AIA Pro Achiever VS Unit Trusts VS Endowments?

Hi all, I have roughly $20,000 set aside for wealth accumulation.

I am a conservative person when it comes to investing. An AIA agent has approached me recently proposing AIA Pro Achiever. He mentioned that it comes with very little risk since that their Fund Manager is Mercer. He further mentions that my policy will average out 6% returns. I've looked through the forum and realized that many regretted having an ILP.

Would Unit Trust or Endowment suit me better? What is the diff btw UT & ILP?

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1M45

24 Dec 2020

Choose Unit trust liquidlity (dont buy from bank. Buy from Poem or FSMone 0%sale charge)

Endowment & ILP take your money and invest in unit trust and charge you fees.

Endownment will lock your $$$ for period of time. U terminal before maturity u loss "$$

ILP take ur $$$$ pay insurance premium + unit trust. Premium increase as u older. Your investment dont grow faster than the deduction u loss $$$.

Agent just salesman, no need to believe whatever he said.

Just sharing- i am not an expert, just a guy who like to do math

it look like an endownment plan

100% premium invested, no sale charge, DCA. (Same as brokerage RSP) - Ok

Cap on charges- did your agent share with you what charge?

Death coverage standard for endownment - Ok

5% bonus units- look ok or is it?

See those numbers? Hidden charge. Flexibility come with charges.

Free switching- you probably wont use it, if you do not invest in UT yourself

auto rebalancing- you can use a robo-advisor

The $$$ look attractive. But the fine prints

4% after fees, 8% before fee. Fund performance not guaranteed
1.2% guaranteed. ( i guess fee around 4%, avg return p.a ~5+% - 6%？)

Remember the 5% bonus unit After 12 years? As you withdraw ur unit will reduces, 5% of units. No free lunch...

https://www.aia.com.sg/content/dam/sg/en/docs/p...

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PolicyWoke

24 Dec 2020

Turbo-charge Your Savings with REPs at PolicyWoke

Hi Anonymous,

Regarding ILPs, do note that the returns are subjected to the underlying unit trusts' future performance.

Unit trust is an actively-managed fund managed by fund managers and is not tradable in the stock market. Yes, you can invest in unit trusts on your own via DIY platforms such FSMOne, dollarDEX and Endowus (Fund Smart), but this requires you to make your own financial decisions on which one to invest in. If you need an advisor to advise you on which unit trusts to invest in, then you may consider opening an advisor-assisted account with iFast Global Markets or via a financial advisor who can assist to open an iFast account for you.

For endowments, again you have to speak with a financial advisor on its suitability.

Disclaimer: PolicyWoke is a 2nd-hand endowment policies broker

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