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S&P 500 Index Guarantee: The simple way to retire?

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Investors Trust S&P 500 Index Guaranteed investment is one of the best long term investments on the market and is the simple way to retire. 

This investment plan from Investors Trust allows you to track the S&P 500 index and offers ‘unlimited growth and downside protection’ in the form of a guaranteed return and is one of the most simple ways to retire. 

Most importantly, If you want a simple but powerful long term savings plan then the combination of S&P 500 growth and a guaranteed return is hard to beat.

What is the S&P 500 Index? 

Simply put, the S&P 500 is an ‘index’ of the 500 largest US companies, the absolute biggest and best. When you invest in the S&P 500 ‘index’ you are simply ‘tracking’ the performance of those 500 companies towards your retirement. 

Their are many fancy investment strategies out there in the markets,  from hedging, shorting, put/call options to derivatives, hedge funds and bitcoins. 
However the advice from arguably the worlds best investor Warren Buffet is that you should simply put your money into an index tracking investment that follows the US S&P 500 index and let it grow over the years. 

Buffett told CNBC’s Squawk Box recently that if someone invested $10,000 in an index fund back in 1942, it would be worth $51 million today.

The above graph shows you over the past 5 years how the S&P 500 [RED] has performed against the global stock market [BLUE]. As you can see, the S&P 500 has taken home a tidy 10% per annum. For instance, if we look at the historic returns dating back since 1957, the S&P 500 has actually returned 8% (7.96%) per annum. Beating almost every major hedge fund on the planet. 

Participate in the growth of the S&P 500 by simply investing every month. 

So we have established that the S&P 500 is one of the best long term investment strategies. 

The ‘S&P 500 Index Principal Protected Plan’ allows you to invest monthly into the index over a 10 – 15 – 20 year period which is perfect for retirement or education fee planning for you and your family. 

Minimum Contributions & Investment Terms

  • Minimum Contributions – USD 200 per month / USD 2,400 per year
  • Investors Trust S&P 500 Index Savings Plan offers the following terms – 10, 15, and 20 years.

Guaranteed returns: Up to 160% of contributions. 

Furthermore. this product from Investors Trust also offer a guaranteed return of increasing amounts depending on the length of your investment. 

When you are aiming for a simple retirement investment then having an S&P 500 Index Guarantee is a great feature. 

Charges. 

  • Annual Administration Charge: 
    • 2% (10 year plan)
    • 1.7% (15 year plan) 
    • 1.1% (20 year plan) 
  • Policy fee: USD $10 monthly 
  • Structure fee: 0.125% monthly of account balance. 

 

Example Fund: $1,000 over 20 years. 

For this article we will assume that you are 40 years old, and wish to retire at an age of 60.

  • At $1,000 a month, your total contributions would be $240,000 

  • The policy would guarantee you a minimum return of $384,000

  • At 8% growth you would have a total return of $488,636 



Where are your assets held?: Cayman Islands. 

Investors Trust is based in the Cayman Islands which is the fifth largest financial centre in the world and is home to more than 300 banks and financial institutions. This means that the Cayman Islands are so large in fact that 75% of the world’s offshore hedge funds and nearly half of the industry’s estimated US$1.1 trillion of assets under management call it home.
The Cayman Islands is a UK crown colony therefore both the common law, tax law and parliament systems and structures in place are very well regulated by the Cayman Islands Monetary Authority. 

Life Assurance. 

The S&P 500 investment comes with a guaranteed death benfit meaning that if you were to pass away, 101% of the policy value would be paid out to your loved ones.

Product Positives: 

  • Strong historic returns. 
  • Simple and easy to follow investment strategy. 
  • Strategy supported by the worlds best investors. 
  • Unlimited upside growth. 
  • Guaranteed returns. 

Product Negatives: 

  • Only 10-15-20 year term offerings. 
  • Guarantee only held if you make all contributions. 
  • Only offered in USD currency

Final Notes: 
If you are looking for a simple way to invest in the S&p 500 index for retirement then their really aren’t many better options than this on the market. 

Disclaimer:

Please note that this publication has been carefully prepared and has been written in general terms. Therefore it should not be taken as financial advice. The publication cannot be relied upon to cover specific situations and you should not act upon the information contained therein without obtaining specific professional advice. We do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it. 
Ryan Cullinan: https://www.linkedin.com/in/ryancullinan/

 

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