Dear Mr. Tan,
You recommend Term and invest the difference. Some people will not invest the difference and will spend the money away. Surely this is a bad idea? It is better to get them to save in an endowment or whole life policy.
I wish to educate people on the following:
1. Buy Term to get the insurance protection at low cost
2. Invest 10% to 15% of the earnings in a low cost investment fund
3. Invest more, if you can.
4. Be frugal in your expenditure.
5. You can withdraw from your savings to meet important life events
Look for a unit trust that allow you to invest 100% of your savings and have low expense ratio. If the unit trust requires a minimum sum for top-up, you can save in a saving account and invest a bigger sum once or twice a year.
For example, if you wish to invest in the STI exchange traded fund, you have to buy a minimum of 100 shares (about $3,500). If you accumulate this sum over a few months, you can buy 100 units at that time. This ETF has low expense ratio of 0.3% only.
Lesson: Have a flexible savings plan, and the discipline to manage your savings.
- ► 2013 (314)
- ► 2012 (1270)
- ► 2011 (1873)
- ► 2010 (2369)
- ► 2009 (1655)
- ► 2008 (2105)
12/02 - 12/09
- High Oil Price
- Live near your place of work
- Don't Mess Around with Old People
- Alpha (Investment)
- Medical Insurance
- SuperSIV Bailout Fund
- Invest in Low Cost Funds
- Decreasing Term Insurance for the Young
- Financial Planning and Inflation
- Do you really understand structured products?
- No Lock-in Period
- Endowment and whole life products
- Know what you'll get from your investment
- Little Red.SG
- Invest the Difference
- Critical illness premium
- Are you on the sucker's list?
- Avoid ILP policy with high charge
- Mud Flood in Indonesia
- Insurance for a lady
- Term Insurance is guaranteed for the duration
- Articles by Dr Money - MUST READ
- Structured Product with Guaranteed Return
- Remain invested until 90 years old
- Tips on insurance for a new Graduate
- Low cost investment fund
- 9 things to ask your insurance adviser
- Visit the Adviser
- Reduce business costs
- Get adequate coverage
- Traffic accident - How to lodge a claim
- Compensation for Injuries in Traffic Accidents
- Motor Insurance Quote
- Discipline of regular savings
- Measures to improve the taxi service
- Want to buy life insurance?
- Look after the best interest of policyholders
- All you need is $250 a month
- Term to 65
- Secure Portal for Financial Information
- Flexible Savings Plan
- Hidden Expenses of Unit Trusts and ILPs
- Education Fund and Inflation
- Are you paying too much for your insurance?
- Sinking Funds of Town Councils
- Higher Motor Insurance
- Pension in Australia
- Impact of inflation on financial planning
- Invest in Gold
- Life in Taipei
- The 3 Most Timelss Investment Principles
- ▼ 12/02 - 12/09 (51)
- ► 2006 (696)
- ► 2005 (159)