Need some advice on this plan

[Led Zeppelin]

Moi brother wanna put 20k inside HSBC ILP. Advisable?

 

[Motherliquor.P]

$20k. Buy only what you need

 

[Led Zeppelin]

but there's opportunity costs in leaving 20k in there too. actually i've been telling him to get the HSBC goalsaver (for 10 years, interest rate about 2.5%) instead of the ilp. cheaper than the ilp and better than locking up 20k. just don't want him to regret taking up the ilp because it's a long term investment with not much returns. assuming a return of 4%, surrender value will break the amount paid only after 25 years, and in reality we know it will probably be lower than 4% too, despite the agent trying to psycho him saying things like the future outlook are quite good (was right beside him trying not to laugh out loud).

 

[wolfberries]

but there's opportunity costs in leaving 20k in there too. actually i've been telling him to get the HSBC goalsaver (for 10 years, interest rate about 2.5%) instead of the ilp. cheaper than the ilp and better than locking up 20k. just don't want him to regret taking up the ilp because it's a long term investment with not much returns. assuming a return of 4%, surrender value will break the amount paid only after 25 years, and in reality we know it will probably be lower than 4% too, despite the agent trying to psycho him saying things like the future outlook are quite good (was right beside him trying not to laugh out loud).

I have two policies under
HSBC my life manager plus.

recently just cancelled one of them
Haiz. Im too naïve that time to take up two ILPs.
Oh well, I lost $4Kplus.

The old ILP quite a few years with me.
I'll just keep. N yes cannot keep long!
For my case, keep paying n paying till
I surrender at age of 55-65years.

Tell your bro 20K make full use.
buy own stocks at SGX. keep as dividends.
Payback is better than ILP.

Nv link insurance and investment together!

Btw did the agent tell you ILP commission for him is the highest commission?

If time can turn back, ill never buy ILP!

 

[jack81]

yes ILP have many hidden cost. Lets not kid anybody on this.
I have seen clients with Life Manager Plus suffering losses.
I have also seen clients making additional $300 plus or more monthly on top of the monthly premium.
Its not a plan to hold till old age that's for sure coz the charges will definitely escalate in the future.

 

[Led Zeppelin]

thanks for the advices guys. i'm glad there are people here who agree with me.