Investment Linked Plan

TM Wealth Enhancer: Maximizing Your CPF Investments for a Secure Future

Are you looking to make your CPF savings work harder for you? Do you want an investment option that offers flexibility and potential growth without compromising on insurance coverage? If so, TM Wealth Enhancer might be the solution you've been searching for . Let's dive deep into this unique investment-linked plan and explore how it can help you achieve your financial goals.

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What is TM Wealth Enhancer?

TM Wealth Enhancer is a single premium whole life, investment-linked plan (ILP) offered by Tokio Marine Life Insurance Singapore Ltd . It's designed to provide potential growth to your wealth while also offering insurance coverage. What sets it apart is its inclusion in the CPF Investment Scheme , allowing you to use your CPF funds to invest and potentially grow your retirement savings.

Key Features That Make TM Wealth Enhancer Stand Out

CPF Investment Scheme Inclusion

Use funds from your CPF Ordinary Account (CPFIS-OA) or Special Account (CPFIS-SA). Minimum single premium of S$20,000.

100% Premium Allocation

Every dollar of your premium goes towards purchasing units right from the start . No initial fees or charges eating into your investment.

Guaranteed Acceptance

No medical underwriting required. Easy to start investing without health checks.

Flexibility

Make ad-hoc or regular top-ups to capitalize on market opportunities. Switch between funds at no additional charge. Make withdrawals when needed.

Death Benefit

Provides peace of mind with insurance coverage.

Diverse Fund Selection

Choose from a range of funds to match your risk appetite and investment goals.

Why compare TM Wealth Enhancer with other Investment Linked Plan options through Whatins?

Traditional Approach

  • Limited to one company's fund options
  • Only hear about advisor's preferred funds
  • Single perspective on investment strategy

Whatins Advantage

  • Compare fund options across multiple insurers
  • Get different views on investment strategies
  • See how different advisors approach fund selection
  • Understand varied fee structures

In summary: If you want more control and multiple suggestions, then Whatins is the way to go.

How Does TM Wealth Enhancer Work?

Initial Investment

You start by investing a minimum of S$20,000 from either your CPFIS-OA or CPFIS-SA. This entire amount is used to purchase units in your chosen funds.

Fund Selection

You can choose from a diverse range of funds offered by Tokio Marine. These range from high-risk, high-yield options to more conservative choices.

Top-Ups

After your initial investment, you have the flexibility to make additional investments: - Ad-hoc top-ups: Minimum S$1,200br>- Regular top-ups:br> - Monthly/Quarterly: Minimum S$300br> - Semi-annually: Minimum S$600br> - Annually: Minimum S$1,200br>b>Note: The source of funds for top-ups must be the same as your initial investment (CPFIS-OA or CPFIS-SA).

Fund Switching

You can switch between funds at any time at no additional charge, allowing you to adjust your investment strategy as market conditions change.

Withdrawals

You have the flexibility to make withdrawals from your investment at any time, providing liquidity when you need it.

Death Benefit

In the event of death, your beneficiaries will receive:br>- 105% of the value of single premium unitsbr>- 100% of the value of top-up premium units

Real-Life Scenario: Meet Mr. Tan

Let's look at how TM Wealth Enhancer might work in practice:

Mr. Tan is 40 years old and looking for a lump-sum investment vehicle. He decides to purchase TM Wealth Enhancer, opting for a mix of bond and equity funds. To potentially grow his investments further, he arranges for regular annual top-ups to his plan.

For the next 23 years, Mr. Tan consistently makes these top-ups, allowing his investment to potentially grow over time. When he reaches 63, he starts making regular withdrawals from TM Wealth Enhancer to supplement his retirement income, which also includes CPF LIFE payouts, rental income, and savings.

This scenario illustrates how TM Wealth Enhancer can be used as part of a comprehensive retirement strategy, providing both potential growth during working years and a source of income in retirement.

Advantages of Investment-Linked Plans (ILPs)

TM Wealth Enhancer, being an ILP, offers several advantages:

  1. Flexibility : You can make top-ups any time to capitalize on investment opportunities.
  1. Immediate Liquidity : You can access your funds when needed through withdrawals.
  1. Potential Growth : You enjoy the full benefit of any growth in the value of your allocated units.
  1. Transparent Fund Performance : Fund prices are updated daily, making it easy to track your investment.
  1. Transparent Charges : All charges are clearly laid out, allowing you to understand exactly where your money is going.

Important Considerations

While TM Wealth Enhancer offers many benefits, it's important to consider the following:

  1. Investment Risks : Like all investments, there's a risk of losing the principal amount invested. The value of units can rise or fall.
  1. Non-Guaranteed Performance : The performance of the ILP sub-funds is not guaranteed.
  1. Long-Term Commitment : Early termination of the policy usually involves high costs, and the surrender value may be less than the total premiums paid.
  1. Charges : While 100% of your premium is allocated to units, there may be other charges associated with the plan. It's important to review the Product Summary for full details.

Who Is TM Wealth Enhancer For?

This plan might be suitable for you if:

  1. You want to potentially grow your CPF savings through investments
  1. You're looking for a flexible investment option with insurance coverage
  1. You're comfortable with investment risks and have a long-term investment horizon
  1. You want the ability to make additional investments and withdrawals as needed

Frequently Asked Questions

Can I use both my CPFIS-OA and CPFIS-SA for this plan?

No, you need to choose either CPFIS-OA or CPFIS-SA as the source of funds.

Can I change the source of funds for top-ups?

No, the source of funds for top-ups must always be the same as your initial investment.

Are there any fees for fund switching?

No, fund switching is allowed at no additional charge.

What happens if I need to withdraw all my funds?

You can make a full withdrawal, but be aware that this will terminate your policy.

Is there a maximum investment amount?

Check with a Tokio Marine representative for any upper limits on investments.

Conclusion

TM Wealth Enhancer offers a unique opportunity to potentially grow your CPF savings through a flexible investment-linked plan. With its 100% premium allocation, diverse fund options, and built-in insurance coverage, it can be a valuable tool in your financial planning toolkit. However, like all investments, it comes with risks and requires careful consideration.

Remember, the best financial decision is an informed one . While TM Wealth Enhancer offers many attractive features, it's crucial to assess whether it aligns with your personal financial goals, risk tolerance, and overall financial strategy.

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