Hi Mr.Tan,
l have been a fan of your blog and would appreciate your advice.
I bought a PruLink ILP policy 10 years ago. The invest $200 a month. At that time, I had no idea on insurance or investment. l am now aware about the high distribution costs and fund management charges, after reading books and reaffirmed by your articles.
I have decided to separate my insurance and investments. I intend to cash out on my ILP policy and invest my $200 separately.
Here are my options:
A) Buy a Term insurance
B) Use my CPF to buy an endowment to get a regular streams of income 10/20 years later
REPLY
The PruLink ILP is actually like a unit trust. You have already incurred the high upfront charges. Going forward, the charges should be quite modest. By now, you are probably investing 100% of your monthly savings, similar to a unit trust.
Before you make a switch, you have to consider the expense ratio of the Prudential fund, with the the unit trust that you wish to invest in. You may find the expense ratio to be similar, so there is no advantage in making a switch.
You can also look at the mortality charges compared to the Term insurance.
If you make a switch, you should go for option A, i.e buy Term and invest the difference. Do not take option B (endowment plan) as you will be incurring high charges again.
Saturday, December 15, 2007
Correction in the Singapore stockmarket
Dear Mr. Tan,
The STI is once again in a correction. It seems to be heading towards the Aug lows again. Do you foresee the correction to approach Aug lows or do you think it will actually go below that?
Lastly, do you foresee a uptrend in the near future?
REPLY:
It seems that the sub-prime and credit problem in America is quite serious. There is also the possibility of a recession. The STI may reach 3000 or even lower.
It is difficult to pick the market bottom. If you are investing for the long term, it may be all right to start accumulating at 3,300. You can do it over several tranches.
The STI is once again in a correction. It seems to be heading towards the Aug lows again. Do you foresee the correction to approach Aug lows or do you think it will actually go below that?
Lastly, do you foresee a uptrend in the near future?
REPLY:
It seems that the sub-prime and credit problem in America is quite serious. There is also the possibility of a recession. The STI may reach 3000 or even lower.
It is difficult to pick the market bottom. If you are investing for the long term, it may be all right to start accumulating at 3,300. You can do it over several tranches.
Insurance for a baby
Hi Mr Tan
I've read up several articles on the purchase of insurance policies for children. My child is only 2 months old. Based on what I have read so far, it seems like I have to purchase hospitalisation/medical plan and education plan for her.
I suppose hospitalisation plan is the same as NTUC living insurance policy? If not, which insurance agency offers the best hospitalisation plan? How different is Medishield from NTUC living insurance?
Reply. The Living policy is suitable for an adult. It is costly and unnecessary for a baby. You should take the Medishield plan from CPF. It is adequate for the baby.
Based on your experience, which insurance agency offers the best investment linked plan and what type of unit trusts should we invest in?
Reply: You should buy the Flexi-Link plan from NTUC Income and invest in the Combined Fund. The Flexi-Link requires a starting single premium of at least $5,000. You can make additional investments through top-ups of a certain minimum amount. The charges are the lowest amongst all ILP plans in the market.
I've read up several articles on the purchase of insurance policies for children. My child is only 2 months old. Based on what I have read so far, it seems like I have to purchase hospitalisation/medical plan and education plan for her.
I suppose hospitalisation plan is the same as NTUC living insurance policy? If not, which insurance agency offers the best hospitalisation plan? How different is Medishield from NTUC living insurance?
Reply. The Living policy is suitable for an adult. It is costly and unnecessary for a baby. You should take the Medishield plan from CPF. It is adequate for the baby.
Based on your experience, which insurance agency offers the best investment linked plan and what type of unit trusts should we invest in?
Reply: You should buy the Flexi-Link plan from NTUC Income and invest in the Combined Fund. The Flexi-Link requires a starting single premium of at least $5,000. You can make additional investments through top-ups of a certain minimum amount. The charges are the lowest amongst all ILP plans in the market.
Traditional Chinese treatment
Recently, I visited a Chung Hwa Medical Center in Toa Payoh to get traditional Chinese treatment to reduce my uric acid.
There were many patients using the medical center. The operation was carried out efficiently, with short waiting time .
Each doctor in a consultation room is able to see a few patients within a time slot. There are a few beds in the consultation room for patients to be treated by acupunture, which lasted 15 minutes. The beds are shielded by a curtain for privacy.
Due to their high productivity of the doctor, the charges are low. I was charged only $12 for the acupunture and two types of medication.
It is possible to bring down cost by operating efficiently. I hope that this high efficiency and low cost can be propogated to other medical centers.
I wish to recommend people to try traditional Chinese treatment for some chronic medical conditions.
There were many patients using the medical center. The operation was carried out efficiently, with short waiting time .
Each doctor in a consultation room is able to see a few patients within a time slot. There are a few beds in the consultation room for patients to be treated by acupunture, which lasted 15 minutes. The beds are shielded by a curtain for privacy.
Due to their high productivity of the doctor, the charges are low. I was charged only $12 for the acupunture and two types of medication.
It is possible to bring down cost by operating efficiently. I hope that this high efficiency and low cost can be propogated to other medical centers.
I wish to recommend people to try traditional Chinese treatment for some chronic medical conditions.
Make credit cards work for you
Here is a brief summary of the article by Dr Money.
CREDIT cards have pros and cons. We are well aware of the pros since banks advertise them all the time. How about the cons? Of course, the banks never mention them.
Dr Money give you tips on the following:
1) Promotions.
2) Take them all.
3) No annual fee.
4) Air miles.
5) Don't roll over.
6) Balance transfer
7) Unauthorised charges
8) Safety first
Read his full article in this webpage:
http://newpaper.asia1.com.sg/columnists/story/0,4136,144958,00.html?
http://www.tankinlian.com/drmoney/
CREDIT cards have pros and cons. We are well aware of the pros since banks advertise them all the time. How about the cons? Of course, the banks never mention them.
Dr Money give you tips on the following:
1) Promotions.
2) Take them all.
3) No annual fee.
4) Air miles.
5) Don't roll over.
6) Balance transfer
7) Unauthorised charges
8) Safety first
Read his full article in this webpage:
http://newpaper.asia1.com.sg/columnists/story/0,4136,144958,00.html?
http://www.tankinlian.com/drmoney/
Logic Quiz A-17
There are five houses in a row. In each house lives a person with a different occupation, drives a different car, plays a different instrument, eats a different fruit and pursues a different hobby.
1. The person who drive Mercedes lives next to the manager.
2. The engineer lives to the left of the scientist.
3. The person who drive Nissan enjoys cards.
4. The third house is occupied by the person who enjoys karaoke.
5. The person who drive Honda eats papaya.
6. The person who eats banana lives next to the person who plays bass.
7. The technician eats orange.
8. The person who plays violin lives next to the person who eats orange.
9. The person who eats apple enjoys movies.
10. The engineer enjoys reading.
11. The person who drive Toyota is the specialist.
12. The person who eats banana lives next to the person who enjoys music.
13. The person who eats durian plays trumpet.
14. The person who drive Mercedes lives in the first house.
15. The person who drive BMW plays flute.
Question: Who plays drum
Please post your answer and time taken.
1. The person who drive Mercedes lives next to the manager.
2. The engineer lives to the left of the scientist.
3. The person who drive Nissan enjoys cards.
4. The third house is occupied by the person who enjoys karaoke.
5. The person who drive Honda eats papaya.
6. The person who eats banana lives next to the person who plays bass.
7. The technician eats orange.
8. The person who plays violin lives next to the person who eats orange.
9. The person who eats apple enjoys movies.
10. The engineer enjoys reading.
11. The person who drive Toyota is the specialist.
12. The person who eats banana lives next to the person who enjoys music.
13. The person who eats durian plays trumpet.
14. The person who drive Mercedes lives in the first house.
15. The person who drive BMW plays flute.
Question: Who plays drum
Please post your answer and time taken.
Logic Quiz J-17
There are four students sitting in a row. Each student plays a different instrument, eats a different fruit and pursues a different hobby.
1. The student who eats orange sits in the second desk.
2. Peter sits to the left of Katherine.
3. The student who eats orange sits to the left of the student who enjoys fishing.
4. The student who plays flute sits to the left of the student who plays violin.
5. Richard sits next to the student who enjoys bicycling.
6. The student who enjoys swimming sits to the left of the student who plays piano.
7. The student who eats pear plays drum.
8. Alice eats orange.
9. The student who eats pineapple sits to the left of the student who eats apple.
Question: Who enjoys reading
Please post your answer and time taken.
1. The student who eats orange sits in the second desk.
2. Peter sits to the left of Katherine.
3. The student who eats orange sits to the left of the student who enjoys fishing.
4. The student who plays flute sits to the left of the student who plays violin.
5. Richard sits next to the student who enjoys bicycling.
6. The student who enjoys swimming sits to the left of the student who plays piano.
7. The student who eats pear plays drum.
8. Alice eats orange.
9. The student who eats pineapple sits to the left of the student who eats apple.
Question: Who enjoys reading
Please post your answer and time taken.
Friday, December 14, 2007
Personal rapid transit
From Wikipedia, the free encyclopedia
Question: Will this work in Singapore?
View the video: http://www.taxi2000.com/aboutus.html
Read this Q&A: http://www.atsltd.co.uk/prt/faq/
Personal rapid transit (PRT), also called personal automated transport (PAT) or podcar, is a public transportation concept that offers automated on-demand non-stop transportation, on a network of specially-built guideways.
A public PRT installation, ULTra, is currently under construction at Heathrow Airport in London, and scheduled to open for public use in 2008.
PRT is a system of small vehicles under independent or semi-independent automatic control, running on fixed guideways. The idea attempts to address a number of perceived weaknesses of public mass transit including fixed timetabling, limited routes, and sharing travel space with unrelated travelers (see comparison below).
In 1988, The Advanced Transit Association (ATRA), a group which advocates the use of technological solutions to transit problems, published a definition for PRT as follows:
* Fully automated vehicles capable of operation without human drivers.
* Vehicles captive to a reserved guideway.
* Small vehicles available for exclusive use by an individual or a small group, typically 1 to 6 passengers, traveling together by choice and available 24 hours a day.
* Small guideways that can be located above ground, at ground level or underground.
* Vehicles able to use all guideways and stations on a fully coupled PRT network.
* Direct origin to destination service, without a necessity to transfer or stop at intervening stations.
* Service available on demand rather than on fixed schedules.
The definition does not specify a particular technology, such as electric motors, linear motors, magnetic levitation, or rubber wheels. It does not specify whether vehicles are to be supported on the guideway or suspended from the guideway. Instead, it is derived from analysis of the functionality, efficiency, scalability, and service provided by the total engineering and design of the system.
Proponents say that the low weight of small vehicles has the important benefit of allowing smaller guideways and support structures compared to other mass transit systems like light rail, translating into lower construction cost, smaller easements, and less visually obtrusive infrastructure.
The concept has been independently reinvented many times since the 1960s. It is considered controversial, and the city-wide deployment with many closely-spaced stations envisaged by proponents has yet to be constructed.
Reasons past projects have failed include lack of financing, cost overruns, regulatory conflicts, political issues, and flaws in engineering or design.
From 2002–2005, the EDICT project, sponsored by the European Union, conducted a study on the feasibility of PRT in four European cities. The study involved 12 research organizations, and concluded that PRT:
* would provide future cities "a highly accessible, user-responsive, environmental friendly transport system which offers a sustainable and economic solution."
* could "cover its operating costs, and provide a return which could pay for most, if not all, of its capital costs."
* would provide "a level of service which is superior to that available from conventional public transport"
* would be "well received by the public, both public transport and car users."
The report also concluded that, despite these advantages, public authorities will not commit to building PRT because of the risks associated with being the first public implementation.
Comparison of Personal Rapid Transit with existing transport systems:
* Similar to automobiles Vehicles are small—typically two to six passengers
* Vehicles are individually hired, like taxis, and shared only with the passengers of one's choosing
* Vehicles travel along a network of guideways, much like a network of streets.
* Travel is point-to-point, with no intermediate stops or transfers
* It can be available on an on-demand, around-the-clock basis
* Stops are designed to be off the main guideway, allowing through traffic to bypass stations unimpeded
* Similar to trams, buses, and monorails
* A public amenity (although not necessarily publicly owned), shared by multiple users
* Reduced local pollution (electric powered)
* Passengers embark and disembark at discrete stations, analogous to bus stops or taxi stands
* Similar to automated people movers
* Fully automated, including vehicle control, routing, and collection of fares
* Usually off-grade—typically elevated—reducing land usage and congestion
Distinct features
* Vehicle movements may be coordinated, unlike the autonomous human control of automobiles and bikes
* Small vehicle size allows infrastructure to be smaller than other transit modes
* Automated vehicles can travel close together.
* Possibilities include dynamically combined "trains" of vehicles, separated by a few inches, to reduce drag and increase speed, energy efficiency and passenger density
Question: Will this work in Singapore?
View the video: http://www.taxi2000.com/aboutus.html
Read this Q&A: http://www.atsltd.co.uk/prt/faq/
Personal rapid transit (PRT), also called personal automated transport (PAT) or podcar, is a public transportation concept that offers automated on-demand non-stop transportation, on a network of specially-built guideways.
A public PRT installation, ULTra, is currently under construction at Heathrow Airport in London, and scheduled to open for public use in 2008.
PRT is a system of small vehicles under independent or semi-independent automatic control, running on fixed guideways. The idea attempts to address a number of perceived weaknesses of public mass transit including fixed timetabling, limited routes, and sharing travel space with unrelated travelers (see comparison below).
In 1988, The Advanced Transit Association (ATRA), a group which advocates the use of technological solutions to transit problems, published a definition for PRT as follows:
* Fully automated vehicles capable of operation without human drivers.
* Vehicles captive to a reserved guideway.
* Small vehicles available for exclusive use by an individual or a small group, typically 1 to 6 passengers, traveling together by choice and available 24 hours a day.
* Small guideways that can be located above ground, at ground level or underground.
* Vehicles able to use all guideways and stations on a fully coupled PRT network.
* Direct origin to destination service, without a necessity to transfer or stop at intervening stations.
* Service available on demand rather than on fixed schedules.
The definition does not specify a particular technology, such as electric motors, linear motors, magnetic levitation, or rubber wheels. It does not specify whether vehicles are to be supported on the guideway or suspended from the guideway. Instead, it is derived from analysis of the functionality, efficiency, scalability, and service provided by the total engineering and design of the system.
Proponents say that the low weight of small vehicles has the important benefit of allowing smaller guideways and support structures compared to other mass transit systems like light rail, translating into lower construction cost, smaller easements, and less visually obtrusive infrastructure.
The concept has been independently reinvented many times since the 1960s. It is considered controversial, and the city-wide deployment with many closely-spaced stations envisaged by proponents has yet to be constructed.
Reasons past projects have failed include lack of financing, cost overruns, regulatory conflicts, political issues, and flaws in engineering or design.
From 2002–2005, the EDICT project, sponsored by the European Union, conducted a study on the feasibility of PRT in four European cities. The study involved 12 research organizations, and concluded that PRT:
* would provide future cities "a highly accessible, user-responsive, environmental friendly transport system which offers a sustainable and economic solution."
* could "cover its operating costs, and provide a return which could pay for most, if not all, of its capital costs."
* would provide "a level of service which is superior to that available from conventional public transport"
* would be "well received by the public, both public transport and car users."
The report also concluded that, despite these advantages, public authorities will not commit to building PRT because of the risks associated with being the first public implementation.
Comparison of Personal Rapid Transit with existing transport systems:
* Similar to automobiles Vehicles are small—typically two to six passengers
* Vehicles are individually hired, like taxis, and shared only with the passengers of one's choosing
* Vehicles travel along a network of guideways, much like a network of streets.
* Travel is point-to-point, with no intermediate stops or transfers
* It can be available on an on-demand, around-the-clock basis
* Stops are designed to be off the main guideway, allowing through traffic to bypass stations unimpeded
* Similar to trams, buses, and monorails
* A public amenity (although not necessarily publicly owned), shared by multiple users
* Reduced local pollution (electric powered)
* Passengers embark and disembark at discrete stations, analogous to bus stops or taxi stands
* Similar to automated people movers
* Fully automated, including vehicle control, routing, and collection of fares
* Usually off-grade—typically elevated—reducing land usage and congestion
Distinct features
* Vehicle movements may be coordinated, unlike the autonomous human control of automobiles and bikes
* Small vehicle size allows infrastructure to be smaller than other transit modes
* Automated vehicles can travel close together.
* Possibilities include dynamically combined "trains" of vehicles, separated by a few inches, to reduce drag and increase speed, energy efficiency and passenger density
Anti-insurance agent
Someone post comments in my blog a few times a day, attacking insurance agents. I stopped several of the postings, as they are rather rude and unfair to agents. I allowed some objective comments to pass through.
I wonder why this person is so much against insurance agents. The attacks seem to be focused on agents from NTUC Income.
Perhaps this person can send an e-mail to tell me the reason for your strong views?
I wonder why this person is so much against insurance agents. The attacks seem to be focused on agents from NTUC Income.
Perhaps this person can send an e-mail to tell me the reason for your strong views?
Visit to Ang Mo Kio Library
I visited Ang Mo Kio Library to read a reference book about SQL Server. I found several books. I stayed at the library for 2 hours. It was quiet, air conditioned and comfortable. The ambience is excellent.
I was able to log into Wireless@SG to access the internet.
These wonderful services are provided free. I wish to encourage people to visit the library, during the non-busy hours and enjoy the facilities.
I was able to log into Wireless@SG to access the internet.
These wonderful services are provided free. I wish to encourage people to visit the library, during the non-busy hours and enjoy the facilities.
Credit check of potential business partners
Over the past few months, I have been approached by several people to be involved in their business venture.
I usually carry out a credit check on the background of the company and the people behind the company. I approach a service provider to carry out a credit check.
The service provider has the following data:
1. Litigation, identified by the parties involved
2. Bankrupcy
3. Company and business registration
These data are publicly available. The service provider has put them in a form that is easy to extract the relevant data and to produce a credit report.
I found the service to be extremely useful, especially for credit check of new or small companies. In some cases, I was notified about litigation or bankrupcy of the parties involved.
I am able to get a report within 1 day at a modest cost. The report can be quite detailed. I find the executive summary to be most useful. I was able to use the relevant information in my business decision.
The service provider will be marketing this service soon through an internet website. Apart from adhoc credit checks, the service provider will be able to carry out a continuing check on a list of business associates, and to alert the subscriber on any litigation involving these assocaites.
This is an example of the use of data in improving the productivity of your business, and to avoid or minimise credit losses.
If you are interested in this service, send an e-mail to me at kinlian@gmail.com. Give some background about your business and the type of credit check that you need.
I usually carry out a credit check on the background of the company and the people behind the company. I approach a service provider to carry out a credit check.
The service provider has the following data:
1. Litigation, identified by the parties involved
2. Bankrupcy
3. Company and business registration
These data are publicly available. The service provider has put them in a form that is easy to extract the relevant data and to produce a credit report.
I found the service to be extremely useful, especially for credit check of new or small companies. In some cases, I was notified about litigation or bankrupcy of the parties involved.
I am able to get a report within 1 day at a modest cost. The report can be quite detailed. I find the executive summary to be most useful. I was able to use the relevant information in my business decision.
The service provider will be marketing this service soon through an internet website. Apart from adhoc credit checks, the service provider will be able to carry out a continuing check on a list of business associates, and to alert the subscriber on any litigation involving these assocaites.
This is an example of the use of data in improving the productivity of your business, and to avoid or minimise credit losses.
If you are interested in this service, send an e-mail to me at kinlian@gmail.com. Give some background about your business and the type of credit check that you need.
Company above board?
By Larry Haverkamp (Doc Money)
LAST week was filled with news stories about Sunshine Empire. The company has convinced 20,000 Singapore investors to part with as much as $12,000 each.
Despite the publicity, no one is still very sure what the company does.
Both the Singapore and Malaysian authorities have put it on their 'investor alert lists'. Entities on such lists are not authorised by the authorities to conduct regulated activity. While not well-known, these lists are extremely useful.
Other governments also have lists which give names of companies doing foreign land sales, internet fraud, lookalike web sites, identity theft, fake lotteries, Nigerian advanced fees, pump and dump, affinity scams, telemarketing and more.
It got me thinking, 'Wouldn't it be great if there was a web site listing all questionable companies? Then, if you hear about a deal that sounds too good to be true, you could check it out.'
Non-transparent but legal
1) Bank Products
2) Insurance companies
3) Reits
Read the full article here:
http://newpaper.asia1.com.sg/columnists/story/0,4136,146946,00.html
http://www.tankinlian.com/drmoney/
LAST week was filled with news stories about Sunshine Empire. The company has convinced 20,000 Singapore investors to part with as much as $12,000 each.
Despite the publicity, no one is still very sure what the company does.
Both the Singapore and Malaysian authorities have put it on their 'investor alert lists'. Entities on such lists are not authorised by the authorities to conduct regulated activity. While not well-known, these lists are extremely useful.
Other governments also have lists which give names of companies doing foreign land sales, internet fraud, lookalike web sites, identity theft, fake lotteries, Nigerian advanced fees, pump and dump, affinity scams, telemarketing and more.
It got me thinking, 'Wouldn't it be great if there was a web site listing all questionable companies? Then, if you hear about a deal that sounds too good to be true, you could check it out.'
Non-transparent but legal
1) Bank Products
2) Insurance companies
3) Reits
Read the full article here:
http://newpaper.asia1.com.sg/columnists/story/0,4136,146946,00.html
http://www.tankinlian.com/drmoney/
Logic Quiz A-5
There are five houses in a row in different colors. In each house lives a person with a different occupation, drinks a different beverage, plays a different sport and keeps a different pet.
1. The doctor plays golf.
2. The person who drinks coffee lives to the left of the person who drinks beer.
3. The green house is occupied by the teacher.
4. The lawyer lives in the third house.
5. The person who plays badminton lives to the left of the person who drinks milk.
6. The blue house is occupied by the person who keeps dogs.
7. The white house is to the left of the person who drinks water.
8. The person who keeps fish plays chess.
9. The red house is to the left of the green house.
10. The person who plays bowling lives to the left of the person who keeps cats.
11. The accountant lives to the left of the salesman.
12. The person who keeps birds lives to the left of the person who keeps hamsters.
13. The white house is the fourth house.
14. The yellow house is occupied by the person who drinks tea.
Question: Who plays tennis
1. The doctor plays golf.
2. The person who drinks coffee lives to the left of the person who drinks beer.
3. The green house is occupied by the teacher.
4. The lawyer lives in the third house.
5. The person who plays badminton lives to the left of the person who drinks milk.
6. The blue house is occupied by the person who keeps dogs.
7. The white house is to the left of the person who drinks water.
8. The person who keeps fish plays chess.
9. The red house is to the left of the green house.
10. The person who plays bowling lives to the left of the person who keeps cats.
11. The accountant lives to the left of the salesman.
12. The person who keeps birds lives to the left of the person who keeps hamsters.
13. The white house is the fourth house.
14. The yellow house is occupied by the person who drinks tea.
Question: Who plays tennis
Logic Quiz J-4
There are four students sitting in a row. Each student plays a different sport, keeps a different pet and drinks a different beverage.
1. Susan sits to the left of the student who keeps kitten.
2. The student who drinks milk sits next to the student who keeps bird.
3. The student who keeps bird sits in the second desk.
4. The student who drinks juice sits to the left of the student who keeps hamster.
5. Mary drinks coffee.
6. The student who plays chess sits to the left of the student who plays hockey.
7. The student who keeps bird sits to the left of the student who plays badminton.
8. The student who plays tennis sits next to Robert.
9. James sits to the left of the student who drinks tea.
Question: Who keeps puppy
1. Susan sits to the left of the student who keeps kitten.
2. The student who drinks milk sits next to the student who keeps bird.
3. The student who keeps bird sits in the second desk.
4. The student who drinks juice sits to the left of the student who keeps hamster.
5. Mary drinks coffee.
6. The student who plays chess sits to the left of the student who plays hockey.
7. The student who keeps bird sits to the left of the student who plays badminton.
8. The student who plays tennis sits next to Robert.
9. James sits to the left of the student who drinks tea.
Question: Who keeps puppy
How to be a better neighbour
Arrange with your neighbour to look after your baby or child when you have to go out for a function. Be ready to look after their baby or child when they go out.
Best Low Cost Funds
What are the charges levied by unit trusts and investment-linked funds? Dr Money has made a study and recommended the best low cost funds in his website:
http://www.askdrmoney.com/Unit_Trusts_and_Funds.htm
http://www.askdrmoney.com/Unit_Trusts_and_Funds.htm
Public Transport Guide
Hi,
I will like to enquire where I will be able to obtain one of the Public Transport Guides that NTUC Income had given out a few years ago. Thank you very much.
REPLY
You can buy from Popular Book Store at $6 plus GST
I will like to enquire where I will be able to obtain one of the Public Transport Guides that NTUC Income had given out a few years ago. Thank you very much.
REPLY
You can buy from Popular Book Store at $6 plus GST
Singapore Equity funds
Dear Mr. Tan,
There are several types of Singapore equity. Eg. AXA Inspire Singapore Equity Fund, DBS Horizon Singapore Equity, DBS Aberdeen Singapore Equity. What is the difference between them all? Isn't all Singapore equity?
REPLY
Each fund manager decides on the stocks, within the class of Singapore equity, that they wish to invest in. The return depends on the stock selection made by each fund manager.
I prefer to invest in a fund, such as the STI ETF that invests in the index stocks. It is well diversified and is low cost. You will get a better net return over the long term.
Read this FAQ:
http://www.tankinlian.com/faq/returns.html
http://www.tankinlian.com/faq/expense.html
There are several types of Singapore equity. Eg. AXA Inspire Singapore Equity Fund, DBS Horizon Singapore Equity, DBS Aberdeen Singapore Equity. What is the difference between them all? Isn't all Singapore equity?
REPLY
Each fund manager decides on the stocks, within the class of Singapore equity, that they wish to invest in. The return depends on the stock selection made by each fund manager.
I prefer to invest in a fund, such as the STI ETF that invests in the index stocks. It is well diversified and is low cost. You will get a better net return over the long term.
Read this FAQ:
http://www.tankinlian.com/faq/returns.html
http://www.tankinlian.com/faq/expense.html
Thursday, December 13, 2007
Benefit illustration for ILP
Dear Mr Tan,
I recently met up with an agent who showed me a benefit illustration at 5% and 9% rate of returns for his company's ILP. However, I am not sure whether I should believe if those returns are reasonable.
Can you advice how should I approach this? Thanks!
REPLY
All insurance companies use 5% and 9% to "illustrate" their projected returns. These interest rates do not reflect what you can get in reality.
The actual returns is based on what the insurnce company can earn on its investments, less its charges.
Insurance companies usually have high upfront charges to pay the commission to their agents and annual charges to meet their fund management expenses.
Read this FAQ:
http://www.tankinlian.com/faq/expense.html
Also, read this webpage:
http://www.askdrmoney.com/Ins_ILP_RP.htm
I recently met up with an agent who showed me a benefit illustration at 5% and 9% rate of returns for his company's ILP. However, I am not sure whether I should believe if those returns are reasonable.
Can you advice how should I approach this? Thanks!
REPLY
All insurance companies use 5% and 9% to "illustrate" their projected returns. These interest rates do not reflect what you can get in reality.
The actual returns is based on what the insurnce company can earn on its investments, less its charges.
Insurance companies usually have high upfront charges to pay the commission to their agents and annual charges to meet their fund management expenses.
Read this FAQ:
http://www.tankinlian.com/faq/expense.html
Also, read this webpage:
http://www.askdrmoney.com/Ins_ILP_RP.htm
Visits to my blog
I received about 700 visits a day.
Nearly half of the visits were from 9 pm to midnight.
p/hr total
9 am to midnight: 109 327
midnight to 1 am: 29 29
1 am to 2 am: 16 16
2 am to 8 am: 8 48
8 am to 9 pm: 21 273
Total 693
Nearly half of the visits were from 9 pm to midnight.
Invest in BIG-e
Dear Mr. Tan,
What is the risk to shift all CPF-OA fund to AVIVA's Big-e?
REPLY
The risk is minimal. There is the risk that Aviva may reduce their interest rate. At that time, you can shift the money back to CPF. There is no penalty.
What is the risk to shift all CPF-OA fund to AVIVA's Big-e?
REPLY
The risk is minimal. There is the risk that Aviva may reduce their interest rate. At that time, you can shift the money back to CPF. There is no penalty.
Continue policy beyond age 60?
Dear Mr Tan,
I have a Living policy with a clause which guarantee to pay a yearly amount of about $9000 for 10 yrs and 8000 plus for 15 years, if I were to convert to annuity at the age of 60.
Should I convert to annuity or keep paying for the policy. I have two other life policy from other insurance company. I will have no other source of income when I reached 60 and I have no children. My agent advised me to convert to annuity.
Reply: Ask the agent to find out the cash value of your Living policy at age 60 and the amount of annuity that it can convert to. You can make a better decision when you find out the actual figures. Also find out what the projected cash value of the policy is, when you reach age 65.
I am also thinking of surrendering my other two life policy when I reached 65 as the cover for the critical illness seems to stop at age 65 (not very sure of this - does cover for critcal illness stop at 65) and I will not have any source of income and may not be able to contiue paying for the premium.
Reply: If the critical illness cover is a rider that stops at 65, then this statement is true. If it is a whole life critical illness policy (i.e. like the Living policy from NTUC Income), then the critical illness extends to the whole of lifetime. Before you surrender each policy, ask the insurance company to quote to you the following:
a) Cash value now
b) Cash value in 5 years time
c) Total premiums payable for next 5 years.
You can make a better decision, when you have the numbers.
Read this FAQ:
http://www.tankinlian.com/faq/exist.html
I have a Living policy with a clause which guarantee to pay a yearly amount of about $9000 for 10 yrs and 8000 plus for 15 years, if I were to convert to annuity at the age of 60.
Should I convert to annuity or keep paying for the policy. I have two other life policy from other insurance company. I will have no other source of income when I reached 60 and I have no children. My agent advised me to convert to annuity.
Reply: Ask the agent to find out the cash value of your Living policy at age 60 and the amount of annuity that it can convert to. You can make a better decision when you find out the actual figures. Also find out what the projected cash value of the policy is, when you reach age 65.
I am also thinking of surrendering my other two life policy when I reached 65 as the cover for the critical illness seems to stop at age 65 (not very sure of this - does cover for critcal illness stop at 65) and I will not have any source of income and may not be able to contiue paying for the premium.
Reply: If the critical illness cover is a rider that stops at 65, then this statement is true. If it is a whole life critical illness policy (i.e. like the Living policy from NTUC Income), then the critical illness extends to the whole of lifetime. Before you surrender each policy, ask the insurance company to quote to you the following:
a) Cash value now
b) Cash value in 5 years time
c) Total premiums payable for next 5 years.
You can make a better decision, when you have the numbers.
Read this FAQ:
http://www.tankinlian.com/faq/exist.html
Wise sayings (2)
Do you know who said these wise words?
6. Straight forwardness, without the rules of propriety, becomes rudeness.
7. What you do not want done to yourselves, do not do to others.
8. A man of humanity is one who, in seeking to establish himself, finds a foothold for others and who, desiring attainment for himself, helps others to attain.
9. By nature, men are nearly alike; by practice, they get to be wide apart.
10. There are cases in which the blade springs, but the plant does not go on to flower. There are cases where it flowers, but no fruit is subsequently produced.
6. Straight forwardness, without the rules of propriety, becomes rudeness.
7. What you do not want done to yourselves, do not do to others.
8. A man of humanity is one who, in seeking to establish himself, finds a foothold for others and who, desiring attainment for himself, helps others to attain.
9. By nature, men are nearly alike; by practice, they get to be wide apart.
10. There are cases in which the blade springs, but the plant does not go on to flower. There are cases where it flowers, but no fruit is subsequently produced.
Wise sayings (1)
Do you know who said these wise words?
1. Boldness, without the rules of propriety, becomes insubordination.
2. He who requires much from himself and little from others will keep himself from being the object of resentment.
3. To go beyond is as wrong as to fall short.
4. The parent’s age must be remembered, both for joy and for anxiety.
5. The real fault is to have faults and not to amend them.
1. Boldness, without the rules of propriety, becomes insubordination.
2. He who requires much from himself and little from others will keep himself from being the object of resentment.
3. To go beyond is as wrong as to fall short.
4. The parent’s age must be remembered, both for joy and for anxiety.
5. The real fault is to have faults and not to amend them.
700 visitors
I have an average of 700 visitors to my blog. It has been "stuck" at this level for the past few weeks.
I wish to bring the vistors to above 1,000 a day. I need your assistance. Please publicise my blog to 5 friends. If 1 respond, I will be able to achieve my target.
Help me to reach out to more people. I want to educate them on how they can better plan for their future. They will enjoy my stories, like you do.
I wish to bring the vistors to above 1,000 a day. I need your assistance. Please publicise my blog to 5 friends. If 1 respond, I will be able to achieve my target.
Help me to reach out to more people. I want to educate them on how they can better plan for their future. They will enjoy my stories, like you do.
Better return from a Low Cost Fund
Dear Mr Tan,
Would like to have your opinion regarding the Life policy. Kindly refer to the attached.
* Main Benefit Illustration - Basic (Non-Par).
* Supplementary Benefit Illustration (Coupon Schedule).
Yearly premium S$1,136
Sum Assured S$25,000
Policy started on 1st Dec 2002
According to my agent, the cash value is fixed! The return will not be affected by the market performance. I have already received the first payment, S$3,750, recently (every 5 years).
REPLY
You pay a yearly premium of $1136
You get $3,750 every 5 years, which is assumed to be re-invested to earn 4% p.a.
After 40 years, you can expect to receive a total of $80,666, comprising of the guaranteed sum of $44895 (inclusive of the coupons) and the interest of $35,791 (assumed to be 4%, non-guaranteed).
This gives you a net yield of 2.7% over 40 years.
If you have set aside 10% of the premium to buy your Term insurance, you would have obtained a much higher sum assured compared to this policy.
If the remaining 90% were to be invested to earn 4% per annum, you would have received a total of $97,100 at the end of 40 year (i.e. 20% higher than $80,666).
It is likely that you can earn more than 4% per annum in a large, well diversified fund. If the return is 5%, the total amount at the end of 40 years is $123,500 (or 53% more than $80,666).
Your Life policy policy gave you a poor return due to the high charges (to pay commission to the agent and profit to the insurance company).
Read this FAQ:
http://www.tankinlian.com/faq/fptips.html
http://www.tankinlian.com/faq/returns.html
Would like to have your opinion regarding the Life policy. Kindly refer to the attached.
* Main Benefit Illustration - Basic (Non-Par).
* Supplementary Benefit Illustration (Coupon Schedule).
Yearly premium S$1,136
Sum Assured S$25,000
Policy started on 1st Dec 2002
According to my agent, the cash value is fixed! The return will not be affected by the market performance. I have already received the first payment, S$3,750, recently (every 5 years).
REPLY
You pay a yearly premium of $1136
You get $3,750 every 5 years, which is assumed to be re-invested to earn 4% p.a.
After 40 years, you can expect to receive a total of $80,666, comprising of the guaranteed sum of $44895 (inclusive of the coupons) and the interest of $35,791 (assumed to be 4%, non-guaranteed).
This gives you a net yield of 2.7% over 40 years.
If you have set aside 10% of the premium to buy your Term insurance, you would have obtained a much higher sum assured compared to this policy.
If the remaining 90% were to be invested to earn 4% per annum, you would have received a total of $97,100 at the end of 40 year (i.e. 20% higher than $80,666).
It is likely that you can earn more than 4% per annum in a large, well diversified fund. If the return is 5%, the total amount at the end of 40 years is $123,500 (or 53% more than $80,666).
Your Life policy policy gave you a poor return due to the high charges (to pay commission to the agent and profit to the insurance company).
Read this FAQ:
http://www.tankinlian.com/faq/fptips.html
http://www.tankinlian.com/faq/returns.html
Logic Quiz A-17
There are five houses in a row in different colors. In each house
lives a person with a different occupation, drinks a different
beverage, plays a different sport and keeps a different pet.
1. The salesman drinks beer.
2. The person who drinks milk keeps dogs.
3. The yellow house is to the left of the blue house.
4. The person who drinks coffee plays badminton.
5. The lawyer lives next to the green house.
6. The teacher plays golf.
7. The person who keeps hamsters lives next to the person who drinks water.
8. The person who drinks tea lives next to the person who keeps cats.
9. The lawyer lives in the first house.
10. The third house is occupied by the person who plays bowling.
11. The yellow house is occupied by the person who plays chess.
12. The accountant keeps birds.
13. The red house is occupied by the person who drinks water.
14. The person who drinks tea lives next to the person who plays tennis.
15. The doctor lives in the white house.
Question: Who keeps fish
lives a person with a different occupation, drinks a different
beverage, plays a different sport and keeps a different pet.
1. The salesman drinks beer.
2. The person who drinks milk keeps dogs.
3. The yellow house is to the left of the blue house.
4. The person who drinks coffee plays badminton.
5. The lawyer lives next to the green house.
6. The teacher plays golf.
7. The person who keeps hamsters lives next to the person who drinks water.
8. The person who drinks tea lives next to the person who keeps cats.
9. The lawyer lives in the first house.
10. The third house is occupied by the person who plays bowling.
11. The yellow house is occupied by the person who plays chess.
12. The accountant keeps birds.
13. The red house is occupied by the person who drinks water.
14. The person who drinks tea lives next to the person who plays tennis.
15. The doctor lives in the white house.
Question: Who keeps fish
Logic Quiz J-3
There are four students sitting in a row.
Each student plays a different sport, keeps a
different pet and drinks a different beverage.
1. The student who drinks milk sits to the left of the student who keeps fish.
2. The student who plays chess sits to the left of James.
3. The student who drinks coffee sits next to the student who plays badminton.
4. The student who plays tennis keeps cats.
5. Robert plays hockey.
6. Susan sits to the left of the student who keeps hamsters.
7. Mary sits in the second desk.
8. Mary sits to the left of the student who drinks milk.
9. The student who drinks juice sits to the left of the student who drinks tea.
Question: Who keeps birds
Each student plays a different sport, keeps a
different pet and drinks a different beverage.
1. The student who drinks milk sits to the left of the student who keeps fish.
2. The student who plays chess sits to the left of James.
3. The student who drinks coffee sits next to the student who plays badminton.
4. The student who plays tennis keeps cats.
5. Robert plays hockey.
6. Susan sits to the left of the student who keeps hamsters.
7. Mary sits in the second desk.
8. Mary sits to the left of the student who drinks milk.
9. The student who drinks juice sits to the left of the student who drinks tea.
Question: Who keeps birds
Wednesday, December 12, 2007
Understand the function of drugs
A few months ago, I was prescribed certain drugs by the doctor. After a while, I forgot the function of the drugs.
I used the generic name and searched Google for the answer. I was able to get the description of the drug, how it works, what it is prescribed for and how it is taken.
The general names are:
* cimetidine
* orphenadrine citrate
I find the information to be quite useful.
I used the generic name and searched Google for the answer. I was able to get the description of the drug, how it works, what it is prescribed for and how it is taken.
The general names are:
* cimetidine
* orphenadrine citrate
I find the information to be quite useful.
WWANG INSTANT TARGET
1. This CD contains the software and database that is suitable to improve the productivity of your marketing effort.
2. It contains the particulars of 800,000 people with their name, address and telephone number.
3. You can locate a group of people based on their residential street or block. This helps you to target your marketing to people living in a certain locality.
4. The mail merge software allows to print a standard letter (using your own wording) or label to the addresses. You can generate several hundred letters easily.
5. You can easily also search for an individual person using the name, telephone number or address.
6. Property agents have used this software effectively for their marketing. This can also be used for insurance agents or local businesses to target customers living in a locality.
7. The usual price is $199. You can get a discount by calling the provider (Tel: 6356 7215) and mentioning that you were introduced by this blog.
8. You can reduce your cost by sharing the use of the CD with a friend. You may be able to recover the full cost of your investment from one or two successful sale.
Click here to view the powerpoint.
2. It contains the particulars of 800,000 people with their name, address and telephone number.
3. You can locate a group of people based on their residential street or block. This helps you to target your marketing to people living in a certain locality.
4. The mail merge software allows to print a standard letter (using your own wording) or label to the addresses. You can generate several hundred letters easily.
5. You can easily also search for an individual person using the name, telephone number or address.
6. Property agents have used this software effectively for their marketing. This can also be used for insurance agents or local businesses to target customers living in a locality.
7. The usual price is $199. You can get a discount by calling the provider (Tel: 6356 7215) and mentioning that you were introduced by this blog.
8. You can reduce your cost by sharing the use of the CD with a friend. You may be able to recover the full cost of your investment from one or two successful sale.
Click here to view the powerpoint.
Pupsik Studio - for Babies
This website offers innovative products for babies - currently available are baby carriers and nursing covers. Find out more from: http://www.pupsikstudio.com/.
It is offering 10% discounts to readers of this blog. You can use this voucher [TKLBLOG]. Shipping is free for all purchases in Singapore.
If you are a mother or wish to buy a gift for a friend with a baby, take a look at this innovative product:
http://www.pupsikstudio.com/.
It is offering 10% discounts to readers of this blog. You can use this voucher [TKLBLOG]
If you are a mother or wish to buy a gift for a friend with a baby, take a look at this innovative product:
http://www.pupsikstudio.com/.
The baby featured in this website is my granddaughter, Vera.
Director takes public transport
I met the head of a school in a polytechnic. He told me that he has been using public transport for the past ten years. He keeps his car at home to be used by his wife. He prefers to take public transport to work, as it is more convenient. He also save a lot of money on petrol, ERP charges and parking.
His students asked him why he takes public transport, instead of a private cae. He said that it gives him the chance to know see things from the perspective of the students. He gets a better feel of the ground.
I agree.
His students asked him why he takes public transport, instead of a private cae. He said that it gives him the chance to know see things from the perspective of the students. He gets a better feel of the ground.
I agree.
SAFRA Insurance Plans
Hi Mr Tan,
I have come across SAFRA Essential Term and SAFRA Living Care Policies. Both are offered from NTUC Insurance to SAFRA members.
How do they compare with the similiar policies offered by NTUC? Would they be the same with only differece in the pricing?
I am thinking which policy I should be buying from. Your advice will be greatly appreciated.
REPLY
The premium rates for the SAFRA plans are much lower than similar policies sold by NTUC Income to the public. They are good value to the consumer. You should buy these plans to enjoy the attractive rates.
However, the SAFRA policy is a group policy and is subject to cancellation or revision of premium rates. So far, the claim experience has been quite favourable, so any adjustment in premium rates is quite modest.
In addition to the SAFRA insurance plans, you should have your personal Term insurance, as it is guaranteed for the duration of the policy.
Perhaps you should have have of the sum assured under the SAFRA plan and the other half under the personal Term insurance.
I have come across SAFRA Essential Term and SAFRA Living Care Policies. Both are offered from NTUC Insurance to SAFRA members.
How do they compare with the similiar policies offered by NTUC? Would they be the same with only differece in the pricing?
I am thinking which policy I should be buying from. Your advice will be greatly appreciated.
REPLY
The premium rates for the SAFRA plans are much lower than similar policies sold by NTUC Income to the public. They are good value to the consumer. You should buy these plans to enjoy the attractive rates.
However, the SAFRA policy is a group policy and is subject to cancellation or revision of premium rates. So far, the claim experience has been quite favourable, so any adjustment in premium rates is quite modest.
In addition to the SAFRA insurance plans, you should have your personal Term insurance, as it is guaranteed for the duration of the policy.
Perhaps you should have have of the sum assured under the SAFRA plan and the other half under the personal Term insurance.
Logic Quiz A-3
There are five houses in a row. In each house lives a person with a different occupation, drinks a different beverage, plays a different sport and keeps a different pet.
1. The doctor plays chess.
2. The person who drinks beer lives to the left of the lawyer.
3. Albert lives to the left of the person who plays tennis.
4. Robert lives to the left of the person who drinks milk.
5. The doctor drinks beer.
6. The person who drinks tea lives in the last house.
7. The person who plays bowling drinks water.
8. The teacher lives in the second house.
9. John lives in the second house.
10. Mary plays badminton.
11. Susan keeps fish.
12. The person who keeps birds lives next to the person who plays golf.
13. The accountant lives to the left of the doctor.
14. The salesman lives to the left of the person who keeps cats.
15. The person who keeps hamsters lives to the left of the person who keeps dogs.
Question: Who drinks coffee
Write your answer and time taken in my blog.
1. The doctor plays chess.
2. The person who drinks beer lives to the left of the lawyer.
3. Albert lives to the left of the person who plays tennis.
4. Robert lives to the left of the person who drinks milk.
5. The doctor drinks beer.
6. The person who drinks tea lives in the last house.
7. The person who plays bowling drinks water.
8. The teacher lives in the second house.
9. John lives in the second house.
10. Mary plays badminton.
11. Susan keeps fish.
12. The person who keeps birds lives next to the person who plays golf.
13. The accountant lives to the left of the doctor.
14. The salesman lives to the left of the person who keeps cats.
15. The person who keeps hamsters lives to the left of the person who keeps dogs.
Question: Who drinks coffee
Write your answer and time taken in my blog.
Tuesday, December 11, 2007
Investing v Gambling
By Larry Haverkamp (Doc Money)
A NEW form of Internet betting has taken Great Britain by storm - spread betting. We have something similar here, as I will explain.
Read this article:
http://newpaper.asia1.com.sg/columnists/story/0,4136,145626,00.html?
http://www.tankinlian.com/drmoney/
A NEW form of Internet betting has taken Great Britain by storm - spread betting. We have something similar here, as I will explain.
Read this article:
http://newpaper.asia1.com.sg/columnists/story/0,4136,145626,00.html?
http://www.tankinlian.com/drmoney/
Personal Insurance
What type of insurance should you buy? How much should you pay as premium? How much cover do you need?
You should read the tips here before you meet with an adviser:
http://www.tankinlian.com/faq/choice.html
By being aware, you avoid being over-sold or being sold the wrong products. You will be able to evaluate the quality of the advice given by the adviser.
You should read the tips here before you meet with an adviser:
http://www.tankinlian.com/faq/choice.html
By being aware, you avoid being over-sold or being sold the wrong products. You will be able to evaluate the quality of the advice given by the adviser.
Logic Quiz J-2
There are four students sitting in a row.Each student plays a different sport, keeps adifferent pet and drinks a different beverage.
1. The student who plays chess sits left of James.
2. Robert sits left of Susan.
3. The student who plays tennis sits left of the student who keeps hamster.
4. The student who plays hockey sits left of the student who drinks coffee.
5. The student who plays chess sits at the second desk.
6. Mary keeps bird.
7. The student who drinks juice keeps puppy.
8. The student who plays tennis sits next to the student who drinks tea.
9. The student who drinks milk sits next to the student who plays badminton.
Question: Who keeps kitten
Post and answer and the time taken in my blog.
1. The student who plays chess sits left of James.
2. Robert sits left of Susan.
3. The student who plays tennis sits left of the student who keeps hamster.
4. The student who plays hockey sits left of the student who drinks coffee.
5. The student who plays chess sits at the second desk.
6. Mary keeps bird.
7. The student who drinks juice keeps puppy.
8. The student who plays tennis sits next to the student who drinks tea.
9. The student who drinks milk sits next to the student who plays badminton.
Question: Who keeps kitten
Post and answer and the time taken in my blog.
Reduce the time spent by the adviser
Some people have e-mailed to seek my help to get the low cost Term insurance and low cost investment fund. I have referred the enquiry to an adviser.
As the adviser earns a small commission on selling the low cost product, it is fair that the customer should help the adviser to reduce the time spent to transact the sale.
You can communicate with the adviser by e-mail and telephone. If you decide to buy the product, you can visit the adviser at his office. This will make it worth the while of the adviser.
Help the adviser to help you.
As the adviser earns a small commission on selling the low cost product, it is fair that the customer should help the adviser to reduce the time spent to transact the sale.
You can communicate with the adviser by e-mail and telephone. If you decide to buy the product, you can visit the adviser at his office. This will make it worth the while of the adviser.
Help the adviser to help you.
Act in the interest of consumers
Dear Mr. Tan,
You spent three decades promoting insurance. You are now posting anti-insurance articles in your blog. Why?
REPLY
I do not wish to be anti-anything or anti-anybody. My purpose is to educate the public, so that they can make the right choice for their future.
In recent years, the right choice is:
1. Buy Term insurance to provide the protection
2. Invest in a low cost fund, for its flexibility and better return
3. Avoid buying unneccessary insurance.
I hope that insurance advisers will remember your duty to give the right advice that is beneficial to your customers. Do not sell them the wrong products that make them poorer. Do not enrich yourself at the expense of your customers.
During my past three decades as head of NTUC Income, I have always promoted products that are good for consumers. Even the endowment and whole life plans that were promoted during my time give 15% to 20% better value to consumers, compared to similar products in the market.
Someone commented that I worked hard to strick a balance between the interest of the consumers and the need for advisers to make a living. During my time, the advisers can hold their head high, that they have acted in the interest of their customers.
Today, there are insurance products that are good for consumers, including the Flexi-Link and i-Term that are marketed by NTUC Income (introduced during my time). There are other good investment products in the market, such as low cost unit trusts.
You spent three decades promoting insurance. You are now posting anti-insurance articles in your blog. Why?
REPLY
I do not wish to be anti-anything or anti-anybody. My purpose is to educate the public, so that they can make the right choice for their future.
In recent years, the right choice is:
1. Buy Term insurance to provide the protection
2. Invest in a low cost fund, for its flexibility and better return
3. Avoid buying unneccessary insurance.
I hope that insurance advisers will remember your duty to give the right advice that is beneficial to your customers. Do not sell them the wrong products that make them poorer. Do not enrich yourself at the expense of your customers.
During my past three decades as head of NTUC Income, I have always promoted products that are good for consumers. Even the endowment and whole life plans that were promoted during my time give 15% to 20% better value to consumers, compared to similar products in the market.
Someone commented that I worked hard to strick a balance between the interest of the consumers and the need for advisers to make a living. During my time, the advisers can hold their head high, that they have acted in the interest of their customers.
Today, there are insurance products that are good for consumers, including the Flexi-Link and i-Term that are marketed by NTUC Income (introduced during my time). There are other good investment products in the market, such as low cost unit trusts.
Logic Quiz J-1
If you find the earlier puzzles to be too difficult, you can try the following J puzzle. It should take just a few minutes. Write the answer and time taken in my blog.
----------------------------------------------------
There are four students sitting in a row. Each student plays a different sport, keeps a different pet and drinks a different beverage.
1. The student who drinks tea sits left of the student who plays tennis.
2. The student who drinks milk sits left of the student who drinks juice.
3. The student who plays hockey sits left of the student who keeps bird.
4. Susan sits next to the student who plays badminton.
5. The student who keeps kitten sits left of the student who keeps hamster.
6. James drinks tea.
7. The student who drinks tea sits at the second desk.
8. Robert sits left of Mary.
9. The student who drinks coffee keeps puppy.
Question: Who plays chess
----------------------------------------------------
There are four students sitting in a row. Each student plays a different sport, keeps a different pet and drinks a different beverage.
1. The student who drinks tea sits left of the student who plays tennis.
2. The student who drinks milk sits left of the student who drinks juice.
3. The student who plays hockey sits left of the student who keeps bird.
4. Susan sits next to the student who plays badminton.
5. The student who keeps kitten sits left of the student who keeps hamster.
6. James drinks tea.
7. The student who drinks tea sits at the second desk.
8. Robert sits left of Mary.
9. The student who drinks coffee keeps puppy.
Question: Who plays chess
Monday, December 10, 2007
Fun & Money in InfoComm Industry
Do you know what computer programming was like 40 years ago? Read this article:
http://www.tankinlian.com/articles/fun.html
http://www.tankinlian.com/articles/fun.html
Logic Quiz A-3
There are five houses in a row with five different colors.In each house lives a person with a different occupation, drinks a different beverage, plays a different sport and keeps a different pet.
1. The person who keeps fish lives to the left of the accountant.
2. The blue house is to the left of the person who keeps cats.
3. The person who drinks water keeps dogs.
4. The person who keeps hamsters lives in the last house.
5. The person who plays chess lives next to the person who drinks milk.
6. The teacher keeps fish.
7. The red house is the second house.
8. The white house is to the left of the person who drinks tea.
9. The salesman lives to the left of the teacher.
10. The green house owner drinks coffee.
11. The doctor lives in the second house.
12. The lawyer lives to the left of the person who plays badminton.
13. The yellow house owner plays golf.
14. The person who plays tennis lives to the left of the person who plays bowling.
15. The teacher drinks beer.
Question: Who keeps birds
You can post your answer and the time taken in my blog. Enjoy!
1. The person who keeps fish lives to the left of the accountant.
2. The blue house is to the left of the person who keeps cats.
3. The person who drinks water keeps dogs.
4. The person who keeps hamsters lives in the last house.
5. The person who plays chess lives next to the person who drinks milk.
6. The teacher keeps fish.
7. The red house is the second house.
8. The white house is to the left of the person who drinks tea.
9. The salesman lives to the left of the teacher.
10. The green house owner drinks coffee.
11. The doctor lives in the second house.
12. The lawyer lives to the left of the person who plays badminton.
13. The yellow house owner plays golf.
14. The person who plays tennis lives to the left of the person who plays bowling.
15. The teacher drinks beer.
Question: Who keeps birds
You can post your answer and the time taken in my blog. Enjoy!
Retirement Fund and Inflation
A Central Provident Fund member is required to set aside a Minimum Sum of $99,600 on reaching age 55. This Minimum Sum will be adjusted yearly to allow for inflation. The CPF now uses an adjustment of 2% per year.
We can use the real rate of interest of 2% to compute the drawdown of the Minimum Sum.
At present, the CPF member can draw down the Minimum Sum for age 62. The Government is giving a Deferment Bonus to encourage people to delay the draw down to age 65.
If I use the real rate of 2% to calculate the accumulation of the Minimum Sum to age 65 and draws down this sum over 25 years, the drawdown is $6,200 a year or $518 a month. This reflects the value of money today. The “nominal” amount will be higher, due to inflation.
Many people consider $518 a month to be inadequate. I estimate that a retiree should have two times of the Minimum Sum to achieve a more comfortable standard of living. This can be achieved by keeping a larger portion of the CPF savings in the special account or by having personal savings to supplement the CPF savings.
We can use the real rate of interest of 2% to compute the drawdown of the Minimum Sum.
At present, the CPF member can draw down the Minimum Sum for age 62. The Government is giving a Deferment Bonus to encourage people to delay the draw down to age 65.
If I use the real rate of 2% to calculate the accumulation of the Minimum Sum to age 65 and draws down this sum over 25 years, the drawdown is $6,200 a year or $518 a month. This reflects the value of money today. The “nominal” amount will be higher, due to inflation.
Many people consider $518 a month to be inadequate. I estimate that a retiree should have two times of the Minimum Sum to achieve a more comfortable standard of living. This can be achieved by keeping a larger portion of the CPF savings in the special account or by having personal savings to supplement the CPF savings.
Education Fund and Inflation
Assume that you wish to save $100,000 for the tertiary education of your child in 20 years time.
If you expect to earn an average return to be 5% a year, you need to save $3,020 a year.
In 20 years time, the cost of education would have increased, due to the impact of inflation. If inflation is an average of 2% per year, the cost would have increased to $148,000, i.e. an increase of 48% over 20 years.
To get the higher sum of $148,000, you will need to save 48% more, or $4,470. That is a lot of money, especially at the earlier years, when your income is still at a more modest level (i.e. has not reached the peak for your career).
A better approach is to have a saving plan that increases with your salary. If you assume that your saving can increase by 2% per year, you can save a smaller sum at the start.
Here is an easy way to calculate the amount that you need to save to produce $100,000 (in real value) in 20 years, allowing for inflation at 2% per year.
If you expect to earn an average of 5% per year, and you wish to allow for inflation at 2% per year, you use a “real” interest rate of 3% in your calculation (i.e. nominal rate of 5% less inflation adjustment of 2%).
To get $100,000 in real value in 20 years’ time, you need to save $3,720 yearly in real terms, i.e. the saving has to increase by 2% every year.
If you expect to earn an average return to be 5% a year, you need to save $3,020 a year.
In 20 years time, the cost of education would have increased, due to the impact of inflation. If inflation is an average of 2% per year, the cost would have increased to $148,000, i.e. an increase of 48% over 20 years.
To get the higher sum of $148,000, you will need to save 48% more, or $4,470. That is a lot of money, especially at the earlier years, when your income is still at a more modest level (i.e. has not reached the peak for your career).
A better approach is to have a saving plan that increases with your salary. If you assume that your saving can increase by 2% per year, you can save a smaller sum at the start.
Here is an easy way to calculate the amount that you need to save to produce $100,000 (in real value) in 20 years, allowing for inflation at 2% per year.
If you expect to earn an average of 5% per year, and you wish to allow for inflation at 2% per year, you use a “real” interest rate of 3% in your calculation (i.e. nominal rate of 5% less inflation adjustment of 2%).
To get $100,000 in real value in 20 years’ time, you need to save $3,720 yearly in real terms, i.e. the saving has to increase by 2% every year.
Beware agents' glib sales lines
Buying insurance?
Beware agents' glib sales lines
By Larry Haverkamp (Doc Money)
HOW much is your sum assured? Do you have convertibility? How about renewability? How about total confusion?
Hardly anyone understands insurance lingo. That's why some top agents skip the jargon and go straight for the heart.
They talk about life, death, loving, caring and - most of all - responsibility.
Here are the sales pitches I have run across most often. All are highly effective but they don't give you the full picture. How many can you recognise?
Sales pitch #1: 'Do you know how much it will cost to send your child to university?'
Sales pitch #2: 'My honest advice is: Save your money and buy an ILP.'
Sales pitch #3: 'If you buy term insurance, you won't get anything back at the end.
Sales pitch #4: 'Whole life and endowment returns are guaranteed. There are no losses.'
Read this article:
http://newpaper.asia1.com.sg/columnists/story/0,4136,131634,00.html?
http://www.tankinlian.com/drmoney/
Beware agents' glib sales lines
By Larry Haverkamp (Doc Money)
HOW much is your sum assured? Do you have convertibility? How about renewability? How about total confusion?
Hardly anyone understands insurance lingo. That's why some top agents skip the jargon and go straight for the heart.
They talk about life, death, loving, caring and - most of all - responsibility.
Here are the sales pitches I have run across most often. All are highly effective but they don't give you the full picture. How many can you recognise?
Sales pitch #1: 'Do you know how much it will cost to send your child to university?'
Sales pitch #2: 'My honest advice is: Save your money and buy an ILP.'
Sales pitch #3: 'If you buy term insurance, you won't get anything back at the end.
Sales pitch #4: 'Whole life and endowment returns are guaranteed. There are no losses.'
Read this article:
http://newpaper.asia1.com.sg/columnists/story/0,4136,131634,00.html?
http://www.tankinlian.com/drmoney/
Logic Quiz A-2
There are five houses in a row with five different colors.
In each house lives a person with a different occupation,
drinks a different beverage, plays a different sport
and keeps a different pet.
1. The person who keeps fish lives next to the person who drinks water.
2. The person who plays golf lives next to the person who keeps birds.
3. The teacher lives next to the person who drinks coffee.
4. The red house owner is the salesman.
5. The green house is to the left of the blue house.
6. The lawyer drinks milk.
7. The person who plays badminton lives next to the person who drinks tea.
8. The accountant lives to the left of the person who keeps cats.
9. The fourth house is the white house.
10. The yellow house owner plays badminton.
11. The doctor keeps cats.
12. The person who keeps dogs lives to the left of the person who plays chess.
13. The blue house owner plays chess.
14. The third house owner plays tennis.
15. The person who plays bowling keeps hamsters.
Question: Who drinks beer
Please give your answer and the time that you took to solve this quiz - by writing a comment.
In each house lives a person with a different occupation,
drinks a different beverage, plays a different sport
and keeps a different pet.
1. The person who keeps fish lives next to the person who drinks water.
2. The person who plays golf lives next to the person who keeps birds.
3. The teacher lives next to the person who drinks coffee.
4. The red house owner is the salesman.
5. The green house is to the left of the blue house.
6. The lawyer drinks milk.
7. The person who plays badminton lives next to the person who drinks tea.
8. The accountant lives to the left of the person who keeps cats.
9. The fourth house is the white house.
10. The yellow house owner plays badminton.
11. The doctor keeps cats.
12. The person who keeps dogs lives to the left of the person who plays chess.
13. The blue house owner plays chess.
14. The third house owner plays tennis.
15. The person who plays bowling keeps hamsters.
Question: Who drinks beer
Please give your answer and the time that you took to solve this quiz - by writing a comment.
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