Monday, August 13, 2007

Investment Tips, August 2007

I have updated my FAQ to give my investment tips as at August 2007. You can read them here. Good luck in your investment.
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3 comments:

Anonymous said...

Mr. Tan, what I like about point 6 is your advice to convert a par wholelife to paid up when one reaches age 60.This is the correct way to manage insurance policies.When you don't NEED it you reduce or throw it away. Many people WANT to keep it because of insurance agents' advice even though they don't need it.
When one reaches 60 there is no need for large sum assured especailly when one has reduced obligations or no
obligations.Converting to paid up only means you stop paying the premium and yet you are still covered but it is still not free. You are still paying without you even know it.Your cash value is paying for the mortality charge.
The worst is the limited premium type of policies. From the start they are already expensive. They only cater to the rich and famous because the rich and famous NEED them to show off how much insurance they have. But for the majority of customers buying limited premium would mean buying limited coverage. They are the ones who really really need the coverage. Instead of stretching their limited resources to get big coverage for them insurance agents stretch their own commissions by "recommending" them limited coverage for life. This is the real scenario today. The poor are always the preys of every one and the insurance agents of the so called NOBLE profession abet in this conspiracy. The poor thought they see knights in shinning armours when they see insurance agents but instead they got wolves in sheep's clothings and without knowing it.

August 13, 2007 10:17 PM
Thomas Phua's Blog said...

Instead of PAID UP, should I ask my children to continue to pay and invest on my life?

Why not benefit the next generation to invest on our life?

August 17, 2007 3:58 PM
Anonymous said...

This is not a financial need but a want.If you want to leave a legacy for your next generation you should make an absolute assignment to whoever you want to gift to avoid estate duty after meeting the 5 year time bar.
This is assuming that you don't need the cash value and you wish to bequeath every cent because if you cash out the cash value,the proceed from death claim is sum assured at that point of time less amount withdrawn and interest accrued.
Another alternative is to leave enough cash value to self fund the policy. This will spare your children from paying your premium.

August 17, 2007 8:07 PM

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