Is AIA Wealth Pro Advantage good for fresh graduates who have savings (>50k) and are new to investing? If not, what is recommended? - Seedly
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Anonymous

Asked on 27 May 2020

Is AIA Wealth Pro Advantage good for fresh graduates who have savings (>50k) and are new to investing? If not, what is recommended?

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Hi anon,

I'd recommend you to open an investment account with a broker and invest from there. You'll be free to invest in any asset class without being constrained to the policy T&Cs. There are many platforms available for the retail investor and I urge you to take a look at them.

We buy insurance for guarantees and for protection. Investments, by their nature, do not have any form of guarantee, and thus there is really very little reason to invest via an insurer, since you'll have to guarantee your premium payments, whereas your returns are generally not guaranteed.

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šŸ‘ 3

Hey there!

Wealth Pro Advantage combines the concept of savings + investment in it. Half of what you put in is guaranteed over a perid of time while half of it is guaranteed. Whether it's a good plan or not will depends on whether you think this meets your needs at any given point.

Most of my clients prefer separating their savings from their investments. And for people who are new to investing, you definitely can read up and learn as much as you can, and then do it on your own through an online platform. If you think you want to start off with someone guiding you along the way because you havent the time to read up material and learn, you might want to purchase a investment-based ILP through a trusted advisor.

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

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šŸ‘ 1

Hi Anon,

If it's for pure investing purposes without any other objectives, it'd be best you channel it into other platform instead of a product/plan. After setting aside your emergency fund, short term liquidity needs, and basic essential insurance, you can use the remaining to construct a decent portfolio and make plans on RSP consistently to invest over the long term! Platform wise, too many to name depending on what you are interested to invest in, FSM/Saxo/TD/IB etc. Hope this helps!

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šŸ‘ 1
Lim Qin Da
Lim Qin Da, Community Lead at Seedly
Level 6. Master
Answered on 30 May 2020

Hi Anon,

To check out more about the different online brokerages available, you can click into the specific product pages located on the right side of the question. In these product pages, you will be able to see more details, ratings, reviews, as well as questions asked by the community about the respective brokerages. This could provide you with more information and insights when you are considering among the different choices available :)

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šŸ‘ 0

Introduction

AIA Wealth Pro Advantage is a combination of both a participating component from an endowment savings policy and at the same time allows you to invest through AIA investment-linked funds.

Participating Policy

For the participating component, your premium will be invested into AIA's participating fund. Accordingly, you share the profits from the fund's performance while protected against the downside from investment risk.

More Details:

What is a Participating Fund?

Investment-Linked Funds

At the same time, the other portion of your premium is invested into AIA investment-linked funds. You may choose what type of funds to invest into, or to tap on expert advice from global investment firm Mercer.

It will be good to know the latest fund performance to this end.

More Details:

AIA Investment-Linked Fund Performance Update

As for suitability, we need to know more about you and your goals before we can ascertain whether it works for you. Above all, AIA Wealth Pro Advantage accumulates your wealth through guaranteed and non-guaranteed returns.

For this purpose, I will suggest for you to speak with an experienced consultant to explain further and to assess whether it is recommended.

I share quality content on estate planning and financial planning here.

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šŸ‘ 0
Tay WenHao
Tay WenHao
Top Contributor

Top Contributor (Jun)

Level 7. Grand Master
Answered on 28 May 2020

As others have mentioned, doing it yourself thru trading platforms (DBS Vickers, FSM) is better and more cost effective. If you are new, can look into ETFs as they are diversified and tends to be lower risk.

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šŸ‘ 0