WARNING! Beware of Zurich International
They’re looking to make money from naiveté. And too many expatriate Brits in Singapore are getting crushed.
When paying too much money in commission to buy a car or a house, you can swallow your pride, accept it (if you know that it occurred) and move on with your life. If it costs you a few thousand dollars, that can be considered chump change.
Chump change? Absolutely.
Paying too much in fees for your investment products can slowly crush your nest egg’s potential. In the world of investment products, low fees are the only reliable indicator of future return. The lower the fees, the more you make. It’s that simple.
Paul Farrell, author of The Lazy Person’s Guide To Investing, sums up what academic studies have revealed for a very long time:
Of all the predictors, the expense ratio is the only reliable one in predicting future performance. Funds with low expense ratios “deliver above-average future performance across nearly all time periods.” FRC calls a favorable expense ratio an “exceptional predictor” for bonds, and a “good predictor” for stock funds. Savvy investors have long known that operating expenses are probably the biggest drag on performance, along with front-end loads and brokerage commissions. Once again, in the FRC study the conclusions are obvious. Bottom line: If you want predictable performance, pick funds with low expenses.
And as mentioned on the website, the company can change its fees at any time. Don’t believe me? Check this out. It could be even worse in the future:
Friends Provident International Limited reserves the right to change its charges at any time at its discretion upon three months’ written notice to you.