Question: “Today I met a financial adviser for retirement planning. I was very impressed with him. I told the adviser that I got $500,000 to invest for retirement. He instead recommended that I ‘go slow’ by investing a small amount. I was recommended to invest $1500 a month. I am amazed that he did not take all my money but only a very small amount.”

Answer: I checked the product you bought. It is an investment-linked policy designed for 30 years holding period. Meaning, you have to pay $1500 a month for 30 years otherwise the cost will be very large. At your age of 59 years old, it means you have to continue to pay this regular premium until you are 89 years old! In initial years, your surrender value is little or none at all. The total distribution cost (which is approximately the total commission) is $20,000.

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