need advice on ILP

[Kenzer11]

Anyone do this strat before? Able to say why his dividend and fund switching hack don’t work?

There’s no promise to beat S&P and he emphasis returns are of course not guaranteed which makes him seem credible to me.

He is using a method which require you to switch between at least 3 funds per month. Eg Fund A pays 8% pa dividends at the beginning of the month, Fund B 8%pa mid month & Fund C 5%pa at end of the month. If u switch from A to B to C after the dividends paying date, in effect you are getting 21% pa. Every newbee FA know this trick. Can you keep doing this year in year out? His company will investigate your case for excessive switching. Most important thing to check when buying ILP is the sales charges is it too much. If not better off buying unit trust online yourself.

 

[st0rm5cap3]

based on what I understand, the dividend yield is very high because it’s from multiple sub funds. He says he can guide us to switch between the sub-funds with no fund switching fee and be entitled to the dividends. That’s why can have such high dividends because it’s from multiple sub-funds not just ones.

As some more first year there’s even an additional sign up bonus.

Lol. Don't naive lah. 20% per annum why is FA still selling policy? Just all in himself and yolo lah. Non-guaranteed is it? Just illustration? Or leverage is it? Invest 1k/month but use it to "loan 3k"? That's why can get 20% of original 1k but actually it's just 7%. Then when the unit trusts value drop too low, ask u to sell backside to topup! Maybe it's junk bonds, earn lots of dividends in early years, then when u wanna sell, value is less than capital put in. TS, don't naive please.

 

[gregory_choo]

he wont work as insurance agent anymore if he can get some product with 20% return.

he just need to stay at home or out at play with the money.

 

[Krabs.]

the insurance company got what investing genius inside to pump out 20% for the clients ? he smarter than other listed companies doing real business

 

[toolbox03]

ILP has one of the highest commission for agent that's why they want you to buy

 

[Nuclear Boy]

You ownself invest, you'd see a higher chance of 20% pa returns, even though that still is too good to be true in most cases.

 

[rarenick]

He is using a method which require you to switch between at least 3 funds per month. Eg Fund A pays 8% pa dividends at the beginning of the month, Fund B 8%pa mid month & Fund C 5%pa at end of the month. If u switch from A to B to C after the dividends paying date, in effect you are getting 21% pa. Every newbee FA know this trick. Can you keep doing this year in year out? His company will investigate your case for excessive switching. Most important thing to check when buying ILP is the sales charges is it too much. If not better off buying unit trust online yourself.

If need so much manual work might as well buy eft on dca and then set and forget through auto bank deductions and auto recurring etf purchases.

 

[rarenick]

Disclaimer about ownself investment. If u buy from US market, there is high estate tax for $60k and above investment. Means if you passed away and your US stocks hit 60k and above, your family won't get the full amount after tax deduction.

This scenario unlikely to happen if u buy from insurer.

 

[iceblendedchoc]

Wall Street bets kor kor pls teach

just dca monthly into a low cost global etf for investment instead of paying the premium for the ILP, buy term insurance if you need coverage

 

[DarkStarer]

rly works ah? i nver try fa before sia, maybe time to approach some.

If you try and end up squat in jail then don't come blame me.

 

[zuoom]

Upside is per what is claimed. Downside is about half of your portfolio or more.

Just watch for the tied in period, when can take out. How much it cost to take out etc.

 

[tiopwndeepdeep]

Mine had high returns but the fund fee margin also sibei high at about 5% overall. And the fund initially just after COVID doing very well, after that not so much. Switch also no use. Now 6 yrs in and I haven't even break even my paid amount. Lost about 6k which is 10%.

I told my husband I put 7 yrs no returns and lose money, I put in POSB also better. But hard to niaoji anything because my husband was the agent.

Is it using the same dividend extraction strategy?

 

[tiopwndeepdeep]

He is using a method which require you to switch between at least 3 funds per month. Eg Fund A pays 8% pa dividends at the beginning of the month, Fund B 8%pa mid month & Fund C 5%pa at end of the month. If u switch from A to B to C after the dividends paying date, in effect you are getting 21% pa. Every newbee FA know this trick. Can you keep doing this year in year out? His company will investigate your case for excessive switching. Most important thing to check when buying ILP is the sales charges is it too much. If not better off buying unit trust online yourself.

Yes you are right he is switching between sub-funds to extract the dividends hence he can leverage on multiple sub-funds’ dividends and that’s why the payout is more than 20% per annum.

he has been doing for many years already

 

[lampano]

Hi everyone I have been approached by a GE FA for this ILP. The returns are 20% per annum and it works because they are using a dividend extraction strategy.

anyone heard of this or also bought same plans? So far from the screenshots shared it looks good leh.

pls sign up and bite the bullet for us.
let us knw yr review 1 yr later

 

[rosschang]

Y termasick haven't all in for this 20% ILP return ?

Bcos Gee I (didn't) See

 

[Kenzer11]

Yes you are right he is switching between sub-funds to extract the dividends hence he can leverage on multiple sub-funds’ dividends and that’s why the payout is more than 20% per annum.

he has been doing for many years already

Old trick. Dividend extraction just a fancy name

 

[mirukuboi]

If it's ilp
Just say no

 

[Mephist0pheLes]

based on what I understand, the dividend yield is very high because it’s from multiple sub funds. He says he can guide us to switch between the sub-funds with no fund switching fee and be entitled to the dividends. That’s why can have such high dividends because it’s from multiple sub-funds not just ones.

As some more first year there’s even an additional sign up bonus.

mai noob lah. u know those high dividend funds are paying from their capital anot?

e.g. the fund promise 8% "dividend" and it is worth $100 now. this year the underlying assets only generated $3 of interest/dividends, the fund will sell away $5 of the capital to make up that 8% to pay you.

and you also another genius that believe dividend is free money. that company can create value out of thin hair and can pay out dividend without affecting the capital value. a company that is worth $100 will be worth $92 after it pays out $8. that's an economic fact. its like if u have $100 in ur bank acc, u cant take out $8 and still expect ur bank acc to have $100. u buy sell buy sell, all u r doing is converting some of the captial into dividend payout.

 

[justice89]

First rules of investment risk is in tandem with return...20% return..... maybe lost till pants drop.

 

[GotBetrayed]

You tell the FA if you put in 100k, can up ma? Then you **** the FA. After that during the 14 day free look period you cancel your policy.

TS mentioned the FA is guy though