Hi Mr. Tan
I am a regular visitor to your blog.I have a private housing loan with a bank. I can make a partial or full payment after 3 years. I am considering the following options at the end of 3 years:
(a) Do a partial payment and continue to pay the same monthly payment from CPF OA
(b) Do a full payment using cash and CPF OA
(c) Do a full payment from CPF OA
What is your advice?
REPLY:
What is the interest rate on your loan at the end of 3 years, based on their current board rate?
What is the balance of your loan at the end of 3 years?
What is the amount of monthly repayment?
What is the rate of return on your cash savings?
You need these figures to calculate the options that work best for you.
Mr. Tan, sorry to digress from the topic.
ReplyDeleteGOOD NEWS!!!
You know MAS has put up for consultation on "fair dealing" guidelines and it has invited the public and industry players to propose feedbacks and if you have, other areas that are not captured.
The 5 key areas to address have the customers in mind. It is top down, starting with ceo and senior management bearing all the responsibilities from good responsible product design to representatives' competency and remuneration (instead of commission) to complaint mechanism. It is good that ceo and managers are now made responsible for everything and also their advisers's conduct This eventually will eliminate the 'salesman" who has been the pain in the neck (PIN)and who has been gathering layers and layers of negative condemnations over the years.It aims also to raise the
bar(qualifications and training)) so that the public will get responsible financial advice.
Hi, consumers, the ball is in your court. What you like to see changed
in your interest, it is time to give your views and feedbacks to MAS, at www.mas.gov.sg
INDEED THE DAYS OF THE INSURANCE SALESMEN ARE NUMBERED!!!!!!!!
Zhumeng :o)
Hope Mr. Tan and Dr. Money will contribute their views to this fair dealing consultation paper. Both of them with their vast knowledge and experience will surely benefit the consumers . This may be the turning point for the industry and i hope the dealing will be fair to both consumers and the advisers and not as it is now which is skewed towards the insurance salesmen. Also hope other financial professionals will chip in their views.
ReplyDeleteHope the guidelines will address rip off and useless products, mis-selling , misrepresentation, unethical selling,non disclosure, concealment, falsehood etc and selling itself. Hope it will also raise the standard of advice by requiring higher level of professional education for licensing;(the current requirement is rubbish)and specific education requirement for certain category of advice like investment. No more product selling instead the need based approach to be made compulsory. Compulsory approved continuing education to ensure advisers are up to the standard.
The consumers to be told of the complaint mechanism at the outset of the advice for any misconduct.
The above is only possible with the cooperation of the consuming public to reveal necessary information for analysis, without which the whole process will fail.This is to your advantage as the objective is to see the recommendations meet your goals.So I hope the public too will be forthcoming when they seek advice from qualified honest advisers. Lady luck will be out of business in the future becuase there will be more transparency and certainty, no hit and run by insurance agents.
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