QUESTION
I am afraid to invest now, as the market may fall further and I make a loss. What is your advice?
REPLY
When the market falls, you do not really make a loss, if you are a long term investor. The market will recover within a few weeks or months. You never know when the market will turn around, and if it does, you will miss the opportunity.
It is better to invest when the market is low, as you will get a better return.
QUESTION
Is it better to take a guaranteed return, even if it is lower?
REPLY
If you want a guaranteed return, you will get 2% from a bank deposit or 3% from government bonds. Your return is locked up for the duration of the deposit or bond. If you wish to sell the bond prematurely, when interest rate increases, you will have to take a capital loss.
For a long term investor, it is better to invest in equities (which gives a higher return), and choose the right time to realise your investments.
Saturday, July 08, 2006
Friday, July 07, 2006
Bank wealth planner provide misleading information
FROM CUSTOMER
Dear Tan,
Other bank's wealth planner told me that NTUC's mortality charges and insurance charges are higher as NTUC faced with more claims from policyholders than the bank. May I enquire on this point ?
When I buy a unit, what is the % of selling price from the purchased price of the unit bought in order to cover all costs ( distribution, fund charge, expenses, etc) to reach breakeven?
MY REPLY
Dear
I will ask our specialist to provide the answers to you.
The bank's wealth planner mislead you. We do not have any mortality charge at all.
If you wish to have any life insurance cover, you buy a separate rider at a flat premium rate. Many people find it to be more transparent.
Dear Tan,
Other bank's wealth planner told me that NTUC's mortality charges and insurance charges are higher as NTUC faced with more claims from policyholders than the bank. May I enquire on this point ?
When I buy a unit, what is the % of selling price from the purchased price of the unit bought in order to cover all costs ( distribution, fund charge, expenses, etc) to reach breakeven?
MY REPLY
Dear
I will ask our specialist to provide the answers to you.
The bank's wealth planner mislead you. We do not have any mortality charge at all.
If you wish to have any life insurance cover, you buy a separate rider at a flat premium rate. Many people find it to be more transparent.
Delay in approval of Enhanced Incomeshield
FROM CUSTOMER
Dear Mr Tan,
We visited your NTUC Income Business Centre in both Brah Basah on 2 June and Jurong East branch on 28 June.
Your staff who attended to us are to be congratulated of doing a great job. They attended and explained to us very efficiently and clearly on our request to convert our current Medishield plan to the Enhanced Incomeshield. Both of us are above 55 years old.
However, I was extremely concerned being told by your staff that in both cases, they would take at least two months to respond to our application. They informed us there are limited resources in your underwriting department. We certainly appreciate you would look into this and speed up the process.
MY REPLY
Thank you for our feedback. I agree with you that the two months' delay is not acceptable. This is due to a heavy overload of work. We expect to clear the backlog within the next few months.
Dear Mr Tan,
We visited your NTUC Income Business Centre in both Brah Basah on 2 June and Jurong East branch on 28 June.
Your staff who attended to us are to be congratulated of doing a great job. They attended and explained to us very efficiently and clearly on our request to convert our current Medishield plan to the Enhanced Incomeshield. Both of us are above 55 years old.
However, I was extremely concerned being told by your staff that in both cases, they would take at least two months to respond to our application. They informed us there are limited resources in your underwriting department. We certainly appreciate you would look into this and speed up the process.
MY REPLY
Thank you for our feedback. I agree with you that the two months' delay is not acceptable. This is due to a heavy overload of work. We expect to clear the backlog within the next few months.
Fly back to Singapore after watching World Cup
I took a economy flight on SIA to Singapore, after watching the World Cup in Germany. The steward recognised and greeted me. He said that his insurance policies are with NTUC Income.
The supervisor came later to introduce himself and said, "Mr Tan, I expected you to be in the first class. How are you enjoying your flight?".
I gave him a smile. I usually fly economy class. I am not prepared to pay 6 times to fly first class. All our managers fly economy class as well.
We keep our expenses low, so that our customers can pay lower premium. They also enjoy a better return on their savings with us.
I introduced Logic9 (aka Sudoku) to the passenger sitting next to me. She is a retired teacher from Munich, Germany. She is travelling in a group tour to Singapore and Bali.
She did not know about the puzzle before. I showed her how to play the puzzle. She became hooked on it. I presented our Logic9 pocketbook to her. She will probably remember me for a long time.
It is so easy to get somone hooked on Logic9. No wonder, it is so popular around the world.
The supervisor came later to introduce himself and said, "Mr Tan, I expected you to be in the first class. How are you enjoying your flight?".
I gave him a smile. I usually fly economy class. I am not prepared to pay 6 times to fly first class. All our managers fly economy class as well.
We keep our expenses low, so that our customers can pay lower premium. They also enjoy a better return on their savings with us.
I introduced Logic9 (aka Sudoku) to the passenger sitting next to me. She is a retired teacher from Munich, Germany. She is travelling in a group tour to Singapore and Bali.
She did not know about the puzzle before. I showed her how to play the puzzle. She became hooked on it. I presented our Logic9 pocketbook to her. She will probably remember me for a long time.
It is so easy to get somone hooked on Logic9. No wonder, it is so popular around the world.
Thursday, July 06, 2006
Village life in Bavaria, Germany
I asked the tour guide. What is a village?
Here is the interesting answer. In a village, there is always a church. The people of Bavaria are religious, mostly Catholics. Sunday is for the church and for rest. No business is done on Sunday.
The village has an inn. It is a place for people to go and drink beer, socialise or to have food. It also has accommodation for travellers.
Quite likely, there is a primary school for the first four years of education. When the students are older, they can go to a secondary school in a larger village nearby.
There is a May pole in the road leading to the village. It shows the shops and trades available in the village, eg baker, butcher, doctor, carpenter, etc. It serves like a "yellow page" directory for the village.
One day of the week is set aside for market day.
The village has many assocaitions, eg a sports association, a fire association, and many others. These associations organise many activities for the villagers to meet regularly. Most young people join the fire assocation to learn about how to put out fire. It is a way to keep them occupied, so they do not get bored and cause trouble.
The social life is interesting in the village. Every one knows about every other person in the village.
Here is the interesting answer. In a village, there is always a church. The people of Bavaria are religious, mostly Catholics. Sunday is for the church and for rest. No business is done on Sunday.
The village has an inn. It is a place for people to go and drink beer, socialise or to have food. It also has accommodation for travellers.
Quite likely, there is a primary school for the first four years of education. When the students are older, they can go to a secondary school in a larger village nearby.
There is a May pole in the road leading to the village. It shows the shops and trades available in the village, eg baker, butcher, doctor, carpenter, etc. It serves like a "yellow page" directory for the village.
One day of the week is set aside for market day.
The village has many assocaitions, eg a sports association, a fire association, and many others. These associations organise many activities for the villagers to meet regularly. Most young people join the fire assocation to learn about how to put out fire. It is a way to keep them occupied, so they do not get bored and cause trouble.
The social life is interesting in the village. Every one knows about every other person in the village.
FIFA World Cup Semi-Finals (France v Portugal)
I attended the FIFA World Cup semi-final match between France and Portugal at the stadium in Munich.
It is an impressive stadium. It has 65,000 comforable seats. All the seats are covered. Only the field is open to the weather.
The stadium has several hospitality lounges for corporate guests. I was fortunate to be invited by my host.
The game was exciting all the way, down to the last minute. Portugal had many chances, but they failed to convert into goals. It was disappointing for their supporters and their coach.
France played well. They were a strong team, with robust players. They deserve to win.
The stadium was fully sold. I estimated that 75% of the stadium were French supporters, by looking at the colors of their clothings and the volume of their cheers. Portugal had 25% supporters.
The stadium is beautiful from the outside. It has an impressive external "coat". The stadium has three sets of lights - white, blue, red. If there is an international game, the stadium will be lighted "white". There are two football teams in Munich - the Bayern and the 1816 (?). The other colors of the stadium indicate which team is playing.
My host said that the admission ticket to watch a football match is between Euro 30 to 60. It is quite high, compared to Singapore prices.
I now look forward to the Grand Finals between France and Italy. Much earlier, many people expected the match to be between Germany and Brazil. So did I. This is football. The ball is round. Anything can happen.
It is an impressive stadium. It has 65,000 comforable seats. All the seats are covered. Only the field is open to the weather.
The stadium has several hospitality lounges for corporate guests. I was fortunate to be invited by my host.
The game was exciting all the way, down to the last minute. Portugal had many chances, but they failed to convert into goals. It was disappointing for their supporters and their coach.
France played well. They were a strong team, with robust players. They deserve to win.
The stadium was fully sold. I estimated that 75% of the stadium were French supporters, by looking at the colors of their clothings and the volume of their cheers. Portugal had 25% supporters.
The stadium is beautiful from the outside. It has an impressive external "coat". The stadium has three sets of lights - white, blue, red. If there is an international game, the stadium will be lighted "white". There are two football teams in Munich - the Bayern and the 1816 (?). The other colors of the stadium indicate which team is playing.
My host said that the admission ticket to watch a football match is between Euro 30 to 60. It is quite high, compared to Singapore prices.
I now look forward to the Grand Finals between France and Italy. Much earlier, many people expected the match to be between Germany and Brazil. So did I. This is football. The ball is round. Anything can happen.
Global stockmarkets are recovering
I track the global stock market indices against a 5 day moving average and the 50 day moving average. If the current index is above the moving average, it suggest that the market is getting stronger. If it is below the average, the market is still weak.
Here are the findings for the London, Japan, Singapore and New York and Technology shares as at 3 July 2006
- all of the markets are higher than the 5 day moving average by 1% or 2%, ie the markets are recovering well
- the US and UK shares at the 50 day moving average, ie these markets are now neutral
- the Japan, Singapore and Techology shares are about 2% below the 50 day moving average, ie the markets have still not reached the neutral point.
My general conclusion: most of the markets are recovering well.;
Here are the findings for the London, Japan, Singapore and New York and Technology shares as at 3 July 2006
- all of the markets are higher than the 5 day moving average by 1% or 2%, ie the markets are recovering well
- the US and UK shares at the 50 day moving average, ie these markets are now neutral
- the Japan, Singapore and Techology shares are about 2% below the 50 day moving average, ie the markets have still not reached the neutral point.
My general conclusion: most of the markets are recovering well.;
Tuesday, July 04, 2006
Invest in specialised funds?
QUESTION:
Dear Mr Tan,
Would you reccommend the following funds:-
Seems to have produced negative results?
REPLY:
For a long term investor, I recommend the Combined Growth Fund.
The specialised funds (ie Technology or Japan) requires someone who is more knowledgeable about the market. As you are not familiar, I sugget that you should invest in the Combined Growth Fund.
Tan Kin Lian
CEO, NTUC Income
Dear Mr Tan,
Would you reccommend the following funds:-
Japan Tech
Average 2.70% -12.00%
YTD 2006 -4.20% -6.40%
Seems to have produced negative results?
REPLY:
For a long term investor, I recommend the Combined Growth Fund.
The specialised funds (ie Technology or Japan) requires someone who is more knowledgeable about the market. As you are not familiar, I sugget that you should invest in the Combined Growth Fund.
Tan Kin Lian
CEO, NTUC Income
Global stockmarkets are now recovering
The global stockmarkets has been recovering during the past two weeks.
As an example, the Japanese market (as reflected by the Nikkei index) fell from a peak of 17,500 two months ago, to a low of 14,300 (about 18%) and has now recoverd to 15,700 (up 10% from its low).
The other stockmarkets displayed a similar pattern, but not to the same extent as reflected in Japan.
The Combined Growth Fund from NTUC Income reflect a smaller degree of fluctuation, as it is 30% invested in bonds. At the lowest point, the drop was 8%. It has since partially recovered.
For a long term investor, it is time to make an investment when the price is still low.
As an example, the Japanese market (as reflected by the Nikkei index) fell from a peak of 17,500 two months ago, to a low of 14,300 (about 18%) and has now recoverd to 15,700 (up 10% from its low).
The other stockmarkets displayed a similar pattern, but not to the same extent as reflected in Japan.
The Combined Growth Fund from NTUC Income reflect a smaller degree of fluctuation, as it is 30% invested in bonds. At the lowest point, the drop was 8%. It has since partially recovered.
For a long term investor, it is time to make an investment when the price is still low.
Will NTUC Income close down its small funds?
QUESTION:
Dear Mr Tan,
I have bought 2 different unit trusts where the bank send me statement that the funds, one has been transferred to another management. Another will be closed by certain date where the price is 40% less the initial launch price. So I am forced to acccept a loss.
Will this happen to NTUC units ?
REPLY
NTUC Income acts fairly in the interest of our customers. We do not intend to close any of our small funds. If we do, we will give generous terms to the customers.
Dear Mr Tan,
I have bought 2 different unit trusts where the bank send me statement that the funds, one has been transferred to another management. Another will be closed by certain date where the price is 40% less the initial launch price. So I am forced to acccept a loss.
Will this happen to NTUC units ?
REPLY
NTUC Income acts fairly in the interest of our customers. We do not intend to close any of our small funds. If we do, we will give generous terms to the customers.
Monday, July 03, 2006
3 tips for the young - worth at least $20,000
Here are 3 valuable tips.
1. Invest in the right investment (earn 6% instead of 2%), and earn $146,000 more
2. Invest in a low cost fund (charge 1% instead of 2% p.a.) and earn $48,000 more.
3. Invest in a low cost ILP (7 months instead of 19 months) and earn $20,000 more.
* assume you save and invest $300 a month over 30 years
Attend my educational seminar, 6877 3366.
Or visit the website, www.income.coop. A talking powerpoint (20 mins) will be ready by 7 June.
1. Invest in the right investment (earn 6% instead of 2%), and earn $146,000 more
2. Invest in a low cost fund (charge 1% instead of 2% p.a.) and earn $48,000 more.
3. Invest in a low cost ILP (7 months instead of 19 months) and earn $20,000 more.
* assume you save and invest $300 a month over 30 years
Attend my educational seminar, 6877 3366.
Or visit the website, www.income.coop. A talking powerpoint (20 mins) will be ready by 7 June.
Why do travel website only recommend 1 travel insurance provider?
There are several websites that gives you competitive quotes for airfare and hotels. But they only recommend one travel insurance product. Do you know why?
The answer is simple. For Travel Insurance, there is no standard commission. The website owner is likely to promote the travel insurance that pays the highest commission to them. Do not buy their travel insurance.
NTUC Income provides low-cost, hassle free Travel Insurance. We pay very low commission, and pass the cost savings to our customers by charging low premium rates.
So be a wise consumer. Book your Travel Insurance directly with NTUC Income. Call 6332 3456.
The answer is simple. For Travel Insurance, there is no standard commission. The website owner is likely to promote the travel insurance that pays the highest commission to them. Do not buy their travel insurance.
NTUC Income provides low-cost, hassle free Travel Insurance. We pay very low commission, and pass the cost savings to our customers by charging low premium rates.
So be a wise consumer. Book your Travel Insurance directly with NTUC Income. Call 6332 3456.
Do not give $20,000 away!
If you invest in most investment-linked plan in the market, it can take away 19 months of your savings to pay agent's commission and other expenses.
If you invest with NTUC Income, we will take away only 7 months. Compared to competitor's ILP plan, we invest an additional 12 months of your savings for your benefit.
If you save $300 a month, the additional 12 months of your savings, invested to earn an average of 6% per annum (not guaranteed) for 30 years can amount to $20,000. We can give you $20,000 more!
Lesson: Invest in an ILP plan that takes away only 7 months of your savings. Avoid a ILP plan that take away 19 months!
If you invest with NTUC Income, we will take away only 7 months. Compared to competitor's ILP plan, we invest an additional 12 months of your savings for your benefit.
If you save $300 a month, the additional 12 months of your savings, invested to earn an average of 6% per annum (not guaranteed) for 30 years can amount to $20,000. We can give you $20,000 more!
Lesson: Invest in an ILP plan that takes away only 7 months of your savings. Avoid a ILP plan that take away 19 months!
Earn 3% and more on your un-fixed deposits
Do you want to earn 3% or more on your un-fixed deposits?
Our Flexi-Cash operates like a deposit in a bank. The current interest rate is about 3%. It will change with the money market. Right now, interest rate is increasing, so the interest rate on your deposit will also move up.
It is an un-fixed deposit becuase you can withdraw it at any time. There is no penalty. You are not locked in for 1 year or longer.
Your money is invested in our Money Market fund, which is invested mainly in the inter bank market (ie lent to other banks) or A rated money market instruments. The cost of investing is only 0.1% (yes, one tenth of 1%), during the promotion period.
Invest in the un-fixed deposit. It pays more, and gives full flexibility for your cash.
Go to www.income.coop and read our FAQ. Or call 6788 1111.
Our Flexi-Cash operates like a deposit in a bank. The current interest rate is about 3%. It will change with the money market. Right now, interest rate is increasing, so the interest rate on your deposit will also move up.
It is an un-fixed deposit becuase you can withdraw it at any time. There is no penalty. You are not locked in for 1 year or longer.
Your money is invested in our Money Market fund, which is invested mainly in the inter bank market (ie lent to other banks) or A rated money market instruments. The cost of investing is only 0.1% (yes, one tenth of 1%), during the promotion period.
Invest in the un-fixed deposit. It pays more, and gives full flexibility for your cash.
Go to www.income.coop and read our FAQ. Or call 6788 1111.
Sunday, July 02, 2006
Customer choose to buy insurance directly
Last week, a couple walked into our Business Center, after finding the location of the center from our website.
They bought two education policies for their children for $200,000 each. They paid an annual premium of $26,000.
My manager thanked them and asked why they prefer directly with the Business Center and not through a personal adviser?
They had a few insurance advisers who served them previously. They prefered to buy directly as it is straight forward and more efficient.
Wow. This can be a new way of buying insurance.
They bought two education policies for their children for $200,000 each. They paid an annual premium of $26,000.
My manager thanked them and asked why they prefer directly with the Business Center and not through a personal adviser?
They had a few insurance advisers who served them previously. They prefered to buy directly as it is straight forward and more efficient.
Wow. This can be a new way of buying insurance.
My World Cup Experience
I visited Germany to watch the World Cup quarter finals between England and Portugal on July 1. The game is played in Gelsenkirchen Stadium. Getting there is an experience.
My wife and I took the Singapore Airlines flight from Singapore to Frankfurt and change to a Lufthansa flight to Dusseldorf. We had some trouble in changing from the international terminal to the domestic terminal in Frankfurt. There were many flights handled at the airport. We were not familiar with the layout of the airport. We could not find any information helpdesk.
The workers at the airport, including tHe security workers, were very friendly and helpful. We only need to know Guten Tag (good day) and the rest of the conversation is handled in English. But, the workers had also to rely on the information screen, which may not display the information that is needed. And they are also very busy.
Getting from Dusseldorf to my hotel in Gladback West is another interesting experience. The most convenient way is to pay EUR 50 for a taxi ride. But my World Cup ticket allows me to use the public transport for free to the train station in Gladback West.
My travel agent gave the instruction to take the train from Dusseldorf Airport to Essen and change to another train to Gladback West. I should take 1 hour. They warned me that the change of trains is not so easy.
At the airport, I decided to take the cheaper choice and experience the German train system.
My first difficulty was to locate the information counter at Dusseldorf Airport. I could not find it. I followed the sign to the train station. I ask a passenger for information to get the train to Essen main station. She was not sure, but suggested that I should go to Dusseldorf main station and take the train from there.
This was a mistake. It took me 90 minutes to get to the main station, to find the right train platform and wait for the train to take me to Essen. The train from Dusseldorf train station had to return to Dusseldorf airport on its way to Essen. So, I wasted 1 hour travelling the wrong direction and back. From Essen, it took another 45 minutes to get to Gladback West.
After arriving in Gladback station, I had another challenge. There was no taxis available. There was no worker in the station. It was deserted.
Outside, I found another traveller who managed to telephone a taxi. He called his hotel, which despatched a taxi to pick him. I never knew that this is how one travels in a big country.
I did the same, and soon arrived in my hotel.
The total journey took more than 2 hours. We had to carry heavy luggage as well. But, the experience was worth it. I learned about the German train system and the friendliness of the people.
In the afternoon, I book from a taxi from the hotel to the stadium. It cost EUR 18 for a short journey. I asked the taxi driver for his telephone number, in case I need to call him back after the match.
The match between England and Portugal was exciting, but not unusual. A few billions fans could watch the live game over the television screens around the world.
The English supporters were fantastic. I met many of them on the train from Dusseldorf. One told me that 150,000 England supporters will be in and outside of the stadium. Those without tickets were willing to pay 1,000 EUR to get a ticket to enter the stadium.
They came in the colourful costumes. It was like a big carnival, with people having a great time. Many were singing and enjoying their beer or coke. Some came with spouses and children.
The stadium was amazing. It had a covered roof, with a confortable seat for everyone. All the seats are numbered. Everyone can watch a large TV screen located above the center of the field and facing the fans on all the 4 sides.
The stadium was full. All the 54,000 tickets were sold out.
The 2 hours of the game was an interesting experience. The English fans were most passionate. Throughout the game, they were singing the national anthem "God Save the Queen" and other familiar songs. At numerous points in the game, they shouted loudly "Send her victories, happy and glorious". This is accompanied by raising both arms in a warm gesture, accompanied by several tens thousand fans.
I sent photos of the small Singapore delegation at the stadium through MMS live from the stadium to my colleagues in Singapore. I added the remark, "Live from the World Cup stadium. 150,000 England supporters. 5,000 plus 1 Portugal supporters. "
I was confident that, in spite of the odds, the Portugal team will win. They work better and harder as a team. I had watched a few of their earlier games on TV, and was impressed by their playing style.
There was no score for 90 minutes and 30 minutes of extra time. Portugal attacked the England goal more often, but the England defence was quite strong.
Portugal won the game on penalty kicks. I give credit to the Portugal goalkeeper for a few fine saves.
The only sad part of the game was the disappointment of the England supporters. They gave their very best in passion, time and money. They came in full support of the national team. Even in defeat, they behaved graciously. A big salute to them.
I met a few Portugal supporters and congratulate their country. They are outnumbered by the England supporters, but it did not deter them.
Wow. It was a great experience. And Portugal won, in spite of being the underdogs. And the England fans won my admiration for their passion and spirit.
Tan Kin Lian
From Germany
My wife and I took the Singapore Airlines flight from Singapore to Frankfurt and change to a Lufthansa flight to Dusseldorf. We had some trouble in changing from the international terminal to the domestic terminal in Frankfurt. There were many flights handled at the airport. We were not familiar with the layout of the airport. We could not find any information helpdesk.
The workers at the airport, including tHe security workers, were very friendly and helpful. We only need to know Guten Tag (good day) and the rest of the conversation is handled in English. But, the workers had also to rely on the information screen, which may not display the information that is needed. And they are also very busy.
Getting from Dusseldorf to my hotel in Gladback West is another interesting experience. The most convenient way is to pay EUR 50 for a taxi ride. But my World Cup ticket allows me to use the public transport for free to the train station in Gladback West.
My travel agent gave the instruction to take the train from Dusseldorf Airport to Essen and change to another train to Gladback West. I should take 1 hour. They warned me that the change of trains is not so easy.
At the airport, I decided to take the cheaper choice and experience the German train system.
My first difficulty was to locate the information counter at Dusseldorf Airport. I could not find it. I followed the sign to the train station. I ask a passenger for information to get the train to Essen main station. She was not sure, but suggested that I should go to Dusseldorf main station and take the train from there.
This was a mistake. It took me 90 minutes to get to the main station, to find the right train platform and wait for the train to take me to Essen. The train from Dusseldorf train station had to return to Dusseldorf airport on its way to Essen. So, I wasted 1 hour travelling the wrong direction and back. From Essen, it took another 45 minutes to get to Gladback West.
After arriving in Gladback station, I had another challenge. There was no taxis available. There was no worker in the station. It was deserted.
Outside, I found another traveller who managed to telephone a taxi. He called his hotel, which despatched a taxi to pick him. I never knew that this is how one travels in a big country.
I did the same, and soon arrived in my hotel.
The total journey took more than 2 hours. We had to carry heavy luggage as well. But, the experience was worth it. I learned about the German train system and the friendliness of the people.
In the afternoon, I book from a taxi from the hotel to the stadium. It cost EUR 18 for a short journey. I asked the taxi driver for his telephone number, in case I need to call him back after the match.
The match between England and Portugal was exciting, but not unusual. A few billions fans could watch the live game over the television screens around the world.
The English supporters were fantastic. I met many of them on the train from Dusseldorf. One told me that 150,000 England supporters will be in and outside of the stadium. Those without tickets were willing to pay 1,000 EUR to get a ticket to enter the stadium.
They came in the colourful costumes. It was like a big carnival, with people having a great time. Many were singing and enjoying their beer or coke. Some came with spouses and children.
The stadium was amazing. It had a covered roof, with a confortable seat for everyone. All the seats are numbered. Everyone can watch a large TV screen located above the center of the field and facing the fans on all the 4 sides.
The stadium was full. All the 54,000 tickets were sold out.
The 2 hours of the game was an interesting experience. The English fans were most passionate. Throughout the game, they were singing the national anthem "God Save the Queen" and other familiar songs. At numerous points in the game, they shouted loudly "Send her victories, happy and glorious". This is accompanied by raising both arms in a warm gesture, accompanied by several tens thousand fans.
I sent photos of the small Singapore delegation at the stadium through MMS live from the stadium to my colleagues in Singapore. I added the remark, "Live from the World Cup stadium. 150,000 England supporters. 5,000 plus 1 Portugal supporters. "
I was confident that, in spite of the odds, the Portugal team will win. They work better and harder as a team. I had watched a few of their earlier games on TV, and was impressed by their playing style.
There was no score for 90 minutes and 30 minutes of extra time. Portugal attacked the England goal more often, but the England defence was quite strong.
Portugal won the game on penalty kicks. I give credit to the Portugal goalkeeper for a few fine saves.
The only sad part of the game was the disappointment of the England supporters. They gave their very best in passion, time and money. They came in full support of the national team. Even in defeat, they behaved graciously. A big salute to them.
I met a few Portugal supporters and congratulate their country. They are outnumbered by the England supporters, but it did not deter them.
Wow. It was a great experience. And Portugal won, in spite of being the underdogs. And the England fans won my admiration for their passion and spirit.
Tan Kin Lian
From Germany
Friday, June 30, 2006
Flexi Cash have very low risk
QUESTION:
In terms of risk and reward, how does FlexiCash compared with deposit placed with a credit cooperative?
When will the Flexi-Cash promotion ends? Does Income Centre open on Saturday to accept such transactions?
REPLY
Flexi Cash is invested in the money market. Most of the money are lent to banks, so they are quite safe. Some of the money is invested in short term bonds, which are well rated. The risk of loss is very low.
As the money market is invested in short term instruments, there is also very neglible risk of loss due to a sharp increase in interest rate (which may happen to long dated bonds).
The promotion should be available for a few weeks. So, you do not need to hurry.
Income Center is open on Saturday morning.
In terms of risk and reward, how does FlexiCash compared with deposit placed with a credit cooperative?
When will the Flexi-Cash promotion ends? Does Income Centre open on Saturday to accept such transactions?
REPLY
Flexi Cash is invested in the money market. Most of the money are lent to banks, so they are quite safe. Some of the money is invested in short term bonds, which are well rated. The risk of loss is very low.
As the money market is invested in short term instruments, there is also very neglible risk of loss due to a sharp increase in interest rate (which may happen to long dated bonds).
The promotion should be available for a few weeks. So, you do not need to hurry.
Income Center is open on Saturday morning.
Learn about Structured Products
Many banks are distributing structured products. They are advertised aggressively. These products look attractive. But they are difficult to understand.
Learn the basics about structured products, before you invest in them. You will find the lesson enjoyable. It can be worth a lot of money to you.
www.knowyourinsurance.com.sg
Learn the basics about structured products, before you invest in them. You will find the lesson enjoyable. It can be worth a lot of money to you.
www.knowyourinsurance.com.sg
Customer looks for tutor in economics
REQUEST FROM CUSTOMER
I'm seeking an economics tutor (female preferred) for my daughter who is now in her first year at Singapore Polytechnic doing business admininistration. I'd greatly appreciate your kind referal to the qualified tutors.
I PASSED TO MY MANAGER IN CHARGE OF OUR HOME SERVICE PORTAL. HE RESPONDED TO THE CUSTOMER. CUSTOMER REPLIED:
Thank you, Mr Wong. I greatly appreciate your kind assistance and look forward to hearing from you.
Many thanks to you too, Mr. Tan for making the referal to Mr. Wong. Please accept my appreciation for your effort on my behalf even when you are at home. Thank you for your help in this matter.
LATER, I RECEIVED THIS E-MAIL FROM THE CUSTOMER
Thank you. I have already had two tutors who responded positively. They look promising and I should be making a decision on the selection soon. Thanks again for your assistance and the efforts of your colleagues from Income particularly Mary and Mr. Wong. Kindly extend my appreciation to them on my behalf.
I'm seeking an economics tutor (female preferred) for my daughter who is now in her first year at Singapore Polytechnic doing business admininistration. I'd greatly appreciate your kind referal to the qualified tutors.
I PASSED TO MY MANAGER IN CHARGE OF OUR HOME SERVICE PORTAL. HE RESPONDED TO THE CUSTOMER. CUSTOMER REPLIED:
Thank you, Mr Wong. I greatly appreciate your kind assistance and look forward to hearing from you.
Many thanks to you too, Mr. Tan for making the referal to Mr. Wong. Please accept my appreciation for your effort on my behalf even when you are at home. Thank you for your help in this matter.
LATER, I RECEIVED THIS E-MAIL FROM THE CUSTOMER
Thank you. I have already had two tutors who responded positively. They look promising and I should be making a decision on the selection soon. Thanks again for your assistance and the efforts of your colleagues from Income particularly Mary and Mr. Wong. Kindly extend my appreciation to them on my behalf.
Thursday, June 29, 2006
Do I get a discount from the Business Center?
QUESTION:
I would like to buy an endowment policy (maybe single premium type) and heard that there will be a discount if I were to buy direct? I wonder how attractive is it? What is the price if they went through an advisor instead. If there is not much difference, then maybe it's better to have the convenience of an advisor to monitor my policy?
REPLY:
For most products that are under promotion, you pay the same premium in the business center and to the insurance adviser.
For non-promotion products, if you come to the business center, you may get a very modest incentive to cover your travelling expenses and time. It depends on the product that you buy. The consultant will tell you about it.
Most people come to the business center for other reason - i.e. they like to get frank advice and not feel the pressure of having to buy a product due to the time spent by the adviser.
I would like to buy an endowment policy (maybe single premium type) and heard that there will be a discount if I were to buy direct? I wonder how attractive is it? What is the price if they went through an advisor instead. If there is not much difference, then maybe it's better to have the convenience of an advisor to monitor my policy?
REPLY:
For most products that are under promotion, you pay the same premium in the business center and to the insurance adviser.
For non-promotion products, if you come to the business center, you may get a very modest incentive to cover your travelling expenses and time. It depends on the product that you buy. The consultant will tell you about it.
Most people come to the business center for other reason - i.e. they like to get frank advice and not feel the pressure of having to buy a product due to the time spent by the adviser.
Nice words from a customer
Dear Mr. Tan,
My family have policies with Income and other insurance companies. We found that bonuses issued by Income was the most generous. In term of payment of premium and other matters, Income is the least pressurised. We are therefore fond of Income and wish that it is ever growing and consolidating.
In my view, banks that are charging 24% per annum are legalised loan shark. They have forgotten their social responsibility and what is reciprocating. Whereas Income had shown its sympathy and gave help during the difficult periods.
I wish that when you step down, Income will continue to administer by a good leader. Picking a right person is not an easy task and need time. I wish that you can start taking action now.
My family have policies with Income and other insurance companies. We found that bonuses issued by Income was the most generous. In term of payment of premium and other matters, Income is the least pressurised. We are therefore fond of Income and wish that it is ever growing and consolidating.
In my view, banks that are charging 24% per annum are legalised loan shark. They have forgotten their social responsibility and what is reciprocating. Whereas Income had shown its sympathy and gave help during the difficult periods.
I wish that when you step down, Income will continue to administer by a good leader. Picking a right person is not an easy task and need time. I wish that you can start taking action now.
Customer invest $130,000 in Flexi-Cash
Our consultant, who is a specialist in ILP, spoke to a customer and convinced him to come to Business Center. The customer presented a cheque for $130,000 to invest in our Flexi Cash. He intends to convert some of the cash into the investment fund at a later date.
Wednesday, June 28, 2006
Correction in global stockmarkets
VIEW FROM CHIEF INVESTMENT OFFICER, NTUC INCOME
Global stock markets corrected over the past two months due to concern for inflation and uncertainty in interest rates in the USA. The correction was more severe among the Asian markets than the USA and European markets.
Economic growth and corporate earnings are expected to slow in 2006 and 2007. There are concerns that higher interest rates could result in further deterioration in growth over the next two years.
We think the markets are fairly valued now after the correction. Expected growth of the global economies and company earnings is generally reasonable, and markets are more attractive now. It is premature to conclude that growth will slow significantly.
Investors have over-reacted to the concerns for inflation. The correction was exaggerated by selling and unwinding of leverage positions by hedge funds.
Global stock markets corrected over the past two months due to concern for inflation and uncertainty in interest rates in the USA. The correction was more severe among the Asian markets than the USA and European markets.
Economic growth and corporate earnings are expected to slow in 2006 and 2007. There are concerns that higher interest rates could result in further deterioration in growth over the next two years.
We think the markets are fairly valued now after the correction. Expected growth of the global economies and company earnings is generally reasonable, and markets are more attractive now. It is premature to conclude that growth will slow significantly.
Investors have over-reacted to the concerns for inflation. The correction was exaggerated by selling and unwinding of leverage positions by hedge funds.
Customer buys 5 policies after attending educational talk
A customer attended our educational talk on "Financial Tips for the Young". He came with his wife and children.
He decided to buy 4 Ideal plans (regular premium investment-linked plan) for his children. His wife also took up an Ideal plan. They were bought through his insurance adviser.
He is aware that these are investment plans, which are subject to investment risk. He became confident that "risk is an advantage" after attending the talk. Previously, he only had a motor insurance policy with us.
The adviser said that the customer:
- had attended several investment talks previously conducted by other speakers.
- was impressed and convinced by our CEO's explanation on ILPs
- liked the large fund size of %3.8 billions, invested in 900 counters.
- liked the performance of our Combined Fund since its inception
He is now considering to increase his insurance coverage, by level term plus a decreasing term rider.
He decided to buy 4 Ideal plans (regular premium investment-linked plan) for his children. His wife also took up an Ideal plan. They were bought through his insurance adviser.
He is aware that these are investment plans, which are subject to investment risk. He became confident that "risk is an advantage" after attending the talk. Previously, he only had a motor insurance policy with us.
The adviser said that the customer:
- had attended several investment talks previously conducted by other speakers.
- was impressed and convinced by our CEO's explanation on ILPs
- liked the large fund size of %3.8 billions, invested in 900 counters.
- liked the performance of our Combined Fund since its inception
He is now considering to increase his insurance coverage, by level term plus a decreasing term rider.
Tuesday, June 27, 2006
We provide warranty on replacement of windscreen
1. From customer
I have been insuring all my cars with INCOME since 1980s.
Last year, I brought my present car Toyota Altis and have no alternative to insure under AIG for one year till Apr 2006. I switched back to INCOME immediately the expiry.
My car windscreen was hit by a small stone with a small cracks and hair lines along TPE recently.
INCOME does not allow me to replace it at Toyota Workshop which may be too
expensive.
I have no objection for my windscreen to be replaced at your INCOME workshop
which could be cheaper ...
But my fear is, if after the 6-month warranty given by your authorized work, will INCOME continue to undertake the rest of windscreen warranty till the expiry of the Distributor 3 years warranty period for any water leakage.
2. My reply
Yes, we will take over the 3 year warranty on the windscreen. If you have any problem on this issue, you can bring it to the attention of my claim service manager. Thank you for switching over to NTUC Income.
3. Reply from customer
Very great to have your assurance.
Just to keep you update that I have replaced my windscreen at Tuffi @ Sin Ming this morning. They provided me with excellent service.
That is unreasonable for Toyota Motors to charge more than $900 for a change of windscreen. I will also update the members of the Toyota Club.
I have been insuring all my cars with INCOME since 1980s.
Last year, I brought my present car Toyota Altis and have no alternative to insure under AIG for one year till Apr 2006. I switched back to INCOME immediately the expiry.
My car windscreen was hit by a small stone with a small cracks and hair lines along TPE recently.
INCOME does not allow me to replace it at Toyota Workshop which may be too
expensive.
I have no objection for my windscreen to be replaced at your INCOME workshop
which could be cheaper ...
But my fear is, if after the 6-month warranty given by your authorized work, will INCOME continue to undertake the rest of windscreen warranty till the expiry of the Distributor 3 years warranty period for any water leakage.
2. My reply
Yes, we will take over the 3 year warranty on the windscreen. If you have any problem on this issue, you can bring it to the attention of my claim service manager. Thank you for switching over to NTUC Income.
3. Reply from customer
Very great to have your assurance.
Just to keep you update that I have replaced my windscreen at Tuffi @ Sin Ming this morning. They provided me with excellent service.
That is unreasonable for Toyota Motors to charge more than $900 for a change of windscreen. I will also update the members of the Toyota Club.
FAQ: Flexi-Link
Triple your savings, or more!
Earn up to $26,000 more, compared to similar plans in the market
1. Purpose
This plan is for a policyholder to invest a lump sum using the savings in the Central Provident Fund, Supplementary Retirement Scheme, or in a bank account or fixed deposit. The policyholder can also top up the investments at any time.
The attractive features are:
- 100% of the lump sum is invested
- the lump sum is invested in a large, well diversified fund, to earn an attractive return
- the charges are among the lowest in the market
- sum assured of 125% of the savings, or value of investments (if higher)
2. What is the expected return?
The savings can be invested in one of several funds operated by NTUC Income.
For example, a popular fund is the Combined Growth Fund. It comprises of $3,800 million of investments, is invested in 900 quality investments, and is managed by 9 top fund managers globally. The benchmark return of the fund during the past ten years is 6.5% per annum. The actual return during the first 3 years (2003 to 2005) was an average of 16% per annum.
Note:
- The future return is not guaranteed
- Past performance is not indicative of future return.
3. How much must I invest?
The initial investment must be at least $5,000. You can invest more, if you wish.
The invested sum is used to buy units of the investment fund at its prevailing price. The value of the units are expected to increase with the underlying value of the investments in the fund.
4. How much can I expect to get at the maturity date?
If you save $50,000, the projected amount (not guaranteed) at the end of 20 years is:
Assumed net return - after deducting the fund management fee (for illustration only)
Gain (estimated) - after deducting spread, policy fee and advisory fee
The projected amount is much higher than the return from traditional endowment or educational plans offered by life insurance companies.
If the policyholder (male at 30) pay a traditional endowment policy for the same premium, the guaranteed sum assured is $77,000 and the projected amount at maturity (not guaranteed) is $113,000.
5. Is there any life insurance cover?
In the event of death of the parent before age 60, the policy pays a sum assured of 125% of the invested sum (less withdrawals) or the value of the investments, whichever is higher. This cover is provided free of charge.
If you need additional cover, we recommend a decreating term assurance. If you insure for $50,000 over 20 years, the monthly premium is only $x,xx at entry age 30 and $x.x at 40.
6. Can I top up my investments?
You can top up your investments at any time, by making additional investments of at least $1,000.
7. Can I make withdrawal for emergency?
You can withdraw any amount from this plan, subject to a minimum of $500. There is no charge or penalty for the withdrawal. When you make a withdrawal, a certain number of units will be cancelled to provide this amount.
8. Is there a minimum investment period?
There is no minimum saving period. You can continue the savings plan for as long as you wish.
9. What are the charges?
The charges are among the lowest in the market:
- 3.5% spread between offer and bid price
- fund management fee of about 1% per annum
- initial fee of $100 when you set up the plan
- annual fee of $50 per policy (currently, waived for an investment above $15,000)
These modest charges are more than offset by the higher return that is likely to be earned by the investment fund.
They are much lower than similar plans available in the market. You can get a much better return from this plan.
10. Do all investment funds charge similar annual fee?
Most funds in the market charge an annual fee of 1.5% or 2% of the value of the investment. The combined fund from NTUC Income charge a lower fee of about 1% per annum.
A difference of 1% in annual fee, on an initial investment of $50,000, amounts to $26,000 at the end of 20 years (assuming an average return of 6% per annum). You can get $26,000 more, by investing in the combined fund.
11. Do all plans have the same spread between the bid and offer price?
Most investment linked plans in the market have a spread of 5%. The flexi-link plan from NTUC Income have have a lower spread of 3.5%. The difference of 1.5% on a lump sum of $50,000 mean that you get an additional $750 invested for you.
During our promotion, if you invest a larger amount, you can get bonus units credited to your investment. This gives more investment units to you. The bonus can be as high as 2%. This reduces the spread to as low as 1.5%.
12. Interested?
Call 6877 1111
Visit our Business Center at Bras Basah Road or Tampines Point.
Or see your insurance adviser.
End of FAQ
Earn up to $26,000 more, compared to similar plans in the market
1. Purpose
This plan is for a policyholder to invest a lump sum using the savings in the Central Provident Fund, Supplementary Retirement Scheme, or in a bank account or fixed deposit. The policyholder can also top up the investments at any time.
The attractive features are:
- 100% of the lump sum is invested
- the lump sum is invested in a large, well diversified fund, to earn an attractive return
- the charges are among the lowest in the market
- sum assured of 125% of the savings, or value of investments (if higher)
2. What is the expected return?
The savings can be invested in one of several funds operated by NTUC Income.
For example, a popular fund is the Combined Growth Fund. It comprises of $3,800 million of investments, is invested in 900 quality investments, and is managed by 9 top fund managers globally. The benchmark return of the fund during the past ten years is 6.5% per annum. The actual return during the first 3 years (2003 to 2005) was an average of 16% per annum.
Note:
- The future return is not guaranteed
- Past performance is not indicative of future return.
3. How much must I invest?
The initial investment must be at least $5,000. You can invest more, if you wish.
The invested sum is used to buy units of the investment fund at its prevailing price. The value of the units are expected to increase with the underlying value of the investments in the fund.
4. How much can I expect to get at the maturity date?
If you save $50,000, the projected amount (not guaranteed) at the end of 20 years is:
Assumed net return 5% p.a 7% p.a. 9% p.a.
Initial investment $50,000 $50,000 $50,000
Gain (estimated) $78,000 $136,000 $220,000
Projected amount $128,000 $186,000 $270,000
Assumed net return - after deducting the fund management fee (for illustration only)
Gain (estimated) - after deducting spread, policy fee and advisory fee
The projected amount is much higher than the return from traditional endowment or educational plans offered by life insurance companies.
If the policyholder (male at 30) pay a traditional endowment policy for the same premium, the guaranteed sum assured is $77,000 and the projected amount at maturity (not guaranteed) is $113,000.
5. Is there any life insurance cover?
In the event of death of the parent before age 60, the policy pays a sum assured of 125% of the invested sum (less withdrawals) or the value of the investments, whichever is higher. This cover is provided free of charge.
If you need additional cover, we recommend a decreating term assurance. If you insure for $50,000 over 20 years, the monthly premium is only $x,xx at entry age 30 and $x.x at 40.
6. Can I top up my investments?
You can top up your investments at any time, by making additional investments of at least $1,000.
7. Can I make withdrawal for emergency?
You can withdraw any amount from this plan, subject to a minimum of $500. There is no charge or penalty for the withdrawal. When you make a withdrawal, a certain number of units will be cancelled to provide this amount.
8. Is there a minimum investment period?
There is no minimum saving period. You can continue the savings plan for as long as you wish.
9. What are the charges?
The charges are among the lowest in the market:
- 3.5% spread between offer and bid price
- fund management fee of about 1% per annum
- initial fee of $100 when you set up the plan
- annual fee of $50 per policy (currently, waived for an investment above $15,000)
These modest charges are more than offset by the higher return that is likely to be earned by the investment fund.
They are much lower than similar plans available in the market. You can get a much better return from this plan.
10. Do all investment funds charge similar annual fee?
Most funds in the market charge an annual fee of 1.5% or 2% of the value of the investment. The combined fund from NTUC Income charge a lower fee of about 1% per annum.
A difference of 1% in annual fee, on an initial investment of $50,000, amounts to $26,000 at the end of 20 years (assuming an average return of 6% per annum). You can get $26,000 more, by investing in the combined fund.
11. Do all plans have the same spread between the bid and offer price?
Most investment linked plans in the market have a spread of 5%. The flexi-link plan from NTUC Income have have a lower spread of 3.5%. The difference of 1.5% on a lump sum of $50,000 mean that you get an additional $750 invested for you.
During our promotion, if you invest a larger amount, you can get bonus units credited to your investment. This gives more investment units to you. The bonus can be as high as 2%. This reduces the spread to as low as 1.5%.
12. Interested?
Call 6877 1111
Visit our Business Center at Bras Basah Road or Tampines Point.
Or see your insurance adviser.
End of FAQ
FAQ: Ideal Plan
Triple your savings, or more!
Earn up to $32,000 more, compared to similar plans in the market
1. Purpose
This plan is for a young person to save for future needs. The attractive features are:
- 100% of savings invested (except for advisory fee of 15% of premium for first 3 years)
- savings is invested in a large, well diversified fund, to earn an attractive return
- the charges are among the lowest in the market
- sum assured of 5 years of savings, or value of investments (if higher)
2. What is the expected return?
The savings can be invested in one of several funds operated by NTUC Income.
For example, a popular fund is the Combined Growth Fund. It comprises of $3,800 million of investments, is invested in 900 quality investments, and is managed by 9 top fund managers globally. The benchmark return of the fund during the past ten years is 6.5% per annum. The actual return during the first 3 years (2003 to 2005) was an average of 16% per annum.
Note:
- The future return is not guaranteed
- Past performance is not indicative of future return.
3. How much must I save?
You have to save a minimum of $100 a month. You can save more, if you wish.
The savings is used to buy units of the investment fund at its prevailing price. The value of the units are expected to increase with the underlying value of the investments in the fund.
4. How much can I expect to get at the maturity date?
If you save $200 a month, the projected amount (not guaranteed) at the end of 30 years is:
Assumed net return - after deducting management fee: for illustration only
Gain (estimated) - after deducting spread, policy fee and advisory fee
The projected amount is much higher than the return from traditional endowment or educational plans offered by life insurance companies.
If the policyholder (male at 30) pay a traditional endowment policy for the same premium, the guaranteed sum assured is $xxx,000 and the projected amount at maturity (not guaratneed) is $xxx,000.
5. Is there any life insurance cover?
In the event of death of the parent before age 60, the policy pays a sum assured of 5 years of savings or the value of the investments, whichever is higher. This cover is provided free of charge.
If you need additional cover, we recommend a decreasing term insurance rider. If you insure for $72,000 decreasing over 30 years, the monthly premium is only $xx at entry age 30 and $xx at 35.
6. Can I change my savings?
You have the following options:
- to increase or reduce your regular savings
- to stop your savings temporarily
- to top up your savings
7. Can I make withdrawal for emergency?
You can withdraw any amount from this plan, subject to a minimum of $500. There is no charge or penalty for the withdrawal. When you make a withdrawal, a certain number of units will be cancelled to provide this amount.
8. Is there a minimum saving period?
There is no minimum saving period. You can continue the savings plan for as long as you wish.
However, if you terminate the plan during the first 3 years, the remaing installment of the advisory fee will be deducted from the cash value.
9. What are the charges?
The charges are among the lowest in the market:
- 3.5% spread between offer and bid price
- fund management fee of about 1% on value of investment
- annual fee of $50 per policy
- advisory fee of 15% of premium for first 3 years
These modest charges are more than offset by the higher return that is likely to be earned by the investment f und.
They are much lower than similar plans available in the market. You can get a much better return from this plan.
10. Do all investment funds charge similar annual fee?
Most funds in the market charge an annual fee of 1.5% or 2% of the value of the investment. The combined fund from NTUC Income charge a lower fee of about 1% per annum.
A difference of 1% in annual fee, on a monthly savings of $200, amounts to $32,000 at the end of 30 years (assuming an average return of 6% per annum). You can get $32,000 more, by investing in the combined fund.
11. Do all investment linked plans have similar upfront fee?
Most investment linked plans in the market have a upfront fee of about 19 months of premium. The ideal plan from NTUC Income have have a lower fee of about 7 months of premium (represented by the advisory fee and other charges).
The difference of 12 months, on a monthly saving of $200, amount to $14,000 at the end of 30 years (assuming an average return of 6% per annum). You can get $14,000 more, by investing through our ideal plan.
12. Interested?
Call 6788 1111
Visit our Business Center at Bras Basah Road or Tampines Point.
Or see your insurance adviser.
End of FAQ
Earn up to $32,000 more, compared to similar plans in the market
1. Purpose
This plan is for a young person to save for future needs. The attractive features are:
- 100% of savings invested (except for advisory fee of 15% of premium for first 3 years)
- savings is invested in a large, well diversified fund, to earn an attractive return
- the charges are among the lowest in the market
- sum assured of 5 years of savings, or value of investments (if higher)
2. What is the expected return?
The savings can be invested in one of several funds operated by NTUC Income.
For example, a popular fund is the Combined Growth Fund. It comprises of $3,800 million of investments, is invested in 900 quality investments, and is managed by 9 top fund managers globally. The benchmark return of the fund during the past ten years is 6.5% per annum. The actual return during the first 3 years (2003 to 2005) was an average of 16% per annum.
Note:
- The future return is not guaranteed
- Past performance is not indicative of future return.
3. How much must I save?
You have to save a minimum of $100 a month. You can save more, if you wish.
The savings is used to buy units of the investment fund at its prevailing price. The value of the units are expected to increase with the underlying value of the investments in the fund.
4. How much can I expect to get at the maturity date?
If you save $200 a month, the projected amount (not guaranteed) at the end of 30 years is:
Assumed net return 5% p.a 7% p.a. 9% p.a.
Total savings $72,000 $72,000 $72,000
Gain (estimated) $77,900 $141,800 $237,700
Projected amount $149,900 $213,800 $309,700
Assumed net return - after deducting management fee: for illustration only
Gain (estimated) - after deducting spread, policy fee and advisory fee
The projected amount is much higher than the return from traditional endowment or educational plans offered by life insurance companies.
If the policyholder (male at 30) pay a traditional endowment policy for the same premium, the guaranteed sum assured is $xxx,000 and the projected amount at maturity (not guaratneed) is $xxx,000.
5. Is there any life insurance cover?
In the event of death of the parent before age 60, the policy pays a sum assured of 5 years of savings or the value of the investments, whichever is higher. This cover is provided free of charge.
If you need additional cover, we recommend a decreasing term insurance rider. If you insure for $72,000 decreasing over 30 years, the monthly premium is only $xx at entry age 30 and $xx at 35.
6. Can I change my savings?
You have the following options:
- to increase or reduce your regular savings
- to stop your savings temporarily
- to top up your savings
7. Can I make withdrawal for emergency?
You can withdraw any amount from this plan, subject to a minimum of $500. There is no charge or penalty for the withdrawal. When you make a withdrawal, a certain number of units will be cancelled to provide this amount.
8. Is there a minimum saving period?
There is no minimum saving period. You can continue the savings plan for as long as you wish.
However, if you terminate the plan during the first 3 years, the remaing installment of the advisory fee will be deducted from the cash value.
9. What are the charges?
The charges are among the lowest in the market:
- 3.5% spread between offer and bid price
- fund management fee of about 1% on value of investment
- annual fee of $50 per policy
- advisory fee of 15% of premium for first 3 years
These modest charges are more than offset by the higher return that is likely to be earned by the investment f und.
They are much lower than similar plans available in the market. You can get a much better return from this plan.
10. Do all investment funds charge similar annual fee?
Most funds in the market charge an annual fee of 1.5% or 2% of the value of the investment. The combined fund from NTUC Income charge a lower fee of about 1% per annum.
A difference of 1% in annual fee, on a monthly savings of $200, amounts to $32,000 at the end of 30 years (assuming an average return of 6% per annum). You can get $32,000 more, by investing in the combined fund.
11. Do all investment linked plans have similar upfront fee?
Most investment linked plans in the market have a upfront fee of about 19 months of premium. The ideal plan from NTUC Income have have a lower fee of about 7 months of premium (represented by the advisory fee and other charges).
The difference of 12 months, on a monthly saving of $200, amount to $14,000 at the end of 30 years (assuming an average return of 6% per annum). You can get $14,000 more, by investing through our ideal plan.
12. Interested?
Call 6788 1111
Visit our Business Center at Bras Basah Road or Tampines Point.
Or see your insurance adviser.
End of FAQ
Monday, June 26, 2006
Ang Mo Kio Auto-Point
I visited Ang Mo Kio Auto-Point last Friday. Several workshops in this center from a business group to tender for the repair of motor cars for our customers.
I was very impressed with the following:
- the participating workshops were able to work together in cooperation
- they focused on quality assurance and customer service
- they submit competitive tenders and win about 5 repairs a day
- they meet our standard of repair quality and customer satisfaction
- they were proud to be a quality workshop under NTUC Income
I am glad that our tender system is able to help these small workshops (which are owned by small proprietors) to get a steady source of business. They can make an honest profit and are able to provide quality repair.
I was very impressed with the following:
- the participating workshops were able to work together in cooperation
- they focused on quality assurance and customer service
- they submit competitive tenders and win about 5 repairs a day
- they meet our standard of repair quality and customer satisfaction
- they were proud to be a quality workshop under NTUC Income
I am glad that our tender system is able to help these small workshops (which are owned by small proprietors) to get a steady source of business. They can make an honest profit and are able to provide quality repair.
You can take a loan on our investment-linked plan
NTUC Income allows a loan to be taken against our ILP plan. Other insurers do not allow this option. They insist that the policyholder should surrender the units, if they wish to withdraw cash.
Why?
Perhaps, the other insurer wish the policyholder to surrender, and to re-invest at a later date. The policyholder has to pay the spread of 5% again. It will cost 5% to the policyholder
NTUC Income's practice is more favourable to the policyholder. Here are the terms of our loan on ILP policy:
1. We allow a loan of up to 50% of the cash value.
2. We will ask the policyholder to make partial payment, if the loan reaches 70% of the cash value, so that there is always a 30% margin. The repayment can be done by partial surrender of the units.
3. Interest rate is at the same rate as for traditional policy, ie 5.5% per annum.
Why?
Perhaps, the other insurer wish the policyholder to surrender, and to re-invest at a later date. The policyholder has to pay the spread of 5% again. It will cost 5% to the policyholder
NTUC Income's practice is more favourable to the policyholder. Here are the terms of our loan on ILP policy:
1. We allow a loan of up to 50% of the cash value.
2. We will ask the policyholder to make partial payment, if the loan reaches 70% of the cash value, so that there is always a 30% margin. The repayment can be done by partial surrender of the units.
3. Interest rate is at the same rate as for traditional policy, ie 5.5% per annum.
Practice to be a Logic9 champion
NTUC Income will launch this interesting game in a special website by early July.
You can practice at our website to be a champion in Logic9 (also known as Sudoku). This game is a craze around the world.
This game is good for children to practice their mathemathics and logic, and also for older folks to keep their mind alert!
You can register a personal account. You can practice through 5 levels, from "very easy" to "complex". You will get hints and tips to guide you.
When you can complete a complex puzzle within the time limit, you will become a champion. You will get a certificate, and be invited to participate in national competition!
We may even organise international competitions!
Tentative website: www.logic9.com.sg
You can practice at our website to be a champion in Logic9 (also known as Sudoku). This game is a craze around the world.
This game is good for children to practice their mathemathics and logic, and also for older folks to keep their mind alert!
You can register a personal account. You can practice through 5 levels, from "very easy" to "complex". You will get hints and tips to guide you.
When you can complete a complex puzzle within the time limit, you will become a champion. You will get a certificate, and be invited to participate in national competition!
We may even organise international competitions!
Tentative website: www.logic9.com.sg
Sunday, June 25, 2006
Stolen Car was recovered through tracking device
A policyholder installed a car tracking device in his new Toyota Wish car under a 4-year installment scheme promoted by NTUC Income.
On 25 June, he reported that his car was stolen in Johore Bahru.
Within 5 minutes, the car tracking service was able to pinpoint the car location at a specific place in Skudai, Johor. The Skudai police was alerted. They immediately dispatched several policemen to the location and recovered the car. One car thief was also caught.
On arrival, the owner found that the car thieves have disabled the usual security devices, but they were not able to locate the tracker which was installed at a hidden place in the car.
The owner enjoyed a significant discount in his insurance premium, by installing the tracking device. He also had the satisfaction of seeing the recovery of his car. He avoids the hassle of making a theft claim, which can take a few weeks to settle.
On 25 June, he reported that his car was stolen in Johore Bahru.
Within 5 minutes, the car tracking service was able to pinpoint the car location at a specific place in Skudai, Johor. The Skudai police was alerted. They immediately dispatched several policemen to the location and recovered the car. One car thief was also caught.
On arrival, the owner found that the car thieves have disabled the usual security devices, but they were not able to locate the tracker which was installed at a hidden place in the car.
The owner enjoyed a significant discount in his insurance premium, by installing the tracking device. He also had the satisfaction of seeing the recovery of his car. He avoids the hassle of making a theft claim, which can take a few weeks to settle.
Align interest of fund manager and investors
Some fund managers claim that they align their interest with the investors by taking a share of the performance of the fund. This gives them the incentive to work hard and make the fund perform well.
This observation applies mainly to funds that have high performance fees, such as REITs, business trusts, hedge funds, quant funds and private equity funds. It also applies to companies that grant stock options with striking prices that are equal or just slightly above the current market price.
Do not be "taken in" by this statement.
For a fund manager to make this claim, they should be prepared to take a basic fee that is much lower than the market.
For example, the manager of a private equity fund usually charge an annual fee of 2% to 3% of the assets under management.
If the fund manager is "aligned", the manager should be prepared to charge a lower basic fee (e.g. 1%) and take a share of the gain in excess a hurdle rate.
For example, the performance fee can be 20% of the earnings of the fund, in excess of the hurdle rate of 6%. In this case, if the fund earns 10%, the fund manager will get 20% of 4%, ie an additonal 0.8%, as performance fee. This is additional to the basic fee of 1%.
If the fund earns less than the hurdle rate, the fund manager takes only the basic fee, which is lower than the market. In this way, the fund manager is "aligned".
If the fund manager wants to earn the usual fee and a large perfomance fee, the fund manager is "greedy" and not "aligned".
This observation applies mainly to funds that have high performance fees, such as REITs, business trusts, hedge funds, quant funds and private equity funds. It also applies to companies that grant stock options with striking prices that are equal or just slightly above the current market price.
Do not be "taken in" by this statement.
For a fund manager to make this claim, they should be prepared to take a basic fee that is much lower than the market.
For example, the manager of a private equity fund usually charge an annual fee of 2% to 3% of the assets under management.
If the fund manager is "aligned", the manager should be prepared to charge a lower basic fee (e.g. 1%) and take a share of the gain in excess a hurdle rate.
For example, the performance fee can be 20% of the earnings of the fund, in excess of the hurdle rate of 6%. In this case, if the fund earns 10%, the fund manager will get 20% of 4%, ie an additonal 0.8%, as performance fee. This is additional to the basic fee of 1%.
If the fund earns less than the hurdle rate, the fund manager takes only the basic fee, which is lower than the market. In this way, the fund manager is "aligned".
If the fund manager wants to earn the usual fee and a large perfomance fee, the fund manager is "greedy" and not "aligned".
Send an e-mail to me
If you have any specific question that need my answer, please send an e-mail directly to me at tankl@income.coop. I find it difficult to reply to comments that are posted in my blog.
Letter to annuitants
24 June 2006
Editor
Straits Times Online Forum
I refer to the letter from Heng Cho Choon entitled "NTUC Income's letter to policy-holders sounds threatening. It smacks of insensitivity" (June 24, 2006).
I have taken note of Heng's views. We will consider his suggestion to improve the wording of the letter.
Under a life annuity, the payment is made only to the annuitant during his or her lifetime. We are required to verify that the annuitant is still alive, before making the payment.
Over the past years, we have considered several other options of verifying this fact, including the options suggested by Mr Heng. Each of these option have drawbacks and cannot be relied upon.
In past years, we did use different wordings, such as the kind suggested by Mr Heng. They did not appear to have the impact, as many annuitants failed to reply to us. This caused a lot of difficulty and unnecessary expense in the follow up.
If we continue to pay to annuitants who have died, the additional payment will reduce the bonus payable to the surviving annuitants. This will not be fair to them. We have a duty to act diligently.
NTUC Income has 30,000 annuitants that have to be paid each month. We hold a 65 percent share of all life annutiies sold in Singapore. This number is expected to increase significantly in the future, as more people choose to invest in this type of plan, as it gives an attractive return and is more suitable to the older folks.
We are sensitive to the feelings of our customers. We want to be as polite as possible, but we still have to bring the message across.
Tan Kin Lian
Chief Executive Officer
NTUC Income
Editor
Straits Times Online Forum
I refer to the letter from Heng Cho Choon entitled "NTUC Income's letter to policy-holders sounds threatening. It smacks of insensitivity" (June 24, 2006).
I have taken note of Heng's views. We will consider his suggestion to improve the wording of the letter.
Under a life annuity, the payment is made only to the annuitant during his or her lifetime. We are required to verify that the annuitant is still alive, before making the payment.
Over the past years, we have considered several other options of verifying this fact, including the options suggested by Mr Heng. Each of these option have drawbacks and cannot be relied upon.
In past years, we did use different wordings, such as the kind suggested by Mr Heng. They did not appear to have the impact, as many annuitants failed to reply to us. This caused a lot of difficulty and unnecessary expense in the follow up.
If we continue to pay to annuitants who have died, the additional payment will reduce the bonus payable to the surviving annuitants. This will not be fair to them. We have a duty to act diligently.
NTUC Income has 30,000 annuitants that have to be paid each month. We hold a 65 percent share of all life annutiies sold in Singapore. This number is expected to increase significantly in the future, as more people choose to invest in this type of plan, as it gives an attractive return and is more suitable to the older folks.
We are sensitive to the feelings of our customers. We want to be as polite as possible, but we still have to bring the message across.
Tan Kin Lian
Chief Executive Officer
NTUC Income
Saturday, June 24, 2006
The person that I admire most
CONTRIBUTION TO CEO TALKS, LIANHE ZAOBAO
I admire Bill Gates, the founder of Microsoft.
After making many billions of dollars, he and his wife decided to donate most of their wealth to charity. They set up a foundation.
The foundation is generous in giving money for worthy causes, to improve the health and lives of millions of poor people around the world.
They decide to distribute their wealth during their lifetime, and not after they have passed away.
They take another step, that is not widely known. They insist that the donee organisations provide an external audit on how their donation is being spent. This ensures that the money is used mainly to benefit the beneficiaries and are not being wasted away.
Wow. Isn't it great?
I admire Bill Gates, the founder of Microsoft.
After making many billions of dollars, he and his wife decided to donate most of their wealth to charity. They set up a foundation.
The foundation is generous in giving money for worthy causes, to improve the health and lives of millions of poor people around the world.
They decide to distribute their wealth during their lifetime, and not after they have passed away.
They take another step, that is not widely known. They insist that the donee organisations provide an external audit on how their donation is being spent. This ensures that the money is used mainly to benefit the beneficiaries and are not being wasted away.
Wow. Isn't it great?
Do not send policy loan statement?
Some policyholder request that we do not send the loan statement to them. The probably do not want their family members to know that they have taken a loan against their insurance policy.
We are not able to handle this specific request. We have a duty to send a loan statement to our policyholders.
The policyholder can change the mailing address (eg use a postal box) or give us an e-mail address. We will send all correspendence to the postal box or e-mail address.
We are not able to handle this specific request. We have a duty to send a loan statement to our policyholders.
The policyholder can change the mailing address (eg use a postal box) or give us an e-mail address. We will send all correspendence to the postal box or e-mail address.
Delay and mistake in handling upgrading of Incomeshield
A policyholder was unhappy with the delay and mistake in the handling of his upgrading of Incomeshield. I gave this reply to him.
As some other policyholders may be facing the same frustration, I wish to share this reply.
--------------------------------
Dear
I am sorry about the trouble that you went through in this matter.
We received 20,000 requests for upgrading the Incomeshield enhanced plan. Due to the large volume, some mistakes were made. Your case must be one of them.
Apart from the processing the work, my colleagues have to answer many difficult questions. They take a lot of time.
Several of my colleages were not able to take the work pressure. They resigned. This adds to the pressure on the remaining colleagues.
I hope that you will give us some time to sort out this problem. I do apologise for the trouble that you faced.
As some other policyholders may be facing the same frustration, I wish to share this reply.
--------------------------------
Dear
I am sorry about the trouble that you went through in this matter.
We received 20,000 requests for upgrading the Incomeshield enhanced plan. Due to the large volume, some mistakes were made. Your case must be one of them.
Apart from the processing the work, my colleagues have to answer many difficult questions. They take a lot of time.
Several of my colleages were not able to take the work pressure. They resigned. This adds to the pressure on the remaining colleagues.
I hope that you will give us some time to sort out this problem. I do apologise for the trouble that you faced.
Overwhelming response to Enhanced Incomeshield
24 June, 2006
Editor
Forum Page
Straits Times
We refer to the letter by Mr Harry Chia Kim Seng, “Why were some not told of Enhanced Incomeshield?” (Straits Times, 23 June).
NTUC Income introduced the Enhanced Incomeshield plan on 1 May 2006. Compared to the basic plan, the enhanced plan provides full coverage (excluding the mandatory deductible and co-insurance), but it requires payment of a slightly higher premium.
The details of the new plans were announced in the media and in our website, www.income.coop.
As this is a different plan, we asked our insurance advisers to contact the existing customers and advice them individually of the option to upgrade to the enhanced plan.
The response was overwhelming.We received 20,000 requests within a few weeks. My office colleagues were not able to cope with the large number of requests. Some have resigned due to the work pressure. We are trying to cope with this situation and to clear the backlog of work.
We have now decided to implement a different approach. We will be writing to all existing policyholders in batches over the next 12 months. We will be telling them about the new plan, and include a FAQ (frequently asked questions).
As we have 800,000 policyholders, we still have to handle 65,000 policyholders each month. We expect it to be a challenging exercise. We also have to recruit and train the additional people to handle the expected large volume of requests.
I hope that our policyholders can be patient and wait for the letter to be sent to them over the next 12 months. In the meantime, they are covered under the basic plan, which does cover a large part of the medical expenses anyway, subject to the existing limits.
More information on the Enhanced Incomeshield plan is available at our website, www.income.coop/insurance/enhanceshield.
Tan Kin Lian
Chief Executive Officer
NTUC Income
Editor
Forum Page
Straits Times
We refer to the letter by Mr Harry Chia Kim Seng, “Why were some not told of Enhanced Incomeshield?” (Straits Times, 23 June).
NTUC Income introduced the Enhanced Incomeshield plan on 1 May 2006. Compared to the basic plan, the enhanced plan provides full coverage (excluding the mandatory deductible and co-insurance), but it requires payment of a slightly higher premium.
The details of the new plans were announced in the media and in our website, www.income.coop.
As this is a different plan, we asked our insurance advisers to contact the existing customers and advice them individually of the option to upgrade to the enhanced plan.
The response was overwhelming.We received 20,000 requests within a few weeks. My office colleagues were not able to cope with the large number of requests. Some have resigned due to the work pressure. We are trying to cope with this situation and to clear the backlog of work.
We have now decided to implement a different approach. We will be writing to all existing policyholders in batches over the next 12 months. We will be telling them about the new plan, and include a FAQ (frequently asked questions).
As we have 800,000 policyholders, we still have to handle 65,000 policyholders each month. We expect it to be a challenging exercise. We also have to recruit and train the additional people to handle the expected large volume of requests.
I hope that our policyholders can be patient and wait for the letter to be sent to them over the next 12 months. In the meantime, they are covered under the basic plan, which does cover a large part of the medical expenses anyway, subject to the existing limits.
More information on the Enhanced Incomeshield plan is available at our website, www.income.coop/insurance/enhanceshield.
Tan Kin Lian
Chief Executive Officer
NTUC Income
Friday, June 23, 2006
NTUC Income: Cooperative, your partner for a better life
Life is so uncertain - jobs, health, family, happiness.
You are willing to work hard to give the best to your family and loved ones.
You need a strong organisation to back you - one who understands you, is trustworthy, willing to do the best for you above all else.
NTUC Income: Cooperative, your partner for a better life.
You are willing to work hard to give the best to your family and loved ones.
You need a strong organisation to back you - one who understands you, is trustworthy, willing to do the best for you above all else.
NTUC Income: Cooperative, your partner for a better life.
To Sudoku enthusiasts
Logic9 is our version of the popular game, Sudoku. It appears daily in Today paper and MyPaper.
Logic9 is available at several Fairprice supermarkets and bookstores. The pocketbook (suitable for your practice in the train, bus or plan) sells for $5.
It is available in 4 volumes. Each volume contains 128 puzzles at 4 levels. Each puzzle has an unique answer. The answers are given at the book (but you should not cheat). For the beginners, there are 4 tips which guide you on how solve the puzzle.
Yo can also buy the CD version (to play on your personal computer) for $5. It has 64 puzzles with 10 sets of symbols, giving a total of 640 combinatins.
For the experts, try volume 5 and 6 (available in August). It has complex puzzles at 4 levels. Each puzzle has more than 1 solution. At some point in the puzzle, you have to guess the number and see if it is right. If not, you can go back and change the number.
You can try it at www.income.coop/logic9
Good luck.
Logic9 is available at several Fairprice supermarkets and bookstores. The pocketbook (suitable for your practice in the train, bus or plan) sells for $5.
It is available in 4 volumes. Each volume contains 128 puzzles at 4 levels. Each puzzle has an unique answer. The answers are given at the book (but you should not cheat). For the beginners, there are 4 tips which guide you on how solve the puzzle.
Yo can also buy the CD version (to play on your personal computer) for $5. It has 64 puzzles with 10 sets of symbols, giving a total of 640 combinatins.
For the experts, try volume 5 and 6 (available in August). It has complex puzzles at 4 levels. Each puzzle has more than 1 solution. At some point in the puzzle, you have to guess the number and see if it is right. If not, you can go back and change the number.
You can try it at www.income.coop/logic9
Good luck.
Thursday, June 22, 2006
High customer satisfaction for motor repairs
Each month, we handle about 550 repairs of motor cars at our quality workshop. The repars are arranged by us through a tender. Here is the satisfaction rate:
There is a high satisfaction rate (more than 90%) given by our customers.
By arranging the repair, we are able to bring down the repair cost by about 20% and to reduce our premium rate. We are able to get high customer satisfaction.
Service by claim officer 96%
Service by IDAC 96%
Service of workshop 93%
Quality of repair 93%
Promptness of repair 95%
There is a high satisfaction rate (more than 90%) given by our customers.
By arranging the repair, we are able to bring down the repair cost by about 20% and to reduce our premium rate. We are able to get high customer satisfaction.
Bank customer is unhappy with a structured deposit
FROM A BANK CUSTOMER
Dear Mr Tan
I would like to share with you my agony and appreciate your advice.
In May 2004, I was persuaded to purchase a product named interest rate-linked structured deposit (5 years) by a local bank.
Barrier range of interest using 6 mth-SGD-SOR rated compiled by the Assn of Banks in Singapore.
Around Mar 2005, I was told the bank wanted to terminate the fund. It will start a new fund, adjusting the Barrier interest rate to 3.25 reason. The bank expected interest to go up.
The other terms and condition remain the same as the earlier deposit. I was also assured that it is unlikely to have zero payment and is a very safe product.
This year, my second quarter payment indicate that the interest is zero. I queried the officer and was told because the interest rate has shoot above the 3.25 barrier.
When I asked to withdraw the product, I was shocked that I had to pay a penalty of 10% to the bank.
The officer assured me the bank will try to close the fund when the interest rate comes down as it is too expensive for them to replace the fund now.
I felt so confused as in the cover letter the Pre-matured withdrawal Fee states:
"If a depositor wants to pre-maturely withdraw the deposit, it can only be done on a monthly basis and customer must pay a pre-mature withdrawal Fee, derived as the cost of replacing the above deposit at market rates for such tenor. A minimum of 1% will be imposed if such pre-matured withdrawal is made within the first 6 months. "
At that time, the officer told me that the pre-mature withdrawal fee is 1%. Now I was told is 10% (ie $7,000 plus penalty for my $50,000 structured deposit.)
The bank can terminate the fund early without penalty. When customer wants to terminated, the cusotmer has to pay l0% penalty, and not l% as mentioned early withdrawal fee and informed by the officer.
I bought this product earlier because I was told that it is like a fixed deposit, is very safe, and is not linked to any equities or currency. I would appreciate if you can enlighten me on this matter.
REPLY
I suggest that you write to the CEO of the bank and raise the facts as you have presented. Ask the CEO to explain why the penalty is 10% and why there is no interest payment. It is the bank's duty to explain the product to the customer.
Dear Mr Tan
I would like to share with you my agony and appreciate your advice.
In May 2004, I was persuaded to purchase a product named interest rate-linked structured deposit (5 years) by a local bank.
Barrier range of interest using 6 mth-SGD-SOR rated compiled by the Assn of Banks in Singapore.
Around Mar 2005, I was told the bank wanted to terminate the fund. It will start a new fund, adjusting the Barrier interest rate to 3.25 reason. The bank expected interest to go up.
The other terms and condition remain the same as the earlier deposit. I was also assured that it is unlikely to have zero payment and is a very safe product.
This year, my second quarter payment indicate that the interest is zero. I queried the officer and was told because the interest rate has shoot above the 3.25 barrier.
When I asked to withdraw the product, I was shocked that I had to pay a penalty of 10% to the bank.
The officer assured me the bank will try to close the fund when the interest rate comes down as it is too expensive for them to replace the fund now.
I felt so confused as in the cover letter the Pre-matured withdrawal Fee states:
"If a depositor wants to pre-maturely withdraw the deposit, it can only be done on a monthly basis and customer must pay a pre-mature withdrawal Fee, derived as the cost of replacing the above deposit at market rates for such tenor. A minimum of 1% will be imposed if such pre-matured withdrawal is made within the first 6 months. "
At that time, the officer told me that the pre-mature withdrawal fee is 1%. Now I was told is 10% (ie $7,000 plus penalty for my $50,000 structured deposit.)
The bank can terminate the fund early without penalty. When customer wants to terminated, the cusotmer has to pay l0% penalty, and not l% as mentioned early withdrawal fee and informed by the officer.
I bought this product earlier because I was told that it is like a fixed deposit, is very safe, and is not linked to any equities or currency. I would appreciate if you can enlighten me on this matter.
REPLY
I suggest that you write to the CEO of the bank and raise the facts as you have presented. Ask the CEO to explain why the penalty is 10% and why there is no interest payment. It is the bank's duty to explain the product to the customer.
Wheel cramp - release fee $100
I saw a sign next to a building: "Illegally parked vehicle will be wheel-clamped. Release fee $100".
Does the owner of the building have the right to do this? Is the fee reasonable or exorbitant? Can the owner charge $500?
Does the owner of the building have the right to do this? Is the fee reasonable or exorbitant? Can the owner charge $500?
Key features of Flexi Cash
Earn a better interest rate on your savings account!
Do you want to earn 3% on your savings? And have the flexibility to withdraw your money at any time?
Flexi Cash from NTUC Income is a better choice:
- this is an investment-linked plan
- your saving is invested in the money market
- the interest rate is currently around 3% (but may be subject to change with the market)
- minimum saving of $5,000
- saving is subject to a very small investment charge of 0.1% (during the promtion period)
- no restriction on withdrawal
Interested? Call 6788 1111
Do you want to earn 3% on your savings? And have the flexibility to withdraw your money at any time?
Flexi Cash from NTUC Income is a better choice:
- this is an investment-linked plan
- your saving is invested in the money market
- the interest rate is currently around 3% (but may be subject to change with the market)
- minimum saving of $5,000
- saving is subject to a very small investment charge of 0.1% (during the promtion period)
- no restriction on withdrawal
Interested? Call 6788 1111
High cost of education
Some financial planners alarm parents about the high cost of education.
For example, the cost of getting a basic degree is:
Assume cost increase by 4% per year for all countries. Estimates based on 4 year course, except for Australia (3 years). Cost for overseas education includes tuition fees and living expenses.
Assuming an investment return of 6% per annum (not guaranteed), the parent has to save between $250 to $1,750 a month.
That is a lot of money.
Fortunately, most students enjoy a subsidy (if they go to a university in Singapore) or if they qualify for a scholarship in a foreign university. Some of them work to pay for their expenses.
Still, it is useful for the parent to have some regular savings to provide part of the cost of their children's education.
I recommend a monthly saving of $100 to $300 per child. This depends on the financial means of the parents.
For example, the cost of getting a basic degree is:
Today 15 yrs Monthly
Later saving
Singapore $40,000 $72,000 $250
Australia $160,000 $288,000 $1,000
USA $280,000 $504,000 $1,750
UK $270,000 $486,000 $1,700
Assume cost increase by 4% per year for all countries. Estimates based on 4 year course, except for Australia (3 years). Cost for overseas education includes tuition fees and living expenses.
Assuming an investment return of 6% per annum (not guaranteed), the parent has to save between $250 to $1,750 a month.
That is a lot of money.
Fortunately, most students enjoy a subsidy (if they go to a university in Singapore) or if they qualify for a scholarship in a foreign university. Some of them work to pay for their expenses.
Still, it is useful for the parent to have some regular savings to provide part of the cost of their children's education.
I recommend a monthly saving of $100 to $300 per child. This depends on the financial means of the parents.
eNN: News about your neighbourhood
NTUC Income started the electronic newsletter a year ago.
100,000 subscribers now receive this e-newsletter free-of-charge twice a week, on Tuesdays and Fridays.
Our objective is to informs subscribers of special events in the neighbourhood and help to promote neighbourliness, local jobs and local businesses. It contains sales offers, services, announcements and much more.
We have divided Singapore into 20 neighbourhoods. I subscribe to Ang Mo Kio and Paya Lebar / East Coast neighbourhoods.
You can go to www.enn.com.sg to subscribe eNN of your own neighbourhood. Subscription is FREE.
100,000 subscribers now receive this e-newsletter free-of-charge twice a week, on Tuesdays and Fridays.
Our objective is to informs subscribers of special events in the neighbourhood and help to promote neighbourliness, local jobs and local businesses. It contains sales offers, services, announcements and much more.
We have divided Singapore into 20 neighbourhoods. I subscribe to Ang Mo Kio and Paya Lebar / East Coast neighbourhoods.
You can go to www.enn.com.sg to subscribe eNN of your own neighbourhood. Subscription is FREE.
Tuesday, June 20, 2006
Cross selling works wonders
Our consultant at the business center followed up on a customer who bought a low cost term insurance (i-term).
The consultant informed the customer about Enhanced Incomeshield. The customer is convinced about this plan. She took it for herself and her son. She is getting the whole family to join the plan.
Cross selling works wonders!
The consultant informed the customer about Enhanced Incomeshield. The customer is convinced about this plan. She took it for herself and her son. She is getting the whole family to join the plan.
Cross selling works wonders!
Customer likes our website
Dear sir,
Thank you for your prompt reply. I'm relieved I won't be rejected or loaded on renewal of our Incomeshield plan, should I get sick after getting insured.
I already read all the details provided in the website before submitting my application.
NTUC Income has my vote for the best website among all the insurers because it's easy to navigate and all the information is there, including the policy documents. This way, I know exactly what I'm buying, thanks.
Thank you for your prompt reply. I'm relieved I won't be rejected or loaded on renewal of our Incomeshield plan, should I get sick after getting insured.
I already read all the details provided in the website before submitting my application.
NTUC Income has my vote for the best website among all the insurers because it's easy to navigate and all the information is there, including the policy documents. This way, I know exactly what I'm buying, thanks.
Monday, June 19, 2006
97% prefer the lower premium
Under our quality plan, we carry out the repair as follows:
- if the damages involve the engine or integrity of the car, we will repair at the dealer's workshop
- for minor repair, we repair at our quality workshop and take over the warranty (if it is voided by the dealer).
Earlier this year, we provided an option for the owner to pay a 25% loading in the premium (for a car less than 3 years old), for the repairs to be done at the dealer's workshop, in all cases (including minor repairs).
Out of 3,000 cases that are eligible for this optional plan, only 3% are willing to pay the higher premium. The other 97% prefer the lower premium, and accept the standard package.
- if the damages involve the engine or integrity of the car, we will repair at the dealer's workshop
- for minor repair, we repair at our quality workshop and take over the warranty (if it is voided by the dealer).
Earlier this year, we provided an option for the owner to pay a 25% loading in the premium (for a car less than 3 years old), for the repairs to be done at the dealer's workshop, in all cases (including minor repairs).
Out of 3,000 cases that are eligible for this optional plan, only 3% are willing to pay the higher premium. The other 97% prefer the lower premium, and accept the standard package.
Lessons on market volatility
Three weeks ago, the FED chairman, Bernarke, made some comments about inflation in the USA. It caused the global stockmarkets to fall by 10% to 20%.
A few days ago, he made some positive comments. The global stockmarket recovered by 2% to 4%.
What are the lessons?
- the stockmarkets are volatile
- a long term investor can ignore the volatility
- the monetary authorities around the world want to have a robust stockmarket
Any conclusion? It is better to invest when the stockmarkets are down?
A few days ago, he made some positive comments. The global stockmarket recovered by 2% to 4%.
What are the lessons?
- the stockmarkets are volatile
- a long term investor can ignore the volatility
- the monetary authorities around the world want to have a robust stockmarket
Any conclusion? It is better to invest when the stockmarkets are down?
Sunday, June 18, 2006
NTUC Income will support parallel importers of cars
NTUC Income will support parallel importers of cars in the following ways:
- get customers for them
- provide financing
- provide warranty, damage and liability insurance
We have made contacts with several parallel importers who are willing to bring in cars on the orders from our customers.
We hope to be able to save a few thousand dollars to car owners for the purchase of their cars, including COEs, and also on the cost of servicing their cars (as the general workshops are able to reduce the cost significantly).
Wait for further announcement.
- get customers for them
- provide financing
- provide warranty, damage and liability insurance
We have made contacts with several parallel importers who are willing to bring in cars on the orders from our customers.
We hope to be able to save a few thousand dollars to car owners for the purchase of their cars, including COEs, and also on the cost of servicing their cars (as the general workshops are able to reduce the cost significantly).
Wait for further announcement.
Customer says: Thank you for insuring me!
FROM A CUSTOMER
Dear Mr Tan,
I always have difficulty getting health shield plans due to my medical conditions. That is until I tried applying for NTUC IncomeShield!
I thought I will go through rounds of medical examination again and the insurer will drag my case. But not with your company! I walked into your Tampines Business Centre on 29 May and received the policy document on 14 June 06. What promptness and efficiency!
I also thought loading will be imposed. Surprisingly, NTUC Income didn't! Very thankful for that. More than that, there are even vouchers given to me for taking up the policy!
I wish to commend your staff Ms Wendy Soong at the Tampines Business Centre as well. She answered my questions well. Insuring myself with NTUC Income has been a pleasant experience indeed.
Dear Mr Tan,
I always have difficulty getting health shield plans due to my medical conditions. That is until I tried applying for NTUC IncomeShield!
I thought I will go through rounds of medical examination again and the insurer will drag my case. But not with your company! I walked into your Tampines Business Centre on 29 May and received the policy document on 14 June 06. What promptness and efficiency!
I also thought loading will be imposed. Surprisingly, NTUC Income didn't! Very thankful for that. More than that, there are even vouchers given to me for taking up the policy!
I wish to commend your staff Ms Wendy Soong at the Tampines Business Centre as well. She answered my questions well. Insuring myself with NTUC Income has been a pleasant experience indeed.
Friday, June 16, 2006
Stockmarkets will recover
Compared to the peak a few weeks ago, the stockmarkets have fallen by 9% to 17% to the lows.
Many of these markets are now recovering. If you invest in the stockmarket now, you pay a much lower price than the recent peak.
----------------------------------
Is there a chance that it may go lower?
Yes, but it is a small chance. The worse case scenario was during September 1987. The stockmarket crashed by 19% over 2 months. However, the crash was temporary. Within 11 months, it fully recovered to the level before the crash.
Peak Low %
Nikkei Japan 17291 14218 -17.8%
STI, Singapore 2660 2297 -13.6%
Nasdaq, USA 2345 2072 -11.6%
Dow Jones, USA 11642 10706 -8.0%
Many of these markets are now recovering. If you invest in the stockmarket now, you pay a much lower price than the recent peak.
----------------------------------
Is there a chance that it may go lower?
Yes, but it is a small chance. The worse case scenario was during September 1987. The stockmarket crashed by 19% over 2 months. However, the crash was temporary. Within 11 months, it fully recovered to the level before the crash.
Money market fund earns good return
Here is the return on our money market fund, net of expenses, during the past 12 months:
The interest rate has been increasing during the past year. The interest for the latest period is 0.74% for 3 months, or 2.96% per year.
Interest rate is likely to increase over the next few months. The return from the money market fund is likely to exceed 3% (but not guaranteed).
3 months to:
31 Aug 05 0.47%
31 Nov 05 0.45%
31 Feb 06 0.67%
31 May 06 0.74%
The interest rate has been increasing during the past year. The interest for the latest period is 0.74% for 3 months, or 2.96% per year.
Interest rate is likely to increase over the next few months. The return from the money market fund is likely to exceed 3% (but not guaranteed).
Thursday, June 15, 2006
Bonus Cut and Restoration
A policyholder complained that his insurer (not NTUC Income) cut bonuses on all insurance policies in bad times but restored them selectively in good times.
He had two endowment policies outstanding with the company. The bonuses were cut in 1999 and have not been restored since then and the terminal bonus is still in suspension.
According to him, the insurer "was trigger happy to cut bonus rates on its policies during bad times, but during good or better times, restoration was applicable only to policies that matured in certain years. Why was restoration of bonus rates not accorded to all its policies in the same spirit as during the reduction exercise?"
He had two endowment policies outstanding with the company. The bonuses were cut in 1999 and have not been restored since then and the terminal bonus is still in suspension.
According to him, the insurer "was trigger happy to cut bonus rates on its policies during bad times, but during good or better times, restoration was applicable only to policies that matured in certain years. Why was restoration of bonus rates not accorded to all its policies in the same spirit as during the reduction exercise?"
Customer is happy with business center
A customer visited our Business Centre to ask about motor insurance. Our insurance consultant attended to her.
Our premiums are slightly lower than the current insurer. In particular, she liked our convenient operating hours which is until 6:30pm.
She was very pleased with our service. She SMS to say, "Many thanks. This is truly customer service!"
Our premiums are slightly lower than the current insurer. In particular, she liked our convenient operating hours which is until 6:30pm.
She was very pleased with our service. She SMS to say, "Many thanks. This is truly customer service!"
A buying opportunity?
The market correction has been more severe than I had expected.
The Japan market has dropped by 20% from its peak. The Singapore market dropped by about 15%. The US market dropped by about 10%.
The combined fund (growth) from NTUC Income probably dropped by about 7% to 10%. It dropped less than the other markets, due to a 30% component invested in bonds.
Here is the good news for long term investors. You have the chance to invest now, at a much lower price. And benefit from the long term appreciation of the investment funds.
I have an additional $100,000 to be invested. I shall be deciding within the next two weeks.
The Japan market has dropped by 20% from its peak. The Singapore market dropped by about 15%. The US market dropped by about 10%.
The combined fund (growth) from NTUC Income probably dropped by about 7% to 10%. It dropped less than the other markets, due to a 30% component invested in bonds.
Here is the good news for long term investors. You have the chance to invest now, at a much lower price. And benefit from the long term appreciation of the investment funds.
I have an additional $100,000 to be invested. I shall be deciding within the next two weeks.
Tuesday, June 13, 2006
Additional cover for renting a car overseas
If you rent a car for driving overseas, you may be required to pay up an additional $20 a day for the additional third party cover (over and above the basic cover provided in the basic rental). This is quite high.
If you are insured with NTUC Income and have NCD of 20% or more, you can get this additional cover at a 50% discount from us. You can save $10 per day.
Call 6332 3456. More details can be found in our website.
If you are insured with NTUC Income and have NCD of 20% or more, you can get this additional cover at a 50% discount from us. You can save $10 per day.
Call 6332 3456. More details can be found in our website.
Are pre-existing conditions excluded?
QUESTION
I am a civil servant. I have been covered under CPF Medishield since its introduction. I did not opt out from Medishield, even through I am covered for medical benefits by the civil service.
I attended your educational talk and wish to move to IncomeShield for better coverage. But I am afraid that any pre-existing illness will not be covered under IncomeShield. What is your advice
REPLY
If you wish to know whether you can be covered under Incomeshield, all you have to do is put in an application. It cost you nothing.
If there is any exclusion for pre-existing conditions, we will ask for your agreement. The exclusion, if any, will be endorsed on your policy.
If your pre-existing conditions are properly disclosed to us and are not endorsed as exclusion, you will be covered.
When you opt for Incomeshield, you will continue to be covered by Medishield for all your pre-existing conditions.
I am a civil servant. I have been covered under CPF Medishield since its introduction. I did not opt out from Medishield, even through I am covered for medical benefits by the civil service.
I attended your educational talk and wish to move to IncomeShield for better coverage. But I am afraid that any pre-existing illness will not be covered under IncomeShield. What is your advice
REPLY
If you wish to know whether you can be covered under Incomeshield, all you have to do is put in an application. It cost you nothing.
If there is any exclusion for pre-existing conditions, we will ask for your agreement. The exclusion, if any, will be endorsed on your policy.
If your pre-existing conditions are properly disclosed to us and are not endorsed as exclusion, you will be covered.
When you opt for Incomeshield, you will continue to be covered by Medishield for all your pre-existing conditions.
Approved: 8 cases of reverse mortgage on HDB flats
We have approved 8 cases of reverse mortgage on HDB flats during the past 3 months for a total of $657,000. The average loan is $82,000, to be withdrawn in monthly installment over the loan period (of up to 20 years).
Another 4 cases are being processed.
We received many enquiries, but the number of applications is still small at this time.
Another 4 cases are being processed.
We received many enquiries, but the number of applications is still small at this time.
Monday, June 12, 2006
Competitor's agent tell a blatant lie!
A customer ask a competitor's agent, "Is it true that the investment-linked plan from your company takes away 19 months of my savings, compared to 7 months by NTUC Income?"
The agent said, "Oh, our 19 monhts is already built into the premium. The 9 months from NTUC Income is an additional charge."
It is a blatant lie. But, the agent knows how to tell it in a convincing way. The customer is too confused and afraid to ask for the agent to explain.
Lesson: The only way for the competitor's agent to get away with a high charge of 19 months is to tell a blatant lie. Do not trust this agent. He is only interested to earn a big commision on the sale.
The agent said, "Oh, our 19 monhts is already built into the premium. The 9 months from NTUC Income is an additional charge."
It is a blatant lie. But, the agent knows how to tell it in a convincing way. The customer is too confused and afraid to ask for the agent to explain.
Lesson: The only way for the competitor's agent to get away with a high charge of 19 months is to tell a blatant lie. Do not trust this agent. He is only interested to earn a big commision on the sale.
Sunday, June 11, 2006
An idea - start the school year in 4 enrolment dates
I suggest that the school year should have 4 enrolment dates, ie in January, April, July and October.
This allows parents to send their child to a school immediately after the birthday, rather than to wait for up to 11 months.
We can divide the schools into 4 groups, to start at the various enrolment dates.
In the future, parents can plan to have their children born in the same time of the year, so that they can go to the same school.
If there are born at different months of the year, the parent can still find the enrolment date that is most convenient for both children.
This approach will also help to spread the school holdays throughout the year. As the school holidays are spread out, parents do not have to pay a higher price for air tickets and hotels.
It is time to move to a more flexible system.
This allows parents to send their child to a school immediately after the birthday, rather than to wait for up to 11 months.
We can divide the schools into 4 groups, to start at the various enrolment dates.
In the future, parents can plan to have their children born in the same time of the year, so that they can go to the same school.
If there are born at different months of the year, the parent can still find the enrolment date that is most convenient for both children.
This approach will also help to spread the school holdays throughout the year. As the school holidays are spread out, parents do not have to pay a higher price for air tickets and hotels.
It is time to move to a more flexible system.
High pressure sales by a bank?
My friend told me this story.
A bank advertised interest rate of 3% for a fixed deposit of more than $50,000. This is only available when you visit the branch.
If you wish to place the same fixed deposit through their internet website, the bank pays only 1.5% per annum.
When he visited the branch, he is advised by the bank's marketing officer to change to a investment fund or structured product.
My friend is knowledgeable. So, he knows how to resist the marketing pitch.
But he said that less educated people may be persuaded to invest in the risker product, without understanding the risk.
Perhaps, it is time for the bank's marketing practice to be reviewed?
A bank advertised interest rate of 3% for a fixed deposit of more than $50,000. This is only available when you visit the branch.
If you wish to place the same fixed deposit through their internet website, the bank pays only 1.5% per annum.
When he visited the branch, he is advised by the bank's marketing officer to change to a investment fund or structured product.
My friend is knowledgeable. So, he knows how to resist the marketing pitch.
But he said that less educated people may be persuaded to invest in the risker product, without understanding the risk.
Perhaps, it is time for the bank's marketing practice to be reviewed?
Pay motor insurance and road tax in monthly installments?
Tentative (subject to change).
FAQ (frequently asked questions)
Motor Insurance Plan G
1. How do I save up to 15% on motor insurance?
NTUC Income offer competitive rates for motor insurance. For many models of cars, our rates are up to 15% lower than our competitors.
If you are now insured with another insurer and you move to us, you can enjoy a saving of up to 15%.
Just call us for a quotation. You can compare for yourself.
2. How do I pay my premium in 12 monthly installments, free of interest?
If you insure your car under this plan, we allow you to pay your premium in 12 monthly installments by GIRO. This will be free of interest.
Example:
Insurance premium: $600 a year
You can pay in 12 monthly installments of $50.
We require you to pay the installment 1 month in advance. At the start, you will pay 2 monthly installments. After that, we will collect the monthly instalments every month through GIRO.
3. How do I pay my road tax in 12 monthly installments?
You can also apply for an advance to pay your road tax. We will collect it from you in 12 monthly installments with a flat interest of 3%.
Example:
Road tax $1,200
You can pay in 12 monthly installments of $100 plus 3% = $103.
This will be combined with the monthly installment of the insurance premium.
4. How do I apply to join this plan?
Call 6788 1111 at least 2 months before the renewal date and sign an agreement and GIRO form. We will notify the Land Transport Authority and pay the road tax on your behalf.
If you already have a GIRO form with NTUC Income, we can use your existing GIRO. You do not need to sign the form again.
5. What happens if I fail to pay the instalment?
We will contact and remind you. You can pay within 14 days. There is a service charge of $3.
If you still do not pay the installment after our telephone reminder, and do not get our agreement for an extention, we will cancel your insurance policy and notify Land Transport Authority. Under the law, you will not be allowed to use your car.
We will also take legal action on you for the balance of the road tax that you have not paid. The legal cost will be charged on you.
In future, you will not be allowed to enjoy this privilege with NTUC Income.
6. What do I renew my insurance in the future?
We will send a letter to you 2 months before the renewal date and notify you about the premium and road tax for the next year. We will call you to get your confirmation to continue this arrangement.
7. Can I go through an agent?
You can go through an agent for the first year. In subsequent years, we will deal with you directly on the renewal and the road tax.
8. Can I cancel my insurance, if I find that another insurance company can offer a lower rate to me?
We believe that our premium rate will be lower than the market.
However, if you can find another insurance company willing to give you a better rate, and you wish to cancel your insurance with us, we will refund to you 85% of the proportionate premium. The 15% is used to cover our expenses.
Example:
If the premium is $600 and you cancel the insurance after 2 months, you will get a refund of 85% of $600 X 10/12 = $425.
End of FAQ
FAQ (frequently asked questions)
Motor Insurance Plan G
1. How do I save up to 15% on motor insurance?
NTUC Income offer competitive rates for motor insurance. For many models of cars, our rates are up to 15% lower than our competitors.
If you are now insured with another insurer and you move to us, you can enjoy a saving of up to 15%.
Just call us for a quotation. You can compare for yourself.
2. How do I pay my premium in 12 monthly installments, free of interest?
If you insure your car under this plan, we allow you to pay your premium in 12 monthly installments by GIRO. This will be free of interest.
Example:
Insurance premium: $600 a year
You can pay in 12 monthly installments of $50.
We require you to pay the installment 1 month in advance. At the start, you will pay 2 monthly installments. After that, we will collect the monthly instalments every month through GIRO.
3. How do I pay my road tax in 12 monthly installments?
You can also apply for an advance to pay your road tax. We will collect it from you in 12 monthly installments with a flat interest of 3%.
Example:
Road tax $1,200
You can pay in 12 monthly installments of $100 plus 3% = $103.
This will be combined with the monthly installment of the insurance premium.
4. How do I apply to join this plan?
Call 6788 1111 at least 2 months before the renewal date and sign an agreement and GIRO form. We will notify the Land Transport Authority and pay the road tax on your behalf.
If you already have a GIRO form with NTUC Income, we can use your existing GIRO. You do not need to sign the form again.
5. What happens if I fail to pay the instalment?
We will contact and remind you. You can pay within 14 days. There is a service charge of $3.
If you still do not pay the installment after our telephone reminder, and do not get our agreement for an extention, we will cancel your insurance policy and notify Land Transport Authority. Under the law, you will not be allowed to use your car.
We will also take legal action on you for the balance of the road tax that you have not paid. The legal cost will be charged on you.
In future, you will not be allowed to enjoy this privilege with NTUC Income.
6. What do I renew my insurance in the future?
We will send a letter to you 2 months before the renewal date and notify you about the premium and road tax for the next year. We will call you to get your confirmation to continue this arrangement.
7. Can I go through an agent?
You can go through an agent for the first year. In subsequent years, we will deal with you directly on the renewal and the road tax.
8. Can I cancel my insurance, if I find that another insurance company can offer a lower rate to me?
We believe that our premium rate will be lower than the market.
However, if you can find another insurance company willing to give you a better rate, and you wish to cancel your insurance with us, we will refund to you 85% of the proportionate premium. The 15% is used to cover our expenses.
Example:
If the premium is $600 and you cancel the insurance after 2 months, you will get a refund of 85% of $600 X 10/12 = $425.
End of FAQ
Saturday, June 10, 2006
Enhanced Incomeshield
1) Last year, you said that NTUC Income will not be offering a "as charged" plan. Why do you change your mind?
Reply: Here are three reasons why we decided to introduce the enhanced plan to offer "as charged" coverage:
- Some policyholders indicate that they are willing to pay a higher premium for the "as charged" plan. We wish to meet the wishes of these policyholders.
- Our "as charged" plan requires prior approval, except for emergency. This is to allow our medical adviser to give a second opinion of the proposed treatment and to avoid unnecessary treatment. In most cases, approval will be given within one day.
- We will continue to offer the basic Incomeshield, which is subject to limits for each category of treatment. Our basic plan will continue to be the most affordable in the market.
Initially, the enhanced Incomeshield cost about 15% higher than the similar basic plan, but this difference may widen in the future, based on the claim experience. We will try our best to keep the premium rates at an affordable level for the enhanced plan. It depends on our ability to prevent escalation in medical expenses.
If the gap widens, some policyholders may wish to opt back into the similar basic plan (which will continue to be available) to enjoy the lower premium rates.
Our strategy is to offer a choice for consumers.
2)An industry observer said that insurers are not fighting to get a bigger piece of the pie, but instead its a fight for healthy lives Did you face problems with unhealthy policyholders who wish to upgrade to "as charged plans.?
Reply: We will allow our existing policyholders to upgrade to the enhanced plan without any underwriting on the next renewal date. This will be hassle free. They can upgrade to the enhanced plan during this window period, even if their health condition does not meet the normal acceptance standard.
This is a privilege that we wish to give to all existing policyholders of the basic Incomeshield plan.
After the window period, they will be required to provide evidence of good health for upgrading at a future renewal date.
3) Your "as-charged" plan requires the policyholder to give 4 days advance notice before being treated in a hospital. How is this being managed? If a policyholder fails to fulfill this condition, is there a penalty?
Reply: Under the Enhanced Incomeshield Plan, we ask the policyholder to call us, four working days prior to admission to hospital to seek our guidance on admission and coverage.
We will check that the proposed medical treatment and the charges are reasonable, and give our approval as soon as possible. This can normally be done within one or two working days.
If there is any doubt, we will seek a second opinion of our medical adviser or a panel of specialists. This opinion can be obtained quite quickly.
We believe that this approach will help to reduce the possibility of unnecessary treatment or inflated charges.
In the case of emergency, there is no need to get our prior approval.
If a policyholder overlook to get our prior approval, we will still process the claim. If the medical bill is reasonably and necessary, it will be paid in full. In other cases, we will still make a partial payment, based on the limits that are provided under the basic plan.
4) What is the rate of claims for your various medical insurance plans?
We process about 60,000 claims a year, representing about 7.5% of the policyholders covered under our Incmeshield plan.
5) In the event of a dispute, where do NTUC Income and the consumer take their claims to?
Reply: We refer all disputes to an independent third party, such as the Financial Industry Dispute Resolution Center (FiDREC). Less than 1 percent of claims lead to a dispute.
6) Do you expect many new policyholders, or existing policyholders to upgrade to the "as charged" plan?
Reply: We are getting good response from existing policyholders to upgrad to the enhanced plan. We are getting many new applications as well.
Reply: Here are three reasons why we decided to introduce the enhanced plan to offer "as charged" coverage:
- Some policyholders indicate that they are willing to pay a higher premium for the "as charged" plan. We wish to meet the wishes of these policyholders.
- Our "as charged" plan requires prior approval, except for emergency. This is to allow our medical adviser to give a second opinion of the proposed treatment and to avoid unnecessary treatment. In most cases, approval will be given within one day.
- We will continue to offer the basic Incomeshield, which is subject to limits for each category of treatment. Our basic plan will continue to be the most affordable in the market.
Initially, the enhanced Incomeshield cost about 15% higher than the similar basic plan, but this difference may widen in the future, based on the claim experience. We will try our best to keep the premium rates at an affordable level for the enhanced plan. It depends on our ability to prevent escalation in medical expenses.
If the gap widens, some policyholders may wish to opt back into the similar basic plan (which will continue to be available) to enjoy the lower premium rates.
Our strategy is to offer a choice for consumers.
2)An industry observer said that insurers are not fighting to get a bigger piece of the pie, but instead its a fight for healthy lives Did you face problems with unhealthy policyholders who wish to upgrade to "as charged plans.?
Reply: We will allow our existing policyholders to upgrade to the enhanced plan without any underwriting on the next renewal date. This will be hassle free. They can upgrade to the enhanced plan during this window period, even if their health condition does not meet the normal acceptance standard.
This is a privilege that we wish to give to all existing policyholders of the basic Incomeshield plan.
After the window period, they will be required to provide evidence of good health for upgrading at a future renewal date.
3) Your "as-charged" plan requires the policyholder to give 4 days advance notice before being treated in a hospital. How is this being managed? If a policyholder fails to fulfill this condition, is there a penalty?
Reply: Under the Enhanced Incomeshield Plan, we ask the policyholder to call us, four working days prior to admission to hospital to seek our guidance on admission and coverage.
We will check that the proposed medical treatment and the charges are reasonable, and give our approval as soon as possible. This can normally be done within one or two working days.
If there is any doubt, we will seek a second opinion of our medical adviser or a panel of specialists. This opinion can be obtained quite quickly.
We believe that this approach will help to reduce the possibility of unnecessary treatment or inflated charges.
In the case of emergency, there is no need to get our prior approval.
If a policyholder overlook to get our prior approval, we will still process the claim. If the medical bill is reasonably and necessary, it will be paid in full. In other cases, we will still make a partial payment, based on the limits that are provided under the basic plan.
4) What is the rate of claims for your various medical insurance plans?
We process about 60,000 claims a year, representing about 7.5% of the policyholders covered under our Incmeshield plan.
5) In the event of a dispute, where do NTUC Income and the consumer take their claims to?
Reply: We refer all disputes to an independent third party, such as the Financial Industry Dispute Resolution Center (FiDREC). Less than 1 percent of claims lead to a dispute.
6) Do you expect many new policyholders, or existing policyholders to upgrade to the "as charged" plan?
Reply: We are getting good response from existing policyholders to upgrad to the enhanced plan. We are getting many new applications as well.
Flexi Cash is now launched
Some details are found in this webpage:
http://www.income.coop/insurance/FlexiCash/
Flexi-Cash works like a bank account. You can put money in at any time. You will earn an interest rate on your money that is linked to the money market.
Currently, the money earns about 3% per annum. It will change with the interest rate in the money market. As interest rate is likely to increase, you can earn more.
The money market (or interbank rate) is what the bank pays to get money from other banks. Usually, the bank will pay 1% to 1.5% less than the money market rate for their fixed deposit.
In NTUC Income's case, we pay 0.25% less than the money market rate. This means that you can earn about 1% more than fixed deposit.
There is a small investment charge of 0.1% when you put money into this account. So, if you keep for more than 1 month, you will get a better return than fixed deposit. Anyway, your money is not locked up for 1 year. It can be taken out at any time.
If you are interested, call 6788 1111.
http://www.income.coop/insurance/FlexiCash/
Flexi-Cash works like a bank account. You can put money in at any time. You will earn an interest rate on your money that is linked to the money market.
Currently, the money earns about 3% per annum. It will change with the interest rate in the money market. As interest rate is likely to increase, you can earn more.
The money market (or interbank rate) is what the bank pays to get money from other banks. Usually, the bank will pay 1% to 1.5% less than the money market rate for their fixed deposit.
In NTUC Income's case, we pay 0.25% less than the money market rate. This means that you can earn about 1% more than fixed deposit.
There is a small investment charge of 0.1% when you put money into this account. So, if you keep for more than 1 month, you will get a better return than fixed deposit. Anyway, your money is not locked up for 1 year. It can be taken out at any time.
If you are interested, call 6788 1111.
Friday, June 09, 2006
It's nice to hear from a happy customer
I was at the check-in queue at the airport yesterday (travelling economy class to Hanoi).
"Hi, Mr Tan".
I turned and saw a woman with a happy smile. "My name is Madam Tan. All of my insurance policies are with NTUC. I recognise you."
We shook hands. She told me that she was travelling to Bangkok.
She turned to her two companions and introduced me, "This is Mr Tan, CEO of NTUC Income". I shook hands with her friends.
It is nice to hear from a happy customer, who is proud to be with NTUC Income!
"Hi, Mr Tan".
I turned and saw a woman with a happy smile. "My name is Madam Tan. All of my insurance policies are with NTUC. I recognise you."
We shook hands. She told me that she was travelling to Bangkok.
She turned to her two companions and introduced me, "This is Mr Tan, CEO of NTUC Income". I shook hands with her friends.
It is nice to hear from a happy customer, who is proud to be with NTUC Income!
Personal Accident + Infectious Disease
1. When was this new policy launched?
NTUC Income is the first insurer in Singapore to roll out this innovative policy that covers personal accident and infectious diseases at a low premium. The insurance plan provides worldwide cover, 24 hours a day. It was launched in April 2006.
2. Why was this introduced?
In recent years, there is a spread of infections disease, such as SARS, bird flu and dengue fever.
We launched this policy to provide an added coverage to our personal accident policy. 14 infectious diseases are covered.
3. Is the premium under PA+ID cheaper than a life insurance policy?
The premium for PA+ID is $100 a year and it covers $50,000 on death by accident and infectious disease.
The premium for a life insurance policy covering the same amount depends on age and term of policy, and will probably be $1,000 or higher.
NTUC Income is the first insurer in Singapore to roll out this innovative policy that covers personal accident and infectious diseases at a low premium. The insurance plan provides worldwide cover, 24 hours a day. It was launched in April 2006.
2. Why was this introduced?
In recent years, there is a spread of infections disease, such as SARS, bird flu and dengue fever.
We launched this policy to provide an added coverage to our personal accident policy. 14 infectious diseases are covered.
3. Is the premium under PA+ID cheaper than a life insurance policy?
The premium for PA+ID is $100 a year and it covers $50,000 on death by accident and infectious disease.
The premium for a life insurance policy covering the same amount depends on age and term of policy, and will probably be $1,000 or higher.
Wednesday, June 07, 2006
What is the secret of success for NTUC Income?
I presented a paper on branding at a conference. One question asked is, "How much of the success of NTUC Income is due to the personal contribution of Tan Kin Lian?"
My reply:
The success of NTUC Income is largely driven by its core values:
- quality products
- low cost
- fair treatment of policyholders
As a cooperative, we do not seek to make excessive profits for shareholders. We distribute most of our surplus to our policyholders.
Over the years, I work hard to get the my colleagues to feel passionate about our cooperative values, and look after the best interest of our customers. This strategy will ensure the long term success of NTUC Income.
As the CEO, my task is to articulate the cooperative values and to communicate it actively through various channels. I use my blog to help to pass this message.
My reply:
The success of NTUC Income is largely driven by its core values:
- quality products
- low cost
- fair treatment of policyholders
As a cooperative, we do not seek to make excessive profits for shareholders. We distribute most of our surplus to our policyholders.
Over the years, I work hard to get the my colleagues to feel passionate about our cooperative values, and look after the best interest of our customers. This strategy will ensure the long term success of NTUC Income.
As the CEO, my task is to articulate the cooperative values and to communicate it actively through various channels. I use my blog to help to pass this message.
Do you understand this structured product?
Taken from www.askdrmoney.com
Name of Product: "Income X Fund"
Distributor: 4 banks, 1 insurer
Type of Product: Currency arbitrage fund
Bold Claim: "9 % payout in the first year of inception of the fund."
The Facts:
A footnote explains that the payout may be made from the capital of the fund. It means the fund would be giving back part of your own investment and calling it a "payout".
There is no guarantee that any distribution will be made or that the frequency or amount of distributions as set out in the prospectus relating to the Fund will be met.
The sales charge is 5 per cent and the yearly management fee is 1.5 per cent.
For details of how this product operates, read Dr Money's blog. Personally, I find it very complicated.
Lesson: Do not invest in any product that you do not understand.
Name of Product: "Income X Fund"
Distributor: 4 banks, 1 insurer
Type of Product: Currency arbitrage fund
Bold Claim: "9 % payout in the first year of inception of the fund."
The Facts:
A footnote explains that the payout may be made from the capital of the fund. It means the fund would be giving back part of your own investment and calling it a "payout".
There is no guarantee that any distribution will be made or that the frequency or amount of distributions as set out in the prospectus relating to the Fund will be met.
The sales charge is 5 per cent and the yearly management fee is 1.5 per cent.
For details of how this product operates, read Dr Money's blog. Personally, I find it very complicated.
Lesson: Do not invest in any product that you do not understand.
Tuesday, June 06, 2006
Lower age requirement for reverse mortgage on HDB flat
Previously, HDB require the owner to be at least 70 years old, before they can apply for a reverse mortgage.
HDB had now just relaxed the minimum age limit of applicants to 62. The loan period is up to age 90 or death or sale of property, whichever is earlier.
HDB had now just relaxed the minimum age limit of applicants to 62. The loan period is up to age 90 or death or sale of property, whichever is earlier.
Insurance Academy
http://www.income.coop/academy/
The Insurance Academy is a collaboration between Nanyang Polytechnic (NYP) and NTUC Income.
The Academy train news and current professionals in the financial services and insurance industryl in Singapore and in the region.
There are currently two full time courses:
1 week: Certificate in Entrepreneurial Management
3 months: Specialist Diploma in Insurance Studies
The Insurance Academy is a collaboration between Nanyang Polytechnic (NYP) and NTUC Income.
The Academy train news and current professionals in the financial services and insurance industryl in Singapore and in the region.
There are currently two full time courses:
1 week: Certificate in Entrepreneurial Management
3 months: Specialist Diploma in Insurance Studies
Amazing: special benefits for policyholders
Amazing.
NTUC Income policyholders are eligible for many special benefits.
Some are very useful.
Find out more:
http://www.income.coop/benefits/
NTUC Income policyholders are eligible for many special benefits.
Some are very useful.
Find out more:
http://www.income.coop/benefits/
Should I sell and come back later?
QUESTION FROM POLICYHOLDER
I would like to know your opinion that if a ILP (using CPF OA) are making money say after 3 years, would it be advisable to sell it off and put the money back to CPF and wait for another opportunity or just wait for it to keep rolling?
REPLY
It is usually quite difficult to time the market.
If you are really sure that the market is "too high" and you wish to take profit, then it is okay.
But, if you are wrong in selling out, you may have to re-invest at a higher price, and you miss out on a significant portion of the gain.
Normally, I prefer to invest for 10 or 20 years and avoid taking decisions at shorter intervals.
I would like to know your opinion that if a ILP (using CPF OA) are making money say after 3 years, would it be advisable to sell it off and put the money back to CPF and wait for another opportunity or just wait for it to keep rolling?
REPLY
It is usually quite difficult to time the market.
If you are really sure that the market is "too high" and you wish to take profit, then it is okay.
But, if you are wrong in selling out, you may have to re-invest at a higher price, and you miss out on a significant portion of the gain.
Normally, I prefer to invest for 10 or 20 years and avoid taking decisions at shorter intervals.
Interested to invest in NTUC Income shares
FROM SHAREHOLDER
I have always viewed NTUC income shares as a good defense stock as it provide a very decent return (6% based on recent dividend) with little/no risk of losing the principal.
Is it still open for investment? Some months back, I have checked with the NTUC Income staff in the Tampines Centre and was told it was not available.
I am currently holding 1,000 shares and would like to purchase more shares if possible to form part of my defensive portfolio.
REPLY BY TAN KIN LIAN
We are not taking application for Income shares. As we have sufficient capital, we are not likely to invite applications for the next few years.
I suggest that you attend our educational seminar and learn about the various investment choices. The seminar on "re-investing your maturity proceeds" offer choices for single premium investments. It covers a choice of various investment products.
I have always viewed NTUC income shares as a good defense stock as it provide a very decent return (6% based on recent dividend) with little/no risk of losing the principal.
Is it still open for investment? Some months back, I have checked with the NTUC Income staff in the Tampines Centre and was told it was not available.
I am currently holding 1,000 shares and would like to purchase more shares if possible to form part of my defensive portfolio.
REPLY BY TAN KIN LIAN
We are not taking application for Income shares. As we have sufficient capital, we are not likely to invite applications for the next few years.
I suggest that you attend our educational seminar and learn about the various investment choices. The seminar on "re-investing your maturity proceeds" offer choices for single premium investments. It covers a choice of various investment products.
Monday, June 05, 2006
250 people visit my blog each day
An average of 250 people visit my blog each day. This is a 65% increase over the average of 150 people two months ago. This is measured through the site meter that is pasted to my blog.
Thank you for visiting my blog. Please help to spread the word to your friends. Ask them to come and read my views and tips.
Thank you for visiting my blog. Please help to spread the word to your friends. Ask them to come and read my views and tips.
More visitors to Business Centers
Each day, 80 people visit our two business centers, an increase of 80% compared to 6 weeks ago. After the official opening of the centers, more people are aware about it.
They come to the business centers for financial planning and to buy our insurance products. We offer great value on these products, which are much better than similar products from our competitors.
For example, a person saving $300 a month over 30 years can get $60,000 more from our product compared to a similar product from our competitors - for the same risk profile.
You get more from NTUC Income becuase we give an additonal 12 months of investments and charge 1% less in annual fee. $60,000 is A LOT OF MONEY!
We are able to handle double the number of visitors, so we welcome more people to vist our business center. Call 6877 3366 to make an appointment.
They come to the business centers for financial planning and to buy our insurance products. We offer great value on these products, which are much better than similar products from our competitors.
For example, a person saving $300 a month over 30 years can get $60,000 more from our product compared to a similar product from our competitors - for the same risk profile.
You get more from NTUC Income becuase we give an additonal 12 months of investments and charge 1% less in annual fee. $60,000 is A LOT OF MONEY!
We are able to handle double the number of visitors, so we welcome more people to vist our business center. Call 6877 3366 to make an appointment.
Savings rate among the young is low in Canada
Our consultant in Canada was very impressed with the educational talk given by NTUC Income on "financial tips for the young".
He also like the financial awareness talks conducted under the Money Sense programme funded by the Monetary Authority in Singapore.
There is no similar educational program in Canada. The personal savings rate, especially among the young, is now in negative territory, which is the lowest level since the 1920s.
He also like the financial awareness talks conducted under the Money Sense programme funded by the Monetary Authority in Singapore.
There is no similar educational program in Canada. The personal savings rate, especially among the young, is now in negative territory, which is the lowest level since the 1920s.
Sunday, June 04, 2006
Our investments are doing well
I received a monthly e-mail statement on my investments with the funds operated by NTUC Income.
I invested $208,000 of my money from CPF, SRS and cash. The average duration is 3 years. They are invested in several combined and specialised funds.
The total value of my investments is $245,000 (even after the 5% correction in May). I get a return of 18% for the 3 years.
My wife invested $201,000 of her cash savings. The average duration is 2 years. Most of her investments are in the combined fund.
Her investments are now worth $230,000, giving a return of 14% for 2 years. This is a better return than mine.
I invested $208,000 of my money from CPF, SRS and cash. The average duration is 3 years. They are invested in several combined and specialised funds.
The total value of my investments is $245,000 (even after the 5% correction in May). I get a return of 18% for the 3 years.
My wife invested $201,000 of her cash savings. The average duration is 2 years. Most of her investments are in the combined fund.
Her investments are now worth $230,000, giving a return of 14% for 2 years. This is a better return than mine.
Learn about insurance on your own
www.KnowYourInsurance.com.sg
This educational website tells you about the key facts on
common insurance products, such as motor, health, life and
home insurance. It also tells you about estate duty, writing a
will and other useful topics.
Each topic can be completed within 20 minutes. You can take
a test to check your understanding.
It is educational and fun. And can save you a lot of money by
buying the right product.
This educational website tells you about the key facts on
common insurance products, such as motor, health, life and
home insurance. It also tells you about estate duty, writing a
will and other useful topics.
Each topic can be completed within 20 minutes. You can take
a test to check your understanding.
It is educational and fun. And can save you a lot of money by
buying the right product.
Saturday, June 03, 2006
Advertisement: Ideal plan can earn $20,000 more for you
Most investment linked plans takes away 17 to 19 months of your savings, to pay commission to the agent and other expenses (see www.askdrmoney.com).
The Ideal plan from NTUC Income takes away only 7 months of savings. This means that we can invest an additional 12 months of your savings to earn more for you.
If you save $300 a month, the additional investment of 12 months, can amount to $20,000 at the end of 30 years (assuming a return of 6% per annum).
That is a lot of money. You can get up to $20,000 MORE, by investing through the Ideal plan from NTUC Income.
Call 6877 1111.
The Ideal plan from NTUC Income takes away only 7 months of savings. This means that we can invest an additional 12 months of your savings to earn more for you.
If you save $300 a month, the additional investment of 12 months, can amount to $20,000 at the end of 30 years (assuming a return of 6% per annum).
That is a lot of money. You can get up to $20,000 MORE, by investing through the Ideal plan from NTUC Income.
Call 6877 1111.
Financial Planning Advice
It's FREE, but the value of the advice is priceless!
Spend 30 minutes.
Learn how to have the right financial plan.
Save and invest wisely.
You can earn $146,000 more (for a monthly saving of
$300 over 30 years)
And enjoy a cup of coffee, tea or milo. It's on us!
For appointment: call 6877 3366.
Business Center:
- NTUC Income Center, 75 Bras Basah Road
- Tampines Point, 2 Tampines Central 6
Spend 30 minutes.
Learn how to have the right financial plan.
Save and invest wisely.
You can earn $146,000 more (for a monthly saving of
$300 over 30 years)
And enjoy a cup of coffee, tea or milo. It's on us!
For appointment: call 6877 3366.
Business Center:
- NTUC Income Center, 75 Bras Basah Road
- Tampines Point, 2 Tampines Central 6
Tips for the Young: talk on Wed 7 June, 7 pm
I am giving a talk "Tips for the Young" on Wed 7 June 7-9 pm at NTUC Income center. I will give tips that help the young to make the right choice and get $146,000 more in return for their savings.
Call 6877 3366 to register for this talk. The talk is FREE but my tips are priceless!
Call 6877 3366 to register for this talk. The talk is FREE but my tips are priceless!
Be gracious and accept an apology
A policyholder sent two cheques to us. One is for a payment of home insurance. Another is for a payment to NTUC (another organisation) for some membership service.
We cleared the cheque for Income. But our staff must have sent the second cheque to NTUC. It must have been lost in transit.
The policyholder complained about the missing cheque. Our staff tried to find it, but could not locate it.
The policyholder brought the complaint to me.
Here is my reply:
Dear
I am sorry that the cheque was displaced. As this payment is for another organisation (ie NTUC), our staff could not bank it in. It must have been sent to NTUC.
It will be impossible for us to trace the cheque. I hope that you understand our dilemma. I suggest that you treat it as cancelled and send another cheque directly to NTUC.
LESSON: Our internal process for handling this type of situation will be strengthened.
We cleared the cheque for Income. But our staff must have sent the second cheque to NTUC. It must have been lost in transit.
The policyholder complained about the missing cheque. Our staff tried to find it, but could not locate it.
The policyholder brought the complaint to me.
Here is my reply:
Dear
I am sorry that the cheque was displaced. As this payment is for another organisation (ie NTUC), our staff could not bank it in. It must have been sent to NTUC.
It will be impossible for us to trace the cheque. I hope that you understand our dilemma. I suggest that you treat it as cancelled and send another cheque directly to NTUC.
LESSON: Our internal process for handling this type of situation will be strengthened.
Be a considerate driver; give way
While driving this morning, I wanted to move from the middle to the right lane. I turned on my right hand signal. I looked at the rear view mirror to see the cars in the right lane.
Instead of slowing down for me to move to the right lane, I saw the first car actualy speed up. The driver just wanted to get in front. This happened with the second and the third cars.
All three drivers behaved in the same way.
We have to learn to be considerate, and to give way.
Instead of slowing down for me to move to the right lane, I saw the first car actualy speed up. The driver just wanted to get in front. This happened with the second and the third cars.
All three drivers behaved in the same way.
We have to learn to be considerate, and to give way.
Invest $100,000 in Global Equity
After watching the market for the past month, I have now decided to invest $100,000 in Global Equity Fund. This will be transacted on the coming Monday.
Here are my reasons:
- I am investing for 20 years
- the Global Equity fund has corrected by 5% during the past month
- the fund still give a positive return for this year and beat the market benchmark
- the global economy is still robust, especially Japan and Europe
Here are my reasons:
- I am investing for 20 years
- the Global Equity fund has corrected by 5% during the past month
- the fund still give a positive return for this year and beat the market benchmark
- the global economy is still robust, especially Japan and Europe
Friday, June 02, 2006
Customer ask: Is it time to buy?
QUESTION
Dear Mr Tan:
I am very late in investing in NTUC's investment funds. I used to play local
equities directly and lost quite substantially.
Last year, I bought combined
fund (growth) at S$50,000 on Sep 05 and S$27,000 (Ideal Plan) on Nov 05. Although there is a major correction last two weeks, my investments are still positive.
I have set aside another S$50,000 to invest. Is this the right time? Has the
correction stabilized? If yes, when and how should I invest? Top up the current investment on combined fund or buy a new investment on global equity?
-------------------
REPLY
Read my blog www.tankinlian.blogspot.com. I am also asking the same question on my personal investment. Most probably, I will invest $100,000 next week, and another $100,000 in 1 or 2 month's time.
Dear Mr Tan:
I am very late in investing in NTUC's investment funds. I used to play local
equities directly and lost quite substantially.
Last year, I bought combined
fund (growth) at S$50,000 on Sep 05 and S$27,000 (Ideal Plan) on Nov 05. Although there is a major correction last two weeks, my investments are still positive.
I have set aside another S$50,000 to invest. Is this the right time? Has the
correction stabilized? If yes, when and how should I invest? Top up the current investment on combined fund or buy a new investment on global equity?
-------------------
REPLY
Read my blog www.tankinlian.blogspot.com. I am also asking the same question on my personal investment. Most probably, I will invest $100,000 next week, and another $100,000 in 1 or 2 month's time.
Thursday, June 01, 2006
Return on investment funds
In spite of the sharp correction in May, the global equity, Singapore equity and the combined (growth and balanced funds) operated by NTUC Income still give a positive return for the five months of this year.
The funds also performed better than benchmark.
The funds also performed better than benchmark.
Fund Jan-Apr May Jan-May
Global Equity 6.1% -4.2% 1.6%
Singapore Equity 12.0% -5.6% 5.7%
Global Bond -1.8% 0.1% -1.7%
Singapore Bond -0.4% 0.6% 0.2%
Combined (Growth) 4.7% -3.2% 1.4%
Combined (Balanced) 3.0% -2.3% 0.6%
Combined (Conservative) 1.2% -1.3% -0.2%
Benchmark
MSCI World 4.5% -3.6% 0.8%
STI 12.1% -7.9% 3.3%
Is it time to invest?
It is a good time to take up a regular premium investment-linked plan. By saving on the regular premium, you will enjoy the benefit of lower dollar cost averaging.
At the current low cost of the units, you will get more units for your investment. If the price drops further, you can get even more units.
The market will turn around. Your investment will benefit from the upturn.
I suggest that you choose the Global Equity fund or the Combined Growth fund.
--------------------------------------------
If you are making a large, lump sum investment, the position is still not clear. The market correction has been more severe than I had expected. The correction allows you to make your investment at 5% to 10% lower than it was one month ago.
I wish to make an additonal investment of $200,000. I will probably invest $100,000 next week, and another $100,000 a few weeks later.
My choice is the Global Equity Fund.
At the current low cost of the units, you will get more units for your investment. If the price drops further, you can get even more units.
The market will turn around. Your investment will benefit from the upturn.
I suggest that you choose the Global Equity fund or the Combined Growth fund.
--------------------------------------------
If you are making a large, lump sum investment, the position is still not clear. The market correction has been more severe than I had expected. The correction allows you to make your investment at 5% to 10% lower than it was one month ago.
I wish to make an additonal investment of $200,000. I will probably invest $100,000 next week, and another $100,000 a few weeks later.
My choice is the Global Equity Fund.
Wednesday, May 31, 2006
Was this stent necessary?
My insurance adviser received an e-mail from a patient.
She went to a private surgeon, who did a stent for her. He wanted to do a second stent, but she said she has could not afford it. She had just switched to a private insurer, which does not cover an early claim.
When she went to a restructured hospital, she was told that the stent was not necessary, as the extent of her blockage was not severe, and was quite common.
There are patients who have received different advice from the the medical profession. It is useful to have a second opinion before embarking on a major or expensive surgery.
She went to a private surgeon, who did a stent for her. He wanted to do a second stent, but she said she has could not afford it. She had just switched to a private insurer, which does not cover an early claim.
When she went to a restructured hospital, she was told that the stent was not necessary, as the extent of her blockage was not severe, and was quite common.
There are patients who have received different advice from the the medical profession. It is useful to have a second opinion before embarking on a major or expensive surgery.
Banks earn bumper profits
The local banks report bumper profits this year. Two banks earns more than $1 billion each, and much higher than in previous years. Even a foreign bank report that they earn more than $500 million in Singapore.
They make higher profits from the following sources:
- fees from sale of insurance and structured products
- high margin on their lending vs cost of funds
This is good news for their shareholders. But it is not good news for their bank customers.
The customers probably get a low rate of interest on their savings, and pay high rates of interest on their loans and credit card rollovers.
Make the banks compete - by looking for better choices to earn higher returns on your money. You can also make better investments to earn several tens of thousands of dollars more!
Come and attend our educational seminar to learn how. Call 6877 3366.
They make higher profits from the following sources:
- fees from sale of insurance and structured products
- high margin on their lending vs cost of funds
This is good news for their shareholders. But it is not good news for their bank customers.
The customers probably get a low rate of interest on their savings, and pay high rates of interest on their loans and credit card rollovers.
Make the banks compete - by looking for better choices to earn higher returns on your money. You can also make better investments to earn several tens of thousands of dollars more!
Come and attend our educational seminar to learn how. Call 6877 3366.
Monday, May 29, 2006
Ideal plan can give you $20,000 more
Most insurance companies take away 17 to 19 months of your savings as upfront charge under their investment linked plan (ILP). The ILP plan from NTUC Income (ie Ideal plan) takes away only 7 months. (See www.askdrmoney.com).
The difference is 12 months. We give 12 months of savings extra.
If the monthly saving is $300, we invest an additional $3,600, compared to other plans. Assuming an average return of 6% p.a, the additional investment will amount to $20,000 at the end of 30 years.
They can get $20,000 more, by investing with NTUC Income.
Why do the other ILP plans take away 19 months? Because, they pay higher commission to their agents and aim to make more profit for their shareholders.
Why does NTUC Income take away only 7 months? Because, we pay lower commission and reduce our expenses.
The difference is 12 months. We give 12 months of savings extra.
If the monthly saving is $300, we invest an additional $3,600, compared to other plans. Assuming an average return of 6% p.a, the additional investment will amount to $20,000 at the end of 30 years.
They can get $20,000 more, by investing with NTUC Income.
Why do the other ILP plans take away 19 months? Because, they pay higher commission to their agents and aim to make more profit for their shareholders.
Why does NTUC Income take away only 7 months? Because, we pay lower commission and reduce our expenses.
Saturday, May 27, 2006
Combined Fund or Global Equity Fund?
QUESTION
Mr Tan
Can I have your advise for a regular saving plan of $200 monthly over a 20 years investment period, into Combined Fund or Global Equity ? Since you did mention that these 2 funds are good. But which one is better if you would like to invest this much over a 20 years period ? Thanks!
ANSWER
I prefer Global Equity, but the Combined Fund (Growth) is also quote good (for those who wish to have a lower level of risk).
I suggest that you attend my educational talks. Call 6877 3366 for the date of the next talk.
Mr Tan
Can I have your advise for a regular saving plan of $200 monthly over a 20 years investment period, into Combined Fund or Global Equity ? Since you did mention that these 2 funds are good. But which one is better if you would like to invest this much over a 20 years period ? Thanks!
ANSWER
I prefer Global Equity, but the Combined Fund (Growth) is also quote good (for those who wish to have a lower level of risk).
I suggest that you attend my educational talks. Call 6877 3366 for the date of the next talk.
Friday, May 26, 2006
Funds managed by Fidelity
FUNDS MANAGED BY FIDELITY
Fund Size and Annual Charge
- Most Fidelity funds are $200m in size.
- Annual Charge is 1.5% for equity fund, 0.75% for bond fund.
- 15 fund offered under CPF investment (3 balanced funds, 1 bond fund, 11 equity funds)
Sales Charge and discount
- Sales charge for bank distributiors is 5%. Discount in the form of higher return on Fixed deposit (at least 3%)
- Sales charge for online distributor is about 1.5% to 2.5%.
- Sales charge for brokers is 5%.
-----------------------------
COMBINED FUND FROM NTUC INCOME
- fund size: $3,800 million
- annual fee: about 1%
- asset class: growth fund (70% equity, 30% bond
- sales charge: 3.5% (reduced for large investments above $20,000)
Fund Size and Annual Charge
- Most Fidelity funds are $200m in size.
- Annual Charge is 1.5% for equity fund, 0.75% for bond fund.
- 15 fund offered under CPF investment (3 balanced funds, 1 bond fund, 11 equity funds)
Sales Charge and discount
- Sales charge for bank distributiors is 5%. Discount in the form of higher return on Fixed deposit (at least 3%)
- Sales charge for online distributor is about 1.5% to 2.5%.
- Sales charge for brokers is 5%.
-----------------------------
COMBINED FUND FROM NTUC INCOME
- fund size: $3,800 million
- annual fee: about 1%
- asset class: growth fund (70% equity, 30% bond
- sales charge: 3.5% (reduced for large investments above $20,000)
A better way to pass your assets to your family
FROM A CUSTOMER
I wish to get your expert view.
Currently, many banks are encouraging clients to buy Insurance Trusts as part of estate planning. Typically, it is a significant single upfront payment with both guaranteed and projected returns and insurance payable upon death to named Trust beneficiaries.
Advantages are supposed to be faster probate process, additional estate duty exemptions and protection from creditors
------------------------
MY REPLY
Here a few points.
1. Be careful of the product. You must find out what is the return that you get. Most products offer a fairly low return, due to the high commission paid to the agent or the bank.
2. If estate duty is a consideration, you have two options. One is to write it as a trust policy under section 73, which allows the policy to be treated as a separate estate. This can be done independently of the product. It enjoys special estate duty.
But, under a trust policy, the rights are transferred from the policyholder to the beneficiaries - so the policyholder cannot change the mind and "take back" the money.
3. Another option is to place it under a revocable nomination. This is available from NTUC Income and later from the other insurance company as well.
4. I suggest that you go to read about it in www.KnowYourInsurance.com.sg. Or give a telephone call to X who is our expert on this matter.
5. What you want to do can be done with NTUC Income, and you get a much better return!
I wish to get your expert view.
Currently, many banks are encouraging clients to buy Insurance Trusts as part of estate planning. Typically, it is a significant single upfront payment with both guaranteed and projected returns and insurance payable upon death to named Trust beneficiaries.
Advantages are supposed to be faster probate process, additional estate duty exemptions and protection from creditors
------------------------
MY REPLY
Here a few points.
1. Be careful of the product. You must find out what is the return that you get. Most products offer a fairly low return, due to the high commission paid to the agent or the bank.
2. If estate duty is a consideration, you have two options. One is to write it as a trust policy under section 73, which allows the policy to be treated as a separate estate. This can be done independently of the product. It enjoys special estate duty.
But, under a trust policy, the rights are transferred from the policyholder to the beneficiaries - so the policyholder cannot change the mind and "take back" the money.
3. Another option is to place it under a revocable nomination. This is available from NTUC Income and later from the other insurance company as well.
4. I suggest that you go to read about it in www.KnowYourInsurance.com.sg. Or give a telephone call to X who is our expert on this matter.
5. What you want to do can be done with NTUC Income, and you get a much better return!
Wednesday, May 24, 2006
Car-sharing is a better option for many people
In the past months, the newspapers had reported on the sharp drop in new car prices.
Many people, particularly the younger ones, rush to the car showrooms and sign on the dotted line to buy their dream car.
This dream may not last when the true cost of car ownership strikes home.
For instance, if you buy an off-peak Nissan with a 95% car loan repayable over 10 years, you have to pay a monthly instalment of around $350. Add road tax, insurance, maintenance, petrol and parking charges, the total cost jump to $600 to $700 a month.
This is not a small sum for a young person just starting out on his career and burdened with a 10-year financial commitment.
I suggest a better option. If your job does not require you to use a car, you can consider car-sharing.
NTUC Income operates a car-sharing scheme with 200 cars serving 5000 members. A member spends between $50 and $200 per month depending on their car usage. For some months, they spend nothing if they are overseas or have other lifestyle priorities.
A car-sharing member have nearly the same benefits as private car owners.
www.carcoop.com.sg
Many people, particularly the younger ones, rush to the car showrooms and sign on the dotted line to buy their dream car.
This dream may not last when the true cost of car ownership strikes home.
For instance, if you buy an off-peak Nissan with a 95% car loan repayable over 10 years, you have to pay a monthly instalment of around $350. Add road tax, insurance, maintenance, petrol and parking charges, the total cost jump to $600 to $700 a month.
This is not a small sum for a young person just starting out on his career and burdened with a 10-year financial commitment.
I suggest a better option. If your job does not require you to use a car, you can consider car-sharing.
NTUC Income operates a car-sharing scheme with 200 cars serving 5000 members. A member spends between $50 and $200 per month depending on their car usage. For some months, they spend nothing if they are overseas or have other lifestyle priorities.
A car-sharing member have nearly the same benefits as private car owners.
www.carcoop.com.sg
50 million hits a month at our websites!
The two websites managed by NTUC Income, ie income.coop and Big Trumpet, receive a total of 51 million hits in March 2006.
This represents 1 million visitors a month (assuming that each visitor contribute to 50 hits).
This must be one of the most active websites in Singapore.
We estimate that 30% of the visitors are from our own staff and insruance advisers. 70% must be from the public, ie our customers.
This represents 1 million visitors a month (assuming that each visitor contribute to 50 hits).
This must be one of the most active websites in Singapore.
We estimate that 30% of the visitors are from our own staff and insruance advisers. 70% must be from the public, ie our customers.
Excess on motor insurance
The Excess is the amount payable by the policyholder as their contribution towards a claim.
Some insurers peg their standard Excess just below NTUC Income and publicise it in their materials.
They conveniently omit to mention that young and inexperience drivers are subject to higher Excess.
They also impose an additional Excess for unnamed drivers.
Some insurers peg their standard Excess just below NTUC Income and publicise it in their materials.
They conveniently omit to mention that young and inexperience drivers are subject to higher Excess.
They also impose an additional Excess for unnamed drivers.
Product Features INCOME Co-A Co-AX Co-R Co-C Co-H
Basic excess $500 $450 $200-$600 $450 $500 $500
Young driver $2000 $3000 $2500 $3950 $2500 $1500
Unnamed driver NA $450-$550 $500 $750 $500 $500
Is it time to invest in equities?
Two weeks ago, I mentioned that the global equity markets are "correcting". I indicate that I may want to make a further investment within two weeks, after the correction is over.
The correction has been slightly more severe than I expected. So, the various markets have come down by 5% to 10%.
I shall be carrying out a further review. I think that it may be time for me to make my further investment later this week, or earlier next week.
I shall post my decision soon.
The correction has been slightly more severe than I expected. So, the various markets have come down by 5% to 10%.
I shall be carrying out a further review. I think that it may be time for me to make my further investment later this week, or earlier next week.
I shall post my decision soon.
Why do customers come to our business center?
Here are the views of 10 customers who bought policies through the Business Center:
1. 40 % feel that agents only come around when they want to sell something and they are agressive in the approach. They feel at ease when they walk into the Business Center to buy their policies.
2. 40 % of them feel that agents do not give after sales service so they prefer to deal with directly with the company. Comment for one PH.....Agents come and go but the company is always there.
3. 20% feel that we give better value in terms of our vouchers (for direct customers).
4. All of them fell it is hassle free and straight forward to deal with the Business Center.
1. 40 % feel that agents only come around when they want to sell something and they are agressive in the approach. They feel at ease when they walk into the Business Center to buy their policies.
2. 40 % of them feel that agents do not give after sales service so they prefer to deal with directly with the company. Comment for one PH.....Agents come and go but the company is always there.
3. 20% feel that we give better value in terms of our vouchers (for direct customers).
4. All of them fell it is hassle free and straight forward to deal with the Business Center.
Subscribe to:
Posts (Atom)