Asked by Anonymous
In 2016, I bought an endowment policy at $200/mth, paid 2 years' worth of premium ($4800) before realising investing the amount made more sense so I let it lapse this year. Beginning of 2018, was introduced to AIA Pro achiever plan. bought in at $200 a month, turns out it's just another ILP (only have myself to blame). I already lost $4800 on the endowment and I'm thinking of dropping the AIA one, after having paid the 1st year. Is this a good idea? Any other advice is greatly appreciated!
I would like to ask:
I agree with Luke, ILPs do have the potential to reap good returns.
ILPs too, have charges. Surrendering the ILP has it consequences and I hope that your consultant can explain it clearly to you.
Talk to your consultant, I am not sure what was communicated between you and him/her but definitely certain facts weren’t communicated clearly.
Not being bias, but Pro Achiever is one ILP I would propose to my clienots. Of course, when my clients queries, concerns and needs are duly addressed.
It really depends on what kind of aim you had with the AIA plan.
You have to get it out of your head that being an ILP does not merit it being a poor investment. It is not difficult for a ILP fund to beat the common range of instruments out there such as the STI ETF, a Robo Advisor or even the SNP500.
You have to know what the AIA Pro Achiever is invested in, what kind of return you can expect, WHY you can expect that kind of return, etc. If that hasn't been clear to you yet, go back to your FA because thats his job.
And if you need a new one, drop me a message.
I've written on the subject and have quite a decent amount of experience beating common funds.