I’m a 23 YO fresh grad 6 months into my first job. Should I buy an investment policy?

Hi Amanda,

If you want to invest, just invest directly. You have plenty of options

• Robo (as you have been doing)

• ETFs

• Mutual funds

• Shares

• Bonds

The last 4 can be bought via a multi asset platform such as POEMS. This assumes you want to manage your investments on your own.

If you prefer guidance, you can speak to a financial advisor on WRAP accounts where they will help you to set up a portfolio and manage/oversee for you.

If you prefer a total hands-off approach, discretionary accounts may be another option. However the barrier to entry is higher.

And as you can see, none of that involves an investment policy. If you need guarantees, then you should use insurance as a way to achieve that guarantee. If you can take risk, then there's no need to.

Hi there!

Investment policies are great if you don't have time/head space to learn the ropes for investment. Your investment advisor should also be managing your portfolio while helping you grow in your journey/knowledge of investment too. It shouldn't be a either-or option. I have clients who opt for roboadvisors do have investment policies too so you shouldn't be feeling torn between two.

Ultimately, make sure you know the fund performance that the policy is invested in. Most of the funds information can be found on the insurer website.

Financial planning is an integral part of life. You can find me here to find out more.