Adulting Financial Planning Investments

How Invest Flex Can Help with Life's Major Milestones

byVictor Yeo
  • Aug 16, 2024
  • 1 mins
buying a home

Singaporeans are known for their meticulous planning, but life always has other plans. We all have different goals and aspirations, and the path to achieving them can be as unique as we are. Whether it's starting a business, buying a home, travelling the world, or simply enjoying a comfortable retirement, having a financial plan in place can make all the difference to the expected and unexpected milestones we’d like to see.

What happens when your dream home pops up on the market earlier than expected, or your education plans require additional funding? This is where a flexible investment-linked plan like Income's Invest Flex can be a game-changer.

In simplest terms, Invest Flex is an investment-linked plan (ILP) that can help to grow your wealth over the long term. It allows you to invest a portion of your premiums into a unit trust fund, with the potential to grow your wealth over time. The plan also provides a layer of life insurance protection, offering peace of mind for you and your loved ones.

One thing that flexible plans like Invest Flex excel at is providing you with options when you need them most. As a flexible ILP, Invest Flex offers features like life event withdrawal options and premium holidays.

These features provide much-needed liquidity when unexpected expenses arise or your life goals shift, prompting to you dip into your funds.

But first, what really counts as a life milestone? Life milestones are significant events that shape our life journeys. They can be joyous occasions, like graduations, weddings, and the birth of your child. However, life also throws us curveballs and unexpected events like divorce or hospitalisation can also be considered milestones that require financial preparedness.

Income's Invest Flex recognises these various turning points and offers flexibility to address them financially. The plan allows the option to withdraw some of your investments at no charge when any specified life event1 occurs during the Minimum Investment Period (MIP), including:

  • Turning 21 or 65
  • Enrolled into tertiary education
  • Marriage
  • Divorce
  • Death of a spouse
  • Becoming a parent
  • Purchase of a residential property
  • Stay in hospital

Put into perspective, achieving these milestones often requires careful financial planning. By aligning your investment portfolio with your life goals, you can ensure you have the resources needed to navigate both the happy and challenging chapters of your life.

wedding photo

1. Home Purchases

Every Singaporean's biggest hurdle, and arguably one of their biggest expenses too, is securing a roof over their head. Invest Flex can be a valuable tool towards achieving this life goal. By diligently contributing premiums over time, you can accumulate a sum that can be used for a down payment (or even potentially) the full purchase of a home.

It's important to note that the free partial withdrawal for purchase of a residential property is capped at 10% of the prevailing policy value. The more you save in your plan, the greater the amount you'll be able to access.

Benefits of withdrawing funds for your home purchase with Invest Flex:

  • Access Liquidity When Needed: Invest Flex provides you with the flexibility to access a portion of your accumulated funds for your down payment without derailing your long-term investment goals.
  • Maintain Investment Growth Potential: Even with a withdrawal, your remaining policy units continue to grow based on the performance of the underlying investments.
  • Peace of Mind for Your Big Move: Knowing you have access to these funds can ease the financial stress associated with buying a home.

2. Education

If you're thinking of putting these savings towards studies, Invest Flex can be strategically used to finance your children's tertiary education. Here, tertiary education refers to enrolling in a program lasting at least three months at a vocational institute, polytechnic, college, university, or institute of higher learning accredited to provide educational services by qualified professionals.

The rising costs of education can put a strain on your finances. Invest Flex allows you to plan for these future expenses well in advance, ensuring you have the resources needed to invest in your education or that of your loved ones.

3. Time-Locked Milestones

Among all the ages that can count as major turning points, turning 21 marks a significant step into adulthood. It signifies new responsibilities and choices, often requiring additional financial resources. On the other end of the "adulting game," reaching 65 signifies retirement, a time when accessing your Central Provident Fund (CPF) withdrawal sum becomes crucial for financial security.

This is where Invest Flex can be particularly helpful. The plan allows for partial withdrawals upon reaching these key milestones (ages 21 and 65), providing you with a buffer during these potentially transitional periods in your life. Whether you need funds to cover initial expenses associated with starting your career or require additional resources to supplement your retirement income, Invest Flex provides the flexibility to access your accumulated savings when you need them most.

Invest Flex empowers you to take charge of your financial future by starting to invest early. With its flexible features, you can build a strong financial foundation for yourself and your loved ones, ensuring peace of mind knowing you're prepared for various life events that may come your way.

  • Flexibility to take a premium holiday2 at no charge for up to 120 months from the 5th policy anniversary
  • Investment bonus of up to 60.0% of your regular premiums paid for the 1st policy year
  • Provide 0.5% annual loyalty bonus3 starting from the 10th policy anniversary or the end of the Minimum Investment Period (MIP), whichever is later
  • Maximise your investment with up to 105% of your regular premiums paid to purchase units
  • Have the option to withdraw some of your investments at no charge when any specified life event1 occurs during the MIP.
  • Continuity of wealth accumulation with a secondary insured4
woman on laptop

Invest Flex offers a unique blend of flexibility and growth potential. As such, you may wish to consider the following:

  • Plan Your Withdrawals Carefully: While Invest Flex allows for withdrawals upon reaching certain milestones or during the MIP, it's crucial to plan these withdrawals strategically to minimise the impact on your long-term investment goals. Consult a financial advisor to create a personalised withdrawal schedule that aligns with your life goals and risk tolerance.
  • Integrate with Existing Plans: Invest Flex can complement other financial tools and plans. For example, you can use Invest Flex to accumulate funds for a down payment on a house while contributing to your Central Provident Fund (CPF) for retirement savings.
  • Start Early and Contribute Regularly: The power of compound interest is significant. By starting your investment journey early and making consistent contributions to your Invest Flex plan, you can leverage compound interest to grow your wealth over time.

Life is a journey filled with significant milestones, both expected and unexpected. With careful planning and the right tools, you can navigate these turning points with greater financial security and confidence. Invest Flex, with its unique blend of flexibility and growth potential, can empower you to take charge of your financial future.

By starting your investment journey early and leveraging the plan's features strategically, you can accumulate wealth and achieve your life goals. Whether it's securing your dream home, investing in your education, or planning for a comfortable retirement, Invest Flex can be a valuable partner on your financial journey.

Ready to explore how Invest Flex can help you achieve your financial goals? Learn more about our range of Investment-Linked Plans.

Author(s):
Victor is a passionate writer dedicated to guiding readers through the complexities of life with well-informed and actionable insights. With a strong focus on travel and health management, he aims to empower individuals by providing the knowledge needed to make informed decisions. From exploring new destinations to understanding health options, Victor's articles are designed to inspire and inform, helping readers navigate life's…

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