facebookLong story short, had a bad history, I am on 2 Global Wealth Advance 101% ILP. Both cross the 5/25 Year mark. charges are high and in long term it is going to eat into my profits. What should I do? - Seedly
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Anonymous

Posted on 14 Jan 2021

Long story short, had a bad history, I am on 2 Global Wealth Advance 101% ILP. Both cross the 5/25 Year mark. charges are high and in long term it is going to eat into my profits. What should I do?

I am holding 2 Global Wealth Advance 101% ILP. I know its charges are high and long term will eat into profits. Want to explore possible options.

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2 answers

Discussion (2)

J

Jesslyn

Level 14. Grandmaster

Posted on 15 Jan 2021

Cut loss and move on.

Avoid ILPs at all cost. Super high fees and many layers of fees within. Everyone in the pipeline gets a cut from you, and you are the goat at the bottom getting slaughtered by fees. Fees are critical as it reduces your returns significantly

only good for your adviser because they earn about 50% of the premiums you pay as commission, rubbish product

1

Loh Tat Tian

Loh Tat Tian

22 Jan 2021

How do you determine it so fast when you say cut loss and move on? That's putting the cart before the horse? I do my calculation and ask him to sell to me haha, especially if my opportunity cost is lower. Thanks for bringing business to me?

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The thing about ILPs is that it is very adviser driven. So if your adviser is actively monitoring the port for you and the returns can cover the fees plus earn a decent return, then well and good.

If not, you need to consider the possibility of pulling out and channelling into something else, especially if you are savvy enough to invest on your own.

Food for thought on use of unit trusts / mutual funds as an investment vehicle - https://www.tonyrobbins.com/wealth-lifestyle/5-costly-investing-mistakes/

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