Tan Kin Lian's Blog: Pinnacle Notes

Monday, September 22, 2008

Pinnacle Notes

Here is how the Pinnacle Notes work. It is frightening to me.

http://www.asiaone.com/Business/My%2BMoney/Starting%2BOut/Investments%2BAnd%2BSavings/Story/A1Story20070814-21882.html

12 comments:

ksseng said...: Sweet Talk Victim; September 22, 2008 9:26 PM
SHAMUS said...: Dear Mr Tan, Thank you for sharing. The worst part is we were given only a 2 pages brochure that stated principal protected, etc. Weeks after we issued cheques to buy the notes, then we are given the prospectus !!!

Dear all fellow victims, I thought of launching a complaint or petition to MAS. If you interested, pls drop me email at ksseng@yahoo.com.sg ,please do not use gmail as I had it blocked in my spam mail setting.; September 22, 2008 9:28 PM
noodles said...: wow. I should have read this much earlier. Thank goodness, I am advised by several people to not invest in structured products.; September 22, 2008 11:03 PM
Anonymous said...: Mr Tan has written repeatedly to warn readers about our financial system nowadays. Gone are the trust of the old bankers. In its place are new bankers whose goals are to make as much profit as possible so as to get huge bonuses for themselves. I recall Mr Tan mentioning in his blog months ago about the changing face of the financial institutions.
All these are just consequences of the truth of what he said. Most of the people who sweet talk you into buying are just the hands. The primary responsibility actually goes to the leadership of these financial institutions.
Just like the tainted milk scare, it is not the poor farmers or the consumers of the milk at fault. Greed has taken over integrity. It is not just bad luck or poor choice. It is a well orchestrated, step by step, methodical and strategised move. That is why it is so difficult to escape. All those forms that you sign, it is to protect these financial institutions' interests. They know how the law in Singapore works, just like the crooks in the tainted milk saga knows how the testing works and can circumvent and override the tests for protein by using melamine.
By ignoring Mr Tan's warning, and some readers even attacking his views for your better good, you will end up with many sleepless nights.
The simple way to know who is talking sense or not is simply by asking yourself this question. "Why is this person telling me this?" Apply it rigorously.
"Why is Mr Tan telling me not to buy this?' Answer is since he is not benefitting from you by not buying, so his advice will be for your good.
"Why is this salesman telling me this?' Answer is he or she wants to earn money from me so there is a vested interest.
Simple, isn't it? Do not let Greed or Fear cause you to make the wrong decision.; September 23, 2008 12:38 AM
zhummmeng said...: Absolutely!!!!Mr.Tan has no vested interest..Heed his advice and you have nothing to lose..Ignore his advice at your peril. Attacking him, prepare to recieve counter attack..
Whatever he writes he is writing in your interest.
I know many consumers are still unable to accept what he wrote about Whole life or par products.Remember he is an actuary. He knows what makes up WL and he is warning you that WL is a rip off and not value for money. Maybe for some who have these products find it hard to give up. I know it is not easy.You need someone or event to nudge you to give up like many found out about their WL policies with AIA.They are disappointed.Not just AIA all the companies' WL are equally bad. Slight difference doesn't make another product good ,maybe better but definitely not good also. The constrains with which WL is designed cannot be much different from each company, the difference is marginal. So don't be fooled.
Remember all WL and endowment products are scams especailly anticipated endowment currently plentiful in the market like cashbacks and all the craps. Trust us. We have done a lot of research in these products and concluded that they are scams. They have ruined many people whose lives otherwise would have been better. The only people who benefit from WL and endowment products are the companies and the greedy and unethical insurance agents just like the current structured product fiasco.
The minibonds could be CDS and many unwittingly became the insurers for the banks and the issuers.Did you know? No, because the consultants and banks didn't want you to know. They just gamble with you. Too bad many lost.
In the same vein insurance agents and their masters are gambling with you at your expense and you sure lose with products like WL and endowment.
Make all insurance agents a suspect especailly those with mdrt, cot or tot marks on their name cards.They are the worse. The marks are testimony of how many people they have ruined.; September 23, 2008 9:33 AM
Unknown said...: come on, the financial products sold in Singapore has all disclosures for investors to read.

However, the poison milk did not disclose the poison substance in it. It's 2 different case!!!; September 23, 2008 11:32 AM
Anonymous said...: If we expect the gahment to decide what products to be sold and not to be sold...

1) to some extend, it restricts the spirit of free market.

2) it's as good as doing this, the stock makes 80% of the people to loose their life savings, and lets shut down the stock market.; September 23, 2008 11:37 AM
Anonymous said...: Cheng Siong,
You make me laugh. Still so ignorant! Try telling that to the many investors all across the world how come they never read the disclosures? Are you one of those who package these disclosures or are you one of the potential victims. If you are the former, I can understand why you are writing this. But if you are one of the potential victims, then I can only say, a fool and his money is soon parted.; September 23, 2008 3:20 PM
Anonymous said...: Actually the poison milk case did disclose it. It says: "Extra High Protein" only that people did not ask where the extra high protein comes from.; September 23, 2008 3:21 PM
nhyone said...: Greed makes one careless.

Low risk doesn't mean no risk.

Lehman Brothers did not expect the Federal Reserve to not bail it out too.; September 23, 2008 8:13 PM
Anonymous said...: ok. then avoid high protein stuff for the rest of our life, until the next crisis occur, then we avoid high xx product...; September 24, 2008 12:32 PM
Unknown said...: oh my, I am not involved in any supply and consumption chain of any structured products!
Because I read the fine prints, unlike those who make silly remarks and suggestion after being burnt.
This is called 'Due Diligence'. Good lesson learnt, and let's move forward...; September 24, 2008 12:35 PM