INCOME WealthLink ILP ETF for lifetime Dividend ?

Dilemma: Local ETF or DBS shares or Traded Endowment ?

1.  When it comes to buying new/resale endowments, INCOME is my preferred first choice.

2. Of course my opinion is that new endowments are no longer attractive, due to lower BI Par Fund illustration at 3% & 4.25%.   Hardly any insurer will pay more than they stated in their BI; especially if it is a long maturity runway.

3. For me, I won't consider Unit Trust Fund; especially if bought from bank.  You will have to  Fund switching in your self interest.

4.  Today I happened to speak to INCOME Advisor on above INCOME WealthLink (Investment-Link Policy: ILP) investing in Asia Dynamic Return Fund.  It is a local fund managed by Fullerton Fund, incepted since 11 Jan 22 at Par Fund $1/unit.  Now it is trading at $0.81/unit.

5.  Since inception, it has lost 11%.  Fullerton is HQ in Singapore, regulated by MAS. Maybe we can buy at low for now?  lol.

My opinion only: I would sure avoid old & mature Fund. In this case, this Asia Dynamic Return Fund is 2-year old since inception in Jan 22.

6. Hope it will not be another INCOME-backed MoneyOwl which was to close down in Dec 23. 

However Temasek Trust has acquired MoneyOwl, giving it a new lease of life in Nov 23.

7.  With hindsight vision of MoneyOwl, will INCOME ILP WealthLink face the same fate ?

8.  INCOME is my bet when it comes to Endowments.  But this INCOME-backed Fullerton's Asia Dynamic Return Fund is a separate entity which pays dividend.

Shocked closure of MoneyOwl by INCOME
https://www.businesstimes.com.sg/wealth/robo-advisory-firm-moneyowl-wind-shock-announcement

MoneyOwl acquired by Temasek Trust within few months of MoneyOwl shocked closure

https://www.moneyowl.com.sg/medias/temasek-trust-to-acquire-moneyowl/

~~~~

https://ferrarilim.blogspot.com/2024/03/income-wealthlink-ilp-etf-for-lifetime.html

9. WealthLink 

From WealthLink Table which I gathered, it used $60k in the Illustration.  In order to compare with dbs 1 lot, I interpolated the $60k to $30k.

Initial sum invested $60k (Cash or SRS), yield is 4.51%, payout is $2.7k p.a., pay monthly = $225 p.m.

$60k --> $2.7k p.a.

or Initial sum invested $20k, yield is 4.49%, payout is $899 p.a., pay monthly ($75 p.m.)

$30k --> $1.35k p.a.

WealthLink is Capital guaranteed upon death & TPD.  So if one is willing to collect the payout for life, and keep the capital for inheritance, WealthLink is ok.  

If that case, I would buy another insurer ILP which promises to pay 6% instead and still Capital upon death.  Example PRUVantage Assure. 

~~~~

10. DBS dividend

To compare with DBS, if invested in DBS shares @$33k, annual dividend may yield $1.5k p.a. (4.5%); quite comparable, maybe even better to invest ?

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