You are not familiar with investing your money. You appoint a trusted person to handle your money and take care of investing it.
Thirty years later, you found whom you have trusted had taken away 65% of the investment gains, and left you with only 35% of the gain. Do you feel that you have been cheated?
If you invest $200,000 over 30 years and your total gain is $600,000, your trusted friend has taken away $400,000 and leave you with a gain of only $200,000.
What type of product is this? It is a high-charge investment linked policy.
Would you prefer to have chosen a more trusted person who takes away 20% of your gains (to cover his expenses and earnings) and leave you with 80% of the gains? This person took away $120,000 and return your savings of $200,000 plus a gain of $480,000.
What type of product is this? It is a low cost investment fund.
Read this FAQ:
http://www.tankinlian.com/faq/savings.html
In the case of ILP, if we have already bought this last year, would it be a better option to stop the policy? How do we determine if we should cut our losses and move on to better investments?
ReplyDeleteShould ILPs be bought for kids' funds?