Investment Linked Policies (ILP)
Asked by Anonymous
Asked on 18 Oct 2018
Top Contributor (Jan)
You have a 40 year time horizon and can invest in the global market to achieve wealth accumulation and higher returns.
Your asset strategy will change with your age, slowly moving towards higher guaranteed assets at a later age when you're closer to retirement for capital preservation.
Instead of looking for a product to purchase, do some retirement & investment planning.
After that, then find products that will fit what you're planning to do and meet your objectives.
Also retirement means very different to different people. Some want to live off dividends and coupon payments. A very passive retirement.
Some would prefer to do a drawdown retirement to maximize all the wealth they've built over their years.
You should speak to a trusted advisor or specialist to figure a path out for your retirement.
Neither. Cost is too high, especially for ILPs. In today's world, you have products and service providers that offer investment option at a much lower cost.
For SGD investing, consider Regular Shares Saving (DBS RSS on ETF or OCBC BCIP)
If you prefer Global/USD investing, can consider the Robo Advisors e.g. StashAway or DBS digiPortfolio.
If you have built up a portfolio of $30 - $50k, can consider a DIY portfolio using ETFs and periodically top-up the base on your asset allocation either via SGX listed ETFs if you want to keep things simple or explore US-listed ETFs which may involve taxation and currency exposure.
Honestly, get neither. Learn to invest on your own, or pay to have someone guide/mentor you. This becomes a skill which will last you a lifetime. No point locking up your money in long term policies which cost a pretty penny and the returns pale in comparison to what you can get when you invest on your own.
Have you ever thought of investing regularly in STI ETF? Have a look at the link for regular savings plan.