Readers of the blog would have remembered that we have identified the step-down age in the not-so-far-and-yet-not-so-near future. One of the things that we had done is adjusting our portfolio asset allocation, which I had mentioned here. I also shared in the post of which are the funds that we are basing on for our projection on top of our periodic contributions, like education savings and endowment plans since their end dates were known.
For our end of year 2024 Bedokian Portfolio value, it has surpassed its set target by around 34%, and in fact the number has also exceeded the 2026 year-end target. As mentioned in this post, the growth was attributed to last year’s bull run and the injection of two liquidated investment-linked insurance plans (ILPs), the latter of which were not part of our planned funding (aka “known windfall”). To add, after the July 2024 post was written, I had liquidated another ILP, further boosting the portfolio size.
Insurance products such as ILPs, endowment and life plans that have a surrender value form part of our Portfolio Multiverse, and in our opinion the portfolio was one of the “overlooked” ones; we knew it existed, making periodic contributions to it, and not monitoring it. Yet, if you noticed from the actions above, we are (sort of) decumulating our insurance portfolio to accumulate our Bedokian Portfolio.
However, insurance plans, especially ILPs and life ones, likely come with additional components and riders to cover events such as disability and critical illness. While liquidating these plans, it is important that the corresponding coverages are met before doing so, hence it is advisable to consult with your financial advisor(s) (which we did) before making any decisions. An individual’s/family’s insurance and protection amount and needs are different from one another.
Related post:
Your Financial Portfolio Is Bigger Than You Think
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