Hi anon,
I'm a financial advisor and if you've been reading most of my replies on the forums for a while, you will know that my stand is there there are probably better ways to invest rather than ILPs.
There is no need to subject yourself to lock ins when you are investing. When you're setting aside money to invest, you should always have the option to liquidate whenever you need to (provided that you are able to accept whatever the market value is in the first place).
All that talk about funds performing well (if you have been told such) is not necessarily relevant either. Some prospects have shown me a rather 'boutique' fund that was only available through a 101 ILP (from my understanding) and it was pitched to them by their advisor. However, such funds are boutique for a reason, and actually may not be suitable for the retail investor.
By the way, 101 ILPs are generally massively boosted by the startup bonuses, which naturally presents a higher return at the start since you put in, say $6000 and the portfolio is already $9000 in a year due to a 50% startup bonus or something. Watch the returns fall as the fees eat into your portfolio (it's going to happen), and note that your surrender value will always be very, very low in the initial years due to the severe penalties that come with early withdrawal; what good is all that supposed profit if I cannot even take it out whenever I want?
If you really needed the human touch, speak with an advisor who can do WRAP accounts or equivalent, where there are no lock ins, and fees are based off a percent of your AUM, incentivising growth, instead of tremendous upfront commissions that come with a 101 ILP. You advisor will also be the person who will 'lecture' you to keep you on track if you ever think of deviating from the game plan.
Note that this isn't eant to be taken as financial advice, but my stand should be clear.
Hi anon,
I'm a financial advisor and if you've been reading most of my replies on the forums for a while, you will know that my stand is there there are probably better ways to invest rather than ILPs.
There is no need to subject yourself to lock ins when you are investing. When you're setting aside money to invest, you should always have the option to liquidate whenever you need to (provided that you are able to accept whatever the market value is in the first place).
All that talk about funds performing well (if you have been told such) is not necessarily relevant either. Some prospects have shown me a rather 'boutique' fund that was only available through a 101 ILP (from my understanding) and it was pitched to them by their advisor. However, such funds are boutique for a reason, and actually may not be suitable for the retail investor.
By the way, 101 ILPs are generally massively boosted by the startup bonuses, which naturally presents a higher return at the start since you put in, say $6000 and the portfolio is already $9000 in a year due to a 50% startup bonus or something. Watch the returns fall as the fees eat into your portfolio (it's going to happen), and note that your surrender value will always be very, very low in the initial years due to the severe penalties that come with early withdrawal; what good is all that supposed profit if I cannot even take it out whenever I want?
If you really needed the human touch, speak with an advisor who can do WRAP accounts or equivalent, where there are no lock ins, and fees are based off a percent of your AUM, incentivising growth, instead of tremendous upfront commissions that come with a 101 ILP. You advisor will also be the person who will 'lecture' you to keep you on track if you ever think of deviating from the game plan.
Note that this isn't eant to be taken as financial advice, but my stand should be clear.