For the benefit of the future generation

A retired couple told me that they invested more than $500,000 in mini-bonds, yield 15 and equity-linked notes. There financial products were recommended to them by their bank relationship manager as being better than fixed deposits and paying a yield of 3% or 5%. The risks were not explained to them at that time.

The money came from a lifetime of hard work and prudent savings. They lost more than 30% of the total invested amount. Their complaint to FIDREC was dismissed, although they felt that they had a strong case of mis-selling. The wife felt the sense of injustice to be so strong that she wanted her family to emigrate from Singapore.

I told them that the chance of being accepted into another coutnry is small, as they are already in their 60s. Most countries accept immigrants who are younger, as they do not want retirees to benefit from their health care and pension systems. I also advised them to think about the 70% that they had recovered, rather than the 30% that they lost.

Furthermore, it is better to stay in Singpaore and speak against injustice, so that the system can be changed for the benefit of the future generation.

Tan Kin Lian