RL360 Regular Savings Plan Review
I’ll start with a short background on RL360, the company behind the RL360 Regular Savings Plan which will be the main focus of this article.
Isle of Man-based RL360 is a firm that specializes in providing expats and local residents in 170 different countries with offshore savings, protection, and investment solutions. The company has operations in Asia, the Middle East, Africa, and the United Kingdom.
RL360 is a subsidiary of International Financial Group Limited (IFGL). It has cut ties with Royal London, a group based in the UK, several years ago.
If you want to invest as an expat or high-net-worth individual, which is what I specialize in, you can email me (advice@adamfayed.com) or use WhatsApp (+44–7393–450–837).
This includes if you have a policy and aren’t happy.
Some of the facts might change from the time of writing, and nothing written here is formal advice. So, potential investors shouldn’t invest or decide not to invest based on this review alone.
For updated guidance, please contact me.
What is the RL360 Regular Savings Plan?
The RL360 Regular Savings Plan targets expats who want to save money over the long haul.
Those who are aged 18 to 65 are eligible to set up an account in:
· US dollar (USD)
· Euro (EUR)
· British pound (GBP)
· Australian dollar (AUD)
· Swiss franc (CHF)
· Hong Kong dollar (HKD)
· Japanese yen (JPY)
The scheme is an international product that asks you to put aside money on a regular basis for a certain period.
It is adaptable and is meant to supplement existing corporate pensions for foreign employees, rather than to replace them.
It’s a great way to put away cash for larger needs, like college tuition or retirement.
The policy also provides a payment holiday feature that allows savers to temporarily stop contributing to the plan for a maximum of two years. Withdrawals can be made any time as well.
The RL360 Regular Savings Plan gives participants greater flexibility to access their funds after the setup period finishes and shorter duration than traditional domestic pensions. This could be a workable strategy for those who want to have a lot of leeway in how they invest and save their money.
By choosing the Plan, investors gain access to more than 350 high-quality money market funds and specialist equity funds managed by top investment managers.
These funds are carefully selected for their performance potential and are not mirror funds. So, they are real funds with their own unique holdings and investment strategies.
What are the contribution minimums?
RL360 Regular Savings Plan allows for lump sum payments worth at least 7,000 USD.
For monthly contributions, you are required to pay a minimum of 280 USD per month. You can top up anytime you wish.
The savings terms for the scheme are flexible, ranging from 5 to 25 years, and the minimum contribution varies depending on the term length.
Say, the minimum payment per month for terms between 5 and 9 years is 400 GBP, while it’s 200 GBP for terms that are more than 10 years.
This flexibility in savings terms allows expats to choose a plan that best suits their financial targets.
Below is a table of all seven currencies offered and the payment requirements:
Making contributions to the RL360 Regular Savings Plan is straightforward and convenient as multiple payment options are available. You can make contributions via direct debit, bank transfer, or even credit card.
Each time you make a regular payment into the Regular Savings Plan, the full amount will be used to invest in the chosen funds. In some cases, for larger payments, RL360 may increase the allocation to 101% or 102%.
Regular Savings Plan RL360 investment minimums
The minimum required to invest in various funds offered under the Plan changes based on the currency being used.
For investments in GBP, the minimum amount is 25, while for those made in USD, EUR, CHF, or AUD, the minimum amount is 50.
Meanwhile, fund investments denominated in HKD or JPY should be at least 500 or 5,000, respectively.
RL360 Regular Savings Plan Fees
Standard Costs
First, during the payment term, the value of the establishment units in your plan will be cut by 0.50% per month to account for the establishment charge.
Also, both the establishment and the standard units share equally in the continuous administration fee of 0.125% of the current plan value.
The standard units in the scheme will also have a monthly service fee subtracted from them. This fee now stands at 7 pounds (or its equivalent in other currencies) and will grow annually by the percentage change in the Retail Price Index for the Isle of Man.
Moreover, the plan’s assets will incur a management fee every year.
RL360 does not charge clients who opt to pay into their policy via credit cards. However, 1% of the payment sum is applied to those who use American Express credit card.
You can benefit from zero charges when you first invest in any of the funds available, as well as for any future investments you make.
RL360 Regular Savings Plan also allows you to switch the funds you invest in without any extra charges. Unlike other offshore products, you do not have to worry about custodian fees too.
Optional Fees
The investment advisor fee and the financial advisor fee are two examples of discretionary charges that could be assessed.
In exchange for their services, investors pay investment adviser fees, which may be made either directly by the investor or via RL360.
However, investors and their financial advisors need to come to terms on how much the advisor will be paid.
RL360 will deduct the agreed upon amount from the plan and send it straight to the financial advisor if the investor OKs it.
Are there discounts or incentives?
Yes, but the amount of the bonus awarded to each individual consumer will be unique. Customers get bonuses based on their savings level, plan duration, plan age, and full-year contributions.
RL360 offers a starter bonus of up to 600% of the monthly payment when you commence the plan.
There is also a loyalty bonus calculated using the total worth of your assets at the conclusion of the payment period, rather than being tied to the initial sum invested. This indicates that your bonus might increase based on the plan’s success.
Bonuses tend to increase over time if a plan is kept in place and payments are continued.
Clients can invest in an unlimited number of funds, so long as they keep their monthly contribution to each fund at a minimum of 25 pounds (or its local currency equivalent).
Is RL360 safe?
The RL360 plan is managed by the Isle of Man Financial Services Authority, so policyholders may get 90% of their money back if the unthinkable happens and their life insurance firm goes bankrupt.
Besides, the Insurance Act of 2008 requires all insurance firms operating on the Isle of Man to secure all policyholder assets.
Most people who invest their money want to put it somewhere safe, tax-friendly, and promising of high returns. Putting your money in a local bank account or any alternative investments is always an option.
Are there taxes?
There is a substantial tax benefit for having an RL360 Regular Savings Plan.
Your policy’s gains and dividends will be free from levies in the Isle of Man, where the firm is headquartered.
Except for withholding taxes that may be collected at source on income flowing from assets held in specific countries and cannot be recovered by the firm, your investment will grow free of any more deduction of Isle of Man tax.
Can I close my Regular Savings Plan early and get a refund?
If you terminate the plan within 30 days of starting it, you’ll receive your original money back unless of course if the value of the assets you invested in has already plunged.
A 100% early departure penalty will be applied if you cancel the plan after the 30-day cooling off phase but before the end of the establishment term.
If the plan is terminated after the establishment period, only the early exit fee on the establishment units will be assessed. Cancelling the plan before its term is over might result in a significant loss.
During the setup phase, all payments are assessed on the initial unit purchase price. Once the initial payment period ends, the funds will be applied to standard units.
Any unused establishment units at the conclusion of your plan period will automatically be converted to standard units.
After the plan’s setup period ends, you can start taking withdrawals every month, quarter, six months, or year. You can also make a one-time withdrawal.
Final Thoughts
The earnings you get from the savings plan will be affected by fees and levies, and the tax perks are not guaranteed. Penalties for early withdrawals or missed payments may also be assessed.
Your investment will also naturally be prone to market volatility and inflation, so the amount you invest could drop.
If you’re investing only for the short term, this plan definitely isn’t for you. It could work for those eyeing medium- to long-term investments, though.
However, don’t expect high returns like those you could get if you invest your money in high-risk, high-rewards type of investments.
As this plan accepts American expats, it could be argued it is one of the viable options for US people living abroad.
