Should I invest through an insurance company or invest by myself? - Seedly
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Anonymous

Asked 3w ago

Should I invest through an insurance company or invest by myself?

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CH
CH
Level 7. Grand Master
Answered 3w ago

For a retail investor, definately never through an insurance company. their high fees will erode any meaningful returns. all their solutions for retail investors are not unique and can be obtained cheaper through another fund distributor.

these days with technology, robo advisors can do similar with even lower costs than insurance and unit trusts.

keep investments and insurance separate. i learnt it the hard way.

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Frankie Aufhauser-Rappaport
Frankie Aufhauser-Rappaport

3w ago

Best advice.

Hi anon,

Did you ask the same question twice? Anyway, reproducing my previous answer here:

As a financial advisor myself, I see no reason to invest through an insurance company's policy.

Insurance is there to provide you guarantees. Investments have none. Lack of knowledge is no reason to go to an insurance company to invest (unless you want a guaranteed return through an endowment or annuity). With no knowledge, and no desire to pick up any, you can still speak with an advisor who is able to manage your funds with his knowledge and skillset. I'm managing my clients stocks and unit trusts portfolios directly and none of that involves an insurance company's policies.

So no, there's really no need to go to an insurance company's policies to invest. If you

want to invest, invest. If you want to insure, insure. Don't mix both of them together.

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FM
Francesca M. Soh
Level 4. Prodigy
Answered 2w ago

If you enjoy the idea of investments and ownership, have the knowledge, have the time then by all means do it yourself. Otherwise maybe not too wise to throw yourself into it without some form of guidance.

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Frankie Aufhauser-Rappaport
Frankie Aufhauser-Rappaport
Top Contributor

Top Contributor (May)

Level 9. God of Wisdom
Answered 3w ago

Yes, definitely not with an insurance company, because of the fees and conflicts of interests.

You just need a cheap & reliable Online Broker (FSMOne or POEMS are examples)

and some reading on asset allocation, risks, currency conversion.

many things are written up here, however the more You are invested in stock equity, the higher the risk, naturally:

https://seedly.sg/questions/what-is-your-general-investing-philosophy-strategy

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Wilson Nid A Break
Wilson Nid A Break
Level 8. Wizard
Updated 3w ago

Depend whom you pose the questions to

If I am your insurance agent: Investing a a very high-risk activity, are you sure have the right skills/knowledge to monitor your positions, can you sleep well at night? if not 100% sure, better leave it to the professional aka me, cos i will always protect my clients' interest!

If I am your investment guru: Investing is not rocket science, as long you follow my proprietary investing system, just pay $XXX, money-guranteed and we have a weekly/monthly discussion group to help all of us analysis the market!

If I am a normal investor: Investing is a lonely journey, though there are occasions you can ask for help here & there. If you are unwilling to put in the effort to build up your financial literacy and skillset, only relying on others' for blind guidance/spood-fed answer, you will always be frustrated by market's fluctuations. Conversely, if you are willing to put in the hard work, be patient and set risk-adjusted realistic goals, it will be fruitful down the road.​​​

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Frankie Aufhauser-Rappaport
Frankie Aufhauser-Rappaport

3w ago

Yes, true, one precondition is very strong trust in the markets, that makes fluctuations a lot easier, and develops probably with time

Firstly, you need to establish whether you possess the knowledge, skills, experience, and time to manage your own investment portfolio.

On the other hand, some insurance companies partner with global investment firms like Mercer, and BlackRock to create an optimised portfolio for their clients to invest their money. Additionally, your agent should be capable enough to give you responsible advice on your asset management over time. This reduces the need for you to spend considerable time to manage the investment on your own.

Having mentioned that, you should still have a basic understanding on the financial instrument that you are investing into (be it on your own or through an insurance company). This ensures that you are comfortable putting your money to grow for the long run.

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

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