As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two over market cycles of Bull and Bear.

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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

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Monday, 9 February 2015

Shocking Discovery On My ILP. This is timeless blog post since ILP will be around for a long time! (2)

Read? Shocking Discovery On My ILP. This is timeless blog post since ILP will be around for a long time!

Words are not always helpful! 

How about a picture?

You still don't understand?


  1. Did they tell you that your investment return on the remaining ILP units after deduction can cover your XX years of premiums?

    1. Do you ask your barber your hair cut nice or not?


      You ask the one who kena cut botak by his barber?

  2. if we think insurance is mainly for "protection" and never "investment", we should be O. K.
    So is buying WL a kind of protection aka consider part of assets allocation? Just like CPF Life which is compulsory for the younger working generations- a kind of buying protection?

    1. Of course now a days, people will go for "Term Insurance and invest the rest" instead of WL.
      But can you buy Term Insurance for your whole life? Does it make sense if there is? And is your invest the rest sure to make money?

  3. temperament,

    It's semantics again but once we label them "appropriately", its easier to compare apples to apples:

    1) Wholelife and Endowment policies are protection plus savings.

    2) ILPs are protection and investment.

    3) CPF Life is more like annuity plans.

    If we do savings, we don't expect to get a capital loss.

    For investments, there is risk of capital loss.

    Hence if we put money in a fixed deposit (or voluntary CPF contributions) with 2.5% interests - there is NO risk of capital loss.

    But if invest in a sovereign or corporate bond that pays the same 2.5% yield, there is default risk and risk of capital loss if interest rates goes up (unless you hold till maturity).

    That's why those financially illiterate savers got a shock of their lives with Lehman mini-bonds - they thought they had a savings vehicle, but some snake-oil sold them investment vehicles instead...

  4. And even our CPF LIFE is not guarantee by our G for a minimum base payment/month. Worse still it is not even guarantee that it will never kaput. And this is operated by our G not commercial companies. How to beat that?

    1. temperament,

      Yup. There's only 2 guarantees in life - death and taxes.

      Governments come and go; just like nations.

      Who can guarantee Singapore will be still around in the next 50 years?

      So focus on what we can control and maybe influence (elections?).

      The rest we leave it to the big guy upstairs or stardust in my case ;)

  5. We want to avoid selling our assets during market low; but ILP does the exact opposite by selling more assets (units of ILP) during market low. So beware!


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