If you face a risk with possible losses ranging from $0 to $10,000 and an expected loss of $500, will you pay $700 to insure the risk?
The answer should be "yes". Although the expected loss is $500, the actual loss can be as high as $10,000.
The difference of $200 (about 30% of $700) represents the cost of providing the insurance protection. It goes to cover the marketing, underwriting and claim processing cost of the insurance company. An expense margin of 30% is fair, in the case of an insurance contract that provide indemnity for losses. For a competitively priced insurance, the ratio of losses to premiums should be around 70%.
In the case of a life insurance contract that accumulate savings for the future, the expense ratio should be much lower, say from 5% to 10%.
Monday, January 07, 2008
Secret Formula
Do you know the secret formula for the Amazing Number puzzle?
http://www.tankinlian.com/amazing/index.html
http://www.tankinlian.com/amazing/index.html
High charges on regular premium ILP
Hi Mr. Tan,
I've just realised to my horror that I've tied myself down to a useless investment product - a regular ILP. This is with X. My monthly premium is $100.
I have been paying premiums for the past two years. The value of the investments is only about $600. If I surrender the policy, this is what I'll get back. Should I continue? Will this investment ever even break-even?
REPLY
You have incurred most of the upfront expenses already. From now on, most of your premium will be invested. What you have spent in high charges in the past should be written off. I suggest that you keep this ILP policy.
Lesson: Avoid regular premium ILP. The charges are too high. 18 months of the premium has been taken away to pay commission and marketing expenses.
I've just realised to my horror that I've tied myself down to a useless investment product - a regular ILP. This is with X. My monthly premium is $100.
I have been paying premiums for the past two years. The value of the investments is only about $600. If I surrender the policy, this is what I'll get back. Should I continue? Will this investment ever even break-even?
REPLY
You have incurred most of the upfront expenses already. From now on, most of your premium will be invested. What you have spent in high charges in the past should be written off. I suggest that you keep this ILP policy.
Lesson: Avoid regular premium ILP. The charges are too high. 18 months of the premium has been taken away to pay commission and marketing expenses.
Rejection of medical claim - congenital condition
Dear Mr. Tan,
I have taken medical insurance for my daughter since she was a baby. There was no claim for more than 10 years.
Recently, we discovered that she was suffering from a serious medical condition. The insurance company X rejected the claim as the medical condition was congenital. We feel that this is most unfair. What is your advice?
REPLY
I suggest that you bring this this matter up to the senior management of X. You can point out that this illness was discovered more than 10 years after the policy was taken up. Due to the long lapse of time, it may not be fair for them to apply the congenital clause.
Perhaps you can ask them to get their doctor to certify that the illness is really congenital and should be excluded.
If they do not give you a satisfactory explanation, you can lodge a complaint with the Financial Dispute Resolution Center: http://www.fidrec.com.sg/website/faq.html
I wish to extend my sympathies on your predicament, first on this unexpected illness and second on the rejection of the claim. I hope that the senior management of X will take a sympathetic view. I wish you all the best.
I have taken medical insurance for my daughter since she was a baby. There was no claim for more than 10 years.
Recently, we discovered that she was suffering from a serious medical condition. The insurance company X rejected the claim as the medical condition was congenital. We feel that this is most unfair. What is your advice?
REPLY
I suggest that you bring this this matter up to the senior management of X. You can point out that this illness was discovered more than 10 years after the policy was taken up. Due to the long lapse of time, it may not be fair for them to apply the congenital clause.
Perhaps you can ask them to get their doctor to certify that the illness is really congenital and should be excluded.
If they do not give you a satisfactory explanation, you can lodge a complaint with the Financial Dispute Resolution Center: http://www.fidrec.com.sg/website/faq.html
I wish to extend my sympathies on your predicament, first on this unexpected illness and second on the rejection of the claim. I hope that the senior management of X will take a sympathetic view. I wish you all the best.
Sudoku Challenge - Preliminary Round
The preliminary round of Sudoku Challenge (for people 40 and over) was held at Bishan Community Club on 6 January. A total of about 130 people participated in the two sessions. They spent about 25 to 60 minutes to complete 5 Sudoku puzzles.
The top 16 winners have been identified. They will take part in the Finals to be held at Suntec City on 13 January.
The public is invited to watch this event. There will be other mind games which are being held at the same time. There is also an exhibition.
The top 16 winners have been identified. They will take part in the Finals to be held at Suntec City on 13 January.
The public is invited to watch this event. There will be other mind games which are being held at the same time. There is also an exhibition.
Risk Management and Insurance
I conducted the first class on Risk Management and Insurance at Singapore Management University today.
I enjoy the experience. The students participated well. From their feedback, they like the topics covered, which are useful and relevant to them.
I enjoy teaching and sharing my working experience with the students.
I enjoy the experience. The students participated well. From their feedback, they like the topics covered, which are useful and relevant to them.
I enjoy teaching and sharing my working experience with the students.
Disability income insurance
Dear Mr. Tan,
What are your views about disability income insurance?
REPLY:
As a general principle, disability income insurance is useful. If a person is disabled due to illness or accident and is not able to earn an income, the insurance will make a regular payment to replace the lost income.
In practice, the situation is different.
Here are my views, based on my limited knowledge of the market for disability income insurance in Singapore.
1. The market for disability income insurance taken by individuals is quite undeveloped in Singapore.
2. The premium rate tends to be quite high in relation to the actual cost of the risk. You will probably have to pay a high premium for a cover that is worth much less.
3. There is a long waiting period (usually three months), before the disability income starts to pay. The period of payment may also be limited.
4. If you buy disability insurance in a group, for example through an employer, or an association, you are likely to get more competitive premium rates.
5. For individuals, you can insure for temporary disablement caused by accidents through a personal accident policy. The premium rate is quite competitive.
What are your views about disability income insurance?
REPLY:
As a general principle, disability income insurance is useful. If a person is disabled due to illness or accident and is not able to earn an income, the insurance will make a regular payment to replace the lost income.
In practice, the situation is different.
Here are my views, based on my limited knowledge of the market for disability income insurance in Singapore.
1. The market for disability income insurance taken by individuals is quite undeveloped in Singapore.
2. The premium rate tends to be quite high in relation to the actual cost of the risk. You will probably have to pay a high premium for a cover that is worth much less.
3. There is a long waiting period (usually three months), before the disability income starts to pay. The period of payment may also be limited.
4. If you buy disability insurance in a group, for example through an employer, or an association, you are likely to get more competitive premium rates.
5. For individuals, you can insure for temporary disablement caused by accidents through a personal accident policy. The premium rate is quite competitive.
Sunday, January 06, 2008
Personal savings for your retirement
Many Singaporeans rely on the Central Provident Fund as their main source of savings for retirement.
Many have found it to be inadequate. In 1999, only one-third of people reaching age 55 had sufficient savings to meet the Minimum Sum of $60,000. The Minimum Sum has now been raised to $99,600. This is only sufficient to meet the very basic cost of living in Singapore.
For a more comfortable standard of living, you need at least two times of this Minimum Sum.
Let me share eight tips with you on how you can get adequate savings for your retirement.
Click here for the full article:
http://www.tankinlian.com/articles/savings.html
Many have found it to be inadequate. In 1999, only one-third of people reaching age 55 had sufficient savings to meet the Minimum Sum of $60,000. The Minimum Sum has now been raised to $99,600. This is only sufficient to meet the very basic cost of living in Singapore.
For a more comfortable standard of living, you need at least two times of this Minimum Sum.
Let me share eight tips with you on how you can get adequate savings for your retirement.
Click here for the full article:
http://www.tankinlian.com/articles/savings.html
Technique to solve Logic Quiz E-1
Here is the technique to solve Logic Quiz E-1 (see below).
Start with clue 11 which fixes the house of the engineer. From there, you can use clues 10, 12 and 20 to fix the houses for the stated characteristics. You can use clue 3 to fix the house of the lawyer.
After you have fixed the house of the engineer and the lawyer, you can use clue 13 to fix the house of the accountant and salesman.
Start with clue 11 which fixes the house of the engineer. From there, you can use clues 10, 12 and 20 to fix the houses for the stated characteristics. You can use clue 3 to fix the house of the lawyer.
After you have fixed the house of the engineer and the lawyer, you can use clue 13 to fix the house of the accountant and salesman.
The remaining two occupations are the technician and doctor. If you study the clues 2 and 8, you will be able to find their houses.
It will quite easy to complete the remaining clues. Look for the clues that fit exactly into the blank squares (i.e. only one solution).
If you take step by step, you can complete the whole quiz. It may take you 30 minutes to solve this quiz the first time, but with practice, you can reduce the time down to 10 minutes for a similar quiz.
Logic Quiz E-1
If you want a challenging logic quiz, try the following. Put our name and time taken in this blog. If you can get the answer within 15 minutes, you are very good!
There are six houses with different colours in a row. Each occupant likes a different fruit, drinks a different beverage, drives a different car and speaks a different language.
1. The person who speaks French lives to the left of the person who speaks German.
2. The technician lives to the left of the green house.
3. The person who drinks water is the lawyer.
4. The person who likes melon lives to the left of the person who likes durian.
5. The person who speaks Japanese lives two houses left of the brown house.
6. The person who speaks Italian lives two houses left of the person who drives Hyundai.
7. The person who drives Honda lives two houses left of the person who drives Nissan.
8. The person who likes mango lives two houses left of the doctor.
9. The person who drives BMW lives two houses left of the blue house.
10. The engineer lives two houses left of the person who drinks water.
11. The engineer lives in the third house.
12. The person who likes apple lives to the left of the engineer.
13. The accountant lives to the left of the salesman.
14. The person who likes banana lives two houses left of the person who drinks beer.
15. The person who drives Peugeot lives two houses left of the person who likes strawberry.
16. The person who drinks tea lives two houses left of the yellow house.
17. The person who drinks juice lives to the left of the person who drinks wine.
18. The white house is two houses left of the person who speaks Russian.
19. The person who drives Toyota lives three houses left of the person who drinks milk.
20. The red house is to the left of the person who likes apple.
Question: Who speaks Chinese
There are six houses with different colours in a row. Each occupant likes a different fruit, drinks a different beverage, drives a different car and speaks a different language.
1. The person who speaks French lives to the left of the person who speaks German.
2. The technician lives to the left of the green house.
3. The person who drinks water is the lawyer.
4. The person who likes melon lives to the left of the person who likes durian.
5. The person who speaks Japanese lives two houses left of the brown house.
6. The person who speaks Italian lives two houses left of the person who drives Hyundai.
7. The person who drives Honda lives two houses left of the person who drives Nissan.
8. The person who likes mango lives two houses left of the doctor.
9. The person who drives BMW lives two houses left of the blue house.
10. The engineer lives two houses left of the person who drinks water.
11. The engineer lives in the third house.
12. The person who likes apple lives to the left of the engineer.
13. The accountant lives to the left of the salesman.
14. The person who likes banana lives two houses left of the person who drinks beer.
15. The person who drives Peugeot lives two houses left of the person who likes strawberry.
16. The person who drinks tea lives two houses left of the yellow house.
17. The person who drinks juice lives to the left of the person who drinks wine.
18. The white house is two houses left of the person who speaks Russian.
19. The person who drives Toyota lives three houses left of the person who drinks milk.
20. The red house is to the left of the person who likes apple.
Question: Who speaks Chinese
Low cost Term Insurance
Dear Mr. Tan,
Where can I buy low cost Term insurance?
REPLY
Read this FAQ:
http://www.tankinlian.com/faq/termd.html
Give a call to 3 companies and ask them to quote the Term insurance for your age and sum assured.
Read this FAQ for the benchmark rates:
http://www.tankinlian.com/faq/term.html
Where can I buy low cost Term insurance?
REPLY
Read this FAQ:
http://www.tankinlian.com/faq/termd.html
Give a call to 3 companies and ask them to quote the Term insurance for your age and sum assured.
Read this FAQ for the benchmark rates:
http://www.tankinlian.com/faq/term.html
Low cost insurance and funds
Many people have sent an e-mail to ask for my advice on how they can buy low cost insurance and funds.
I have referred them to the following:
1. Business center of NTUC Income
2. i-Term available from Income's website
3. Flexi-link and Combined Fund from NTUC Income
4. Exchange Traded Funds from the Singapore Exchange
I have also referred them to a few NTUC Income advisers, who have agreed to offer only the low cost insurance and funds. As they earn a small commission, you should not expect them to spend too much time visiting your home. Discuss with them by e-mail or telephone, or visit their office.
Some other people have recommended unit trusts available thorugh Poems (Phillips Securities), Fundsupermart, DollarDex and Finantiq. I agree with the use of these internet portals, but you should choose the low cost funds.
See this FAQ:
http://www.tankinlian.com/faq/savings.html
You can read the following FAQs on how to buy insurance directly:
http://www.tankinlian.com/faq/termd.html
http://www.tankinlian.com/faq/motord.html
I have referred them to the following:
1. Business center of NTUC Income
2. i-Term available from Income's website
3. Flexi-link and Combined Fund from NTUC Income
4. Exchange Traded Funds from the Singapore Exchange
I have also referred them to a few NTUC Income advisers, who have agreed to offer only the low cost insurance and funds. As they earn a small commission, you should not expect them to spend too much time visiting your home. Discuss with them by e-mail or telephone, or visit their office.
Some other people have recommended unit trusts available thorugh Poems (Phillips Securities), Fundsupermart, DollarDex and Finantiq. I agree with the use of these internet portals, but you should choose the low cost funds.
See this FAQ:
http://www.tankinlian.com/faq/savings.html
You can read the following FAQs on how to buy insurance directly:
http://www.tankinlian.com/faq/termd.html
http://www.tankinlian.com/faq/motord.html
People will buy insurance
For decades, insurance professionals have held the view that "insurance has to be sold". People will not buy insurance on their own. The solution was to train insurance agents and pay them high commission to sell the insurance products.
Times have changed. People will buy insurance for the following reasons:
1. They want to be protected financially against the risk of death or disability
2. They want to save and earn a good return for the future
3. They will buy an insurance product that gives good value to them.
4. They need to find someone that they can trust.
In my blog and website, I will educate people about the good value products, including the following:
1. Term insurance
2. Personal accident insurance
3. Low cost, diversified investment funds
Tan Kin Lian
Times have changed. People will buy insurance for the following reasons:
1. They want to be protected financially against the risk of death or disability
2. They want to save and earn a good return for the future
3. They will buy an insurance product that gives good value to them.
4. They need to find someone that they can trust.
In my blog and website, I will educate people about the good value products, including the following:
1. Term insurance
2. Personal accident insurance
3. Low cost, diversified investment funds
Tan Kin Lian
Low cost funds
You can buy low cost funds directly through the following internet portals:
a) Poems, http://www.poems.com.sg/
b) Fundsupermart http://www.fundsupermart.com/main/home/index.svdo
c) DollarDex http://www.dollardex.com/SG/INDEX.CFM
d) Finantiq http://www.finatiq.com/home/index.shtm
More details at:
http://www.tankinlian.com/faq/lowcost.html
a) Poems, http://www.poems.com.sg/
b) Fundsupermart http://www.fundsupermart.com/main/home/index.svdo
c) DollarDex http://www.dollardex.com/SG/INDEX.CFM
d) Finantiq http://www.finatiq.com/home/index.shtm
More details at:
http://www.tankinlian.com/faq/lowcost.html
Low cost Personal Accident
You should buy a Personal Accident insurance to cover 5 years of your income. If you earn $30,000 a year, you can insure for $150,000.
This policy will cover death and permanent disability caused by accidents, as follows:
a) Amount payable on death: $150,000
b) Double indemnity under certain circumstances: $300,000
c) Permanent disablement: depending on extent of disability, up to $150,000
d) Temporary Disablement: $150 a day, up to 104 weeks
e) Medical Expenses: up to a specified amount for any one accident
f) Emergency Evacuation and Repatriation
An accident is usually defined as being caused by an external, violent, unexpected event. This is intended to exclude claims for illness or poor health.
The standard policy will usually exclude pre-existing physical or mental defects,
pregnancy and childbirth, war risks, motorcycling, climbing or mountaineering necessitating ropes or guides, judo, karate and some hazardous sports. You can pay a higher premium rate to cover some of these risks.
The annual premium for a sum assured of $150,000 varies from $100 to $300, depending on your occupation and on the insuranced company that provide the insurance.
More details can be found at:
http://www.tankinlian.com/faq/pa.html
This policy will cover death and permanent disability caused by accidents, as follows:
a) Amount payable on death: $150,000
b) Double indemnity under certain circumstances: $300,000
c) Permanent disablement: depending on extent of disability, up to $150,000
d) Temporary Disablement: $150 a day, up to 104 weeks
e) Medical Expenses: up to a specified amount for any one accident
f) Emergency Evacuation and Repatriation
An accident is usually defined as being caused by an external, violent, unexpected event. This is intended to exclude claims for illness or poor health.
The standard policy will usually exclude pre-existing physical or mental defects,
pregnancy and childbirth, war risks, motorcycling, climbing or mountaineering necessitating ropes or guides, judo, karate and some hazardous sports. You can pay a higher premium rate to cover some of these risks.
The annual premium for a sum assured of $150,000 varies from $100 to $300, depending on your occupation and on the insuranced company that provide the insurance.
More details can be found at:
http://www.tankinlian.com/faq/pa.html
Big change in Taiwan over 32 years
My last visit to Taiwan was 32 years ago. The tourist guide explained the many restrictions under martial law. Strict action was taken against dissenters. People were put behind bars for minor offenses.
Today, the situation has changed considerably in Taiwan. People are free to express their views. Democracy thrived. People are more confident, more courteous, more relaxed. They enjoy life.
Today, the situation has changed considerably in Taiwan. People are free to express their views. Democracy thrived. People are more confident, more courteous, more relaxed. They enjoy life.
Saturday, January 05, 2008
Impression of Taiwan
I have now returned to Singapore, after spending 12 days in Taiwan. This is the longest holiday that I have taken.
My impression of Taiwan is favourable. I like the following:
1. The MRT system and taxi service
2. Taipei 101 and the nearby buildings
3. Politeness and helpfulness of the people
4. Food and snacks
5. Hot spring and spas
My impression of Taiwan is favourable. I like the following:
1. The MRT system and taxi service
2. Taipei 101 and the nearby buildings
3. Politeness and helpfulness of the people
4. Food and snacks
5. Hot spring and spas
Amazing Number game
Write down a Number between 1 to 99. Check your number against the numbers listed in my Amazing Number cards. I will be able to guess your Number.
http://www.tankinlian.com/amazing/index.html
Show it to your children and friends. Ask them the same question, "how is this done?"
Can you guess how I guess your Number? Send your reply to me at kinlian@gmail.com. Do not post your answer and give away your secret.
http://www.tankinlian.com/amazing/index.html
Show it to your children and friends. Ask them the same question, "how is this done?"
Can you guess how I guess your Number? Send your reply to me at kinlian@gmail.com. Do not post your answer and give away your secret.
Friday, January 04, 2008
Coldest winter in 12 years
Taipei is cold. The news reported that the temperature during this winter is the coldest in the last 12 years.
Is this due to global warming, or just the cycle of nature? I suspect that the global warming is causing big climate changes around the world.
Is this due to global warming, or just the cycle of nature? I suspect that the global warming is causing big climate changes around the world.
Ecocities
I found a book entitled Ecocities in the public library in Beitou, Taiwan. It is written by Richard Register. The author described how cities should be developed to be environmentally friendly and to give a better quality of life to the residents.
The author encouraged people to work near their place of residence, and reduce the travel between home and place of work. He also encourage the use of rail transport, instead of private cars.
More details:
http://www.newsociety.com/bookid/3923
http://www.newsociety.com/
I have given similar ideas in this paper:
http://www.tankinlian.com/articles/housing.html
The author encouraged people to work near their place of residence, and reduce the travel between home and place of work. He also encourage the use of rail transport, instead of private cars.
More details:
http://www.newsociety.com/bookid/3923
http://www.newsociety.com/
I have given similar ideas in this paper:
http://www.tankinlian.com/articles/housing.html
Visit to Xin Beitou and Danshui
I visited Xin Beitou and Danshui. Danshu is at the coast and the end of the red MRT line in Taipei. It is a popular tourist destination. The visitors enjoyed the local food, shopping and atmosphere.
The stall holders are helpful. If you ask for information and do not buy their goods, they still thank you for your interest.
I saw an interesting system of garbage collection. The collection truck came at night. The stall holders could hear the classical music that is being played by the truck. They bring their grabage bags to be dumped into the truck. Apart from the driver, there is no need to have any workers.
The red MRT line has a few stations that are underground, a few that are at ground level and a few stations that are elevated.
The stall holders are helpful. If you ask for information and do not buy their goods, they still thank you for your interest.
I saw an interesting system of garbage collection. The collection truck came at night. The stall holders could hear the classical music that is being played by the truck. They bring their grabage bags to be dumped into the truck. Apart from the driver, there is no need to have any workers.
The red MRT line has a few stations that are underground, a few that are at ground level and a few stations that are elevated.
Hot springs
Hot springs are popular with the local people in Taiwan. They are also popular in Japan and China.
The minerals from the hot spring provides some health benefits. After spending two hours at a hot spring spa, I could sleep soundly during the night.
The minerals from the hot spring provides some health benefits. After spending two hours at a hot spring spa, I could sleep soundly during the night.
Bus trip to Xin Beitou
I took the bus from one terminal (Taipei City Hall) to the other terminal (Xin Beitou) in Taipei. The journey took 1.5 hours. 30 minutes was used as a feeder service to pick passengers in the area around Taipei 101. The journey time could have been reduced, if there is a separate dedicated feeder service.
Passengers are allowed to pay the fare on entering or leaving the bus. The bus driver has to be vigilent to identify passengers who did not pay the fare. It depends a lot on the honesty of the passengers.
The fare is NT15 (SGD 0.70) for short distance and NT30 (sge 1.40) for longer distance. The passenger can pay by cash or stored value card. For long distance, the passenger has to tap the stored value card twice (as each tap deducts NT15 from the card).
The bus has segments with one seat and other segments with two seats. Those travelling alone can choose to sit in the single seat segment.
My return journey by MRT took about 30 minutes.
Passengers are allowed to pay the fare on entering or leaving the bus. The bus driver has to be vigilent to identify passengers who did not pay the fare. It depends a lot on the honesty of the passengers.
The fare is NT15 (SGD 0.70) for short distance and NT30 (sge 1.40) for longer distance. The passenger can pay by cash or stored value card. For long distance, the passenger has to tap the stored value card twice (as each tap deducts NT15 from the card).
The bus has segments with one seat and other segments with two seats. Those travelling alone can choose to sit in the single seat segment.
My return journey by MRT took about 30 minutes.
Road names in Taipei
I observed some good features in naming of roads in Taipei:
1. Long roads are identified by sections, such as Zhongxiao E Rd Sec 1, Zhongxia E Rd Sec 2, etc. It is easy to locate an address according to the section of the road.
2 Lanes are identified by reference to the road, eg Yanji St Lane 1, Yanji St Rd Lane 2.
3. The names of Road, Street and Lane in a consistent manner to identify different sizes of roads.
It is useful to adopt these principles in the naming of roads in Singapore. I find the naming of roads in the new towns to be rather inconsistent. The name Avenue, Road and Street are being used for similar size of roads.
1. Long roads are identified by sections, such as Zhongxiao E Rd Sec 1, Zhongxia E Rd Sec 2, etc. It is easy to locate an address according to the section of the road.
2 Lanes are identified by reference to the road, eg Yanji St Lane 1, Yanji St Rd Lane 2.
3. The names of Road, Street and Lane in a consistent manner to identify different sizes of roads.
It is useful to adopt these principles in the naming of roads in Singapore. I find the naming of roads in the new towns to be rather inconsistent. The name Avenue, Road and Street are being used for similar size of roads.
Thursday, January 03, 2008
High distribution cost
Someone said that Axa promoted "Buy Term and invest the difference".
When you invest in the Axa fund, you should select the single premium option, where the charges are quite modest.
If you select the regular premium option, you will have to incur a high distribution cost, which may not be disclosed to you by the agent. This was the experience of my friend, who was being offered a regular premium ILP at a roadshow.
For a comparison of the distribution cost, read this webpage:
http://www.askdrmoney.com/Ins_ILP_RP.htm
The distribution charge of 19 months under the AXA regular premium plan is quite high.
When you invest in the Axa fund, you should select the single premium option, where the charges are quite modest.
If you select the regular premium option, you will have to incur a high distribution cost, which may not be disclosed to you by the agent. This was the experience of my friend, who was being offered a regular premium ILP at a roadshow.
For a comparison of the distribution cost, read this webpage:
http://www.askdrmoney.com/Ins_ILP_RP.htm
The distribution charge of 19 months under the AXA regular premium plan is quite high.
200% increase in premium for Plus rider
Dear Mr. Tan,
Happy New Year to you.
I have just received renewal letters for my medical insurance. Looks like the objective in INCOME has changed since your retirement. They have increased the premium tremendously.
I appended below the details of the "Plus Rider" for my family. The increase of 200% in the premium seems exhorbitant to me at one look. (details deleted).
Most likely we will continue with the plan unless there is a better product in the market. Please give us your expert advice.
REPLY
You have the option to cancel the Plus rider. In my view, there is no need to take the Plus rider to insure the Deductible and Co-insurance. You can pay them out of your Medisave account or by cash.
Read para 3 of this FAQ:
http://www.tankinlian.com/faq/choice.html
Happy New Year to you.
I have just received renewal letters for my medical insurance. Looks like the objective in INCOME has changed since your retirement. They have increased the premium tremendously.
I appended below the details of the "Plus Rider" for my family. The increase of 200% in the premium seems exhorbitant to me at one look. (details deleted).
Most likely we will continue with the plan unless there is a better product in the market. Please give us your expert advice.
REPLY
You have the option to cancel the Plus rider. In my view, there is no need to take the Plus rider to insure the Deductible and Co-insurance. You can pay them out of your Medisave account or by cash.
Read para 3 of this FAQ:
http://www.tankinlian.com/faq/choice.html
Travel tips for Taiwan
Hi Mr. Tan,
I will be going to Taiwan in May 2008 for around ten days. I plan to go Taipei and one more other area. Any places that you would strongly recommend?
REPLY
Perhaps you can visit the places that I mentioned in my blog? You should also try the hot springs, which is popular with the local people.
If you are travelling free and easy, you should try the train system. I was given a guide book of the attractions in each town served by a train station. You should also search the Internet, which has a wealth of information.
I hope that you are travelling with some friends. It is more fun when you have people to travel with.
I will be going to Taiwan in May 2008 for around ten days. I plan to go Taipei and one more other area. Any places that you would strongly recommend?
REPLY
Perhaps you can visit the places that I mentioned in my blog? You should also try the hot springs, which is popular with the local people.
If you are travelling free and easy, you should try the train system. I was given a guide book of the attractions in each town served by a train station. You should also search the Internet, which has a wealth of information.
I hope that you are travelling with some friends. It is more fun when you have people to travel with.
Hot spring in Wulai
I visited the village of Wulai yesterday. I spent 2 hours at a hot spring there. It is refreshing to visit a hot spring during winter. Many of the local people visit the hotspring to relax and be refreshed.
There are separate pools for males and females. You are not allowed to wear any clothing into the pool, not even a swimsuit. You have to wash your body, before entering the pool. This is to ensure cleanliness and hygiene.
The hot spring uses the mineral water from a nearby volcano. It has certain minerals that are good for the body.
If you are shy, you can rent a private pool for 1 or 2 people.
The normal charge for the public pools is NT 500 (SGD 25) per entry. Many places offer a promotional price of NT 250 (SGD 12).
There are separate pools for males and females. You are not allowed to wear any clothing into the pool, not even a swimsuit. You have to wash your body, before entering the pool. This is to ensure cleanliness and hygiene.
The hot spring uses the mineral water from a nearby volcano. It has certain minerals that are good for the body.
If you are shy, you can rent a private pool for 1 or 2 people.
The normal charge for the public pools is NT 500 (SGD 25) per entry. Many places offer a promotional price of NT 250 (SGD 12).
First Prize for the Amazing Number game
Dear Mr. Tan,
Happy New Year to you.
The number is "guessed" by .............................. It seems to work something like a ...... system, so there is only one combinatiion of the cards that can result in a particular number in the range. Working backwards, all the 99 numbers can then be filled up in the cards.
Thanks for another interesting entry to keep my mind thinking.
Due to my enginnering background and being a software engineer, I am able to find out how the program works after a few clicks ........ So I probably have an "unfair" advantage over the other readers who have no similar training.
REPLY
Wonderful. You have a powerful logical mind. You get first prize, for being the first person to send the correct answer to me!
I am printing the Amazing Number cards. Give me your address, so that I can send the prize to you (but it may take 1 or 2 weeks).
It is all right to have an advantage, due to your training. That is what training is about. That is how one becomes a champion. Congratulations!
Happy New Year to you.
The number is "guessed" by .............................. It seems to work something like a ...... system, so there is only one combinatiion of the cards that can result in a particular number in the range. Working backwards, all the 99 numbers can then be filled up in the cards.
Thanks for another interesting entry to keep my mind thinking.
Due to my enginnering background and being a software engineer, I am able to find out how the program works after a few clicks ........ So I probably have an "unfair" advantage over the other readers who have no similar training.
REPLY
Wonderful. You have a powerful logical mind. You get first prize, for being the first person to send the correct answer to me!
I am printing the Amazing Number cards. Give me your address, so that I can send the prize to you (but it may take 1 or 2 weeks).
It is all right to have an advantage, due to your training. That is what training is about. That is how one becomes a champion. Congratulations!
Treating High Blood Pressure
My friend's mother has high blood pressure. He sent an e-mail to ask for my recommendation on a specialist to treat this condition. I asked my wife for advice, as she is familiar with this medical condition.
My wife's advice is:
1. Send your mother to see a doctor (i.e. general practitioner) near your home.
2. The doctor will be able to take the blood pressure and prescribe the medication.
3. If the condition need specialist attention (and this is usually not necessary), the doctor will recommend a specialist.
4. High blood pressure is quite common and can be treated quite easily by a general practitioner in most cases.
My wife's advice is:
1. Send your mother to see a doctor (i.e. general practitioner) near your home.
2. The doctor will be able to take the blood pressure and prescribe the medication.
3. If the condition need specialist attention (and this is usually not necessary), the doctor will recommend a specialist.
4. High blood pressure is quite common and can be treated quite easily by a general practitioner in most cases.
Views on investing your money
COMMENTS POSTED IN MY BLOG
1) KEEP YOUR MONEY IN FIXED DEPOSIT AND CPF
I think it is perfectly fine for a person to buy Term insurance and not invest but use the money for other purposes - go for travel, catch the latest movies/musical, buy a branded watch, touch-up the house etc.
Whether he invest or squanders it away, that is his business. You all have no right to force people to invest. If i think investing is too troublesome, then I don't invest. I have this choice.
I think it is rubbish to force someone to invest. You can still live a good stress-free life with decent income.
I hope this blog do not use fear of inflation, fear of not enough for the future, fear of losing out, to scare people into investing. Using this emotion is just as bad as scaring people to buy insurance.
I find some of the comments and articles on this blog using this "scare" tactics to force people to invest. Your money in 20 years time will halved, etc. This is nonsense.
I have not invested my money for the last twenty years and my money is safe with CPF and I am still have money for travel and others. my insurance cover is $20,000 and I have 3 kids. So?
I don't understand why you all want to force people to invest in low-cost funds. "Low cost" is still cost right?
Are you saying our government is incompetent in managing our money? I think not. Inflation projection is just a "projection". If you saying inflation is 2% p.a, can you guaranteed that next year this time, everything in Singapore go up by 2%?
Therefore, I rather keep my money in fixed deposits and CPF, where it is truly no costs. If investing in low cost funds is right way, our government would have help us to invest already. If Mr. Tan wants to push his own products as part of his retirement business, that's his choice but please don't force people to invest because they have a choice not to and still stay happy and stress-free.
Anonymous.
2. EDUCATING THE PUBLIC
I think that is your business whether you wish to invest or not to invest. Whether you have enough for retirement is also your business. Everything is your business. You have complete freedom.
There is no force nor touting nor promotion of any product. I think you got it all wrong to think Mr. Tan's blog is to promote his products and that he has vested interest whether you agree or not agree to his advice or to other posters' advice.
This blog is to educate the buying public to do what is right. If you disagree with the comments you should rebut or debunk the advice, instead of accusing Mr. Tan of instilling fear and exploiting emotion as tactics to make people buy his products or ideas. He has none of these.
You must be very rich and have a huge balance in your CPF to care whether you earning a decent rate or will have enough to retire. This blog is not for you.
It is for those poor souls who are inevitable victims of unscrupulous insurance agents ..... You are safe from these agents but the poor ones are not. They are uneducated, ignorant, gullible, and too trusting that they get cheated ...................They need protection and help with their personal finances.
So you see the objectives of this blog is not to force anyone to invest in low cost funds. You can invest under your pillow ......... It is your freedom if you think that is the best place to invest your money.
The blog is also to educate and to create awareness of ........ agents on the loose and how to spot them out. It is also to identify the good products from the bad ones. This is a service to people who want to know about insurance and investment.
Zhumeng
3. DISAGREE WITH MY VIEWS
My blog is for people who find my advice to be helpful.
There are people who disagree with my views for the following reasons:
a) They are quite knowledgeable and find my views to be too simplistic
b) They are intermediaries making a living on selling high cost products
If you disagree with my views, you can ignore them, or stop visiting my blog. I am not forcing anyone to my point of view.
I expect to be challenged by intermediaries with a vested interest to sell high cost products. I allow their views to be posted, so that they can give an alternative point of view. I will only edit statements that are offensive and defamatory.
1) KEEP YOUR MONEY IN FIXED DEPOSIT AND CPF
I think it is perfectly fine for a person to buy Term insurance and not invest but use the money for other purposes - go for travel, catch the latest movies/musical, buy a branded watch, touch-up the house etc.
Whether he invest or squanders it away, that is his business. You all have no right to force people to invest. If i think investing is too troublesome, then I don't invest. I have this choice.
I think it is rubbish to force someone to invest. You can still live a good stress-free life with decent income.
I hope this blog do not use fear of inflation, fear of not enough for the future, fear of losing out, to scare people into investing. Using this emotion is just as bad as scaring people to buy insurance.
I find some of the comments and articles on this blog using this "scare" tactics to force people to invest. Your money in 20 years time will halved, etc. This is nonsense.
I have not invested my money for the last twenty years and my money is safe with CPF and I am still have money for travel and others. my insurance cover is $20,000 and I have 3 kids. So?
I don't understand why you all want to force people to invest in low-cost funds. "Low cost" is still cost right?
Are you saying our government is incompetent in managing our money? I think not. Inflation projection is just a "projection". If you saying inflation is 2% p.a, can you guaranteed that next year this time, everything in Singapore go up by 2%?
Therefore, I rather keep my money in fixed deposits and CPF, where it is truly no costs. If investing in low cost funds is right way, our government would have help us to invest already. If Mr. Tan wants to push his own products as part of his retirement business, that's his choice but please don't force people to invest because they have a choice not to and still stay happy and stress-free.
Anonymous.
2. EDUCATING THE PUBLIC
I think that is your business whether you wish to invest or not to invest. Whether you have enough for retirement is also your business. Everything is your business. You have complete freedom.
There is no force nor touting nor promotion of any product. I think you got it all wrong to think Mr. Tan's blog is to promote his products and that he has vested interest whether you agree or not agree to his advice or to other posters' advice.
This blog is to educate the buying public to do what is right. If you disagree with the comments you should rebut or debunk the advice, instead of accusing Mr. Tan of instilling fear and exploiting emotion as tactics to make people buy his products or ideas. He has none of these.
You must be very rich and have a huge balance in your CPF to care whether you earning a decent rate or will have enough to retire. This blog is not for you.
It is for those poor souls who are inevitable victims of unscrupulous insurance agents ..... You are safe from these agents but the poor ones are not. They are uneducated, ignorant, gullible, and too trusting that they get cheated ...................They need protection and help with their personal finances.
So you see the objectives of this blog is not to force anyone to invest in low cost funds. You can invest under your pillow ......... It is your freedom if you think that is the best place to invest your money.
The blog is also to educate and to create awareness of ........ agents on the loose and how to spot them out. It is also to identify the good products from the bad ones. This is a service to people who want to know about insurance and investment.
Zhumeng
3. DISAGREE WITH MY VIEWS
My blog is for people who find my advice to be helpful.
There are people who disagree with my views for the following reasons:
a) They are quite knowledgeable and find my views to be too simplistic
b) They are intermediaries making a living on selling high cost products
If you disagree with my views, you can ignore them, or stop visiting my blog. I am not forcing anyone to my point of view.
I expect to be challenged by intermediaries with a vested interest to sell high cost products. I allow their views to be posted, so that they can give an alternative point of view. I will only edit statements that are offensive and defamatory.
Wednesday, January 02, 2008
Elevated expressways in Taipei
Taipei had a network of elevated expressways. They travelled along the same path as the road beneath them. The traffic moved fast on the expressways. I was never caught in a congested exprssway, even at busy hours.
I think that the road congestion in Singapore can be reduced by building elevated expressways. It will be cheaper, faster to build and less disruption to existing buldings, compared to underground expressways.
When I moved to Yio Chu Kang in 1998, I found the Central Expressway to be quite busy. I wrote to the government to suggest that a second level be build over the Central Expressway. I received a reply that this was not possible, due to difficulty of building the access roads. I did not want to pursue the matter - but I was sure that a solution could have been found.
Ten years have passed. The Central Expressway is very congested. We are still waiting for the completion of the underground Kallang Paya Lebar Expressway (which is expensive and took a long time to complete).
Perhaps, we should try the elevated expressways, which is adopted in Taipei, Shanghai, Beijing and many other cities?
I think that the road congestion in Singapore can be reduced by building elevated expressways. It will be cheaper, faster to build and less disruption to existing buldings, compared to underground expressways.
When I moved to Yio Chu Kang in 1998, I found the Central Expressway to be quite busy. I wrote to the government to suggest that a second level be build over the Central Expressway. I received a reply that this was not possible, due to difficulty of building the access roads. I did not want to pursue the matter - but I was sure that a solution could have been found.
Ten years have passed. The Central Expressway is very congested. We are still waiting for the completion of the underground Kallang Paya Lebar Expressway (which is expensive and took a long time to complete).
Perhaps, we should try the elevated expressways, which is adopted in Taipei, Shanghai, Beijing and many other cities?
MRT ride in Taipei
I took the MRT in Taipei from City Hall Station to Xindian station. The journey of 13 stops took 30 minutes and involved two transfers. The transfers were convenient and easy. One transfer was on the same platform.
All the stations are modern, well designed and standardised. The entire system is underground.
At each door of the train, there is an electronic message board that tells the previous station, current station and the next station.
I find this board to be helpful, as I am not familiar with the stations. I can be sure that I am heading the right direction. I am also know one station ahead. If I missed my station, I could still find out and alight at the next station. There is also a clear voice announcement in Mandarin, Hokkien and English.
The minimum fare is NT 20 (SGD 1) and can take up to approximately 6 stations. The maximum fare is NT 40 (SGD 2). Those using a store value card gets a discount of 20%.t
I was able to get a seat on my forward and return journey, although I travel during the busy time of the day. The train is not as crowded as in Singapore.
I give top marks to Taipei MRT.
All the stations are modern, well designed and standardised. The entire system is underground.
At each door of the train, there is an electronic message board that tells the previous station, current station and the next station.
I find this board to be helpful, as I am not familiar with the stations. I can be sure that I am heading the right direction. I am also know one station ahead. If I missed my station, I could still find out and alight at the next station. There is also a clear voice announcement in Mandarin, Hokkien and English.
The minimum fare is NT 20 (SGD 1) and can take up to approximately 6 stations. The maximum fare is NT 40 (SGD 2). Those using a store value card gets a discount of 20%.t
I was able to get a seat on my forward and return journey, although I travel during the busy time of the day. The train is not as crowded as in Singapore.
I give top marks to Taipei MRT.
Buy the simple, good value product
If you go into the shop to buy product A for $1,000. There is another product B which is similar to A, but it cost $1,500 and gives additional items worth $300. Do you prefer product A or B?
Some life insurance products are designed to be like product B. It charges a higher premium and gives you frills that are worth less than the additional premium. But the customer is not able to know the value of the frills. The sales agent sells the enhanced product, because they can earn a higher commission. The enhanced product gives poorer value to the customer due to the higher marketing cost.
Lesson: Go for the standard products that can be compared easily. You can get better value due to competition. If you buy a complicated product, you are likely to be over-charged.
Some life insurance products are designed to be like product B. It charges a higher premium and gives you frills that are worth less than the additional premium. But the customer is not able to know the value of the frills. The sales agent sells the enhanced product, because they can earn a higher commission. The enhanced product gives poorer value to the customer due to the higher marketing cost.
Lesson: Go for the standard products that can be compared easily. You can get better value due to competition. If you buy a complicated product, you are likely to be over-charged.
New Year Celebration in Taipei
Taipei celebrates the New Year in style. At the stroke of midnight, fireworks are set off in many building in Taipei. The most spectacular is the fireworks at Taipei 101, the tallest building in the world. This is followed by the fireworks at other buildings. Here is a short video clip.
http://www.youtube.com/watch?v=dbVWrIAdD1U
http://www.youtube.com/watch?v=dbVWrIAdD1U
Tuesday, January 01, 2008
Observatory at Taipei 101
I visited the observatory at Taipei 101 on New Year Day, 1 Jan 2008.
It was crowded. I had to queue for 30 minutes to take the lift to the 89th floor. The observatory occupied the entire floor and give a 360 degree view of the city of Taipei from the tallest building in the world.
The observatory provided an audio guide. It explains the various landmarks that can be seen from each side of the building. It uses high-tech in an effective way.
The express lifts to the observatory travelled fast and smooth. It received the world record for being the fastest lifts. It reached 89 floors in 37 seconds, without any jerk or noticeable acceleration.
Admission to the observatory cost NT 350 (SGD 16).
It was crowded. I had to queue for 30 minutes to take the lift to the 89th floor. The observatory occupied the entire floor and give a 360 degree view of the city of Taipei from the tallest building in the world.
The observatory provided an audio guide. It explains the various landmarks that can be seen from each side of the building. It uses high-tech in an effective way.
The express lifts to the observatory travelled fast and smooth. It received the world record for being the fastest lifts. It reached 89 floors in 37 seconds, without any jerk or noticeable acceleration.
Admission to the observatory cost NT 350 (SGD 16).
Get adequate insurance at a low cost
Dear Mr. Tan,
You advised to buy personal accident insurance now, and life insurance later. What happens if at a later date, I am in poor health and not accepted for life insurance?
REPLY
The risk of uninsurability is quite low (less than 0.5% a year).
The bigger risks are:
1. People hesitate in buying expensive insurance, and are inadequately insured against accidents (more than 50%).
2. People buy an expensive life insurance and lapse the policy due to inability to continue paying the premium (5% a year).
It is better to have adequate personal accident insurance now, and upgrade to a more expensive insurance at a later date. For young people, the risk of meeting an accident is much higher than contracting a serious illness.
You advised to buy personal accident insurance now, and life insurance later. What happens if at a later date, I am in poor health and not accepted for life insurance?
REPLY
The risk of uninsurability is quite low (less than 0.5% a year).
The bigger risks are:
1. People hesitate in buying expensive insurance, and are inadequately insured against accidents (more than 50%).
2. People buy an expensive life insurance and lapse the policy due to inability to continue paying the premium (5% a year).
It is better to have adequate personal accident insurance now, and upgrade to a more expensive insurance at a later date. For young people, the risk of meeting an accident is much higher than contracting a serious illness.
High speed train - Taipei to Kaoshiung
What is the fare of the high speed train from Taipei to Kaoshiung? I found this information from the internet.
A brand-new high speed (300 km/h) train service using Japanese bullet train technology started running in January 2007 between Taipei and Kaohsiung. It is run by the Taiwan High Speed Rail Corporation, http://www.thsrc.com.tw/
The 300km/h trains link Taipei and Kaohsiung every half hour throughout the day, or at times more frequently.
Journey time is 1 hour 40 minutes on the faster trains, 1 hour 55 minutes on the slower services. The fare is 1,490 Taiwan dollars (SGD 70) in economy class, 2,440 Taiwan dollars (SGD 110) in business class.
A brand-new high speed (300 km/h) train service using Japanese bullet train technology started running in January 2007 between Taipei and Kaohsiung. It is run by the Taiwan High Speed Rail Corporation, http://www.thsrc.com.tw/
The 300km/h trains link Taipei and Kaohsiung every half hour throughout the day, or at times more frequently.
Journey time is 1 hour 40 minutes on the faster trains, 1 hour 55 minutes on the slower services. The fare is 1,490 Taiwan dollars (SGD 70) in economy class, 2,440 Taiwan dollars (SGD 110) in business class.
Investing in Exchange Traded Funds
Hi Mr Tan,
1) What are the investment risks or disadvantages involved in U.S. Cross-Listed ETFs, listed in
http://www.sgx.com/psv/securities/etf/ETF_US_Cross-Listed.shtml
DIAMONDS®
SPDRs®
iShares S&P500 Index Fund
iShares MSCI Singapore (Free) Index Fund
iShares Dow Jones U.S. Technology Sector Index Fund
REPLY:
I am not aware of any special risk or disadvantages involved in the US Cross Listed ETFs.
In selecting an indexed fund, you want to look for a fund that is managed by a reputed fund manager, charges low fees and provide good service in accounting and execution.
You are taking the investment risk of the specific market. If you are investing for the long term, the risk will averaged out to give you an average return for the period.
2) There are more than 10 ETFs listed on SGX but why is it that you are only recommending STI-ETF. Since STI-ETF is only focused on Singapore, would it be better to invest in e.g. Lyxor ETF MSCI AC Asia-Pacific (covering Asia minus Japan?
REPLY
I recommend the STI ETF for people who are familiar with investing in Singapore stocks and wish to remain in Singapore currency exposure. If they are familiar with investing in Asia, the Lyxor ETF is suitable.
All indexed funds are suitable, if they cost is kept at a competitive level and the investment is for 10 years or longer.
1) What are the investment risks or disadvantages involved in U.S. Cross-Listed ETFs, listed in
http://www.sgx.com/psv/securities/etf/ETF_US_Cross-Listed.shtml
DIAMONDS®
SPDRs®
iShares S&P500 Index Fund
iShares MSCI Singapore (Free) Index Fund
iShares Dow Jones U.S. Technology Sector Index Fund
REPLY:
I am not aware of any special risk or disadvantages involved in the US Cross Listed ETFs.
In selecting an indexed fund, you want to look for a fund that is managed by a reputed fund manager, charges low fees and provide good service in accounting and execution.
You are taking the investment risk of the specific market. If you are investing for the long term, the risk will averaged out to give you an average return for the period.
2) There are more than 10 ETFs listed on SGX but why is it that you are only recommending STI-ETF. Since STI-ETF is only focused on Singapore, would it be better to invest in e.g. Lyxor ETF MSCI AC Asia-Pacific (covering Asia minus Japan?
REPLY
I recommend the STI ETF for people who are familiar with investing in Singapore stocks and wish to remain in Singapore currency exposure. If they are familiar with investing in Asia, the Lyxor ETF is suitable.
All indexed funds are suitable, if they cost is kept at a competitive level and the investment is for 10 years or longer.
Fed Ex Logo
Someone gave me the link to a forum discussing the Fed Ex logo. It is creative. Can you see the arrow between the letters E and x?
Overcome your Fear
Hi Kin Lian,
Thanks for sharing the video of the firework in Taipei.
I read from your blog about your recent experience on upgrading your computer. It is very encouraging and inspiring for computer illiterates like me to want to try too. What holds us back is the Fear Factor. What if our computer hangs! Only we can overcome this fear ourselves. You have shown the way.
Many are held back by their own fears. They fear doing maths or science, making decisions and even making simple comments on matters of special or even common interest. These are too many KIASU people. Unfortuantely some are even proud of this too!.
We all have our own talents to do certain things to make contributions which can benefit others. You and I have been doing this throughout our lives in various ways as a purpose of our lives, if not our mission, to add values to the lives of others.
Thanks for sharing the video of the firework in Taipei.
I read from your blog about your recent experience on upgrading your computer. It is very encouraging and inspiring for computer illiterates like me to want to try too. What holds us back is the Fear Factor. What if our computer hangs! Only we can overcome this fear ourselves. You have shown the way.
Many are held back by their own fears. They fear doing maths or science, making decisions and even making simple comments on matters of special or even common interest. These are too many KIASU people. Unfortuantely some are even proud of this too!.
We all have our own talents to do certain things to make contributions which can benefit others. You and I have been doing this throughout our lives in various ways as a purpose of our lives, if not our mission, to add values to the lives of others.
Carrefour, Taipei
I visited Carrefour in Taipei. It offers mainly local products, unlike the Carrefour stores in Singapore and Dubai.
I learned something about the Carrefour logo. Caj you see the small red arrow pointing to the left and a larger stylish blue arrow pointing to the right. Did you wonder what the two arrows meant?
I discovered it on my visit to Carrefoure in Taipei.
I learned something about the Carrefour logo. Caj you see the small red arrow pointing to the left and a larger stylish blue arrow pointing to the right. Did you wonder what the two arrows meant?
I discovered it on my visit to Carrefoure in Taipei.
Answer: If you look at the white space between the red and blue arrows, you will see the letter C. This is creative!
A new approach to improve the taxi service
To improve the taxi service in Singapore, we have to adopt a new approach. Here are my suggestions:
1. Taxi fares should be regulated (and not left to the market). The regulator can balance the interest of commuters and taxi drivers and seek to achieve an efficient system that that provides quality service at a fair price. This approach is adopted by most countries, including Hong Kong and Taiwan.
2. The regulator can approve premium taxi service that charge differently from the standard service. The premium service has to pick passengers by telephone booking only (i.e. not from the road or taxi stands). Commuters willing to pay a higher price can telephone for the premium service. This service will use a different color of taxis (i.e. not the same as the regular taxis).
3. Booking of taxi should be reduced to $1.50. This will compensate the taxi driver adequately for taking the call and improve the usage of the taxi (instead of plying the road to look for taxis).
4. Commuters should be allowed to share a taxi, if they are travelling in the same direction. The appropriate fare should be fixed. This will improve the usage of the taxi, reduce cost for the commuters and increase earnings for the taxi drivers.
1. Taxi fares should be regulated (and not left to the market). The regulator can balance the interest of commuters and taxi drivers and seek to achieve an efficient system that that provides quality service at a fair price. This approach is adopted by most countries, including Hong Kong and Taiwan.
2. The regulator can approve premium taxi service that charge differently from the standard service. The premium service has to pick passengers by telephone booking only (i.e. not from the road or taxi stands). Commuters willing to pay a higher price can telephone for the premium service. This service will use a different color of taxis (i.e. not the same as the regular taxis).
3. Booking of taxi should be reduced to $1.50. This will compensate the taxi driver adequately for taking the call and improve the usage of the taxi (instead of plying the road to look for taxis).
4. Commuters should be allowed to share a taxi, if they are travelling in the same direction. The appropriate fare should be fixed. This will improve the usage of the taxi, reduce cost for the commuters and increase earnings for the taxi drivers.
Make a lump sum investment
Hello Mr. Tan,
You have mentioned in your blog that up to 21 months of savings can be taken away to pay the agent to sell a monthly sum investment-linked policy. Does it mean it will be more worthwhile to buy a lump sum unit trust instead? I'm looking for long term investment actually.
My insurance agent has been asking me to buy monthly sum investment-linked policy and recommends that I treat it like a savings plan. I am not too sure whether I should take his advice.
REPLY
You should invest in a single premium ILP, such as the Flexi Link from NTUC Income. It has low charges, compared to a monthly plan.
You can see a comparison of the charges here:
http://www.askdrmoney.com/Ins_ILP_RP.htm
Read these FAQs to make your decision:
http://www.tankinlian.com/faq/savings.html
http://www.tankinlian.com/faq/ilp.html
You have mentioned in your blog that up to 21 months of savings can be taken away to pay the agent to sell a monthly sum investment-linked policy. Does it mean it will be more worthwhile to buy a lump sum unit trust instead? I'm looking for long term investment actually.
My insurance agent has been asking me to buy monthly sum investment-linked policy and recommends that I treat it like a savings plan. I am not too sure whether I should take his advice.
REPLY
You should invest in a single premium ILP, such as the Flexi Link from NTUC Income. It has low charges, compared to a monthly plan.
You can see a comparison of the charges here:
http://www.askdrmoney.com/Ins_ILP_RP.htm
Read these FAQs to make your decision:
http://www.tankinlian.com/faq/savings.html
http://www.tankinlian.com/faq/ilp.html
Adequate insurance
Dear Mr. Tan,
I have already bought a five years term insurance($15,000) from NTUC income, do you think I still need the DPS ($46,000) required by CPF board?
REPLY
It depends on your personal circumstances. If you have dependents, you should aim to insure for 5 to 10 years of your earnings. If you have accumulated savings, the insurance cover can be reduced by this amount.
Read this FAQ
http://www.tankinlian.com/faq/choice.html
I have already bought a five years term insurance($15,000) from NTUC income, do you think I still need the DPS ($46,000) required by CPF board?
REPLY
It depends on your personal circumstances. If you have dependents, you should aim to insure for 5 to 10 years of your earnings. If you have accumulated savings, the insurance cover can be reduced by this amount.
Read this FAQ
http://www.tankinlian.com/faq/choice.html
Investing a lump sum at 51 years
Dear Mr. Tan,
My mother is 51 years old now. She has $50,000 of cash to invest. What is your recomendation investment, annuity, etc?
REPLY
If she is investing for 10 years or more, it is better to invest in a low cost, diversified equity fund.
When she needs to draw out a monthly income, she can convert it into a life annuity. At that time, she should wait for a has good time when the investments showed a good gain of 5% to 8% per annum.
Read the following FAQs
http://www.tankinlian.com/faq/life.html
http://www.tankinlian.com/faq/savings.html
My mother is 51 years old now. She has $50,000 of cash to invest. What is your recomendation investment, annuity, etc?
REPLY
If she is investing for 10 years or more, it is better to invest in a low cost, diversified equity fund.
When she needs to draw out a monthly income, she can convert it into a life annuity. At that time, she should wait for a has good time when the investments showed a good gain of 5% to 8% per annum.
Read the following FAQs
http://www.tankinlian.com/faq/life.html
http://www.tankinlian.com/faq/savings.html
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