That other thread is so toxic that it almost gave me cancer
We all know BTIR is the most cost efficient way, but it is simply irresponsible to ask everyone to cancel their plans. Just to give a summary of the key points I would consider:
1. Break-even. Insurance is not free. A fair comparison would require subtracting the cost of the term plan (vs ILP for example).
2. Trading costs. Since the popular strategy here is to DCA and buy STI ETF, with a small budget of $200 monthly, the min. trading fee is stanchart at $10 which equals 5% fees. Of course you can pay $1000 every month or every 3-4 months then it will become 1%. Don't forget the 0.5% ETF fee as well.
3. Discipline. This method means, whether markets up or down, u gotta continue doing the same thing. Recession coming again, 2008 market crash happen again, still gotta buy the STI ETF by yourself. No excuses.
So, end of the day, assuming (1) and (2) are calculated properly, THEN we have grounds for comparison. Yes, BTIR will show a better number. So, the deciding factor is (3).
If have no discipline or expertise, gotta pay the difference for (3). If have discipline or expertise, then by all means DIY.
For the record, what does expertise mean? 2 main things.
A) Valuation - DCF, Comps, LBO, Options pricing
B) Research - Macro and micro economics, govt. policies, news etc.
Even with expertise, a retail investor is just small fish in ocean vs big banks and institutions like JP Morgan, Goldman Sachs which can manipulate markets in short run.
Pls ah, those "investors" who just depend on random hot stock tips (like some in this forum), or go for some guru investing or trading seminar, they are better off sticking with ILP assuming they find a good advisor.
This is why internal rate of return is the key metric to determine whether to engage an advisor. And not his fees.