When investing offshore, it is very important to choose which insurance company (financial institution) to purchase from. This is because different financial institutions have different fees, and the amount of money you will get from your investment will be completely different.
When considering offshore investments, two important financial institutions are Investors Trust (ITA) and RL360°. A large percentage of people subscribe to one of these two when considering a regular investment.
So which is better, Investors Trust or RL360°?
Even if we understand that offshore investments offer overwhelmingly high yields, few of us understand in detail the differences between each insurance company. So, I will explain what the differences are between the two.
Table of Contents
- 1 Both Have a Lot of Investment Opportunities in Offshore
- 2 Investors Trust for Principal Protected Investment
- 3 Comparing Insurance Companies by Fees
Both Have a Lot of Investment Opportunities in Offshore
If you choose to invest offshore, you can aim for an annual interest rate of over 10%. From this fact, many people think that offshore investment is an excellent way to manage assets. This is half correct and half wrong.
It is correct that offshore investment is a financial product that is incomparably better than the financial products in the country where you live. However, the actual asset management is not handled by insurance companies such as Investors Trust or RL360°. You will be choosing your investments among the funds offered by these financial institutions.
For example, there are so many types of investment products that you can purchase at a securities company in your home country, as follows.
- US stocks
- Global stocks
- Developed country stocks
- Real estate
Among developed countries, there are various types of investments such as the S&P 500, developed country stocks except for Asia, etc.
The same is true for offshore investments. Investors Trust and RL360° have a number of funds that you can invest in, such as global stocks and real estate. Depending on which of these funds you choose to invest in, your investment performance will be completely different.
For example, Investors Trust has over 200 funds. RL360° also has over 200 funds, and both offer a large variety of funds to choose from.
Regular Investment in Foreign Funds Has Different Fees Depending on the Company
If you were to invest in the same fund offered by both companies, you would be able to manage your assets in exactly the same. The reason why different insurance companies have different investment results is because of the different types of funds they have.
So if the funds you invest in are similar, will there be no significant difference between Investors Trust (ITA) and RL360°? Of course not. There is a big difference in the commission rates.
For example, in developed countries, it is common sense to use online securities when investing in stocks. If you invest using a bank or a brokerage firm with physical stores, you will be charged a high amount of money, such as 2-3% or more in annual fees. In other words, even if you don’t get any results, you will be charged 2-3% of your total investment, and the investment performance is also poor, making it difficult to increase your money.
This is why smart people use online brokers.
The same thing can be said for offshore investments. Even if it is the same fund, the fee rate will be completely different depending on which financial institution you use to invest overseas.
Investors Trust (ITA) Has Low Commission
Here’s what the fee rates look like for ITA and RL360°.
|Financial Institutions||Investors Trust||RL360°|
|Annual Management Fee||1.9% for years 1 to 10.
0.35% for years 11 and beyond.
|6% of initial account total.|
|Policy Fee (annual)||84 USD||84USD|
|Structure Fee (annual)||1.5%||1.5%|
|Fund Fee (annual)||－||1～1.5%|
The important part of this is the percentage of the annual fee that is charged. Assuming that you invest for 25 years, the following is a rough estimate.
- Investors Trust: about 2.5%.
- RL360°: about 3%.
In other words, the fee rate is lower for Investors Trust.
Anyone who understands offshore investing knows that using Investors Trust is by far the best way to increase your assets. This is because there is a difference of as much as 0.5% per year.
0.5% doesn’t sound like a lot. However, the difference between investing $10,000 at 9.5% and investing $10,000 at 10% will be as follows after 30 years.
- 9.5% annual interest rate: about $152,200.
- 10% annual interest rate: about $174,500.
As you can see, the numbers are completely different. Since asset management increases with compound interest, we can see that it is very important to reduce the fee rate even slightly.
The Fees Can Be Offset by Loyalty Bonuses
If you have to pay 2.5% or 3% fees per year, it may seem expensive. However, there is no need to worry about this.
With Investors Trust, for example, you will receive a loyalty bonus several times during the process of investing. This allows you to offset the commissions you have paid. In other words, although you will still be charged fees, the commissions will be mitigated because of the added loyalty bonus.
RL360° also offers a loyalty bonus for investing for a long time. The bonus will be paid based on the amount you have contributed so far, and the fees will be reduced by the amount of the added loyalty bonus.
As for the loyalty bonus, there is no significant difference between Investors Trust and RL360°. The difference between the two is that Investors Trust has a lower commission rate.
Investors Trust for Principal Protected Investment
So far, we have reviewed the differences between insurance companies when choosing funds to manage your assets. However, there are some types of mutual fund products that automatically invest without thinking about which fund to invest in.
One of the most famous is the Investors Trust S&P 500 Index. There is an investment index called the S&P 500 that shows the stock prices of the most advanced companies in the United States. The idea is to invest 100% in the S&P 500 without considering anything.
As you can see below, the S&P 500 has been growing all the time in the long run, despite several major global recessions.
The most important feature of Investors Trust’s S&P 500 is that it is principal protected. In other words, the plan assures you that your money will definitely increase in 15 or 20 years if you continue to accumulate the investment amount that you initially decided. Specifically, it is as follows.
- 15-year contract: 140% or more.
- 20-year contract: 160% or more.
If you manage your assets at about 4% annual interest, you can achieve this kind of increase rate. It is not a way to aim for more than 10% annual interest, but it is a way to eliminate as much risk as possible.
RL360° does not offer a principal-protected offshore investment. With Investors Trust, you can choose this financial product. Therefore, if you want to achieve a risk-free investment, Investors Trust is the best choice for you.
For reference, the following is a simulation of the S&P 500 Index that I have subscribed to with Investors Trust.
|Year||Investment Amount||Account Value|
I am guaranteed that my money will grow in this way. If you want to make a risk-free regular investment, Investors Trust is your choice.
While Investors Trust offers aggressive investments that aim for annual interest rates of over 10%, it also offers a principal protection investment product. RL360° focuses on aggressive investment products, while Investors Trust allows you to choose the type of investment products you want.
A Company with a Long History Is RL360°
However, some people prefer to invest in well-known companies with a long history. For those people, RL360° is the best way to invest, not Investors Trust.
Investors Trust is not a company with a long history. It was founded in 2002. RL360°, on the other hand, is a company with a long history, having been established in 1861. Naturally, it is highly regarded by the world’s rating agencies.
Therefore, if you want to choose a company based on its history and name recognition, RL360° is the best choice.
Of course, as I have explained, the speed at which your money will grow is slower with RL360° than with Investors Trust. This is because the fees are higher than those of the Investors Trust (ITA). However, if you are more interested in name recognition rather than actual profit, RL360° is the best choice.
Comparing Insurance Companies by Fees
When considering where to invest offshore, two very well-known companies are Investors Trust and RL360°. I have explained what the differences are between these financial institutions.
In terms of the number of funds, both Investors Trust and RL360° have a large number of options. Both also have funds that can target annual interest rates of over 10%. While RL360° does not offer a risk-free investment with principal protection, you can aim for a high annual interest rate.
The biggest difference between the two is the fees. They have different fee rates, and Investors Trust has a lower commission rate. Therefore, if you are considering actual profit, choosing Investors Trust is overwhelmingly more advantageous.
For some people, the history and size of the company are more important, so it depends on your choice. It is important to understand that there are differences among financial institutions before deciding where to invest.