In this quick blog, I wanted to highlight the number of times I get emailed regarding RL360 and similar investments and thought I would showcase a real-life email that I have had come through to me and the response I gave.
This is so that other expats can understand what to look out for should they have an existing policy and then start to understand their options if they would like to look at alternative investments.
Genuine Email Enquiry
I stumbled across your blog while researching RL360’s PIMS and Regular Saving Plan. We’re based in Asia (location has been generalised) and have been working together with our advisor for some years but I’m a bit worried now about what I see on the web about RL360 and its high charges.
Our advisor suggested taking up the RL360 Regular Saving Plan (Life Assurance) and PIMS Life Assurance for a lump sum.
Would you be able to help me navigate through the charges?
Summary of email
As you can see this is something that is or has been offered to this person who has come through on my email. Fortunately, it seems they have been completing their own research to understand a bit more about the investment and how it works. This isn’t always the case as many expats tend to trust what is being said and are then faced with high charges, potential lock-ins, and usually low performance depending on the investment.
My Reply
Thanks for the message.
In regards to the saving plans these are mostly toxic and done based on upfront commission to an advisor that works out to be around 4% of the total amount invested over the term.
So, for example, $1000 a month over 20 years would equate to a $9600 upfront commission that is taken at the start of the policy. This is then taken from your policy throughout the term. This is why it is highly illiquid and very expensive. You would in most cases be better off going into a platform such as Novia Global (which is FCA and all clean transparent charges) and fully flexible.
In terms, of the RL360 PIMs, it should be 0.067% a year as stated on their website plus the admin fee of 400 GBP a year which is the base charge. If it’s anything over this and the 10-year establishment charge there is a commission to the IFA.
So, for example, if it’s 1% the advisor would have taken 7% upfront this again would be taken from your policy fees over the 10 years of charging thus if you were looking to surrender the policy it would not allow for full flexibility during the establishment period. Again these platforms are used on “tax advantages” but for you in Thailand, these can be structured in a platform as Thailand has no tax on overseas income taken in the next fiscal year.
Summary
This is a very common question or email that I receive which is why I offer the portfolio reviews because at least that way you will be able to see roughly what you might be paying.
My top takeaways from this would be:
- Review your current portfolio
- Review any new investments through Morningstar or something similar
- Be aware of ‘free’ services as they could be linked to commission-based activities.
If you have any questions about your portfolio, please email me at info@investmentsforexpats.com.
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