Are ILPs a no no?

[GreatPumpkin]

You use which brokerage to buy SP500?

Ibkr.

Currently vti + vxus + dram.

So a bit more than sp500

 

[Carnesir]

buying ilp is you helping financial planners to plan their own finances.

 

[rider83]

It is a YES YES for me.

i sell u ok?

 

[Mephist0pheLes]

Even if the plan is just pure investment? My concern is the funds are locked in very long sia, if i buy S&P 500 isnt it better ?

All ilps are no no. I view them as legalized scam to keep the big players in the finance industry happy

 

[Nuclear Boy]

After minus this and that and paying commision, and accounting for inflation, you'd more likely to be in the red instead.

Essentially paying out of your own pocket and then letting them keep all the profit.

 

[sohguanh]

most insurers are pushing ILP because they get the most commissions out of it.

if want to invest, can consider dollar cost averaging into some ETFs

ETF is not the only investment instrument. I have shown my PL before even with Endowus also can.

 

[tehhalia]

Ibkr.

Currently vti + vxus + dram.

So a bit more than sp500

is there a reason you buy us domiciled funds instead of the Ireland domiciled version (which has lower withholding tax)?

 

[BBCWatcher]

Ibkr.
Currently vti + vxus + dram.
So a bit more than sp500

is there a reason you buy us domiciled funds instead of the Ireland domiciled version (which has lower withholding tax)?

A good question. Another good question is why a (presumably) non-U.S. person would choose to invest in U.S. estate taxable securities.

If you're concerned about these issues, VTI and VXUS can be replaced with your choice of a single London-listed global stock index fund such as FWRA, ACWD, ISAC, or VWRA. London-listed AINF is a lower cost, close substitute for DRAM, but both are speculative meme funds.

 

[GreatPumpkin]

is there a reason you buy us domiciled funds instead of the Ireland domiciled version (which has lower withholding tax)?

Because I already cowabunga last time before realizing.

 

[CrashWire]

The best and only reason to buy ILP is if you know you will die soon, and want to give a friend commission and your estate an extra 1% on your premiums paid.

 

[reddevil0728]

The best and only reason to buy ILP is if you know you will die soon, and want to give a friend commission and your estate an extra 1% on your premiums paid.

may not necessarily be wrong. but have you been exposed to the thought process behind why some rich people still do ILP?

 

[BBCWatcher]

The best and only reason to buy ILP is if you know you will die soon, and want to give a friend commission and your estate an extra 1% on your premiums paid.

And "soon" really means soon to make this token +1% gain work for your heirs. 6 month T-bills are currently yielding about 1.46% p.a., and so are Singapore Savings Bonds in the first year. CPF MA, SA, and RA are yielding at least 4.0% p.a.

If you can find an endowment plan with a +5% death-related gain for your heirs, that'd work better in the "dying soon" scenario. Assuming the insurance company is OK with the deal. It may not work as well for the person receiving commissions.

 

[Andrew833]

I brought ILP before yr 2000, kena scam.
I made mistake again scam by the person take over the 1st scammer.
Luckily I learn to stir them into profit.
Buy Endowus better, can use CPFOA or cash, withdrawal also quite fast.

 

[sohguanh]

The best and only reason to buy ILP is if you know you will die soon, and want to give a friend commission and your estate an extra 1% on your premiums paid.

If I know I die soon I go buy term insurance why choose ILP or even endowment? Term insurance selling point is low premium high payout

 

[BBCWatcher]

If I know I die soon I go buy term insurance why choose ILP or even endowment? Term insurance selling point is low premium high payout

If you can persuade the insurance company to sell you a term life insurance policy, and to honor it, sure. But that's the hard part when you're expecting to die soon.

 

[sohguanh]

If you can persuade the insurance company to sell you a term life insurance policy, and to honor it, sure. But that's the hard part when you're expecting to die soon.

Same logic apply. If insurer know you dying I doubt they will sell you any insurance be it ILP or endowment becuz if I am boss of insurance company I will not do a lose monies proposal

 

[BBCWatcher]

Same logic apply. If insurer know you dying I doubt they will sell you any insurance be it ILP or endowment becuz if I am boss of insurance company I will not do a lose monies proposal

It depends on the questions they ask. If the insurance company's potential losses are higher, they usually ask more questions.

 

[sohguanh]

It depends on the questions they ask. If the insurance company's potential losses are higher, they usually ask more questions.

The point I trying to make is regardless what kind of insurance if they know you are dying they won't even sell any type of insurance to you.

 

[CrashWire]

Same logic apply. If insurer know you dying I doubt they will sell you any insurance be it ILP or endowment becuz if I am boss of insurance company I will not do a lose monies proposal

Most ILPs have no medical underwriting.

 

[sohguanh]

Most ILPs have no medical underwriting.

The topic is when insurer knows you are dying. If you open business sell insurance and you know that potential client is dying you will sell even ILP also?