium holidays.
- Low minimum investment amount
- Flexible investment periods
- Low fees and charges
- Direct investment in unit trusts
- Dividend-paying funds options
- Highly flexible features
- Offers premium holidays
- Higher fees compared to some competitors
- No access to accredited investor funds
VERDICT:
Manulife InvestReady III is a solid investment-linked policy, particularly appealing for investors due to its low minimum investment requirements and flexible commitment periods.
It offers competitive fees and various features like direct unit trust investments and dividend options, making it a versatile choice for many.
However, the lack of access to accredited investor funds and slightly higher fees compared to some alternatives might limit its appeal for those seeking the highest returns.
Overall, it’s a dependable option for those looking to start investing with manageable fees and flexibility.
What we like about the Manulife InvestReady III
Low Minimum Investments
One of the standout features of the Manulife InvestReady III is its low minimum investment amount.
This makes it incredibly accessible, especially for those just starting out or looking to dip their toes into investment-linked policies (ILPs) without committing a large sum of money upfront.
- Minimum investment starts at $200/month.
- Great for new investors or those with limited capital.
- Provides an opportunity to increase investment over time gradually.
- Lower barrier to entry compared to many other ILPs on the market.
This affordability makes it a popular choice among financial advisors and investors alike.
It democratises investment, ensuring that more people can participate and grow their wealth over time.
This feature is particularly useful in a market like Singapore, where the cost of living is high, and many people might find it challenging to spare a large sum for investments initially.
Flexible Investment Periods
Flexibility is key when it comes to long-term investments.
The Manulife InvestReady III excels in this area by offering various commitment periods to suit different financial goals and timelines.
- Offers 9 different commitment periods.
- Shortest commitment period is just 5 years.
- Options up to 20 years for those seeking long-term investment.
This flexibility allows investors to tailor their investment plan according to their personal circumstances and future plans.
Whether you are saving for a specific goal or looking to grow your retirement fund, the Manulife InvestReady III provides options to meet your needs.
Flexibility is crucial, allowing you to adjust your strategies as your life situations change.
Low Fees & Charges
Fees can significantly eat into your investment returns, so finding a policy with low fees is crucial.
The Manulife InvestReady III offers some of the lowest fees in the market, making it a cost-effective option.
- Fees during the Minimum Investment Period (MIP): 1.4% to 2.5% per annum + $5/month.
- Post-MIP fees: 0.7% to 1% per annum + $5/month.
- Competitive fees compared to other ILPs.
These low fees ensure that more of your money is working for you, rather than being eaten up by administrative costs.
In a high-cost environment like Singapore, keeping fees low is essential for maximising your investment returns.
This feature helps in preserving the value of your investments, allowing for better growth over the long term.
Direct Investment in Unit Trusts
A significant advantage of the Manulife InvestReady III is that it allows direct investment in unit trusts rather than through the insurer’s sub-funds.
This transparency in investment options is a big plus.
- No hidden fees at the fund levels.
- Greater control over your investments.
- Opportunity to choose from a broad range of unit trusts.
This feature means you’re not paying for an extra (hidden) layer of management fees, which can often be the case with investments in sub-funds.
By directly investing in unit trusts, you have a clearer view of where your money is going and can make more informed decisions.
In the context of Singapore’s diverse investment market, this transparency is highly beneficial for investors aiming to optimise their returns.
Dividend-Paying Funds Options
The ability to invest in dividend-paying funds is another attractive feature of the Manulife InvestReady III.
This provides a steady stream of income, which can be particularly appealing for those looking to supplement their earnings.
- Invest in funds that pay dividends.
- Option to withdraw or reinvest dividends.
- Regular income stream enhances financial stability.
Dividend-paying funds offer the flexibility to either take the dividends as cash, which can be used for immediate expenses, or to reinvest them, which can help grow your investment over time.
Having an additional income stream can make a significant difference in managing living expenses.
Partial Withdrawals and Top-Ups
The flexibility to make partial withdrawals and top-ups is a critical feature of any investment plan.
The Manulife InvestReady III excels in this area, providing ample opportunities to adjust your investment as per your financial needs.
- Partial withdrawals are allowed with a minimum of $2,500.
- Top-ups can be made with a minimum of $500.
- Adjust investments based on financial goals or emergencies.
This flexibility ensures that you can access your funds when needed, without having to liquidate your entire investment.
It also allows for additional investments when you have extra funds, helping you maximise your investment potential.
This feature is particularly useful in Singapore, where financial needs can change rapidly due to various factors such as job changes or unexpected expenses.
Premium Holidays
The option to take premium holidays is another feature that makes the Manulife InvestReady III appealing. This provides a safety net for times when you might be unable to continue with regular premium payments.
- Allows for temporary suspension of premium payments.
- No penalties as long as there are sufficient funds to cover fees.
- Helps manage financial stress during tough times.
Premium holidays can be particularly beneficial if you face financial difficulties, such as losing a job or encountering unexpected expenses. It provides a cushion, ensuring that your investment remains intact even when you’re not actively contributing to it. In the context of Singapore, where economic conditions can fluctuate, this flexibility offers peace of mind and stability.
What we think the Manulife InvestReady III could do better
Higher Fees Compared to Competitors
One of the downsides of the Manulife InvestReady III is the relatively higher fees, especially when compared to some of its competitors.
These fees can significantly impact the overall returns on your investment over time.
- During the Minimum Investment Period (MIP): 1.4% to 2.5% per annum + $5/month.
- Post-MIP fees: 0.7% to 1% per annum + $5/month.
- Additional charges can add up over the long term.
These fees, while competitive in some aspects, still represent a considerable cost over the life of the investment.
High fees can eat into your returns, reducing the overall growth of your portfolio.
This is a crucial consideration for investors who are looking to maximise their returns and keep costs low.
In Singapore’s high-cost environment, every percentage point saved on fees can make a significant difference in the long-term growth of your investment.
But given its flexibility and reputation in the industry, it’s hard to consider this as a con exactly, as the Manulife InvestReady III has one of the lowest fees in the market.
No Access to Accredited Investor Funds
Another limitation of the Manulife InvestReady III is that it does not offer access to accredited investor funds.
These funds often have higher potential returns and lower fees compared to retail funds.
- Limited to retail funds.
- Misses out on potentially higher-performing investment options.
- Accredited investor funds often come with benefits that are not available to retail investors.
Accredited investor funds can provide higher returns due to their access to exclusive investment opportunities and lower management fees.
The lack of access to these funds means that investors in the Manulife InvestReady III may miss out on these potential benefits.
This restriction limits the growth potential of your investment and might not fully align with the goals of investors seeking to maximise their returns.
Having access to the best investment options is crucial for achieving optimal financial growth.
Better alternatives to the Manulife InvestReady (III)
Singlife Savvy Invest
Singlife Savvy Invest stands out as an alternative to the Manulife InvestReady III for several reasons.
One of the primary advantages is its flexibility in investment periods.
With a minimum investment period of just 3 years, it offers unmatched flexibility compared to many other ILPs, including Manulife InvestReady III.
This short-term commitment is particularly appealing for investors who may not want to lock up their money for extended periods.
- Minimum investment period of just 3 years.
- Low starting investment of $200/month.
- Flexibility to increase or decrease investments after the first 3 years.
The fee structure of Singlife Savvy Invest is also highly competitive.
It charges 2.5% of your account value per year for the first 10 years and then reduces to 0.65% per annum thereafter.
This makes it an attractive option for mid to long-term investments, as the fees decrease significantly over time, allowing more of your money to work for you.
Additionally, Singlife Savvy Invest provides access to accredited investor funds, which are expected to perform better due to higher potential returns.
FWD Invest First Plus
FWD Invest First Plus is another strong contender, praised for its low fees and high potential returns.
One of the most significant advantages is its fee structure, which is based on annualised premiums rather than the total account value.
This unique approach results in much lower fees compared to other ILPs, making it an extremely cost-effective choice.
- Initial account charge formula: A% / 12 x Annualised regular premium x N.
- Policy charge after 2 years: 1.2% x annualised regular premium x N.
For instance, in the first year, you might only pay 1% per year of your annualised premium if you invest $1,000/month.
By the 30th year, this could be just 30% of your annualised premium (not account value), a stark contrast to the typically higher fees charged by other ILPs.
This results in more of your investment capital being allocated towards growing your wealth.
The FWD Invest First Plus also allows direct investment in unit trusts, similar to Singlife Savvy Invest.
This eliminates additional layers of fees and ensures transparency in where your money is invested.
Moreover, it offers access to accredited investor funds, giving investors the opportunity to invest in higher-performing funds that are not typically available to retail investors.
These attributes make FWD Invest First Plus a highly attractive option, particularly for those looking to minimise fees and maximise returns over a long-term investment horizon.
The combination of low fees, direct investment options, and access to superior funds positions it as a potentially better choice compared to Manulife InvestReady III.
Let Us Compare Policies For You
When considering investment-linked policies, it’s crucial for you to evaluate the overall flexibility offered by the features, as these policies are long-term commitments.
You should also pay close attention to the total fees involved, both at the fund and ILP levels, as well as the growth potential of the funds.
Some funds include their fees in the return reports, while others do not, making it essential to understand precisely what you are purchasing.
This is where our expertise comes in.
Our partners have been trained and experienced in evaluating these aspects for many years in the industry.
We can help you compare policies, ensuring they meet all these criteria and align with your current situation and future goals.
We offer a free, non-obligatory comparison session where we help you obtain and compare quotes.
This service ensures that you make an informed decision, tailored to your specific needs.