Your thoughts on ILP?

[Bigoya]

Yup that is so true. Agents love to tell people that it can generate more than 5% returns. If you check all the ILPs from different agencies, most of them barely even hit 3%, which is the nominal inflation rate. Some even lost money lols. I rather invest in REITs or bonds. If you really want to invest, don't do it via ILPs.

Not 100% true. There are some equity funds that can generate an average 8% p.a. returns or hgher. It really matters on the timing you look at the fund fact sheet, if there is where you get your assumption on the fund performance.

Here's an example: https://www.axa.com.sg/axalife/assets/pdf/funds/AXFRTS-factsheet.pdf

Fortress A Fund from AXA, fund fact sheet as at November 2016 shows between negative returns to less than 5% in the figures for cumulative and annualised from 1 month to 3 year. Bench mark is STI. However, from 29 March 2016 to 13th Jan 2016 it has made 6.74%. From 18th Apr 2006 to 13th Jan'16 it has made 6.12% p.a.. From 2nd Sept 2009 to 24th Dec 2014 it made 10.67% p.a.

How much a fund can generate really is based on period to period, the table in Fund Performance section is really just a snapshot, it's superficial and doesn't fully show a fund's past performance.
Don't be attracted cos you see a 10% figure on it, and don't be skeptical cos most figures you see are below 5% and immediately judge it as a lousy fund.

Having said that, the ILP platform has fees and charges which have yet been factored into the fund performance table. Returns will be lower because of this.

On the other hand, with dollar cost averaging with a regular premium ILP, cost aside, returns can be either better or worst than the fund performance itself from one point to another point.

Not sure if I expressed myself clearly here..


Lastly, for people who understand how to invest, buying REITS/Bonds/Equity/ETFs on their own is deffinitely a better option, lower fees aside, you also have more flexibility to buy or sell at any time. But people who do not understand investment, even if they buy a good stock they could still loose money because they buy and sell at the wrong time.

 

[Perisher]

Not 100% true. There are some equity funds that can generate an average 8% p.a. returns or hgher. It really matters on the timing you look at the fund fact sheet, if there is where you get your assumption on the fund performance.

Here's an example: https://www.axa.com.sg/axalife/assets/pdf/funds/AXFRTS-factsheet.pdf

Fortress A Fund from AXA, fund fact sheet as at November 2016 shows between negative returns to less than 5% in the figures for cumulative and annualised from 1 month to 3 year. Bench mark is STI. However, from 29 March 2016 to 13th Jan 2016 it has made 6.74%. From 18th Apr 2006 to 13th Jan'16 it has made 6.12% p.a.. From 2nd Sept 2009 to 24th Dec 2014 it made 10.67% p.a.

How much a fund can generate really is based on period to period, the table in Fund Performance section is really just a snapshot, it's superficial and doesn't fully show a fund's past performance.
Don't be attracted cos you see a 10% figure on it, and don't be skeptical cos most figures you see are below 5% and immediately judge it as a lousy fund.

Having said that, the ILP platform has fees and charges which have yet been factored into the fund performance table. Returns will be lower because of this.

On the other hand, with dollar cost averaging with a regular premium ILP, cost aside, returns can be either better or worst than the fund performance itself from one point to another point.

Not sure if I expressed myself clearly here..


Lastly, for people who understand how to invest, buying REITS/Bonds/Equity/ETFs on their own is deffinitely a better option, lower fees aside, you also have more flexibility to buy or sell at any time. But people who do not understand investment, even if they buy a good stock they could still loose money because they buy and sell at the wrong time.

That's the thing, we shouldn't be teaching them about ILP at all, it's a waste of time. If they have the time, might as well study better things like stocks. Buying a good ETF is better than buying a good ILP. At least the ETF has a higher chance of positive returns than most ILPs out there.

 

[starfish.starfish]

Lastly, for people who understand how to invest, buying REITS/Bonds/Equity/ETFs on their own is deffinitely a better option, lower fees aside, you also have more flexibility to buy or sell at any time. But people who do not understand investment, even if they buy a good stock they could still loose money because they buy and sell at the wrong time.

This is the biggest myth from the ILP insurance industry - that ILP is for those who doesn't know how to invest. FACT is after the peeps buy the policy there is also no regular advisers to them how their portfolio is performing. They are also left stranded or ask to dyodd. Then what's the diff from no investment experience folks buying etf/ reits on their own? No difference I would say.

Speaking from experience from someone who lost big on ILP policy due to youth ignorance.

 

[akwl88]

This is the biggest myth from the ILP insurance industry - that ILP is for those who doesn't know how to invest. FACT is after the peeps buy the policy there is also no regular advisers to them how their portfolio is performing. They are also left stranded or ask to dyodd. Then what's the diff from no investment experience folks buying etf/ reits on their own? No difference I would say.

Speaking from experience from someone who lost big on ILP policy due to youth ignorance.

speaking from a common man on the street view, if dont know how to invest and leave it to "experts", they shld be getting higher returns than market since they are "experts"

 

[Bigoya]

This is the biggest myth from the ILP insurance industry - that ILP is for those who doesn't know how to invest. FACT is after the peeps buy the policy there is also no regular advisers to them how their portfolio is performing. They are also left stranded or ask to dyodd. Then what's the diff from no investment experience folks buying etf/ reits on their own? No difference I would say.

Speaking from experience from someone who lost big on ILP policy due to youth ignorance.

While I do agree most agents DO NOT give proper advice, some agents are even clueless about investments themselves.

You are just lucky your agent threw you on your own, and that's how you eventually learned to invest yourself. In case you wonder, I was a victim too, and I believe most people learnt their investment from bad ILP experience.

FACT is, we just hasn't met one responsible adviser ourselves. But you can't say they don't exist.
Too many reason to explain why, and I'm not gonna lay them out one by one.

 

[kzonexx]

Is Great Eastern Prestige Portfolio considered as ILP?

 

[Bigoya]

Is Great Eastern Prestige Portfolio considered as ILP?

Yes. Do u have it?

 

[dolph001]

Is Great Eastern Prestige Portfolio considered as ILP?

it is.
any policy where you have to choose a fund or unit trust is an ILP

 

[maruikun]

FACT is, we just hasn't met one responsible adviser ourselves. But you can't say they don't exist.
Too many reason to explain why, and I'm not gonna lay them out one by one.

In this type of business if you are a responsible adviser, you will probably not able to survive in this industry. How much commission can you earn from selling policies like term or H/S policies? I highly doubt those MDRT achievers can make it by selling these policies.

The thing is agent will just prey on consumer's emotion. Majority of those losing money in ilp will most likely stick to the policy. Only those smart ones will cut loss and move on. And by the time the consumer is aware of this bad product, the agent will have already collected all the commission. This is the cold hard truth.

 

[akwl88]

In this type of business if you are a responsible adviser, you will probably not able to survive in this industry. How much commission can you earn from selling policies like term or H/S policies? I highly doubt those MDRT achievers can make it by selling these policies.

The thing is agent will just prey on consumer's emotion. Majority of those losing money in ilp will most likely stick to the policy. Only those smart ones will cut loss and move on. And by the time the consumer is aware of this bad product, the agent will have already collected all the commission. This is the cold hard truth.

when the industry markets MDRT as an achievement, just look at the criteria to fulfil for MDRT, there is no mention of "responsible"

its only sales and more sales

 

[Bigoya]

In this type of business if you are a responsible adviser, you will probably not able to survive in this industry. How much commission can you earn from selling policies like term or H/S policies? I highly doubt those MDRT achievers can make it by selling these policies.

The thing is agent will just prey on consumer's emotion. Majority of those losing money in ilp will most likely stick to the policy. Only those smart ones will cut loss and move on. And by the time the consumer is aware of this bad product, the agent will have already collected all the commission. This is the cold hard truth.

I totally agree with every single point you've mentioned.

I'm not surviving well in this type of business in case you wonder.

And instead of coming here to sell my policies, I'm here to offer my side of advice. It's free, so take it or leave it.

Also, I've explained my situation to akwl88 on one of the threads before and it's exactly the same as what you've suspected.

Say whatever you want but just don't judge me with your tinted specs based or stereotypical assumption.

 

[Shion]

when the industry markets MDRT as an achievement, just look at the criteria to fulfil for MDRT, there is no mention of "responsible"

its only sales and more sales

Conflict of interest

 

[windwaver]

when the industry markets MDRT as an achievement, just look at the criteria to fulfil for MDRT, there is no mention of "responsible"

its only sales and more sales

Man, I like this.

Comment of the year award is yours bro

 

[kzonexx]

Yes. Do u have it?

Yes I have it. but it doesn't have any insurance tagged to it. only unit trusts.

 

[Bigoya]

Yes I have it. but it doesn't have any insurance tagged to it. only unit trusts.

This is probably one of those newer ILPs in the market like AXA Optimus and PruSeelect Vantange. I can't be sure.

But a long as it's an ILP, you have to be careful with the product itself, especially in terms of the fees and cost..

 

[Alpha_Hippo]

Buy insurance if you going to die , going to be total permament disable or getting critical illness in a few years. Investment best to cut off from insurance.

 

[kzonexx]

This is probably one of those newer ILPs in the market like AXA Optimus and PruSeelect Vantange. I can't be sure.

But a long as it's an ILP, you have to be careful with the product itself, especially in terms of the fees and cost..

i view this as a pure investment... I don't get any insurance fm this.. I assume ILP refers to insurance products that are linked to investments?


I had this for about 5 years alredy

 

[akwl88]

i view this as a pure investment... I don't get any insurance fm this.. I assume ILP refers to insurance products that are linked to investments?


I had this for about 5 years alredy

how much guranteed returns are you getting?

 

[Trazora]

Think ETF better than ILP.

 

[anfielder]

how much guranteed returns are you getting?

ILP = no guaranteed returns