Saving Insurance Plans

[royalmix]

Yea, I hear ILP is something not worthy to invest unless one is super well informed which is unlikely to happen

that's right, but if u buy the right policy, it is ok. How to get it right? Understand the underlying assets!

But still dun buy unless u understand

 

[Bigoya]

Yea, I hear ILP is something not worthy to invest unless one is super well informed which is unlikely to happen

that's right, but if u buy the right policy, it is ok. How to get it right? Understand the underlying assets!

But still dun buy unless u understand

Not very true either. It is a product with high fees. If you know what's going on, i.e. u understand the assests and how to invest, you SHOULD invest it on your own. By that, I meant buying ur own stock or funds elsewhere than through an ILP.

Sone people thought they could rely on their agent to manage the investment for them, but usually, their agents would have either no investment knowledge or they are just busy looking to find new clients. Sometimes you make money only because you are lucky to have bought the right fund at the right time, which is pure luck.

 

[dendii]

That is a misconception.

Agents do not manage the funds. They are not fund managers nor is it likely they monitor the fund performance all the time.

Those putting their money inside funds is based upon that trust and idea that the fund manager will probably know more than what they do since they have no clue.

Not very true either. It is a product with high fees. If you know what's going on, i.e. u understand the assests and how to invest, you SHOULD invest it on your own. By that, I meant buying ur own stock or funds elsewhere than through an ILP.

Sone people thought they could rely on their agent to manage the investment for them, but usually, their agents would have either no investment knowledge or they are just busy looking to find new clients. Sometimes you make money only because you are lucky to have bought the right fund at the right time, which is pure luck.

 

[Bigoya]

That is a misconception.

Agents do not manage the funds. They are not fund managers nor is it likely they monitor the fund performance all the time.

Those putting their money inside funds is based upon that trust and idea that the fund manager will probably know more than what they do since they have no clue.

I agree and disagree.

While you are 100% correct to say that fund managers manages funds, the adviser have the responsibility (whether written in black and white or not) to manage the clients' portfolio and allocation.

The fund managers DO NOT have the right OR the responsibility to switch funds for clients, do they?

And if you say that clients are suppose to do their own due diligence to decide on fund switching themselves, then why are agents selling ILPs to clients without investment knowledge and fails their CKA in the very 1st place? I know we can't (by right), but you can't deny the fact that many agents are doing it.

My conclusion is that fund managers manages the individual fund basket and select the stock (or bonds) to be placed in it, while the adviser manages the client's portfolio and timely advises the client what funds to switch into when the existing invested market is not doing well.

If the agent cant provide the necessary advice and the client don't understand their own investment, selling them ILPs is just selling them poison to harm their financial health.

 

[dendii]

Well said. I have seen my fair share of agents who are unable to do so, and even before joining the industry, agents frequently bring up the point of "not to worry, I will help you monitor and manage your fund".

And I suppose this is another thing that adds on to the liability of an ILP since it has protection elements and is subjected to such risk. More often than not, it is left unattended and auto-run on its own over the years.

It will be better if it was a full investment plan and you really want to let go of the investment to a fund manager and a trusted agent to help you manage and monitor everything. This will make more sense.

My conclusion is that fund managers manages the individual fund basket and select the stock (or bonds) to be placed in it, while the adviser manages the client's portfolio and timely advises the client what funds to switch into when the existing invested market is not doing well.

If the agent cant provide the necessary advice and the client don't understand their own investment, selling them ILPs is just selling them poison to harm their financial health.

 

[Bigoya]

Well said. I have seen my fair share of agents who are unable to do so, and even before joining the industry, agents frequently bring up the point of "not to worry, I will help you monitor and manage your fund".

And I suppose this is another thing that adds on to the liability of an ILP since it has protection elements and is subjected to such risk. More often than not, it is left unattended and auto-run on its own over the years.

It will be better if it was a full investment plan and you really want to let go of the investment to a fund manager and a trusted agent to help you manage and monitor everything. This will make more sense.

Well, there are full investment plans around like AXA's Inspire Duo. But does majority of agent sell such plans? No. Why? Commission low and a lot of monitoring work. But there are still a minority of agents selling them. Why? Most sell it just to squeeze their clients as dry as possible. No Cash, CPF also can.