I bought some Plan from Prudential ...advise

[sumsum80]

I have bought Pru Link Protection A/c , invested on high risk funds. Adviser said that for high risk fund (Singapore Managed Fund , etc), if u can stretch over long term, the risk actually decreased alot . Is it true ?

i also invest my OA $25k for China India Fund , PruLink Adapt Fund and Global Equity Fund. Is it ok ?

[ironman4672]

I have bought Pru Link Protection A/c , invested on high risk funds. Adviser said that for high risk fund (Singapore Managed Fund , etc), if u can stretch over long term, the risk actually decreased alot . Is it true ?

i also invest my OA $25k for China India Fund , PruLink Adapt Fund and Global Equity Fund. Is it ok ?isn't it too late to ask now? ;)

[sumsum80]

i need advise can

[paisatge]

I have bought Pru Link Protection A/c , invested on high risk funds. Adviser said that for high risk fund (Singapore Managed Fund , etc), if u can stretch over long term, the risk actually decreased alot . Is it true ?
Yes because the longer the time horizon, the more opportunity to average out the downs with the ups. So, in a way, the "risk" is "said" to be reduced.
No because the longer the time in the future, the higher the uncertainty. For example, you can roughly guess the state of the things tomorrow quite accurately but you can hardly say anything about 10 years later.


i also invest my OA $25k for China India Fund , PruLink Adapt Fund and Global Equity Fund. Is it ok ?not very familiar with their funds but I guess the China and India fund should do ok for the moment.

[sumsum80]

but is IPL a successful or freaked out policy?

[zhiz22]

wow good luck to you. if the advisor know the current market, and still offer you those...then good luck to you.

question to ask

do you trust your advisor?
if you do, why?
if you dun, why do you buy something from them? because they say something very good, sure earn etc?

why let someone earn your commission when you arent even sure if their product or advise is good?

There are good advisors out there, my friend. You just have to ask.

[Sybarite]

my mum bought the PA in back in 1994. she invested in Sg Managed fund, coverage of $50,000 with monthly premiums of $300.. well.. amazingly its on track for the 9% projection.. she put put ard $48,000, and her cash valve was ard $60,000.
ILP does work, in the long run.

my question for you would be why u bought a ILP? for investment? or for protection?? coz in the long run, the insurance charges is goin to eat up all ur cashvalue if you had a high sum assured with Critial illness.

there's good and bad about the plan, coz ultimately it depends on the fund that you chose and the units and the price of the fund.

[precision]

ILP involves many costs. Look at your last column "Effect of Deductions" the figure and it will be your costs. Protection part is so little, what for you pay for it? If u really want insurance, just get a pure life policy. For me, I have a pure life insurance, For my investments I put in unit trusts and stocks. I dont believe in paying extra insurance charges for investments, totally no point.

Anyway MAS rules there is 14-days free-look period after u sign. U still can cancel if you want.

[tellim]

agents epecially those young ones come and go very fast within the job. i dun trust them. i only buy from senior agent and someone i noe well enough and noe he work long in that area.

[sumsum80]

so jialat.... no one buy ILP ?

[wrxs204]

From the many postings that I have read, many people tend to focus on the the charges for ILP. I did mention in one of my previous post that majority are focusing on the licharges, but none mentioned about the good points.

This is my advise to you, should you get an ILP, do not opt for high coverage as the mortality charges will eat into it. In short, it's something like the plan starts off with a deficit & if the funds do not perform, then trouble will be brewing.

With regards to your query on your CPF investment, it's not about how good or bad the funds are. Rather, it is the understanding of market sentiments, economic data & linking them up to know what is going on & taking pre-emptive actions before something happens.

Hope that helps

[zhiz22]

so jialat.... no one buy ILP ?

I feel that you need a good independent advisor to advise you.

[0orichi0]

ILP aren't that bad a product. But for someone who is more financially savvy and able to invest himself, they are better off investing themselves, than to pay so much fees to have someone invest for them.

Essentially, ILP are for people who are investment idiots. Who feel that they'll never go into the realm of investing by themselves.

Personally, if someone never plans to go into the realm of investment, I would highly recommend them to purchase the financial products offered by the insurance companies. Its better than parking your money in the bank. I agree that the fees are expensive, but that is the price you have to pay for not learning to invest yourself and let others do it for you.

[VoodooKing]

I have bought Pru Link Protection A/c , invested on high risk funds. Adviser said that for high risk fund (Singapore Managed Fund , etc), if u can stretch over long term, the risk actually decreased alot . Is it true ?

i also invest my OA $25k for China India Fund , PruLink Adapt Fund and Global Equity Fund. Is it ok ?

As for your PPA, it is ok because what you are focusing on is the protection, the investment portion is secondary. As it is a whole-life policy, it will not make sense to put your money into low risk funds. Although past performance is not indicative of future performance, if you have studied market trends over the past few decades, you will notice that equities will fluctuate alot but it will always fluctuate upwards.

Many people make the mistake of not realising this. The PPA is a whole life protection plan, similar to that of any traditional whole life except that you now have the power to control where your money goes into, unlike a traditional plan where the insurer takes responsibility of the investments. Which is why the returns are stated to be between 3.75%-5.25% for a traditional plan and 5%-9% for an ILP protection policy. Please treat the PPA as it actually is. A protection plan. Trust me, you have not gone wrong with the PPA. I have clients that actually have more cash value than what the benefit illustration have shown at the 10th year. As they understand that mortality charges get higher when they get older, they also realise that those charges will be deducted from the cash value. There will come a time when the charges will be more than their premium, this is where the built up cash value will play its part. Yet they understand that this is a protection policy and the important thing is the sum assured that they are covered with. So you must weigh what is important to you, the sum assured? Or the cash value?

Singapore Managed Fund is a fund that has been around since 1992. Most of the major Singapore companies are listed in there, do you think if those companies are in trouble, that you are the only one in trouble?

As for your OA investment, please state the premium percentage distribution of each fund. Is it 50%, 25%, 25%?

Do note that for any significant returns, you have to have at least 15-20 years horizon. Those are good funds to have. The China-India Fund has done well over the last 4 years, making an average 40% per year. Do not expect however that it will be the same for the next 4 years. PruLink Adapt is a self-adjust fund, it will rebalance your investments more towards bonds and less towards equities as you get older. I can't comment on Global Equity as I have not studied the fund indepth. Do note that these are my personal opinions and are not to be taken as advise.

If you need a second opinion, please do message me. I will put your mind at ease.

[VoodooKing]

my mum bought the PA in back in 1994. she invested in Sg Managed fund, coverage of $50,000 with monthly premiums of $300.. well.. amazingly its on track for the 9% projection.. she put put ard $48,000, and her cash valve was ard $60,000.
ILP does work, in the long run.

my question for you would be why u bought a ILP? for investment? or for protection?? coz in the long run, the insurance charges is goin to eat up all ur cashvalue if you had a high sum assured with Critial illness.

there's good and bad about the plan, coz ultimately it depends on the fund that you chose and the units and the price of the fund.

An excellent example of a well-advised client. Thanks for sharing Sybarite.

Now imagine if his mum had put it into a bond fund. It would be a whole other picture. That is where the complaints about ILPs come in.

The point is this, when getting a whole life protection ILP, you cannot be risk adverse. If you are, a traditional plan would be more suitable.

[late4ever]

i oso got a pru link ,

is urs a front end or a back end loading ??

[VoodooKing]

All PruLink Protection-geared ILPs are front-end loaded. It will not matter if you look at this as a life-long policy. If you look at this as an investment, this is the wrong policy for you.

Can you share with us what PruLink policy you have? As there are a few types.

[sumsum80]

cos my monthly is $180++ , i scare the ILP .. PPA went haywire... mean my investment all lose $$.. then end of the day ... all my $ gone

[creative_vitamin]

Whole life have more charges as compared to ILP, with exception that whole life costs are not reflected in the plan as clear as ilp.
look at the rate of return for whole life, its so low that it does not even commensurate much for the rate of inflation growth. (effects of deduction has taken effect here which is not explicitly stated)

ILP no doubt, the effect of deduction seems higher, in the long run, the benefits in terms of cash values will even match to buying a term (terms policy vs pru ppa )

anyway insurance is about buying for long term, better product features (like in Pru Paa) will definitely put our mind at ease. The investment part for ILP is usually debatable when the economy goes down, this speaks true for stock market too, people always blame playing stock is bad and quote the money losing experience in bad times, do they even complain about their gains in good times?

[ASKHabit]

cos my monthly is $180++ , i scare the ILP .. PPA went haywire... mean my investment all lose $$.. then end of the day ... all my $ gone

Just dont treat your insurance as investment, it is meant for your protection and saving. And dont expect the return from insurance is better than investment.

For $180 per month and at a young age, you will not loss you money...if you keep the policy for long term till retirement age.

Do you have any whole life policy? when purchase, amount, cover?

[zhiz22]

cos my monthly is $180++ , i scare the ILP .. PPA went haywire... mean my investment all lose $$.. then end of the day ... all my $ gone


its interesting how that you are so unsure of what you got and what is the reason you got them. maybe you wanna activate the freelook period and find a better advisor.

[IIdAydReaMerII]

ILP is not that bad as what peolple look at it.. like sone other ppl say.. it does have its good point as well.. actually rule over the bad points if u look at it carefully..

i agree to seperate insurance wif investment to certain extent..
if u have budget constraint lets say only 100$ is what u can afford per mth.. ILP can get u high coverage.. but dont look at it forever as the mortality charge will be a killer at age 50plus n after.. if u r a 20plus young chap.. actually ILP is like a temp option.. after when u start earning more.. u can adjust the coverage to the lowest n juz let it roll in investment..

5-10yrs down the road.. u r 30plus wif higher earnings i assume.. get a whole life then u might b more investment savy.. then look at other form of investment which can give u beta returns..

ILP for higher temp protection wif investment return.. low budget..

actually afterall is the agent or planner tat u r wif.. if he stay long enuf wif u all the way in life.. he can actually plan each n single stage when n get wat plan tat suit u..

as for the funds u put in.. china-lion looks pretty good.. but the question is how long it wil continue rising? til mid 2008 ? tink abt it..

singapore managed is a rather safer fund compare to china-lion..

[VoodooKing]

cos my monthly is $180++ , i scare the ILP .. PPA went haywire... mean my investment all lose $$.. then end of the day ... all my $ gone

Sigh like I said again. I asked you to PM me for a 2nd opinion. I can help you put your mind at ease and yet you're here saying all these things and going around like a headless chicken.

What have you got to lose really by me offering you a 2nd opinion?

[MPH]

but is IPL a successful or freaked out policy?

It really depends on your risk appetite.

[Sybarite]

ILP works! in the long run. it does. the underlying factor depends on your fund that u chose. hmm no point chosing bonds fund right?

[chiewee]

Now most of the funds in ILP is dropped like hell, my agent never monitor and never tell me until today I go and check the value. I bought 25k in 2005 for China India and Emerging Market. Now the value really looked like ****.. Dunno if I shall switch fund but most of the funds are not performing.

Wonder if anyone bought ILP from prudential? Can share?

[sg_ltech]

The China-India Fund has done well over the last 4 years, making an average 40% per year.

Well.. i lost 3k since the crisis started which was bought it last year.

[zhiz22]

Now most of the funds in ILP is dropped like hell, my agent never monitor and never tell me until today I go and check the value. I bought 25k in 2005 for China India and Emerging Market. Now the value really looked like ****.. Dunno if I shall switch fund but most of the funds are not performing.

Wonder if anyone bought ILP from prudential? Can share?

I met a lot of people like you, funds selected for them was very unsuitable but it was the typical 'portfolio' that pru agent do for client.

Its not about funds but more of portfolio design, which is what i use to try to repair the damage done. sticking in high risk funds is definately not the way to go to hope for recovery.

[evets]

ILP is not all that bad, its work on the concept of dollar cost averaging.

but a lot of time advisers do not tell the whole truth...the allocation of ILP is actually a killer...imagine first year only being allocated <50%!!!! u need to earn 100% of the remaining just to break even....

i think one better take a rein of their own finances and not just depends solely on the advicers which i think mostly are just as clueless about investment as us....

[The_Davis]

ILP is not all that bad, its work on the concept of dollar cost averaging.

but a lot of time advisers do not tell the whole truth...the allocation of ILP is actually a killer...imagine first year only being allocated <50%!!!! u need to earn 100% of the remaining just to break even....

i think one better take a rein of their own finances and not just depends solely on the advicers which i think mostly are just as clueless about investment as us....
do DCA also must see timing :s22: if you buy in down market sure lose like mad.. even if gain back must make bad xxx% to break even :s22:

[evets]

how to u want to time the market?

The concept of DCA is to be in the market all the time to accumulate the investment,

In current market as stocks' prices decline, it seems that this may not be an ideal strategy. However during down time, it is also the best time to accumulate it at cheaper cost and when market turn around, the rewards will be astounding!

but ILP have too many overhead costs that that returns might be eroded