One of the most important insurance companies in offshore investment is Investors Trust (ITA).
By using these insurance companies to start overseas savings investments, you can increase your assets with excellent investment returns. However, some people may want to reduce, stop, or withdraw (partial cancellation) their money in the middle of the investment.
However, basically, it is not recommended to choose to reduce the amount of money in Investors Trust. This is because you will almost certainly lose your principal.
Still, you may want to reduce, stop, or withdraw your funds. In that case, I will explain how you can reduce or partially cancel your investment.
Table of Contents
- 1 Reduction, Stopping or Withdrawal Results in Zero Bonus
- 2 Ask Your IFA to Reduce or Stop the Amount
- 3 Offshore Investment with Investors Trust (ITA) is Based on Accumulation
Reduction, Stopping or Withdrawal Results in Zero Bonus
Offshore savings investments should not be partially canceled. There is the main principle in offshore investments that you should pay for the amount you initially agreed upon until it matures. This is because if you do not continue to invest, you will not receive the loyalty bonus or principal protection.
For example, Investors Trust has a product called Evolution. As for me, I have signed up for Evolution and continue to invest as follows.
If you continue to invest with Evolution, you will receive a loyalty bonus. It’s a pretty large bonus, and it can offset the payment fees you encounter when investing with Investors Trust.
However, there are some conditions that must be met in order to receive the loyalty bonus. That is, when there is no reduction or withdrawal (partial cancellation) of contributions. It is clearly stated on the official website as follows.
Investors Trust also has another product, which is a principal-secured investment product called the S&P 500 Index, which is promised to return more than 140% after 15 years and more than 160% after 20 years.
However, there are conditions for principal protection as well. It is limited to when there is no stoppage, reduction or withdrawal during the process as follows.
Naturally, if the loyalty bonus is lost or principal protection is no longer applied, the financial products of Investors Trust will be worthless. This is the reason why I do not recommend any reduction or withdrawal.
Any Reduction or Stoppage in the Middle Will Reduce the Principal
In the case of Investors Trust, not only will the loyalty bonus be eliminated, but the annual management fee will be charged every year. In other words, you will be charged a management fee even if you do not accumulate anything.
More importantly, even if you stop accumulating midway, the annual management fee will continue to increase.
For example, with Investors Trust’s Evolution, the annual fee is 1.9% for the first 10 years. For example, if you contribute $10,000 per year, the fee would be as follows.
- Year 1: $10,000 × 1.9% = $190
- Year 2: $20,000 × 1.9% = $380
- Year 3: $30,000 × 1.9% = $570
If you stop paying in the third year, you might think that the fourth year would be an annual fee of $570 since you are not accumulating any money. However, that is not the case. The fourth-year will be a fee of $760.
- $40,000 × 1.9% = $760
The annual fee of the Investors Trust (ITA) is almost fixed when you sign the contract. Even if you reduce, stop, or withdraw during the course of the contract, the fee will continue to increase.
Because of this fact, any reduction or stoppage in the middle of the contract will surely result in a loss of principal. I hope you understand why you have to keep investing the amount of money you initially set in regular foreign savings investments.
Ask Your IFA to Reduce or Stop the Amount
If you still want to reduce or stop the amount, how can you do it? You need to ask the IFA (Independent Financial Advisor) you applied to.
If you contact them, they will send you the following documents.
This is a Contribution Decrease Request, and the amount after the decrease should be written here. If you want to stop the payment, you need to write “zero” on the form. By submitting this document to the agency, you will be able to reduce or stop the payment.
Filling Out Forms for Withdrawal (Partial Cancellation)
Some people prefer to withdraw their money instead of reducing or stopping it. By partial surrender, you transfer the money that you have invested to your bank account.
You should ask your IFA to do this in the same way as the reduction or suspension. At this time, you will need to fill out the following documents, which are different from the previous ones.
This is a Surrender Request Form, in which you have to check the “Partial Cancellation” box and fill in the cancellation amount.
You should fill out these forms and send them back to the IFA who sent them to you. You will then receive an email or other confirmation of your withdrawal a few weeks later, and the money will be deposited into your bank account.
If the Introducer Is No Good, You Should Consider Cancellation
You can reduce, stop, or withdraw the amount, but as mentioned above, the principal will be lost with almost high probability, and the asset management will be meaningless. Therefore, you should not do these things unless you have a special reason.
However, some people are victims of fraud because their introducers are not good enough.
- It is better to accumulate a high amount of money at the beginning.
- You can reduce or stop the amount of money in the middle at any time.
If you have been told these words by your introducer and you are paying a high amount of money every month, you should definitely change the amount of money you pay.
However, in such cases, it is often better to just cancel the contract. Think of it as a learning experience, and instead of stopping the payment, cancel it completely. You should contact your IFA to cancel the contract, as you will get your money back.
Some of them may not be able to contact the referrer. If you are not even sure from which IFA you have applied, you should contact Investors Trust yourself to cancel the contract.
Offshore Investment with Investors Trust (ITA) is Based on Accumulation
When starting an offshore investment, many people sign up without thinking much about the product. It is true that you can make a lot of money with Investors Trust (ITA). However, there are some people who have signed up for a higher amount that makes their life difficult.
In that case, they may think about reducing, stopping, or withdrawing (partial cancellation). Just understand that you will almost certainly lose your principal as long as the loyalty bonus and principal protection are gone, and the fees are structured to keep increasing.
In investing with Investors Trust, your money will only grow if you keep investing the amount of money you initially decided.
However, there are some people who have applied from bad referrals. In that case, you have to consider cancellation.