Investors Trust S&P 500 Index Lump Sum Investment Review

Jan 26

Investors Trust S&P 500 Index Lumpsum is arguably The Best Capital Protected Investment Plan in the market.

If you need an investment plan with capital protection, the Investors Trust S&P 500 Index Lumpsum is arguably the best option out there lowest entry point.

It allows you to invest and participate in the full growth of the S&P 500 (as recommended by Warren Buffett), with downside protection.

Minimum Contributions & Surrender Charge 

Minimum Contribution - USD 10,000 one time

Additional Contribution - USD 10,000

Surrender Charge -

  • End of year 1 - 9.0%
  • End of year 2 - 7.5%
  • End of year 3 - 6.0%
  • End of year 4 - 4.5%
  • End of year 5 - 3.0%
  • End of year 6 - 1.5%
  • End of year 7 - 0%

Capital Protection

The Investors Trust S&P 500 Index Lumpsum Plan is ‘Capital Protected’. 

  • 89.5% Guaranteed at maturity, or actual performance of the S&P500, whichever is higher.
  • Free Partial Withdrawals - Free partial withdrawals available, but they negate the guarantee.

Investment Options (Where the money can be invested)

  • The Investors Trust S&P 500 Index Lumpsum Plan only invests in the S&P 500. There are no other investment options.
  • If you want an investment plan with more choices of ETFs/Index funds, read - Investors Trust Platinum Review.
Warren Buffett

Warren Buffett, Chairman and CEO of Berkshire Hathaway

  Consistently buy an S&P 500 low-cost index fund - Warren Buffett.
  • Widely regarded as the best single gauge in the U.S. equities market, this world-renowned index includes a representative sample of 500 companies in the leading industries of the U.S. The S&P 500 focuses on the large-cap segment of the market, with over 80% coverage of U.S. equities, but it is also an ideal proxy for the total market.
  • The history of the S&P 500 dates back to 1923, when Standard and Poor’s introduced an index covering 233 companies. The Index, as it is known today, was introduced in 1957 when it expanded to include 500 companies.

TOP COMPANIES BY WEIGHT

Company
GICS Sector 
Apple Inc.
Information Technology
Microsoft Corp
Information Technology
Amazon Inc
Consumer Discretionary
Facebook Inc
Information Technology
Exxon Mobil Corp
Energy
Johnson & Johnson
Health Care
Berkshire Hathaway B
Financials
JP Morgan Chase & Co
Financials
Alphabet Inc A
Information Technology
Alphabet Inc C
Information Technology

Charges

  • Annual Administration Charge - 0.125% monthly (1.5% p.a.) years 1-7
  • Policy Fee - USD 7 Monthly
  • Asset Management Fee - 0.125% monthly of fund balance

What you would end up with if:

  • You invest - USD 10,000 for 7 years in the Investors Trust S&P 500 Index Lumpsum Plan
  • You get at the end of the term - USD 14,557 with an assumed growth rate of 8% (net of charges).

What an actual quote looks like:

Click on the images below to magnify them. 

Investors Trust SP500 Lumpsum Quote
Investors Trust SP500 Lumpsum Quote

Jurisdiction - (Where your money is held)

Investors Trust Assurance SPC (“ITA”) is an international insurance company licensed and regulated by the Cayman Islands Monetary Authority.

The Cayman Islands is an Overseas Territory of the United Kingdom recognized as the world’s sixth largest international banking centre and one of the top 10 international financial centres in the world, with over 40 of the top 50 banks holding licenses here. 

Regulated banks in the Cayman Islands represent some 45 countries from around the world. This global representation proves that the Cayman Islands is widely acknowledged as one of the leading offshore financial centres.

While the financial services chapter of the Cayman Islands dates back 40 years, the seeds of it were sown as early as the 1700s. Two important legacies of history remain from that era – English common law and tax neutrality (The Cayman Islands has never had a system of direct taxation and instead employs an indirect, consumption-based taxation system). The Cayman Islands has always been an open, free market economy, and from the 1960s onwards, successfully invested its “historic capital” to the benefit of the financial services sector.

Cayman Islands is a British Offshore Territory, just like the Isle of Man and Guernsey, which are the base for Zurich International Life, Friends Provident International, Generali International, etc…

Investors Trust uses Merrill Lynch Bank of America as its custodian, and keeps client’s money in a ‘Trust’ account that is isolated from the liabilities of the Bank, or Investors Trust itself.

Which means - even if both the bank and Investors Trust were to go bankrupt, the client’s money is safe.

CONCLUSION

Would I buy this investment plan myself, and recommend to others?
Yes.

Disclaimer: This article is assumed to be accurate at the time of publishing, and represents the personal opinion of the author. If you wish to correct/contest any of the following, please do so in the comments below. I am open to correcting errors if any. All opinions are welcome.

Investors Trust S&P 500 Index Lump Sum

7.9
Flexibility 6.5
Investment Options 8.0
Charges 6.5
Online Access 9.0
Customer Service & Admin 9.5

For

  • Capital Protected Investment Plan
  • Start as low as USD 10,000
  • Invests only in the S&P500 as recommended by Warren Buffett
  • Best online access portal
  • No investment choice means no possibility of human error.

Against

  • Plan has a surrender charge spread over 7 years.
  • Capital Protection is only at the end of the term of 7 years.
  • Aditional investment amount is USD 10,000
  • AED investment option not available yet.
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About the Author

Amit is an Independent Financial Advisor, based in Dubai since 1997. He is part of the prestigious ‘Million Dollar Round Table’ (MDRT), which is an elite club of the best financial advisors worldwide.

He has authored the ‘6-Step Financial Success Guide’, and the book ‘Creating, Preserving, Distributing Wealth’.

He helps business owners and professionals ‘Create A Second Income’ through investments.

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