Friday, December 19, 2008

High charges in this investment-linked plan

Hi,

I have just given up on my V investment plan which lasted for 2 years. The investment return is poor (i.e. I lost over 30% of capital and the EURO adventurous fund performed very poorly) and the surrender penalty is very heavy.

What I really dislike about this plan is the lack of transparency and inflexibility, and particularly the lack of control of your funds. There are these expensive management fees and numerous charges. It is an expensive plan (i.e. at least $1,200 per month on a premium of $2,500 per month).

It would be better if you invest in an exchanged traded or index funds for long term investment. ETFs work like a stock and can be traded with minimal management fees unlike unit trusts or managed funds. You can dollar average your payment (when the stock price is low). The advantage is that you can buy and sell the fund (depending on the market) as YOU ARE in control. Right now equities are very low particularly for some blue chips shares. Do some research, be your own fund manager.

Just cut your losses and get rid of the plan. Remember you have to pay 10 years of this plan (otherwise you may incur penalty etc)! Your returns may be very unpredictable. 10 years of bondage to a fund which may not.

VL
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Anonymous said...

The V plan is like the traditional WL or endowment with a twist or a minimum lock in , failure will result in heavy penalty. The insurers know that traditional products are losing its shine or lost their usefulness and now they have repackaged like the CDOs to look different but basically at its core is the toxin hidden deep.
The consumers should be wary and nor long from now ntuc will also join the fray to hoodwink and con the ignorant consumers.Look out for the con man. It will serve you well to look for honest and competent advisers who are getting very rare these days.
Mr. Tan's FISCA will be timely to check the spread of this product that will be worst than the minibond. It is going to be a big bomb. MAS must examine the product by performing its duty as regulator before another MADOFF appears.

December 20, 2008 12:29 AM

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