Thanks for the reply guys....

Any advice for current ILP holders?

Should  I surrender my ILP, since I am afraid the premiums will be too much for me too bear in the future, and start looking for buy Term or  whole insurance etc..

My favorite saying is INVESTMENT means that you can go to sleep and do nothing for 5 years and you will be fine. So, by definition, your investment needs to be able to survive a stock market crashes.

wodenus,

No.  Savings are emergency fund.  Which by definition, you need to touch and use when emergency.  Hence, you MAY do something about savings in 5 years.

Dreamer

wodenus,

FD is not investment.  An investment needs to keep up with the inflation.  FD is used as saving instrument.

Dreamer

But if inflation happens badly in the 5 years, your 100k may drops its value to like 80k.

You do not listen very well.

In 5 years, the FD value will be reduced by inflation.  So, whether the stock market crashes or not, the FD REAL value will go down every year.

So, do you BELIEVE the actual inflation rate is 5% or less??

B) Now, if you keep track of your expenses every month like I do for the past 10+ years, do your expenses only increase 5% or less compare to last year?? That is your own inflation rate.

fd at 5%?! wow... even money market rate is below that.
it's not a plain vanilla fd we're talking here, right?
(i'm highly suspicious here.. hehe)

wodenus,

<< Don't keep track of expenses much. Are you saying that if my personal inflation rate is less than 5%, then my FD becomes an investment?>>

1) That furfills one of the two conditions.

2) The second conditions is you do not intend to use it for the next 5 years.  The second condition does not work if this FD is used as your emergency fund.

Dreamer

wodenus,

Yes.

Dreamer