Sunday, March 09, 2014

Tip for a new graduate

Alex Long asked:
Mr. Tan, my son completing his U soon and has been offered a job. What advice u have for him in term of insurance coverage and others etc.,? Thanks you.

Buy a 25 year term insurance policy, or the SAF policy, and invest the savings in the STI ETF. 
Give him this book,
Ask him to join FISCA ( and attend the financial planning talks, targeted at consumers. 
Avoid buying any life insurance policy (other than a 25 year term insurance policy) and give away 40% of the accumulated value to the insurance company. (Only idiots will fall for the trap).

1 comment:

zhummmeng said...

Very good advice. Insurance is about insuring risk and not bundled with some miserable saving element to con the public and pass off as saving plan.
Whole life or limited whole life or endowment products are not saving plans. They are created to suck the money out of consumers to enrich the senior management using greedy agents as traffickers and peddlers.
The good news is , come this June consumers need not buy these types of products from agents , they can buy direct from the insurance companies without paying the hefty commission.

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