need advice on ILP

[tiopwndeepdeep]

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.

Anyone got experience with similar dividend extraction strategy?

 

[Mephist0pheLes]

Anyone got experience with similar dividend extraction strategy?

there's no such thing called dividend extraction strategy. it is probably jus some marketing terms to scam the financially illiterates

 

[rider83]

Tbh my ilp got make money but when i average annual returns also end up not a lot of profit. Like a few % per annum? Plus mine still need to lock for 25 yrs...gosh..

This is what i mean lor… the reality is so far away from the expectation the agent painted. And considering markets have been doing extremely well

 

[tiopwndeepdeep]

there's no such thing called dividend extraction strategy. it is probably jus some marketing terms to scam the financially illiterates

Yes I tried googling online but there’s no such thing from GE. But I heard GE has a strong team focusing on this strategy of fund switching.
I have done such research on Reddit where they say the sub-funds may complain to the insurance company when people switch cos their performance or fee is affected when this happens. However have confirmed with the FA that GE continues to allow fund switching at no costs and ensures dividends payout are done at cash basis.

anyone alrdy entolled in similar plans?

 

[twinbaby]

Ask the agent to jiaksai

 

[windwaver]

Tbh my ilp got make money but when i average annual returns also end up not a lot of profit. Like a few % per annum? Plus mine still need to lock for 25 yrs...gosh..

See what happens when the market goes down for some time.

 

[FORSTA]

Ts ah Ts the general consensus is already very clear, if it’s so good the FA wouldn’t be working as FA Liao, if you believe you got a good lobang go for it but the consequences you have to bear alone

 

[straycurrent]

TS you just go and buy... you just want someone to tell you it is good..sure earn 20%. Your FA already told it is possible and here so many already given you the answer and you also can't find it after searching...don't ask anymore...Go all in...buy the highest you can afford... You will earn Big Big.

 

[0218crawford]

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.

this one plot twist at the end jin classic.

 

[0218crawford]

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.

plobem is u could be switiching to an expensive fund and switiching out when price is low. the classic buy high sell low. on paper dividend come in jin song. in reality nav also sinking. end up ish what is commonly known as LPPL.

 

[0nePunchm@n]

yeah, ts all in nao better than getting scam by kk park with 0cents left..

 

[Lao_Tiko]

Don't be silly. Buy term and invest the difference. That mantra has been repeated the world over.

 

[Hardware4455]

Don’t be greedy.
If you are lazy to research, go find those ready to use portfolio from banks etc

 

[tiopwndeepdeep]

Ts ah Ts the general consensus is already very clear, if it’s so good the FA wouldn’t be working as FA Liao, if you believe you got a good lobang go for it but the consequences you have to bear alone

Thank you everyone will tink first before deciding.

I am also sceptical that’s why ask lao jiao here first.

 

[chickenpiez007]

stop reading at ILP and 20% per annum....

 

[matchy]

Faster all-in to live up to your name

 

[chickenpiez007]

I bought Ilp 20 yrs ago when I was young. Now stuck because it is tied to my life insurance. My recent years illnesses cannot be covered by new insurance or else will be loaded with higher premium.

Then later agent propose another Ilp to me, I didn't take up, as I learnt how to invest by myself. Currently my stocks doing better than the Ilp estimated returns.

From every angle, Ilp is not suitable for me (and maybe also not for everyone). Agent will earn from this policy, fund manager also earned from my investment portion annually, and my insurer also charging me for the using their lousy investment platform interface. Then at older age they apportion more towards insurance cost than my investment. End up everyone is taking a cut from my ilp, then where got much leftovers? Meaning that whether in good or bad years, I am paying them for the services. If I invest by myself, I don't sell my investment shares during bad years, I won't incur any charges. Btw their charges I find them quite high and unreasonable.

no even need to learn simple investment.....just throw money topup CPF also better return than ILP.....

 

[Mephist0pheLes]

Yes I tried googling online but there’s no such thing from GE. But I heard GE has a strong team focusing on this strategy of fund switching.
I have done such research on Reddit where they say the sub-funds may complain to the insurance company when people switch cos their performance or fee is affected when this happens. However have confirmed with the FA that GE continues to allow fund switching at no costs and ensures dividends payout are done at cash basis.

anyone alrdy entolled in similar plans?

Looks like u still don't understand any of the points I made. Good luck. I will note down ur nick somewhere and I look forward to seeing ur thread 5 years later about how u regret buying ilp

 

[GotBetrayed]

Just all in la if not how your agent gonna go Europe for holiday?? How to get million dollar round table award? Need fund his car and condo right

 

[clipper]

Can hit 20% per annum.

Whoever financial trader can achieve it consistently will be headhunt by JP Morgan or other investment banks.