Tuesday, August 31, 2010
Case study - Family3
In this case study, I analyze the features of a new life insurance policy called the Family3. Go to www.tankinlian.com/ask.aspx and search for "Family3"
Insuring the unexpected
Read my FAQ on "Insuring the Unexpected". It is available at www.tankinlian.com/ask.aspx (search for this title).
Towering Malaysian of yesteryear
It is interest to read about Malaysians and Singaporeans of the Merdeka generation. They have ideals of a democratic and socially just country that looks after the welfare of the people. Read this story to learn about what are these ideals.
In the mid 1970s, I visited Skrine & Co in Kuala Lumpur on a legal matter. I met James Puthuchery. I knew at that time that he was exiled from Singapore, but did not know his background or his beliefs. It is nice to read about the ideals of this person, more than 35 years later.
In the mid 1970s, I visited Skrine & Co in Kuala Lumpur on a legal matter. I met James Puthuchery. I knew at that time that he was exiled from Singapore, but did not know his background or his beliefs. It is nice to read about the ideals of this person, more than 35 years later.
One angry citizen
Hi Mr Tan,
I deliberately left the house when PM Lee made his National Day Rally speech live because I don't want to end up smashing my TV set. His usual condescending smile/laughter alone to is enough to enrage me.
Reading the transcript later, I'm glad I did what I did. As expected, PM Lee pretends to "understand" the plight of ordinary S'poreans. The fact that he said "if you can't board a train, the next train is just minutes away" betrays his pretentions. It is not just overcrowded trains/buses S'poreans have to endure. The entire infrastructure is bursting at the seam. A significant proportion of primary schools, junior college and university places have been taken up by foreigners/PRs/new citizens. S'poreans place a lot of importance on having a good education, yet the PAP govt doesn't think it necessary to ensure that S'poreans should get absolute priority in this area. MOE's position on P1 registration is baffling. On the one hand it claims all primary schools are equally equiped (thus implying they are of the same standards) and that there are sufficient places for all. Yet it refuses to make PRs queue behind S'poreans for P1 registration.
It is now crowded everywhere. There is shortage of hospital beds, long waiting times at polyclinics, crowded hawker centres, long queues at govt agencies. The list goes on and on. Obviously, our mutli-millionaire ministers are not impacted by these at all. They and their families get priority for everything in this country. They can afford to eat at exclusive restaurants, get first-class medical treatment at private clinics/hospitals, their homes are guarded by burly Gurkha guards, they get special police protection, etc.
I deliberately left the house when PM Lee made his National Day Rally speech live because I don't want to end up smashing my TV set. His usual condescending smile/laughter alone to is enough to enrage me.
Reading the transcript later, I'm glad I did what I did. As expected, PM Lee pretends to "understand" the plight of ordinary S'poreans. The fact that he said "if you can't board a train, the next train is just minutes away" betrays his pretentions. It is not just overcrowded trains/buses S'poreans have to endure. The entire infrastructure is bursting at the seam. A significant proportion of primary schools, junior college and university places have been taken up by foreigners/PRs/new citizens. S'poreans place a lot of importance on having a good education, yet the PAP govt doesn't think it necessary to ensure that S'poreans should get absolute priority in this area. MOE's position on P1 registration is baffling. On the one hand it claims all primary schools are equally equiped (thus implying they are of the same standards) and that there are sufficient places for all. Yet it refuses to make PRs queue behind S'poreans for P1 registration.
It is now crowded everywhere. There is shortage of hospital beds, long waiting times at polyclinics, crowded hawker centres, long queues at govt agencies. The list goes on and on. Obviously, our mutli-millionaire ministers are not impacted by these at all. They and their families get priority for everything in this country. They can afford to eat at exclusive restaurants, get first-class medical treatment at private clinics/hospitals, their homes are guarded by burly Gurkha guards, they get special police protection, etc.
Monday, August 30, 2010
Story of Bright Town
You can get a soft copy of my book, Story of Bright Town. It will be published in Amazon.com. It tells the story about how a fictitious Bright Town introduced a portal to provide e-government services for its citizens. Feel free to download the soft copy and give your feed back to kinlian@gmail.com.
www.tankinlian.com (Latest > Story of Bright Town)
Einstein Quiz - enhanced
Einstein created a logic quiz with 5 houses. It was quite challenging to solve.
I have now created a quiz that uses 7 houses. It has more combination and clues.
Can you solve it?
http://tankinlian.com/Admin/File.aspx?id=20
I have now created a quiz that uses 7 houses. It has more combination and clues.
Can you solve it?
http://tankinlian.com/Admin/File.aspx?id=20
National Day Rally - some views
NATIONAL DAY RALLY
1.
Moving, inclusive speech
SIX years ago, after Prime Minister Lee Hsien Loong's maiden National Day Rally speech,
I was moved to write a letter to the Forum page ('Govt critic won over by speech'; Aug 25, 2004).
Now, six years later, after listening to his marathon speech
delivered with more panache, pride and a touch of humour,
I am moved once again to offer my gut-feel response.
Patrick Low
http://www.straitstimes.com/
2.
Good work on education front
I AM a third-generation Singaporean. On Sunday, our family of four sat down together
and heard the entire speech by Prime Minister Lee Hsien Loong.
He spoke with passion about improving on Singapore's already 'very good' education system
and offering more choices.
V. Balu
3.
Recognition for NSmen
MS IVY TAN:
I applaud the Government's move to give more concrete recognition to our national servicemen
through a $9,000 National Service Recognition Award.
Fine tribute
MR RONALD LEE:
PM Lee agreed with those who lamented that the younger generation knew so little
about former deputy prime minister Goh Keng Swee.
It was a fitting gesture to name the Singapore Armed Forces' (SAF) premier training institute
and a new education complex after Dr Goh.
YOG connection
MR K.H.K. RANGAN:
I was heartened to note the steps taken by the Government
to nurture students with different abilities
by tapping their varied potential through different avenues and bringing out their best.
Missing element
MADAM MONICA CHIA:
I am encouraged by PM Lee's message that we are slowly gearing towards recognising
and developing the different talents that all of us have.
My Take on the ND Rally ..... ( Lucky Tan )
http://singaporemind.blogspot.
The Speech That Need Not Be Delivered
http://singaporedesk.blogspot.
PM Lee’s National Day Rally Speech 2010 — James Bond is in town!
http://www.sgpolitics.net/?p=
Case study - Investment Link Policy
Read the case study of an investment link policy proposed to a consumer in 2008. It contains some issues raised by consumer - for which I gave the answers.
www.tankinlian.com (Latest tab)
www.tankinlian.com (Latest tab)
Direct link:
Sunday, August 29, 2010
National Day Speech - 2010
Telling it as it is.
Take this survey and give your views!
Read the preliminary results of the survey, based on the 49 responses received during the first 12 hours.
Take this survey and give your views!
Read the preliminary results of the survey, based on the 49 responses received during the first 12 hours.
Invest in STI ETF
Read this story about the actual experience of an investor who invested regularly in the STI ETF over the past 6 years.
Go to www.tankinlian.com, and click on "Latest" tab.
Direct link here:
http://tankinlian.com/admin/file.aspx?id=161
Go to www.tankinlian.com, and click on "Latest" tab.
Direct link here:
http://tankinlian.com/admin/file.aspx?id=161
Youth Olympic Games - a success
Here are some positive comments:
YOG'S TRUE GAIN
YOG'S TRUE GAIN
More than just dollars and cents
Death Penalty
Read this article.
My view
Perhaps, as a first step, we should leave it to the discretion of the judge whether the crime merits the death penalty. It should not be mandatory for the death penalty to be imposed.
My view
Perhaps, as a first step, we should leave it to the discretion of the judge whether the crime merits the death penalty. It should not be mandatory for the death penalty to be imposed.
Danger of Online Gambling
Read this article.
My view
If you gamble online, you do not know if the online website is running the game fairly. You could be cheated!
My view
If you gamble online, you do not know if the online website is running the game fairly. You could be cheated!
FISCA Educational Talks [2]
I gave my 3rd talk on Financial Planning - A Practical Guide on 28 August 2010. It was attended by 35 participants. About half of them were young people, who are interested to know about financial planning - before they buy the wrong financial products!
This turned out to be my most successful talk. I received e-mails from 3 participants expressing their appreciation - more than for my previous talks.
Dear Mr Tan Kin Lian
Thank you for the excellent talk. Here is a photo to share:
http://www.flickr.com/photos/ckwongb/4934618020/in/set-72157624824484588/
Note: if you have difficulty to see this photo, try right-click and open a new tab.
I was able to update the talk with my FAQ on "exchange traded funds" and also to give an exercise on how to do the calculations. This made the talk more interesting. I encourage members who have attended the talk before to attend again, and get the new information. You can also attend the talk on "Invest for the Long Term".
www.fisca.sg
This turned out to be my most successful talk. I received e-mails from 3 participants expressing their appreciation - more than for my previous talks.
Dear Mr Tan Kin Lian
Thank you for the excellent talk. Here is a photo to share:
http://www.flickr.com/photos/ckwongb/4934618020/in/set-72157624824484588/
Note: if you have difficulty to see this photo, try right-click and open a new tab.
I was able to update the talk with my FAQ on "exchange traded funds" and also to give an exercise on how to do the calculations. This made the talk more interesting. I encourage members who have attended the talk before to attend again, and get the new information. You can also attend the talk on "Invest for the Long Term".
www.fisca.sg
Saturday, August 28, 2010
Young and in debt
Young and in debt
My view
Young people should avoid getting into debt, including car loan. The worst is debt on credit card. They have to pay a high interest rate. This is covered in my talk on Financial Planning, arranged under FISCA, www.fisca.sg.
My view
Young people should avoid getting into debt, including car loan. The worst is debt on credit card. They have to pay a high interest rate. This is covered in my talk on Financial Planning, arranged under FISCA, www.fisca.sg.
Mio TV
ORIGINALLY POSTED IN DECEMBER 2009
My friend has a Mio TV. He found it to be rather unsatisfactory. It took a long time to get started. He also has a Starhub cable TV, which was quite easy to use.
He said that he needed two set top boxes (for Mio and Starhub) and two separate TVs (as it s not possible for his TV to receive signals from both set top boxes.
I wonder what is the experience of other Mio TV users? Is it convenient to use? Is t fast to get started?
My friend has a Mio TV. He found it to be rather unsatisfactory. It took a long time to get started. He also has a Starhub cable TV, which was quite easy to use.
He said that he needed two set top boxes (for Mio and Starhub) and two separate TVs (as it s not possible for his TV to receive signals from both set top boxes.
I wonder what is the experience of other Mio TV users? Is it convenient to use? Is t fast to get started?
Gambling on credit [3]
Hi Mr Tan,
With regards giving credit, what are your views for the following:
i) Margin trading (shares and forex) where you are actually using leverage which is the same as speculating with money that is on credit
ii) Speculating in property (Down payment of 20%, but you are betting on the increase of the other 80% of the property price, which is the credit given to you by the bank) for those yet to TOP new property.
iii) Credit cards - Borrowing twice your salary or getting a loan using cashline / unsecured credit. We can do that and gamble the amount away as well. Banks give credit for people in need of funds or to speculate in stock market. The only reason banks do their credit assessment and proper due dilligence is that they are worried the customers cannot pay and they will incur credit lossses after the customers lose money in stock market. Finally, it appears that the $26 million person probably can afford to pay, otherwise the casino will not give credit anyway.
REPLY
1) Speculating on margin is not the same as gambling on credit. The speculator has to put up the margin and if the price moves to the extent of the margin, the position is closed by the stockbroker - due to lack of margin.
ii) A person should buy a property for own occupation and to within 5 years of the income, so that the repayment of the mortgage loan is not a burden. It is bad to borrow 80% to speculate in a property, hoping for the price to move up and to sell it at a profit. This is dangerous speculation and should be avoided.
iii) Borrowing on credit card should also be avoided, as the interest burden is too high, i.e. 2% a month or 24% per annum.
If the gambler has to bring cash to gamble, he would not have brough t $26 million to gamble. The danger is to gamble on credit, as it could be unlimited. This can happen to any family. Imagine a member of your family come home and said that he or she owed a large sum of money to the casino - representing all the savings of your family!
With regards giving credit, what are your views for the following:
i) Margin trading (shares and forex) where you are actually using leverage which is the same as speculating with money that is on credit
ii) Speculating in property (Down payment of 20%, but you are betting on the increase of the other 80% of the property price, which is the credit given to you by the bank) for those yet to TOP new property.
iii) Credit cards - Borrowing twice your salary or getting a loan using cashline / unsecured credit. We can do that and gamble the amount away as well. Banks give credit for people in need of funds or to speculate in stock market. The only reason banks do their credit assessment and proper due dilligence is that they are worried the customers cannot pay and they will incur credit lossses after the customers lose money in stock market. Finally, it appears that the $26 million person probably can afford to pay, otherwise the casino will not give credit anyway.
REPLY
1) Speculating on margin is not the same as gambling on credit. The speculator has to put up the margin and if the price moves to the extent of the margin, the position is closed by the stockbroker - due to lack of margin.
ii) A person should buy a property for own occupation and to within 5 years of the income, so that the repayment of the mortgage loan is not a burden. It is bad to borrow 80% to speculate in a property, hoping for the price to move up and to sell it at a profit. This is dangerous speculation and should be avoided.
iii) Borrowing on credit card should also be avoided, as the interest burden is too high, i.e. 2% a month or 24% per annum.
If the gambler has to bring cash to gamble, he would not have brough t $26 million to gamble. The danger is to gamble on credit, as it could be unlimited. This can happen to any family. Imagine a member of your family come home and said that he or she owed a large sum of money to the casino - representing all the savings of your family!
Friday, August 27, 2010
Survey: Gambling on credit
Here is the letter printed in the Straits Times.
The results of the survey can be found here.
www.tankinlian.com/information.aspx (search for "Gambling on credit")
www.tankinlian.com/information.aspx (search for "Gambling on credit")
Govern a society
Read this letter.
My view
It is the duty of the Government to govern. They cannot let the problem of society be "left to the market" or to "personal responsibility". This is why laws are passed to prevent vandalism and crime. If marketing flyers are a nuisance, it should be stopped. If gambling on credit is a serious problem, it should also be stopped. It is easy for people to fall into a trap and lose a fortune that will bankrupt their family - all within a day or just a few hours.
For those people who say that people should be personally responsible and that the Government has no role here, just wait for the day when a member of your family comes home, and cries that he or she owes $100,000 or more to the casino. You will then know the real danger of gambling on credit and how easy it is for anyone to fall into the trap.
Gambling on credit
My view
It is the duty of the Government to govern. They cannot let the problem of society be "left to the market" or to "personal responsibility". This is why laws are passed to prevent vandalism and crime. If marketing flyers are a nuisance, it should be stopped. If gambling on credit is a serious problem, it should also be stopped. It is easy for people to fall into a trap and lose a fortune that will bankrupt their family - all within a day or just a few hours.
For those people who say that people should be personally responsible and that the Government has no role here, just wait for the day when a member of your family comes home, and cries that he or she owes $100,000 or more to the casino. You will then know the real danger of gambling on credit and how easy it is for anyone to fall into the trap.
Gambling on credit
Invest in Exchange Traded Fund
Many consumers have asked me to provide information on the ETFs that are available for a long term investor.
I have written a FAQ to explain the exchange traded funds available in SGX that are invested in Singapore equities. Go to www.tankinlian.com (search for "Exchange Traded Fund" or view "Latest").
I have written a FAQ to explain the exchange traded funds available in SGX that are invested in Singapore equities. Go to www.tankinlian.com (search for "Exchange Traded Fund" or view "Latest").
Short term investment
Hi Mr Tan,
What is the best (low risk) investment instrument to use if I have 100k and I need the money in 6 months time? I do not want to leave it in my savings account as the interest rate is very low. I was introduce into dual currency investment by my bank. What's your take on it?
REPLY
For short term invstment, you have to accept the low interest rate offered by the banks. You can place it on fixed deposit to earn more than saving account. In my case, my short term cash is kept in an auto-save account which earns a low interest rate.
You should avoid all types of dual currency investments. Read the FAQ in my website, www.tankinlian.com. Look for "Ask Mr. Tan" and search for "Dual Currency".
http://tankinlian.com/Admin/File.aspx?id=66
What is the best (low risk) investment instrument to use if I have 100k and I need the money in 6 months time? I do not want to leave it in my savings account as the interest rate is very low. I was introduce into dual currency investment by my bank. What's your take on it?
REPLY
For short term invstment, you have to accept the low interest rate offered by the banks. You can place it on fixed deposit to earn more than saving account. In my case, my short term cash is kept in an auto-save account which earns a low interest rate.
You should avoid all types of dual currency investments. Read the FAQ in my website, www.tankinlian.com. Look for "Ask Mr. Tan" and search for "Dual Currency".
http://tankinlian.com/Admin/File.aspx?id=66
Group Representation Constituencies
Read this report about the system and history of GRCs in Singapore.
Thursday, August 26, 2010
Easy Ads - prototype
The prototype of the Easy Ads application is now being developed. You can view the partial development here. It is intended to allow the public to post their advertisements and for customers to search for the advertisements. I hope that it can replace the flyers that are being distributed now through mail boxes - most of which are being thrown away without a second look! The advertisements will be free until end 2010.
Immigration
Read this BBC report.
My view
It is better to have a lower pace of economic growth, and rely less on foreign workers.
My view
It is better to have a lower pace of economic growth, and rely less on foreign workers.
Enjoy 40% discount on books
Enjoy 40% discount on a bundle of books - FOR A LIMITED PERIOD ONLY
http://projects.easyapps.sg/iShop/public/common/File.aspx?file=57
Order here: www.easysearch.sg/ishop
http://projects.easyapps.sg/iShop/public/common/File.aspx?file=57
Order here: www.easysearch.sg/ishop
High dividend yields
I have posted a FAQ showing blue chip shares with high dividend yields. This shares have low risk for the long term investor and provides an attractive yield.
Go to www.tankinlian.com and search for "high dividend yield" or see the Latest tab.
Go to www.tankinlian.com and search for "high dividend yield" or see the Latest tab.
Minimum wage in Malaysia
Read this article.
My view
I am in favor of a minimum wage in Singapore. We should pay more for our services and labor. When other people can earn a decent wage, they will have more money to spend, which is good for other types of businesses.
If we pay more for our services, we will have less money to spend on houses and cars. The prices of these items will not escalate out of proportion. We will have a more balanced economy. People will have more money to spend on art, culture and sports, instead of expecting freebies to be given by the government.
We will not have the uncertain situation that was experienced with the ticket sales for the Youth Olympic Games, F1 and many other events.
My view
I am in favor of a minimum wage in Singapore. We should pay more for our services and labor. When other people can earn a decent wage, they will have more money to spend, which is good for other types of businesses.
If we pay more for our services, we will have less money to spend on houses and cars. The prices of these items will not escalate out of proportion. We will have a more balanced economy. People will have more money to spend on art, culture and sports, instead of expecting freebies to be given by the government.
We will not have the uncertain situation that was experienced with the ticket sales for the Youth Olympic Games, F1 and many other events.
Wednesday, August 25, 2010
5 book bundle
I have received the first order for this 5 book bundle - which offers an attractive 40% discount. If you already have one or two of the books, you can pass it as a gift to a friend, or sell it away. As you earn an attractive discount, you will still be paying less for the other books. Order here.
Invest in Government Bonds
I have written a FAQ on how to invest in Government bonds, and the advantages and pitfalls, and how a future change in interest rate will affect the price of the bonds. Go to www.tankinlian.com and click on Latest.
Bright Tangram
This app will be released soon in Apple app store. It is a more challenging version of tangram.
FIDREC Adjudication process
I carried out a survey on the FIDREC adjudication process a few months ago. Less than 5 people responded. I was not able to post any results.
Term insurance, payable to 100 years
Dear Mr Tan,
I've been following your blog and understood your point is there's no need to insure myself beyond 65yrs old, since there's not much income to be insured against. My agent sent me this benefit illustration when I asked for a $1M term life coverage to 100 years old.
I'm currently 34, assuming I die at 100 yrs old, I'll have to pay premiums for (66 x 3,940 = $260,040) That's the maximum premium payable. But my coverage will be $1,000,000, and I can't imagine I'll live beyond 100 years old. Even our statistics shows, men's expectancy is only up to 79years old. So a payout is almost guaranteed.
Isn't this too good to be true? Apart from the fact that I won't get to use this $1M, it'll be a pot of money for my loved ones. How does the insurance companies make money from these?
REPLY
Based on your calculation (and I can see no fault in it), the policy does look attractive. The possible catch is:
a) There is no cash value. If you discontinue the policy at any time in the future, you will lose the excess premiums that have been paid (i.e the difference between insuring up to age 65 and 100).
b) There is the risk that you may overlook to pay the premium and the policy is cancelled. The insurance company may refuse to reinstate your policy even if you opt to pay back the arrears in premium. I do not know what are your reinstatement rights
c) If you live beyond age 100, you will lose all of the premiums that you have paid.
Based on SAF group insurance, you only need to pay $1,540 a year for $1 million of cover up to age 65.
Based on SAF group insurance, you only need to pay $1,540 a year for $1 million of cover up to age 65.
Tuesday, August 24, 2010
Interest rate and bonds
Read this article.
When interest rate goes up in the future, the value of the bonds will fall. The fall will be highest for the long dated bonds, i.e. those that mature many years down the road.
For example, if you buy a bond that gives a yield of 3% for 10 years, and the interest rate increases to 4%, the bonds will fall in value by about 8%. However, you do not need to realize this loss. You can keep the bond until maturity, receive your yield of 3% and the par value at that time. If you bought the bond at higher than the par value,you will suffer a small loss as only the par value is returned.
When interest rate goes up in the future, the value of the bonds will fall. The fall will be highest for the long dated bonds, i.e. those that mature many years down the road.
For example, if you buy a bond that gives a yield of 3% for 10 years, and the interest rate increases to 4%, the bonds will fall in value by about 8%. However, you do not need to realize this loss. You can keep the bond until maturity, receive your yield of 3% and the par value at that time. If you bought the bond at higher than the par value,you will suffer a small loss as only the par value is returned.
Abuse by credit card companies
Read this article.
My view
Some of the practices of the credit card companies are unconscionable. I respect the right of a business to make a profit, but I do not tolerate practices that border on "cheating the consumers". Two years ago, I received a letter from a credit card company that stated the penalty for a late payment is $50 and that is on top of the 2% interest rate charge per month. I called the credit card company and cancelled the card.
The customer service manager was surprised. This is also practiced by other credit card companies. Furthermore, they will waive the charge if the customer complaints.
What type of nonsense is this? Trying to cheat the customer if the customer overlooks the charge, or is helpless? Why impose an unconscionable charge in the first place?
I hope that consumers will come forward and express their views strongly on these unconscionable and predatory practices. I hope that the Parliament of Singapore will pass similar legislation to stop the credit card companies from fleecing the consumers of Singapore.
My view
Some of the practices of the credit card companies are unconscionable. I respect the right of a business to make a profit, but I do not tolerate practices that border on "cheating the consumers". Two years ago, I received a letter from a credit card company that stated the penalty for a late payment is $50 and that is on top of the 2% interest rate charge per month. I called the credit card company and cancelled the card.
The customer service manager was surprised. This is also practiced by other credit card companies. Furthermore, they will waive the charge if the customer complaints.
What type of nonsense is this? Trying to cheat the customer if the customer overlooks the charge, or is helpless? Why impose an unconscionable charge in the first place?
I hope that consumers will come forward and express their views strongly on these unconscionable and predatory practices. I hope that the Parliament of Singapore will pass similar legislation to stop the credit card companies from fleecing the consumers of Singapore.
Google Search now finds PDF
Dear Mr. Tan
Looks like some of your earlier critics were not quite accurate about PDF search. I ran a search for ‘soho bundle’ and your link surfaced in the results. When I click on the link, the window containing the PDF document appear. Congrats.
PDF]
SOHO Bundle.pub
File Format: PDF/Adobe Acrobat - View as HTML
12 Aug 2010 ... Do you have an example of an office using the SOHO bundle? ... The SOHO Bundle that consists of 1 File Server, 5 notebooks and 1 multi- ...
tankinlian.com/admin/file.aspx?id=144
My comment
The PDF format has a big advantage compared to HTML. It allows the document to be downloaded and sent by e-mail to another person. The perceived disadvantage - not searched by Google, is now removed.
I am promoting a new concept of the PDF centric website. My website, www.tankinlian.com has been developed on this technology. It receives 400 visitors daily. I encourage organisations to move to this new style of website and use the Internet to develop your business. Read here.
12 Aug 2010 ... Do you have an example of an office using the SOHO bundle? ... The SOHO Bundle that consists of 1 File Server, 5 notebooks and 1 multi- ...
tankinlian.com/admin/file.aspx?id=144
My comment
The PDF format has a big advantage compared to HTML. It allows the document to be downloaded and sent by e-mail to another person. The perceived disadvantage - not searched by Google, is now removed.
I am promoting a new concept of the PDF centric website. My website, www.tankinlian.com has been developed on this technology. It receives 400 visitors daily. I encourage organisations to move to this new style of website and use the Internet to develop your business. Read here.
Inconsiderate marketing people
Some marketing people call my office and ask for me. They want to market their product. Their approach is inconsiderate. They often interrupt me when I am busy doing my work.
These people have my e-mail address and mobile phone. They can send an e-mail or SMS to me. Instead, the call the telephone, without any prior announcement, and try to market their products. For these inconsiderate people, I always tell them that I am not interested, goodbye!
Tan Kin Lian
These people have my e-mail address and mobile phone. They can send an e-mail or SMS to me. Instead, the call the telephone, without any prior announcement, and try to market their products. For these inconsiderate people, I always tell them that I am not interested, goodbye!
Tan Kin Lian
Unsuitable life insurance policies
Hi Mr Tan,
I came across your blog that you will help to review the life insurance policies. I attached 2 benefit illustrations
for a Vivolife policy and an ILP. My wife and I bought these life insurance about a year ago from a friend working for an financial adviser firm. Is it worthwhile to keep these policies? Both policies have a coverage of $10,000.
REPLY
The coverage of $10,000 is too low for your needs. These policies are not suitable for protection and offer a poor yield as an investment.
The ILP policy takes away 46% of the value of your accumulated premium at the end of 25 years, i.e. $102,000 out of $220,000). This is far too high. The Vivolife policy takes away 31%, i.e. $36613 out of $116694. This is high, but not as bad as other policy. According to my book, Practical Guide on Financial Planning, the fair deduction should be 20% for 25 years. If I were in your place, I would certainly give up the ILP policy now, but I am not sure about the Vivolife policy.
More important, you should read my book (you can buy the 5 book bundle at a 40% discount) to learn about how to safeguard your own financial future, i.e. buy term insurance and invest your savings in a low cost fund. You should also join FISCA and attend its educational talks.
I came across your blog that you will help to review the life insurance policies. I attached 2 benefit illustrations
for a Vivolife policy and an ILP. My wife and I bought these life insurance about a year ago from a friend working for an financial adviser firm. Is it worthwhile to keep these policies? Both policies have a coverage of $10,000.
REPLY
The coverage of $10,000 is too low for your needs. These policies are not suitable for protection and offer a poor yield as an investment.
The ILP policy takes away 46% of the value of your accumulated premium at the end of 25 years, i.e. $102,000 out of $220,000). This is far too high. The Vivolife policy takes away 31%, i.e. $36613 out of $116694. This is high, but not as bad as other policy. According to my book, Practical Guide on Financial Planning, the fair deduction should be 20% for 25 years. If I were in your place, I would certainly give up the ILP policy now, but I am not sure about the Vivolife policy.
More important, you should read my book (you can buy the 5 book bundle at a 40% discount) to learn about how to safeguard your own financial future, i.e. buy term insurance and invest your savings in a low cost fund. You should also join FISCA and attend its educational talks.
Insure against unemployment [2]
Can you buy insurance against unemployment? Read here:
http://tankinlian.com/admin/file.aspx?id=135
http://tankinlian.com/admin/file.aspx?id=135
New credit card rules in USA
Hi,
The United States recently imposed a new set of Credit Card rules protecting consumers, making sure big banks are not allowed to take advantage of customers with unfair fees, rate hikes, and a lack of clear information. Some of the key new rules set are (lifted from here)
- Limits on the size of late fees: Credit card issuers will no longer be allowed to charge you a late payment fee that is larger than your minimum payment. Banks also cannot charge a late fee higher than $25 unless one of your last six payments has been late or if the bank can show that the costs associated with the late payment justify a higher fee.
- Ban on multiple penalty fees for single violations: You cannot be charged more than one penalty fee for a single violation of your credit card agreement. For example, you cannot be charged both a late fee and a returned payment fee based on a single botched payment.
- Ban on inactivity fees: Card issuers will no longer be allowed to charge you a fee for failing to use your account enough or for terminating your account. Your account can still be closed for inactivity by your card issuer.
- More information about why your rate is going up: Since August 2009, card issuers have been required to give 45 days notice before raising your interest rate on future purchases. Now they must notify you of the reason they are imposing a rate hike, such as market conditions or a reduced credit score.
Such never before consumer protection rules should also considered by legislation of other countries and implemented everywhere.
How New Credit Card Rules Help You
Loh Hon Chun
Casino and Rolling Credit
Hi Mr Tan
The following is a short description of how the casinos are using "rolling" credit to encourage gamblers to gamble more. Please post it up if you think it is useful to share with others so that they do not fall into the trap of problem gambling.
CRA implemented rules to try and reduce the incidence of problem gambling.
Unfortunately, these restrictions have been cleverly bypassed. The main way of doing this is via rolling credit. This is offered to gamblers which the casino has identified as big gamblers based on their gambling patterns recorded in their card.
These big gamblers are advised to make a deposit (e.g. $50,000). After making a deposit, they are given a rolling “commission” based on the amount they play. This commission ranges from 0.5% to 1.0% of the gambled amount.
To earn what seems like “free money”, many big gamblers are enticed to make the deposit. In doing so, they are consistently tempted to gamble with more money than they had originally planned to gamble by drawing down on the deposit.
When the deposit is exhausted, the casino will usually offer to extend credit to allow the gambler to continue gambling. The amount extended will depend on the credit check done by the casino when the initial deposit is made.
Hence beyond operating a casino, the casino is also involved a lucrative money lending business. At this point in time, it is unknown what are the charges the casinos are levying for providing this credit. It is however likely that this makes up a significant portion of the record profits that have recently been reported.
Aurvandil
Betting money
I like to share this joke. Hope you enjoy it.
A beggar approached a wealthy person and said "Please let me have $10 for my food. I have not eaten for two days".
The wealthy man replied, "I know you. If you give $10 to you, you will bet it on Toto!".
The beggar glared at the wealthy man and said, "I need your $10 for food. I already have betting money for Toto!".
A beggar approached a wealthy person and said "Please let me have $10 for my food. I have not eaten for two days".
The wealthy man replied, "I know you. If you give $10 to you, you will bet it on Toto!".
The beggar glared at the wealthy man and said, "I need your $10 for food. I already have betting money for Toto!".
Monday, August 23, 2010
Insist on cash-only gambling
Give your own views this survey.
Published in Straits Times Online
UNLIKE some Singaporeans, I have supported the building of the two casinos in Singapore. I consider gambling to be a part of life.
Many people gamble on 4-D, Toto, mahjong and on sports events. For most people, the biggest gamble is on the stock markets. They speculate on the movement of stock prices, although they think they are making an investment.
In my view, there is nothing wrong when a person gambles away money that he can afford to lose. If he does not spend the money on a bet, he could have spent the same money on other forms of entertainment.
It is a different matter, however, when a person gambles away money that he cannot afford to lose. I was, therefore, shocked to learn that a person could lose $26 million over three days at a casino. It does not take so much money to cause financial disaster for a family. Many people cannot afford to lose a few thousand dollars that are needed for the expenses of their household.
The real danger is not in gambling with cash, but gambling on credit. The Government should forbid the casino from granting credit to patrons. All gambling should be with cash brought in or wired in advance to an account in the casino. This restriction should be extended to all other licensed gambling outlets. I also urge the Government to pass a law to disallow the operation of loan sharks that lend money for gambling. All such loans should be treated as unlawful and unenforceable.
When the real danger, that is, gambling on credit, is dealt with, I suggest the removal of the levy of $100 that has to be paid by Singapore citizens and permanent residents visiting a casino. Do not deprive Singapore residents of the chance to enjoy the excellent facilities of these two casinos when they are made readily available to tourists from our neighbouring countries and from afar.
Tan Kin Lian
Here is another view by Lucky Tan
ADDITIONAL COMMENT
For those who think that each person should be responsible for his own behavior, just imagine what would be your feeling, if your spouse or family member come home one day from the casino and told you that he or she had incurred a big debt. It does not have to be $26 million, but it could be half of your net worth! Can you afford to have this happen to your family? It is so easy for any family to be caught in this situation.
Published in Straits Times Online
UNLIKE some Singaporeans, I have supported the building of the two casinos in Singapore. I consider gambling to be a part of life.
Many people gamble on 4-D, Toto, mahjong and on sports events. For most people, the biggest gamble is on the stock markets. They speculate on the movement of stock prices, although they think they are making an investment.
In my view, there is nothing wrong when a person gambles away money that he can afford to lose. If he does not spend the money on a bet, he could have spent the same money on other forms of entertainment.
It is a different matter, however, when a person gambles away money that he cannot afford to lose. I was, therefore, shocked to learn that a person could lose $26 million over three days at a casino. It does not take so much money to cause financial disaster for a family. Many people cannot afford to lose a few thousand dollars that are needed for the expenses of their household.
The real danger is not in gambling with cash, but gambling on credit. The Government should forbid the casino from granting credit to patrons. All gambling should be with cash brought in or wired in advance to an account in the casino. This restriction should be extended to all other licensed gambling outlets. I also urge the Government to pass a law to disallow the operation of loan sharks that lend money for gambling. All such loans should be treated as unlawful and unenforceable.
When the real danger, that is, gambling on credit, is dealt with, I suggest the removal of the levy of $100 that has to be paid by Singapore citizens and permanent residents visiting a casino. Do not deprive Singapore residents of the chance to enjoy the excellent facilities of these two casinos when they are made readily available to tourists from our neighbouring countries and from afar.
Tan Kin Lian
Here is another view by Lucky Tan
ADDITIONAL COMMENT
For those who think that each person should be responsible for his own behavior, just imagine what would be your feeling, if your spouse or family member come home one day from the casino and told you that he or she had incurred a big debt. It does not have to be $26 million, but it could be half of your net worth! Can you afford to have this happen to your family? It is so easy for any family to be caught in this situation.
Housing prices
According to this article, housing prices in the future will at best keep up with inflation and will not produce the spectacular return in the past. In the near time, it has to correct downwards, i.e. fall by 20% in the USA. I agree with this analysis and believe that this will also apply to Singapore.
Sunday, August 22, 2010
Marketing Flyers
Here are additional letters:
From Institute of Estate Agents
http://www.straitstimes.com/STForum/Story/STIStory_569581.html
From the public
http://www.straitstimes.com/STForum/Story/STIStory_569580.html
Here is a future solution:
http://tankinlian.com/admin/file.aspx?id=148
We have to stop the wasteful activities of printing and distributing so many flyers to people who do not welcome getting them. It is bad for the environment.
From Institute of Estate Agents
http://www.straitstimes.com/STForum/Story/STIStory_569581.html
From the public
http://www.straitstimes.com/STForum/Story/STIStory_569580.html
Here is a future solution:
http://tankinlian.com/admin/file.aspx?id=148
We have to stop the wasteful activities of printing and distributing so many flyers to people who do not welcome getting them. It is bad for the environment.
iGoogle
I have just created my iGoogle page and stored in my frequently used Google apps. It is excellent.
Insuring the unexpected
In this FAQ, I give some tips on what should be insured and what should be self-insured. You should insure the events that are infrequent and have high financial impact. For the more frequent events with low financial impact, you should pay for them out of personal savings.
Go to www.tankinlian.com and click on Latest or search for "Insuring the unexpected"
SOHO office, IT outsourcing
If you are setting up a small business, you can save on buying hardware and software by getting the SOHO package listed here:
http://tankinlian.com/admin/file.aspx?id=144
You can also consider getting the I.T outsourcing service for a small fee, and enjoy the ease of mind that your I.T will be taken care of by an expert.
http://tankinlian.com/admin/file.aspx?id=143
SOHO = small office, home office.
http://tankinlian.com/admin/file.aspx?id=144
You can also consider getting the I.T outsourcing service for a small fee, and enjoy the ease of mind that your I.T will be taken care of by an expert.
http://tankinlian.com/admin/file.aspx?id=143
SOHO = small office, home office.
Stradding buses in Beijing
China has come out with an innovative concept for solving its public transportation problems. Instead of widening roads, building more bridges or subways, it plans to build huge "straddling buses" that allows cars to pass under it, possibly leading to lower costs. Construction will start in Beijing later this year.
News article:
Video of the concept:
Benefit Illustrations - samples
I have complied a FAQ showing the analyses of a few life insurance products, based on the benefit illustrations. Most of these products have high distribution cost and high effect of deductions, leaving a poor yield for the consumer. The products in the market in 2010 are worse that those sold many years ago.
Go to www.tankinlian.com/ask.aspx and search for "Benefit Illustration - samples). You can also go to www.tankinlian.com and click on Latest.
Saturday, August 21, 2010
Gambling on credit
I accept that gambling is a fact of life. Therefore, I had supported the building of the casinos in Singapore.
We gamble on the stock exchange and speculate in foreign currencies. On a smaller scale, we take bets on Toto, 4D, football matches, sports events and the turf club. For most people, the biggest gamble is in a property, although they like to think that they are "investing for the future".
I only support gambling with what we can afford to lose. I do not support gambling on credit or leverage, which is the worst type of gambling. Hence, I am shocked to learn that a businessman could lose $26 million in the casino - gambling on credit. This should be made a condition of the casino licence - no gambling on credit! Similarly, loans from sharks should also be made illegal.
Tan Kin Lian
We gamble on the stock exchange and speculate in foreign currencies. On a smaller scale, we take bets on Toto, 4D, football matches, sports events and the turf club. For most people, the biggest gamble is in a property, although they like to think that they are "investing for the future".
I only support gambling with what we can afford to lose. I do not support gambling on credit or leverage, which is the worst type of gambling. Hence, I am shocked to learn that a businessman could lose $26 million in the casino - gambling on credit. This should be made a condition of the casino licence - no gambling on credit! Similarly, loans from sharks should also be made illegal.
Tan Kin Lian
Bundle deal - Wisdom on How to Live Life
Enjoy a 10% discount on this bundle of book 1 and 2. Read here. Order now at www.easysearch.sg/ishop.
Mortality charge
Does an investment-linked policy charge a fair rate for mortality? Do the mortality charge increase when one grows older? How can one avoid paying too much in mortality charge? Read "Investment linked policy" in www.tankinlian.com/ask.aspx or click on "Ask Mr. Tan" at the top of the right panel.
Review of Life Insurance Policies
Many readers have asked for my assistance to review the life insurance policies that they now hold. They ask if they should continue or give up their existing policies. Please read this FAQ to get the necessary inforamtion for the review and be prepared to make a donation to FISCA.
http://tankinlian.com/admin/file.aspx?id=126
http://tankinlian.com/admin/file.aspx?id=126
Distance based fare - an example
Here is an example of the calculation of the distance based fare - which seem to be quite complicated.
My view
It is a national habit in Singapore to do things in a complicated way and to spend (i.e. waste) tens of millions of dollars on computer systems and consultancy to manage these complexities. The distance-based fare system is the recent example. (So far, nobody has told me how many millions it cost - so difficult to get relevant information in Singapore). In London, the fares are based on zones, and not calculated in this complicated manner.
My view
It is a national habit in Singapore to do things in a complicated way and to spend (i.e. waste) tens of millions of dollars on computer systems and consultancy to manage these complexities. The distance-based fare system is the recent example. (So far, nobody has told me how many millions it cost - so difficult to get relevant information in Singapore). In London, the fares are based on zones, and not calculated in this complicated manner.
FISCA Talk on 21 August 2010
I apologize on behalf of FISCA to the 10 members who turned up at the wrong venue due to the late communication sent by e-mail. For these members, please attend the next talk to be held in one month's time free of charge (if you have already paid for this talk).
Friday, August 20, 2010
Confidentiality of medical records
While the public is often told that medical records are kept confidential, the number of doctors, nurses and medical students accessing the records freely makes such assurances doubtful.
My views
It is difficult to keep medical records confidential, when they are paper based. If the medical records are kept in electronic format, it is possible for the patient to mark certain records as "private" so that it cannot be seen by other health care providers. Furthermore, it is easy to trace who has accessed the record and if the access is for a valid purpose.
Competition and Medical Fees
This survey was carried out on the ruling by the Competition Commission against the medical fee guidelines issued by the Singapore Medical Association. 95% of the 40 respondents prefer to have the guidelines in place.
Read www.tankinlian.com/information.aspx (search for Competition and Medical Fees).
http://tankinlian.com/admin/file.aspx?id=152
Read www.tankinlian.com/information.aspx (search for Competition and Medical Fees).
http://tankinlian.com/admin/file.aspx?id=152
Educational talks by FISCA
Click here for the two educational talks organised by FISCA in August 2010:
http://www.fisca.sg/events
Investing for the Long Term - 21 August
Financial Planning - A Practical Approach - 28 August
I am giving the talk on 28 August. If you wish to ask questions to me, please register and attend the talk. Spend $30 and the time to be educated. It is for your own good. Do not wait to have a problem and ask for help at that time. You get a free copy of the book, "Practical Guide on Financial Planning".
http://www.fisca.sg/events
Investing for the Long Term - 21 August
Financial Planning - A Practical Approach - 28 August
I am giving the talk on 28 August. If you wish to ask questions to me, please register and attend the talk. Spend $30 and the time to be educated. It is for your own good. Do not wait to have a problem and ask for help at that time. You get a free copy of the book, "Practical Guide on Financial Planning".
Property Bubble
According to this article, the property market in Singapore is a bubble, and is the worst in the world. This is measured by the ratio of property value to rent. The property prices are at least 20% over-valued, according to this criteria.
My view
I agree with the assessment. Our property prices are too high, due to temporary factors (i.e. the sudden increase in population) and the low interest rate. This cannot be sustained over the long term.
My view
I agree with the assessment. Our property prices are too high, due to temporary factors (i.e. the sudden increase in population) and the low interest rate. This cannot be sustained over the long term.
Nomination under Dependent Protection Scheme
Hi Mr Tan,
My father had passed away recently due to an heart attack. I received a letter which stated that he had nominated his children from Malaysia (from a previous marriage) for the proceeds. He left nothing to my mother who is the legally married wife.
Can my mother dispute the nomination as this scheme was intended to help the families tide over the first few years in the event of death? My mother had to bear the funeral and other expenses relating to the estate. Can she claim for the DPS even though she was not a nominee? If she was not able to claim from DPS, can she just ignore the pending settlements and issues in Singapore?
REPLY
It is best to talk to the nominees and ask them to settle the expenses out of the proceeds. Your mother can ignore the expenses, if she had not legally contracted to pay for them.
My father had passed away recently due to an heart attack. I received a letter which stated that he had nominated his children from Malaysia (from a previous marriage) for the proceeds. He left nothing to my mother who is the legally married wife.
Can my mother dispute the nomination as this scheme was intended to help the families tide over the first few years in the event of death? My mother had to bear the funeral and other expenses relating to the estate. Can she claim for the DPS even though she was not a nominee? If she was not able to claim from DPS, can she just ignore the pending settlements and issues in Singapore?
REPLY
It is best to talk to the nominees and ask them to settle the expenses out of the proceeds. Your mother can ignore the expenses, if she had not legally contracted to pay for them.
Invest in foreign currency [2]
Before you invest in foreign currency, e.g. fixed deposit, you should consider the cost of conversion and exchange risk. Read "invest in foregn currency" in www.tankinlian.com/ask.aspx.
Invest in bonds [2]
In the uncertain global economic situation, many people stay away from stocks. However, interest rate on bank deposits is too low. An alternative is to invest in government and corporate bonds. Read "invest in bonds" in www.tankinlian.com/ask.aspx.
Marketing flyers and junk mail
Is there a solution to the marketing flyers and junk mail that clogs up your mailbox? Here is one solution.
FISCA VP for media relations
FISCA wishes to look for a volunteer to head its media relations and publicity. If you are interested to volunteers, please reply here.
Need for stronger regulation for insurance
In many countries, the regulator is active in protecting the interest of consumers of insurance services. Read this document. There is a need for insurance in Singapore to be more actively regulated, instead of leaving to "a light touch".
Members of Parliament
This report shows the pay of Members of Parliament in various countries. In most countries, the MP works full time in their parliamentary work. In Singapore, they work part time and have another full time job.
Calling for more volunteers for FISCA
We have received volunteers for the role of VP for research, VP for operations and VP for membership. We now need to have additional volunteers to support them. If you are interested to help in the work of FISCA and to learn in the process about financial matters and also working in a team, give your particulars in this form:
https://spreadsheets.google.com/viewform?formkey=dE1DdlNqcHBJZ0hPUkFZdHU1S2lXZ2c6MQ
https://spreadsheets.google.com/viewform?formkey=dE1DdlNqcHBJZ0hPUkFZdHU1S2lXZ2c6MQ
Thursday, August 19, 2010
Buy basic Medishield for elderly parents
Dear Mr. Tan,I'm looking at increasing and paying for the coverage for my parents. They're both around 70 and are now on Incomeshield standard plan B (capped). I'm hoping to upgrade to either plan A or P and possibly the enhanced plans (as-charged).
REPLYI've done the sums and found the differences in total premiums up to age 85 is large, i.e. an additional $ 37,000 for each parent. While I'd still like to get them the best, I'm thinking whether this is money well spent, relative to the extra benefits they bring. In particular, do one really need the extra benefit of as-charged vs. a capped plan?
Your findings is similar to what I said in my book, Practical Guide on Financial Planning. Medical insurance is very expensive for old people.
There is no need to buy expensive medical insurance for elderly people. They can get good medical attention in subsidised B2 and C ward, which is largely covered by basic Medishield. The quality of care in the subsidised wards is quite good. There is no need for you to pay $37,000 on expensive medical insurance, which provides medical attention that is not much better.
I have also changed to basic Medisheild (without any rider) to reduce the premium cost for my own medical insurance.
Competition and medical fees
There was a decision by the Competition Commission that the guidelines issued by the Singapore Medical Association on medical fees is anti-competition. I do not agree with their decision.
A sick patient is in no position to negotiate the fees with the doctor. If a doctor over-charges a patient for the consultation or medication, the patient may not be aware about it, or may not have any recourse. The guidelines provided by the Association is actually helpful to the patient to know what is the reasonable level of fees
I do not know what the Competition Commission wish to achieve by removing the guidelines. I think that the unintended consequence is that consumers will have to pay more in medical fees.
What are your views? Participate in this survey.
Tan Kin Lian
A sick patient is in no position to negotiate the fees with the doctor. If a doctor over-charges a patient for the consultation or medication, the patient may not be aware about it, or may not have any recourse. The guidelines provided by the Association is actually helpful to the patient to know what is the reasonable level of fees
I do not know what the Competition Commission wish to achieve by removing the guidelines. I think that the unintended consequence is that consumers will have to pay more in medical fees.
What are your views? Participate in this survey.
Tan Kin Lian
History of the internet
Read this article
Here is my personal perspective. I read about the Internet when I was at Harvard Business School in 1993. It was restricted to academic circles. My company launched its website in 1995 - among the first to do so in Singapore - thanks to my technical head of I.T. The result is history.
Here is my personal perspective. I read about the Internet when I was at Harvard Business School in 1993. It was restricted to academic circles. My company launched its website in 1995 - among the first to do so in Singapore - thanks to my technical head of I.T. The result is history.
Cost of Living and Children
Read this blog.
My view
I have made many comments in the past that the biggest obstacle to raising children is the high cost of living. Parents do not wish to be burdened with this additional responsibility. In my view, the cost of raising children have to be largely borne by society and not be the parent.
Each family should be allowed to have two children, with the cost paid by society. We have to get away from the past practice of giving tax incentive, as it only benefits the high income earners, and they are not so keen to have children.
My view
I have made many comments in the past that the biggest obstacle to raising children is the high cost of living. Parents do not wish to be burdened with this additional responsibility. In my view, the cost of raising children have to be largely borne by society and not be the parent.
Each family should be allowed to have two children, with the cost paid by society. We have to get away from the past practice of giving tax incentive, as it only benefits the high income earners, and they are not so keen to have children.
Learn Sudoku (Logic9)
The http://www.easysearch.sg/ portal contains several useful applications. Go and visit it.
You can clickn on Logic9 (Sudoku) to learn how to play the popular game called Sudoku. The direct link can be found here:
http://projects.easyapps.sg/Logic9/
You can click on the various tabs to learn the tips of Sudoku.
When you are ready, you can click ono "Play" to play the game.
The direct link is here:
http://projects.easyapps.sg/Logic9/playLogic9.asp
You can select the game at level 1, 2, 3 or 4. You can also choose the differet types of symbols (apart from the usual numbers 1 to 9).
Enjoy. The Sudoku pocket book is available here.
DBS Internet banking transfer
It is easy to make an internet banking transfer with DBS Bank. You only need to come prepared.
I have made many transfers before and now come prepared with the token, mobile phone, screwdriver, pliers and torchlight (in case I have to open up my computer when the system hangs)..
I usually have to go through a complicated process to authenticate the payee and then to remove it. What is in the small white container next to the torchlight? Some headache ointment!
Financial Planning for a Retiree
Many retirees ask for my views about how to invest their savings. They are risk averse and not familiar with investing in the stock market. They find the interest rate paid on bank deposits to be too low.
The best investment is to keep the money in the CPF retirement account and earn an interest rate of 4% (plus bonus). For the other savings, they should invest in a low cost investment fund. Read more about it in my FAQ on "financial planning for a retiree) in www.tankinlian.com/ask.aspx. This FAQ also explains the type of insurance that is needed.
There is a talk being organised by FISCA on Saturday 28 August. It is suitable for retirees. Register at www.fisca.sg
The best investment is to keep the money in the CPF retirement account and earn an interest rate of 4% (plus bonus). For the other savings, they should invest in a low cost investment fund. Read more about it in my FAQ on "financial planning for a retiree) in www.tankinlian.com/ask.aspx. This FAQ also explains the type of insurance that is needed.
There is a talk being organised by FISCA on Saturday 28 August. It is suitable for retirees. Register at www.fisca.sg
Wednesday, August 18, 2010
Youth Olympic Games - letters and blogs
1.
YOG'S TICKETING MYSTERY
Tickets sell out early, but venues are poorly filled
'Far from a sell-out as organisers had announced.'
'Half-empty venue was evident even on television.'
'Empty venues send the wrong message. Very sad.'
'Sadder still, Tan's parents had to buy tickets.'
2.
Invest same amount of effort in fringe events
"There were at least 4,000 empty seats, he replied.
And he performed at Marina Bay,
which was the site of a grand crowd just three nights ago..."
3.
YOG driver set bad example
"This continued for more than a minute until I managed to get alongside the vehicle
and indicated to the driver that he had been noticed.
He then put down the phone and continued on his way
towards, perhaps, Changi Airport..."
Youth Olympics a Singapore paradox too
Survey results - the Singapore Dream
49 people participated in the survey within 1 day. They gave their views on the two versions of the dream preasented by SM Goh and Lucky Tan. Read the survey report in www.tankinlian.com (see Latest, Singapore Dream)
http://tankinlian.com/admin/file.aspx?id=150
http://tankinlian.com/admin/file.aspx?id=150
Half empty stadiums at the Youth Olympic Games
Many stadiums at the Youth Olympic Games were more than half empty, although the tickets were reportedly sold out.
In the effort to look good, the organizers of the games asked the Ministry of Education to buy the tickets. The Ministry obliged and distributed them to the schools for the students to attend. Many students collected the tickets and did not show up. There is a saying "You can make a horse go the river, but you cannot force the horse to drink the water".
Why didn't the sports fans buy the tickets earlier? Typical Singapore behavior - wait for the last minute, unwilling to plan ahead, maybe can get free tickets!
This challenge has played the organizers of local sports and art events for more than a decade. I hope that our top leaders realize the challenges. They have been sheltered from the realities of the ground due to the hard work of their underlings over the years - to make things look good.
Many Singaporeans do not have time for sports, arts and leisure. They have to work hard to earn enough money to pay for the mortgages of their HDB flats and the high cost of living. The students have to study hard to get a job to pay for these things.
To lead a gracious and cultural life, one needs to earn enough to afford them. Unfortunately, this is out of reach of most ordinary people in Singapore.Not many people earn the high salaries of our government leaders and the elites.
Tan Kin Lian
In the effort to look good, the organizers of the games asked the Ministry of Education to buy the tickets. The Ministry obliged and distributed them to the schools for the students to attend. Many students collected the tickets and did not show up. There is a saying "You can make a horse go the river, but you cannot force the horse to drink the water".
Why didn't the sports fans buy the tickets earlier? Typical Singapore behavior - wait for the last minute, unwilling to plan ahead, maybe can get free tickets!
This challenge has played the organizers of local sports and art events for more than a decade. I hope that our top leaders realize the challenges. They have been sheltered from the realities of the ground due to the hard work of their underlings over the years - to make things look good.
Many Singaporeans do not have time for sports, arts and leisure. They have to work hard to earn enough money to pay for the mortgages of their HDB flats and the high cost of living. The students have to study hard to get a job to pay for these things.
To lead a gracious and cultural life, one needs to earn enough to afford them. Unfortunately, this is out of reach of most ordinary people in Singapore.Not many people earn the high salaries of our government leaders and the elites.
Tan Kin Lian
The cost of security
According to the coroner's report, Victor Yeo fell to death accidentally at the Hilton Hotel on his wedding night. He was locked in the staircase and tried many ways to get out. In desperation, he climbed through a ledge and fell.
I have personally experienced this type of situation in the staircase of some hotels. I like to walk through the staircase for exercise, and found that I could not get back. Sometimes, I had to go all the way down to the ground floor. The signs were usually inadequate - adding to the frustration.
I suspect that this must be a safety regulation from the fire department. It is impractical, probably unnecessary and caused a lot of inconvenience. It has now led to an unfortunate death.
Are there other safety and security regulations that fall in the same category - unnecessary, inconvenient and impractical? There are plenty of them - and they interfere with many aspects of our daily lives.
In the name of protecting the consumer, they expose the consumer to more risks. Some of them falls within the realm of internet banking and airport security, which I have raised many times previously. We need to find the balance between safety and practically.
I have personally experienced this type of situation in the staircase of some hotels. I like to walk through the staircase for exercise, and found that I could not get back. Sometimes, I had to go all the way down to the ground floor. The signs were usually inadequate - adding to the frustration.
I suspect that this must be a safety regulation from the fire department. It is impractical, probably unnecessary and caused a lot of inconvenience. It has now led to an unfortunate death.
Are there other safety and security regulations that fall in the same category - unnecessary, inconvenient and impractical? There are plenty of them - and they interfere with many aspects of our daily lives.
In the name of protecting the consumer, they expose the consumer to more risks. Some of them falls within the realm of internet banking and airport security, which I have raised many times previously. We need to find the balance between safety and practically.
The spoke in public transport
Many commuters are unhappy at the higher fares for public transport, following the implementation of the distance-based fare system. Was there an alternative approach that could have been implemented? Is there still time to implement this alternative approach? Read my views in www.tankinlian.com (Latest).
Improve customer service in Singapore
It is possible for large organizations in Singapore to improve their customer service. By taking the lead, they can set the standard for other organizations to follow. I wish to share my experience with a large insurance company that I led in the past. Read my story in www.tankinlian.com (search for "customer service"). The strategies can be adopted easily in most organizations, - large and small.
Here is the link to the article: http://tankinlian.com/admin/file.aspx?id=140
Here is the link to the article: http://tankinlian.com/admin/file.aspx?id=140
Call for champions to help FISCA
Are you able to help FISCA in any of the roles listed below:
membership relations
media and public relations
education
research
and others ....
If you wish to spend some time to assist FISCA, please complete this form
http://www.fisca.sg/financial_education?mode=PostView&bmi=401275
membership relations
media and public relations
education
research
and others ....
If you wish to spend some time to assist FISCA, please complete this form
http://www.fisca.sg/financial_education?mode=PostView&bmi=401275
Tuesday, August 17, 2010
Best countries in the world
Singapore scored 20th in this survey. It ranked 3rd in Asia behind Japan and South Korea but is ahead of the other countries.
Most of the countries ahead of Singapore are in Europe, but they also include the America, Canada, Australia and New Zealand.
Most of the countries ahead of Singapore are in Europe, but they also include the America, Canada, Australia and New Zealand.
Risk Management for Young People
I am asked to give a talk about risk management for young people. The audience are undergraduates. The organizer asked me to talk more generally about risk management and not focus on life insurance (as this was the practice of other speakers). I agree to the suggestion, as I believe that life insurance is not a good way of risk management for young people. You can read the key points of my speech here.
You can read other FAQs in www.tankinlian.com/ask.aspx.
You can read other FAQs in www.tankinlian.com/ask.aspx.
Recruiting and retention bonus
An insurance company is paying a lot of money to recruit new agents (up to 135% of the previous year's income as signing bonus) and to retain their existing agents.
Why is it necessary for the insurance company to be paying so much money, on top of the high commission rates that are already earned by the agents? Where does the money come from? The simple answer is - the money comes from the policyholders.
I have seen many benefit illustrations that show the about 40% of the value of accumulated premium taken away after 25 years. For example, if the accumulated premium is $500,000, about $200,000 being taken away, leaving only $300,000 to the policyholder. The $200,000 is a lot of money for the insurance company to pay high commission to the agent, to pay high signing and retention bonus and still leave a lot of money from their profits. But it is money taken from the naive and unsuspecting policyholders, leaving them with a net yield that is not sufficient to cover inflation.
If each policyholder "donate" $200,000 to the insurance company and the insurance company is able to sell 10,000 policies in a year, guess how much money is available to pay as signing bonus?
It was reported that MAS issued a statement, "We expect insurers to observe a high standard in their recruitment". Beyond this statement of good intent, I wonder if MAS does investigate how the policyholder's monies are being spent?
Tan Kin Lian
You can learn how to read the benefit illustration here;
Why is it necessary for the insurance company to be paying so much money, on top of the high commission rates that are already earned by the agents? Where does the money come from? The simple answer is - the money comes from the policyholders.
I have seen many benefit illustrations that show the about 40% of the value of accumulated premium taken away after 25 years. For example, if the accumulated premium is $500,000, about $200,000 being taken away, leaving only $300,000 to the policyholder. The $200,000 is a lot of money for the insurance company to pay high commission to the agent, to pay high signing and retention bonus and still leave a lot of money from their profits. But it is money taken from the naive and unsuspecting policyholders, leaving them with a net yield that is not sufficient to cover inflation.
If each policyholder "donate" $200,000 to the insurance company and the insurance company is able to sell 10,000 policies in a year, guess how much money is available to pay as signing bonus?
It was reported that MAS issued a statement, "We expect insurers to observe a high standard in their recruitment". Beyond this statement of good intent, I wonder if MAS does investigate how the policyholder's monies are being spent?
Tan Kin Lian
You can learn how to read the benefit illustration here;
Motor accident
Mr Tan,
My car was hit by a lorry while I was fetching my son from his childcare centre. During the accident, my car was parked outside the childcare centre (hazard light is on). I was about to buckle the seat belt for my son on the passenger side when the lorry hit my car on the right rear.
However, I was informed by the workshop later that the driver has given a different account of the accident. He claimed that I cut into his lane and caused his vehicle to hit my car. Now I am facing problem on claiming from his insurance company due to this discrepancy.
REPLY
Are you able to find someone who can be a witness to this accident? This will be useful, if you have to dispute the other report of the accident. Anyway, if the lorry hit you in the rear, the lorry is liable for the accident, even if the lorry driver claimed that you stopped your car suddenly.
My car was hit by a lorry while I was fetching my son from his childcare centre. During the accident, my car was parked outside the childcare centre (hazard light is on). I was about to buckle the seat belt for my son on the passenger side when the lorry hit my car on the right rear.
However, I was informed by the workshop later that the driver has given a different account of the accident. He claimed that I cut into his lane and caused his vehicle to hit my car. Now I am facing problem on claiming from his insurance company due to this discrepancy.
REPLY
Are you able to find someone who can be a witness to this accident? This will be useful, if you have to dispute the other report of the accident. Anyway, if the lorry hit you in the rear, the lorry is liable for the accident, even if the lorry driver claimed that you stopped your car suddenly.
Investing in gold
Sir,
I am from India. I read your blog on net and saw your site also.your profile seem to be very interesting and excellent.
May I ask, is it safe to invest in gold in India? Can I invest all of my money in this field?
REPLY
My suggestion is to have a diversified investment portfolio. You can have not more than 20% of your total savings in gold. Maybe, 10% is the right proportion.
For the remaining savings, you should invest in a diversified fund. Read my book on financial planning (www.easysearch.sg/ishop) or www.tankinlian.com/ask.aspx
I am from India. I read your blog on net and saw your site also.your profile seem to be very interesting and excellent.
May I ask, is it safe to invest in gold in India? Can I invest all of my money in this field?
REPLY
My suggestion is to have a diversified investment portfolio. You can have not more than 20% of your total savings in gold. Maybe, 10% is the right proportion.
For the remaining savings, you should invest in a diversified fund. Read my book on financial planning (www.easysearch.sg/ishop) or www.tankinlian.com/ask.aspx
The good and bad of life insurance
Someone asked me why I am against life insurance, when I spent 30 years in this industry.
Life insurance is inherently good. It provides financial security through the pooling of risk of premature death and encourages thrift and savings. Life insurance becomes bad when it is used to take advantage of the ignorance of consumers by locking them into a bad product and milking them over a lifetime.
When I run an insurance company, I offered to consumers the opportunity to get a financial product that gives them a good yield for their savings. This was made possible through operating with low expenses and declaring high rates of bonuses from the surplus of the insurance fund.
During the earlier years, the regulators were quite strict in ensuring that the life insurance policyholders were treated fairly in the distribution of the bonuses. They inspected the insurance companies and asked them to justify their practices. The regulatory practice changed around the last 1990s under the "regulate with a light touch" regime. They allowed more leeway for insurance companies to run their operations.
This change of regulation was a big mistake. The insurance companies introduced new products that were quite unfair to consumers. The regulators allowed these practices, so long as they charges are disclosed in the benefit illustrations. Some of these products were clearly ripping off consumers.
The insurance companies also cut their bonuses on the pretext of low investment yields, but were slow in restoring the bonuses when the yields improve. This is unfair to consumers. and would not have been allowed in the earlier years. The insurance companies started to increase their marketing and other expenses, often at the expense of their existing policyholders.
This bad practices were the factors that made me now speak against most types of life insurance policies, except term insurance. I have also decided to intensify my efforts to educate the public to avoid these bad products. I hope that all young people, especially those who has just started work, learn about how to handle their own financial planning (see Practical Guide on Financial Planning) and getting locked into a long term savings plan that give them a poor yield.
Read the FAQs in www.tankinlian.com and attend the educational talks organised by FISCA (www.fisca.sg).
Tan Kin Lian
Life insurance is inherently good. It provides financial security through the pooling of risk of premature death and encourages thrift and savings. Life insurance becomes bad when it is used to take advantage of the ignorance of consumers by locking them into a bad product and milking them over a lifetime.
When I run an insurance company, I offered to consumers the opportunity to get a financial product that gives them a good yield for their savings. This was made possible through operating with low expenses and declaring high rates of bonuses from the surplus of the insurance fund.
During the earlier years, the regulators were quite strict in ensuring that the life insurance policyholders were treated fairly in the distribution of the bonuses. They inspected the insurance companies and asked them to justify their practices. The regulatory practice changed around the last 1990s under the "regulate with a light touch" regime. They allowed more leeway for insurance companies to run their operations.
This change of regulation was a big mistake. The insurance companies introduced new products that were quite unfair to consumers. The regulators allowed these practices, so long as they charges are disclosed in the benefit illustrations. Some of these products were clearly ripping off consumers.
The insurance companies also cut their bonuses on the pretext of low investment yields, but were slow in restoring the bonuses when the yields improve. This is unfair to consumers. and would not have been allowed in the earlier years. The insurance companies started to increase their marketing and other expenses, often at the expense of their existing policyholders.
This bad practices were the factors that made me now speak against most types of life insurance policies, except term insurance. I have also decided to intensify my efforts to educate the public to avoid these bad products. I hope that all young people, especially those who has just started work, learn about how to handle their own financial planning (see Practical Guide on Financial Planning) and getting locked into a long term savings plan that give them a poor yield.
Read the FAQs in www.tankinlian.com and attend the educational talks organised by FISCA (www.fisca.sg).
Tan Kin Lian
Monday, August 16, 2010
I.T. Outsourcing and SOHO bundle
I am assisting a small company, Typent, to market its services to small business owners in the following areas:
- I.T. Outsourcing - the business can outsource the management of its infrastructure and security to Typent for a modest fee, which is lower than the cost of employing an I.T. specialist. The business owner enjoy the peace of mind that these critical issues are taken care by an expert.
- SOHO bundle - the owner of a small office or home office can buy a bundle of I.T. hardware and software and get the consulting advice of the I.T. expert at a cost that is usually less than buying these items directly from the supplier.
More information can be found at http://www.tankinlian.com/Information.aspx?CatID=1
I.T. Outsourcing: http://tankinlian.com/admin/file.aspx?id=143
SOHO bundle: http://tankinlian.com/admin/file.aspx?id=144
Typent is owned by Toh Yee Peng, an I.T. expert with many 14 years experience in I.T. infrastructure and software.
Junk Mail and Flyers
1.
Who's responsible for junk mail littering?
2.
Provide shelves at void deck for fliers
3.
Sorry, but residents don't need them
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