Investors Trust (ITA) is one of the most important financial institutions for regular foreign investments. However, there are some people who want to cancel their investment with Investors Trust.
If you cancel it before the end of the term, you are almost certain to lose your principal. Even though it is possible to have excellent asset management, if you sign up through a bad introducer, you will regret contracting with Investors Trust, and as a result, you will choose to cancel the contract.
So what are the cancellation fees? Also, what are the specific cancellation procedures?
The following is an explanation of the cancellation procedure after signing a contract with Investors Trust.
Table of Contents
- 1 Cancellation from a Poor Offshore Investment Introducer Is Optimal
- 2 How to Cancel Evolving and S&P 500
- 3 Considering Whether to Continue or Cancel Regular Foreign Investments
Cancellation from a Poor Offshore Investment Introducer Is Optimal
You should not withdraw your investment funds from Investors Trust, not only mid-term cancellation, but also reduction or stopping. This is because you will almost certainly lose your principal. Therefore, you basically have to continue the contract as it is.
However, if the introducer is not good enough and you have subscribed with no product knowledge, you may choose to cancel the contract in exceptional cases. It is true that you can increase your assets greatly through offshore investment. However, if you sign up for a contract with poor content, you will not be able to increase your assets.
In fact, you may find yourself in the following situation.
- You were told by your introducer that it is possible to stop or reduce the amount of money in the middle of the contract, so you set a high investment amount.
- You can’t get in touch with your introducer.
- You don’t know your current asset status.
For example, Investors Trust offers a loyalty bonus and principal protection only if you continue to invest the initial amount until maturity. This is clearly stated on the official website as follows.
A fraudulent company will not tell you about these important points and will recommend a high premium payment amount for the sake of commissions. However, if you stop or withdraw your money in the middle of the process, you are almost certain to lose your principal.
In addition, you may not be able to get in touch with the referrer, or you may not know whether your money is growing or not. The offshore investment itself is a very good system, but it is a fact that there are many introducers who act fraudulently.
For the First Two Years, You Basically Get No Money Back
What are the actual cancellation fees? For this, not only Investors Trust, but also many other offshore financial institutions have the concept of initial account.
Roughly speaking, the money that you will accumulate in the first two years will be in the initial account. The money in the initial account will be locked and cannot be withdrawn.
In fact, at Investors Trust, if you purchase an investment product such as Evolution and cancel it within two years, you will not receive any of your assets back. The surrender value will be zero.
On the other hand, you will be able to withdraw freely after that. However, since you will lose money on the initial account, you should consider that you will almost certainly lose your principal if you choose to cancel.
How Much Is the Investors Trust Cancellation Fee?
When you cancel an Investors Trust (ITA), you will also be charged a cancellation fee. The surrender charge is the total amount of fees you will pay up to the time of maturity.
For example, in the case of a product called Evolution from Investors Trust, the fees are as follows.
- Years 1-10: 1.9% of the amount contributed
- 11th year and beyond: 0.35% of the amount contributed
For example, if you have a plan to accumulate $10,000 each year, the fees are 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 sign up for a 20-year accumulation contract and cancel the contract immediately after the third year, the total amount of all fees for the fourth through 20th years will be deducted. The fees for each are as follows.
- Year 4: $40,000 × 1.9% = $760
- Year 5: $50,000 × 1.9% = $950
- Year 20: $200,000 × 0.35% = $700
Since the total of this money is the commission, if the number of years of participation is short, the surrender charge will be more than the savings amount. In that case, you should consider that you will get no or almost no money back as a surrender refund.
The reason why you will regret investing in offshore through a poor introducer is that the cancellation fee will be extremely high.
-No Surrender Charge After 15 Years of Accumulation in Evolution
There is an exception to this rule, which is the case that you have already been saving for a long time, such as 15 or 20 years. In this case, there is no surrender charge.
Investors Trust has no surrender fee if you have been investing in Evolution for 15 years. If more than 15 years have already passed, including the 17th and 21st years, there will be no surrender charge as mentioned above. The following is also stated on the official website.
There is a hefty penalty for cancellation. However, if you have invested for 15 years or more, there is no penalty as an exception. Although there is a condition that there is no reduction or suspension before cancellation, in any case, there is no fee if you cancel Evolution after the 15th year.
How to Cancel Evolving and S&P 500
However, there is no point in feeling regret all the time. You have to give up on the money you have already contributed. Instead, if your current plan is not working, you need to cancel it as soon as possible to avoid further damage.
Most people subscribe to either Evolution or S&P 500 Index in Investors Trust. Since it is the same company, the cancellation process will be the same for both.
If you want to cancel your contract, you should contact your IFA (Independent Financial Advisor). For offshore investment, you must apply through an IFA. So, just like when you sign a contract, you need to go through an IFA for cancellation.
You will need to obtain the following documents and fill them out.
On the cancellation application form, you can choose partial cancellation or loan cancellation. However, at this time, you need to check the box for Full Surrender.
Specify a Bank Account in Your Country
You can specify a bank account in your country, and the Investors Trust will send the money to your bank. Of course, a cancellation fee will be deducted. After that, the Investors Trust will pay the surrender value to your bank account in your country.
In the cancellation application form, there is a section to write the name of your bank as follows.
Be sure to include the name of the bank in the country where you live here. Naturally, you will need to find out the SWIFT code and other information beforehand and fill them in. Since this is an overseas transfer, there will inevitably be many items to fill in.
-You Don’t Have to Have a US Dollar Account
Since you will be investing in U.S. dollars, you may be thinking that you need to have a U.S. dollar account.
There is no need to have a U.S. dollar account. When you transfer the money back to your bank account, it will be converted into your country’s currency. Therefore, there is no need to have a U.S. dollar account in advance.
You will need to contact your referrer in order to fill out the cancellation form and send the money to your bank account. If you can’t reach your referrer and IFA, you can contact them through the official website of Investors Trust.
Considering Whether to Continue or Cancel Regular Foreign Investments
A very popular investment option for many people is Investors Trust (ITA). It is true that with Investors Trust, you can aim for an annual interest rate of more than 10% or principal protection.
However, it is also true that there are some fraudulent introducers. If you sign up for Investors Trust from such an introducer, you may find yourself in a situation that you are in an unreasonable investment plan or that you cannot contact them.
In that case, you may continue the contract, but you should consider canceling it midway. It’s no use having regrets, so deal with the situation so that the damage doesn’t become too great.
So, try to contact your IFA. However, if you don’t know the details of your IFA, you can contact Investors Trust directly.