Advertisement
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.
4
Discussion (4)
Learn how to style your text
Reply
Save
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.βββ
Reply
Save
You should invest on your own, f. ex. with periodically buying a global passive stock index ETF. Wit...
Read 1 other comments with a Seedly account
You will also enjoy exclusive benefits and get access to members only features.
Sign up or login with an email here
Write your thoughts
Related Articles
Related Posts
Related Posts
Advertisement
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.
Follow me here.βββ