I presented a paper on branding at a conference. One question asked is, "How much of the success of NTUC Income is due to the personal contribution of Tan Kin Lian?"
My reply:
The success of NTUC Income is largely driven by its core values:
- quality products
- low cost
- fair treatment of policyholders
As a cooperative, we do not seek to make excessive profits for shareholders. We distribute most of our surplus to our policyholders.
Over the years, I work hard to get the my colleagues to feel passionate about our cooperative values, and look after the best interest of our customers. This strategy will ensure the long term success of NTUC Income.
As the CEO, my task is to articulate the cooperative values and to communicate it actively through various channels. I use my blog to help to pass this message.
Wednesday, June 07, 2006
Do you understand this structured product?
Taken from www.askdrmoney.com
Name of Product: "Income X Fund"
Distributor: 4 banks, 1 insurer
Type of Product: Currency arbitrage fund
Bold Claim: "9 % payout in the first year of inception of the fund."
The Facts:
A footnote explains that the payout may be made from the capital of the fund. It means the fund would be giving back part of your own investment and calling it a "payout".
There is no guarantee that any distribution will be made or that the frequency or amount of distributions as set out in the prospectus relating to the Fund will be met.
The sales charge is 5 per cent and the yearly management fee is 1.5 per cent.
For details of how this product operates, read Dr Money's blog. Personally, I find it very complicated.
Lesson: Do not invest in any product that you do not understand.
Name of Product: "Income X Fund"
Distributor: 4 banks, 1 insurer
Type of Product: Currency arbitrage fund
Bold Claim: "9 % payout in the first year of inception of the fund."
The Facts:
A footnote explains that the payout may be made from the capital of the fund. It means the fund would be giving back part of your own investment and calling it a "payout".
There is no guarantee that any distribution will be made or that the frequency or amount of distributions as set out in the prospectus relating to the Fund will be met.
The sales charge is 5 per cent and the yearly management fee is 1.5 per cent.
For details of how this product operates, read Dr Money's blog. Personally, I find it very complicated.
Lesson: Do not invest in any product that you do not understand.
Tuesday, June 06, 2006
Lower age requirement for reverse mortgage on HDB flat
Previously, HDB require the owner to be at least 70 years old, before they can apply for a reverse mortgage.
HDB had now just relaxed the minimum age limit of applicants to 62. The loan period is up to age 90 or death or sale of property, whichever is earlier.
HDB had now just relaxed the minimum age limit of applicants to 62. The loan period is up to age 90 or death or sale of property, whichever is earlier.
Insurance Academy
http://www.income.coop/academy/
The Insurance Academy is a collaboration between Nanyang Polytechnic (NYP) and NTUC Income.
The Academy train news and current professionals in the financial services and insurance industryl in Singapore and in the region.
There are currently two full time courses:
1 week: Certificate in Entrepreneurial Management
3 months: Specialist Diploma in Insurance Studies
The Insurance Academy is a collaboration between Nanyang Polytechnic (NYP) and NTUC Income.
The Academy train news and current professionals in the financial services and insurance industryl in Singapore and in the region.
There are currently two full time courses:
1 week: Certificate in Entrepreneurial Management
3 months: Specialist Diploma in Insurance Studies
Amazing: special benefits for policyholders
Amazing.
NTUC Income policyholders are eligible for many special benefits.
Some are very useful.
Find out more:
http://www.income.coop/benefits/
NTUC Income policyholders are eligible for many special benefits.
Some are very useful.
Find out more:
http://www.income.coop/benefits/
Should I sell and come back later?
QUESTION FROM POLICYHOLDER
I would like to know your opinion that if a ILP (using CPF OA) are making money say after 3 years, would it be advisable to sell it off and put the money back to CPF and wait for another opportunity or just wait for it to keep rolling?
REPLY
It is usually quite difficult to time the market.
If you are really sure that the market is "too high" and you wish to take profit, then it is okay.
But, if you are wrong in selling out, you may have to re-invest at a higher price, and you miss out on a significant portion of the gain.
Normally, I prefer to invest for 10 or 20 years and avoid taking decisions at shorter intervals.
I would like to know your opinion that if a ILP (using CPF OA) are making money say after 3 years, would it be advisable to sell it off and put the money back to CPF and wait for another opportunity or just wait for it to keep rolling?
REPLY
It is usually quite difficult to time the market.
If you are really sure that the market is "too high" and you wish to take profit, then it is okay.
But, if you are wrong in selling out, you may have to re-invest at a higher price, and you miss out on a significant portion of the gain.
Normally, I prefer to invest for 10 or 20 years and avoid taking decisions at shorter intervals.
Interested to invest in NTUC Income shares
FROM SHAREHOLDER
I have always viewed NTUC income shares as a good defense stock as it provide a very decent return (6% based on recent dividend) with little/no risk of losing the principal.
Is it still open for investment? Some months back, I have checked with the NTUC Income staff in the Tampines Centre and was told it was not available.
I am currently holding 1,000 shares and would like to purchase more shares if possible to form part of my defensive portfolio.
REPLY BY TAN KIN LIAN
We are not taking application for Income shares. As we have sufficient capital, we are not likely to invite applications for the next few years.
I suggest that you attend our educational seminar and learn about the various investment choices. The seminar on "re-investing your maturity proceeds" offer choices for single premium investments. It covers a choice of various investment products.
I have always viewed NTUC income shares as a good defense stock as it provide a very decent return (6% based on recent dividend) with little/no risk of losing the principal.
Is it still open for investment? Some months back, I have checked with the NTUC Income staff in the Tampines Centre and was told it was not available.
I am currently holding 1,000 shares and would like to purchase more shares if possible to form part of my defensive portfolio.
REPLY BY TAN KIN LIAN
We are not taking application for Income shares. As we have sufficient capital, we are not likely to invite applications for the next few years.
I suggest that you attend our educational seminar and learn about the various investment choices. The seminar on "re-investing your maturity proceeds" offer choices for single premium investments. It covers a choice of various investment products.
Monday, June 05, 2006
250 people visit my blog each day
An average of 250 people visit my blog each day. This is a 65% increase over the average of 150 people two months ago. This is measured through the site meter that is pasted to my blog.
Thank you for visiting my blog. Please help to spread the word to your friends. Ask them to come and read my views and tips.
Thank you for visiting my blog. Please help to spread the word to your friends. Ask them to come and read my views and tips.
More visitors to Business Centers
Each day, 80 people visit our two business centers, an increase of 80% compared to 6 weeks ago. After the official opening of the centers, more people are aware about it.
They come to the business centers for financial planning and to buy our insurance products. We offer great value on these products, which are much better than similar products from our competitors.
For example, a person saving $300 a month over 30 years can get $60,000 more from our product compared to a similar product from our competitors - for the same risk profile.
You get more from NTUC Income becuase we give an additonal 12 months of investments and charge 1% less in annual fee. $60,000 is A LOT OF MONEY!
We are able to handle double the number of visitors, so we welcome more people to vist our business center. Call 6877 3366 to make an appointment.
They come to the business centers for financial planning and to buy our insurance products. We offer great value on these products, which are much better than similar products from our competitors.
For example, a person saving $300 a month over 30 years can get $60,000 more from our product compared to a similar product from our competitors - for the same risk profile.
You get more from NTUC Income becuase we give an additonal 12 months of investments and charge 1% less in annual fee. $60,000 is A LOT OF MONEY!
We are able to handle double the number of visitors, so we welcome more people to vist our business center. Call 6877 3366 to make an appointment.
Savings rate among the young is low in Canada
Our consultant in Canada was very impressed with the educational talk given by NTUC Income on "financial tips for the young".
He also like the financial awareness talks conducted under the Money Sense programme funded by the Monetary Authority in Singapore.
There is no similar educational program in Canada. The personal savings rate, especially among the young, is now in negative territory, which is the lowest level since the 1920s.
He also like the financial awareness talks conducted under the Money Sense programme funded by the Monetary Authority in Singapore.
There is no similar educational program in Canada. The personal savings rate, especially among the young, is now in negative territory, which is the lowest level since the 1920s.
Sunday, June 04, 2006
Our investments are doing well
I received a monthly e-mail statement on my investments with the funds operated by NTUC Income.
I invested $208,000 of my money from CPF, SRS and cash. The average duration is 3 years. They are invested in several combined and specialised funds.
The total value of my investments is $245,000 (even after the 5% correction in May). I get a return of 18% for the 3 years.
My wife invested $201,000 of her cash savings. The average duration is 2 years. Most of her investments are in the combined fund.
Her investments are now worth $230,000, giving a return of 14% for 2 years. This is a better return than mine.
I invested $208,000 of my money from CPF, SRS and cash. The average duration is 3 years. They are invested in several combined and specialised funds.
The total value of my investments is $245,000 (even after the 5% correction in May). I get a return of 18% for the 3 years.
My wife invested $201,000 of her cash savings. The average duration is 2 years. Most of her investments are in the combined fund.
Her investments are now worth $230,000, giving a return of 14% for 2 years. This is a better return than mine.
Learn about insurance on your own
www.KnowYourInsurance.com.sg
This educational website tells you about the key facts on
common insurance products, such as motor, health, life and
home insurance. It also tells you about estate duty, writing a
will and other useful topics.
Each topic can be completed within 20 minutes. You can take
a test to check your understanding.
It is educational and fun. And can save you a lot of money by
buying the right product.
This educational website tells you about the key facts on
common insurance products, such as motor, health, life and
home insurance. It also tells you about estate duty, writing a
will and other useful topics.
Each topic can be completed within 20 minutes. You can take
a test to check your understanding.
It is educational and fun. And can save you a lot of money by
buying the right product.
Saturday, June 03, 2006
Advertisement: Ideal plan can earn $20,000 more for you
Most investment linked plans takes away 17 to 19 months of your savings, to pay commission to the agent and other expenses (see www.askdrmoney.com).
The Ideal plan from NTUC Income takes away only 7 months of savings. This means that we can invest an additional 12 months of your savings to earn more for you.
If you save $300 a month, the additional investment of 12 months, can amount to $20,000 at the end of 30 years (assuming a return of 6% per annum).
That is a lot of money. You can get up to $20,000 MORE, by investing through the Ideal plan from NTUC Income.
Call 6877 1111.
The Ideal plan from NTUC Income takes away only 7 months of savings. This means that we can invest an additional 12 months of your savings to earn more for you.
If you save $300 a month, the additional investment of 12 months, can amount to $20,000 at the end of 30 years (assuming a return of 6% per annum).
That is a lot of money. You can get up to $20,000 MORE, by investing through the Ideal plan from NTUC Income.
Call 6877 1111.
Financial Planning Advice
It's FREE, but the value of the advice is priceless!
Spend 30 minutes.
Learn how to have the right financial plan.
Save and invest wisely.
You can earn $146,000 more (for a monthly saving of
$300 over 30 years)
And enjoy a cup of coffee, tea or milo. It's on us!
For appointment: call 6877 3366.
Business Center:
- NTUC Income Center, 75 Bras Basah Road
- Tampines Point, 2 Tampines Central 6
Spend 30 minutes.
Learn how to have the right financial plan.
Save and invest wisely.
You can earn $146,000 more (for a monthly saving of
$300 over 30 years)
And enjoy a cup of coffee, tea or milo. It's on us!
For appointment: call 6877 3366.
Business Center:
- NTUC Income Center, 75 Bras Basah Road
- Tampines Point, 2 Tampines Central 6
Tips for the Young: talk on Wed 7 June, 7 pm
I am giving a talk "Tips for the Young" on Wed 7 June 7-9 pm at NTUC Income center. I will give tips that help the young to make the right choice and get $146,000 more in return for their savings.
Call 6877 3366 to register for this talk. The talk is FREE but my tips are priceless!
Call 6877 3366 to register for this talk. The talk is FREE but my tips are priceless!
Be gracious and accept an apology
A policyholder sent two cheques to us. One is for a payment of home insurance. Another is for a payment to NTUC (another organisation) for some membership service.
We cleared the cheque for Income. But our staff must have sent the second cheque to NTUC. It must have been lost in transit.
The policyholder complained about the missing cheque. Our staff tried to find it, but could not locate it.
The policyholder brought the complaint to me.
Here is my reply:
Dear
I am sorry that the cheque was displaced. As this payment is for another organisation (ie NTUC), our staff could not bank it in. It must have been sent to NTUC.
It will be impossible for us to trace the cheque. I hope that you understand our dilemma. I suggest that you treat it as cancelled and send another cheque directly to NTUC.
LESSON: Our internal process for handling this type of situation will be strengthened.
We cleared the cheque for Income. But our staff must have sent the second cheque to NTUC. It must have been lost in transit.
The policyholder complained about the missing cheque. Our staff tried to find it, but could not locate it.
The policyholder brought the complaint to me.
Here is my reply:
Dear
I am sorry that the cheque was displaced. As this payment is for another organisation (ie NTUC), our staff could not bank it in. It must have been sent to NTUC.
It will be impossible for us to trace the cheque. I hope that you understand our dilemma. I suggest that you treat it as cancelled and send another cheque directly to NTUC.
LESSON: Our internal process for handling this type of situation will be strengthened.
Be a considerate driver; give way
While driving this morning, I wanted to move from the middle to the right lane. I turned on my right hand signal. I looked at the rear view mirror to see the cars in the right lane.
Instead of slowing down for me to move to the right lane, I saw the first car actualy speed up. The driver just wanted to get in front. This happened with the second and the third cars.
All three drivers behaved in the same way.
We have to learn to be considerate, and to give way.
Instead of slowing down for me to move to the right lane, I saw the first car actualy speed up. The driver just wanted to get in front. This happened with the second and the third cars.
All three drivers behaved in the same way.
We have to learn to be considerate, and to give way.
Invest $100,000 in Global Equity
After watching the market for the past month, I have now decided to invest $100,000 in Global Equity Fund. This will be transacted on the coming Monday.
Here are my reasons:
- I am investing for 20 years
- the Global Equity fund has corrected by 5% during the past month
- the fund still give a positive return for this year and beat the market benchmark
- the global economy is still robust, especially Japan and Europe
Here are my reasons:
- I am investing for 20 years
- the Global Equity fund has corrected by 5% during the past month
- the fund still give a positive return for this year and beat the market benchmark
- the global economy is still robust, especially Japan and Europe
Friday, June 02, 2006
Customer ask: Is it time to buy?
QUESTION
Dear Mr Tan:
I am very late in investing in NTUC's investment funds. I used to play local
equities directly and lost quite substantially.
Last year, I bought combined
fund (growth) at S$50,000 on Sep 05 and S$27,000 (Ideal Plan) on Nov 05. Although there is a major correction last two weeks, my investments are still positive.
I have set aside another S$50,000 to invest. Is this the right time? Has the
correction stabilized? If yes, when and how should I invest? Top up the current investment on combined fund or buy a new investment on global equity?
-------------------
REPLY
Read my blog www.tankinlian.blogspot.com. I am also asking the same question on my personal investment. Most probably, I will invest $100,000 next week, and another $100,000 in 1 or 2 month's time.
Dear Mr Tan:
I am very late in investing in NTUC's investment funds. I used to play local
equities directly and lost quite substantially.
Last year, I bought combined
fund (growth) at S$50,000 on Sep 05 and S$27,000 (Ideal Plan) on Nov 05. Although there is a major correction last two weeks, my investments are still positive.
I have set aside another S$50,000 to invest. Is this the right time? Has the
correction stabilized? If yes, when and how should I invest? Top up the current investment on combined fund or buy a new investment on global equity?
-------------------
REPLY
Read my blog www.tankinlian.blogspot.com. I am also asking the same question on my personal investment. Most probably, I will invest $100,000 next week, and another $100,000 in 1 or 2 month's time.
Thursday, June 01, 2006
Return on investment funds
In spite of the sharp correction in May, the global equity, Singapore equity and the combined (growth and balanced funds) operated by NTUC Income still give a positive return for the five months of this year.
The funds also performed better than benchmark.
The funds also performed better than benchmark.
Fund Jan-Apr May Jan-May
Global Equity 6.1% -4.2% 1.6%
Singapore Equity 12.0% -5.6% 5.7%
Global Bond -1.8% 0.1% -1.7%
Singapore Bond -0.4% 0.6% 0.2%
Combined (Growth) 4.7% -3.2% 1.4%
Combined (Balanced) 3.0% -2.3% 0.6%
Combined (Conservative) 1.2% -1.3% -0.2%
Benchmark
MSCI World 4.5% -3.6% 0.8%
STI 12.1% -7.9% 3.3%
Is it time to invest?
It is a good time to take up a regular premium investment-linked plan. By saving on the regular premium, you will enjoy the benefit of lower dollar cost averaging.
At the current low cost of the units, you will get more units for your investment. If the price drops further, you can get even more units.
The market will turn around. Your investment will benefit from the upturn.
I suggest that you choose the Global Equity fund or the Combined Growth fund.
--------------------------------------------
If you are making a large, lump sum investment, the position is still not clear. The market correction has been more severe than I had expected. The correction allows you to make your investment at 5% to 10% lower than it was one month ago.
I wish to make an additonal investment of $200,000. I will probably invest $100,000 next week, and another $100,000 a few weeks later.
My choice is the Global Equity Fund.
At the current low cost of the units, you will get more units for your investment. If the price drops further, you can get even more units.
The market will turn around. Your investment will benefit from the upturn.
I suggest that you choose the Global Equity fund or the Combined Growth fund.
--------------------------------------------
If you are making a large, lump sum investment, the position is still not clear. The market correction has been more severe than I had expected. The correction allows you to make your investment at 5% to 10% lower than it was one month ago.
I wish to make an additonal investment of $200,000. I will probably invest $100,000 next week, and another $100,000 a few weeks later.
My choice is the Global Equity Fund.
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