Saturday, August 31, 2013

Important message for young people

Many young people focus on their jobs and do not pay much attention on their financial planning.

Most of them are approached by their friends to take up a life insurance policy to save for the long term.

The life insurance policy is likely to give them a poor yield due to the large sum that is deducted from the premium to pay the high marketing and other expenses, and the profit of the insurance company.

This large deduction is shown as "effect of deduction" in the benefit illustration, but most consumers do not understand what it means. The effect of deduction could be more than $100,000 or even $200,000 in some cases.

If you know how to buy the right type of insurance and to invest your savings, the actual cost of the insurance cover and investment service should be less than half of the "effect of deduction".

It is very important for you, as a consumer, to spend some time to understand this important concept. For a start, you should read the articles posted under "Ask Mr. Tan" in this website, www.tankinlian.com/mobile.

There are about 10 articles here, but the most important is the article on "Financial Planning, which can be found at http://c-onyx.com/page/33. You can also take the financial awareness test.

If you realize that you are quite naive about insurance and investment, you should act immediately to buy the book on financial planning ($6 only) and to attend the FISCA talk on financial planning ($10 for members). They can make a lot of difference for your future.

Do spend the time to read the other articles in the website and to attend the other talks by FISCA.

I am taking an advertisement in Facebook, targeted at young people between 20 to 30 years.  While it cost me some money, I hope to be able to reach out and help some of the young people to avoid being taken for a ride.

If you fall within this group, this message is for you. If you are older, please help me to spread this message to your children or younger siblings (in the target age gropu), so that they become aware of making the right financial decision.

Tan Kin Lian



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