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Anonymous
The company is charging 1% of entire funds managed yearly vs ILP charging less at 6.25% (1.25% fee+5% sales charge) of only the $3k yearly premium. Company is investing in index funds projecting 5.5% returns vs ILP is fully managed by insurance company projecting 14% returns. ILPs are typically discouraged but my insurance agent seems to have made some salient points here. Any advice? I am not confident investing on my own so it's either the company or the ILP for me in my retirement planning.
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You don't need to go to a fund management company just to invest in index fund. 1% fees for index funds on a 5.5% projected returns is simply a bloody joke
lower cost alternatives will be the robos (stashaway and endowus for example).
ILP 14% returns less fees 6.25% = 7.75%
again, you could be better off investing in index funds through robos.
robos charge 1% and give market returns (last 10 years was about 10% returns yearly)
at 6% management fees, i would expect some exotic funds will more interesting returns.
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You should invest on your own, f. ex. with periodically buying a global passive stock index ETF. Wit...
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Well, here's a fact. There is nothing from an ILP in the investment component which cannot be replicated from a broker.
The only 2 real benefits revolve around
Cost efficiency with increasing insurance upon death.
The treatment of assets on your estate upon death.
If you want cost-efficient investments, go for a broker. Heck, a Roboadviser will work.
If you need the 2 benefits outlined above, it will be wiser to stick to an insurance company.
14% is aggressive. I will ignore that projection. Stick with 8%. 8% is aggressive for equity, even by that measure.
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