NEW Lifestyle > Your options

Your options

Because NEW Lifestyle is different from traditional regular investment plans, you have the choice of either an Investment option or a Retirement plan. Each has its own benefits and investment strategy but both provide an ideal long-term investment solution.

Investment summary
Saving option
Retirement option

Calculating your Total Investment Amount

When opening an account you’ll nominate a Total Investment Amount or 'TIA'. This is the total amount that you expect to save over the term of your investment period. For example, if you were to save $1,000 per month for 30 years then your Total Investment Amount would be $360,000.

So that’s… ($1,000 per month x 12 months in a year) x 30 years = $360,000.

The first two years-worth of contributions

The first two years-worth of contributions are invested into a fixed income instrument returning 4%. This is purposefully conservative to ensure that you and your plan get off to a good start. Please note that it is the first two years-worth of contributions in terms of your TIA that are invested into a fixed income instrument, not your actual contributions for the first two years.

So, thinking about the example above, where your Total Investment Amount is based on a monthly contribution of $1,000, your first two years-worth of contributions would total $24,000.

$1,000 per month x 24 months (2 years) = $24,000.

If you were to open your NEW Lifestyle Investment Account by depositing a lump sum of $24,000 in month one, this would be invested in the fixed income instrument. Your second actual deposit however would go directly into your portfolio as you would have already contributed two years-worth of monies in terms of your TIA.

After the first 5 years

After five years you may withdraw free of charge up to 90% of the value of your Total Investment Amount. HOWEVER, at least 10% of the Total Investment Amount must remain in the policy until maturity.

No minimum age

There is NO minimum starting age. Investing can begin at any time, right from age 0, making it suitable for funding a child’s education, for example. The maximum starting age is 65.

Investment phase

During the investment phase, right up until drawdown, the volatility of the underlying investments are increased in order to maximize the value of any potential returns before volatility is then lowered prior to the end of the plan to protect any investment gains.

Drawdown phase

Once the investment’s maturity date has been reached the drawdown phase is entered. The client can have the balance of their account paid out as a lump sum. It is also possible, although rare under the investment option, to have the money paid out in regular payments over a set period of time as determined by the client.

Investment strategy - Savings example

Investment Savings strategy in detail

Minimum age

The minimum starting age is 20 years old. You can then save for life until retirement age after which the product converts into one which pays a pension until age 85. There is a maximum starting age of 65.

Investment phase

Over the investment phase, up until drawdown, the volatility of the underlying investments are increased in order to maximize the value of any potential returns before volatility is then lowered prior to the end of the plan to protect any investment gains.

Drawdown phase

The drawdown phase can begin any time between the ages of 50 and 70 years old. Once the nominated retirement age is reached, the plan will start to payout on a quarterly basis. In this situation volatility is continuously lowered as the plan starts to pay out to the client; protecting any further investment gains while lowering the risk of existing investments. The option also exists to take full payment of the total pension investment at the chosen age of retirement although this is rare. When the plan reaches maturity at age 85, any remaining monies are paid out as a lump sum.

Investment strategy – Retirement example

Investment Retirement strategy in detail

Important Note

This document has been prepared for information purposes only, and any data presented does not represent either an offer to conclude a contract related to the investment service, or a request for submitting offers or any response to the introduced information by the Client. Examples and charts serve as a demonstration only, and do not contain data on past performance of the investment service, simulated past performance of the investment service or predictions on the future performance of the investment service or any other legally binding or otherwise relevant information. Any data on potential or prospective revenue is stated as an illustrative calculation of the portfolio value only and thereby does not guarantee any revenue from the Client´s investment. Investment within the NEW Lifestyle investment plan may fluctuate; past performance and simulated past performance shall not be a guarantee for achievement of a similar future appreciation. The value of investment within the NEW Lifestyle investment plan may rise, as well as fall and the invested amount is not guaranteed. In case of any questions please contact your tax adviser or financial adviser. This website and all of its content is presented by Cornhill Management Ltd, 1 Cornhill, EC3V 3ND London, United Kingdom. Cornhill Management Ltd is also the global marketing coordinator for this product and as such shall not be responsible for the accuracy of the information presented in any marketing materials which may be changed at any time without prior notice.