Dear Mr Tan,
After reading your blog for the past few months and comments posted by insurance agents, and based on my personal encounters with agents over the past years, I have come to the following conclusions (please correct me if I am wrong):
1. Insurance agents made a good fortune by earning high commissions on insurance policies
2. Many drive expensive cars and travel in style for overseas trips and holidays.
3. They oversell on critical illness and other insurance policies and push customers to buy big policies.
4. They push customers to buy the most expensive medical insurance (is it to earn a higher commission?)
5. The insurance policies give a poor return and locks up the customer for many years.
6. The scare us with horror stories of how people are devasted by prolonged sickness or death.
Are they behaving ethically?
REPLY:
You have described one category of insurance agents. They look after themselves at the expense of their customers.
There is another category of insurance agents who serve their customers well and look after the interest of their customers. They sell insurance products that give good value to the customers (compared to similar products sold in the market). They work very hard to earn a modest income.
You should select an ethical agents who can look after your interest.
Thursday, December 20, 2007
Logic9
My website for the Logic9 game is temporarily down, due to a change of the hosting server. It will be fixed in a few days time.
Charges of an Investment Linked Plan (ILP)
Dear Mr Tan,
What are the charges that I have to pay, when I invest through an ILP?
REPLY
If you buy an investment-linked plan (ILP) through an insurance company, you have to bear the following charges:
1) Lump sum investment (i.e. Single premium)
You pay the Spread, which is the difference between the Offer Price and the Bid Price of the fund. This difference is usually between 3% to 5%. The spread can be reduced during promotions.
You buy the units at the Offer Price and sell at the Bid Price. So, you lose out on the Spread.
There is a minimum amount for a lump sum investment, for example, $5,000. You will be allowed to top up your investments at any time with "recurring single premiums" subject to a certain minimum.
In addition, there is an annual charge that is deducted from the fund. This charge can take from 1% to 2% of the fund, and is deducted from the yield.
You may also have to incur an initial and annual policy fee. The amounts tend to be quite small. It may be waived if you have a larger investment.
You have to pay for the mortality charge separtely, In some cases, this charge may be waived. In other cases, it can be quite costly. A journalist describes it like "a time bomb".
2) Regular investments (i.e. monthly investments)
You have to pay all of the charges described above (for the lump sum investment) plus an additional Distribtion Cost.
The Distribution Cost is used primarily to pay the commission to the agent and other marketing expenses. This cost is shown indirectly as an "allocation".
For example, the ILP policy will state that 20% of the premium is allocated for investment during the first year, and 50% is allocated during the second and third year. 100% is allocated from the fourth year onwards.
This means that 80% is taken away during the first year, 50% during the second year and 50% during the third year. The total is 180% or 21 months.
This website shows the additional Distribution Cost from various ILP plans in the market
http://www.askdrmoney.com/Ins_ILP_RP.htm.
The Flexi Link plan from NTUC Income has the lowest charge among the various ILP plans (apart from Do It Yourself). You do not have to pay the additional Distribution Cost. The expense ratio of the Combined Fund from NTUC Income is among the lowest of all the funds.
Some savvy investors can enjoy low cost by buying unit trusts directly from the internet portals, such as Fundsupermart or DollarDex. However, the expense ratios of many unit trusts are quite high (i.e. more than 1.5% per annum).
What are the charges that I have to pay, when I invest through an ILP?
REPLY
If you buy an investment-linked plan (ILP) through an insurance company, you have to bear the following charges:
1) Lump sum investment (i.e. Single premium)
You pay the Spread, which is the difference between the Offer Price and the Bid Price of the fund. This difference is usually between 3% to 5%. The spread can be reduced during promotions.
You buy the units at the Offer Price and sell at the Bid Price. So, you lose out on the Spread.
There is a minimum amount for a lump sum investment, for example, $5,000. You will be allowed to top up your investments at any time with "recurring single premiums" subject to a certain minimum.
In addition, there is an annual charge that is deducted from the fund. This charge can take from 1% to 2% of the fund, and is deducted from the yield.
You may also have to incur an initial and annual policy fee. The amounts tend to be quite small. It may be waived if you have a larger investment.
You have to pay for the mortality charge separtely, In some cases, this charge may be waived. In other cases, it can be quite costly. A journalist describes it like "a time bomb".
2) Regular investments (i.e. monthly investments)
You have to pay all of the charges described above (for the lump sum investment) plus an additional Distribtion Cost.
The Distribution Cost is used primarily to pay the commission to the agent and other marketing expenses. This cost is shown indirectly as an "allocation".
For example, the ILP policy will state that 20% of the premium is allocated for investment during the first year, and 50% is allocated during the second and third year. 100% is allocated from the fourth year onwards.
This means that 80% is taken away during the first year, 50% during the second year and 50% during the third year. The total is 180% or 21 months.
This website shows the additional Distribution Cost from various ILP plans in the market
http://www.askdrmoney.com/Ins_ILP_RP.htm.
The Flexi Link plan from NTUC Income has the lowest charge among the various ILP plans (apart from Do It Yourself). You do not have to pay the additional Distribution Cost. The expense ratio of the Combined Fund from NTUC Income is among the lowest of all the funds.
Some savvy investors can enjoy low cost by buying unit trusts directly from the internet portals, such as Fundsupermart or DollarDex. However, the expense ratios of many unit trusts are quite high (i.e. more than 1.5% per annum).
Wednesday, December 19, 2007
Innovative, animated, e-greeting card
My son-in-law Vital sent me this innovative, animated e-greeting for Christmas. It featured his family and included me and my wife in a snowball fight. You can also see my grand-daughter Vera.
http://www.jibjab.com/sendables/view/N8CaKHrzwITtYjyoweeTH5yG
Here is another of my family:
http://www.jibjab.com/sendables/view/sEd48avZftSdUKP26qaGk6mc
To all visitors to my blog: Merry Christmas and best wishes for 2008.
http://www.jibjab.com/sendables/view/N8CaKHrzwITtYjyoweeTH5yG
Here is another of my family:
http://www.jibjab.com/sendables/view/sEd48avZftSdUKP26qaGk6mc
To all visitors to my blog: Merry Christmas and best wishes for 2008.
Living policy actively promoted in the past
Mr Tan,
When you were CEO of NTUC Income, you actively promoted the Living policy. It was the best selling policy for many years. Why did you promote this plan, when the charges are high (as you said now in your blog) ?
REPLY
The Living policy was launched about 20 years ago (if I remember correctly). During that time and for many years after, it offered fairly good value to the customer, as the charges were much lower than similar plans offered by other insurance companies.
During those years, the alternative of investing in investment funds was not well developed.
Today, the market for investment funds is well developed. It is now better for customers to invest in the Combined Fund from NTUC Income and the STI Exchange Traded Fund. They have fairly low charges and the potential to give a higher long term return.
Read this FAQ:
http://www.tankinlian.com/faq/savings.html
When you were CEO of NTUC Income, you actively promoted the Living policy. It was the best selling policy for many years. Why did you promote this plan, when the charges are high (as you said now in your blog) ?
REPLY
The Living policy was launched about 20 years ago (if I remember correctly). During that time and for many years after, it offered fairly good value to the customer, as the charges were much lower than similar plans offered by other insurance companies.
During those years, the alternative of investing in investment funds was not well developed.
Today, the market for investment funds is well developed. It is now better for customers to invest in the Combined Fund from NTUC Income and the STI Exchange Traded Fund. They have fairly low charges and the potential to give a higher long term return.
Read this FAQ:
http://www.tankinlian.com/faq/savings.html
ILP and Unit Trust
Dear Mr. Tan,
Why do I have to bear the upfront charge of 15 to 18 months on investing in ILP, when I could have invested in a regular saving unit trust without this charge?
REPLY
Insurance agents are used to receive high commission on selling an endowment, whole life or critical illness policy.
When the insurance company introduced investment-linked plan (ILP), they have to pay similar commission to get their agents to sell these products. This requires 15 to 18 months of premium to be deducted to pay the commission and other charges.
Some insurance company such as NTUC Income have lower charges. See the comparison in this webpage:
http://www.askdrmoney.com/Ins_ILP_RP.htm
If you invest in a unit trust, you do not have to bear this upfront cost. But, the unit trust may deduct a higher management fee, which is reflected in the higher expense ratio. Most people prefer to pay a higher annual fee, rather than suffer a large upfront deduction. The exception is the STI Exchange Traded Fund, where the annual fee is very low, at only 0.3% per annum.
If you invest in the Flexi-Link from NTUC Income, provided you have a minimum starting investment of $5,000, you do not have to pay incur the upfront charge for a regular saving plan. You still have to bear 3.5% spread for each investment.
The best options are:
1. Invest in the STI Exchange Traded Fund
2. Invest in the Combined Fund from NTUC Income through Flexi-Link.
Why do I have to bear the upfront charge of 15 to 18 months on investing in ILP, when I could have invested in a regular saving unit trust without this charge?
REPLY
Insurance agents are used to receive high commission on selling an endowment, whole life or critical illness policy.
When the insurance company introduced investment-linked plan (ILP), they have to pay similar commission to get their agents to sell these products. This requires 15 to 18 months of premium to be deducted to pay the commission and other charges.
Some insurance company such as NTUC Income have lower charges. See the comparison in this webpage:
http://www.askdrmoney.com/Ins_ILP_RP.htm
If you invest in a unit trust, you do not have to bear this upfront cost. But, the unit trust may deduct a higher management fee, which is reflected in the higher expense ratio. Most people prefer to pay a higher annual fee, rather than suffer a large upfront deduction. The exception is the STI Exchange Traded Fund, where the annual fee is very low, at only 0.3% per annum.
If you invest in the Flexi-Link from NTUC Income, provided you have a minimum starting investment of $5,000, you do not have to pay incur the upfront charge for a regular saving plan. You still have to bear 3.5% spread for each investment.
The best options are:
1. Invest in the STI Exchange Traded Fund
2. Invest in the Combined Fund from NTUC Income through Flexi-Link.
Promoting Swan Lake
Mr. Tan,
Why are you promoting Swan Lake?
REPLY
There are two reasons.
1. It is the most popular ballet. Many people enjoy it. I am sure that Singaporeans will also enjoy it. The music by Peter Tsaichovsky is enchanting. The dance will be spectacular. The ticket price is modest. Do not miss it.
2. I have been on the board of the Singapore Dance Theatre for more than 10 years. The SDT is putting up this performance. I want to help their ticket sales.
Why are you promoting Swan Lake?
REPLY
There are two reasons.
1. It is the most popular ballet. Many people enjoy it. I am sure that Singaporeans will also enjoy it. The music by Peter Tsaichovsky is enchanting. The dance will be spectacular. The ticket price is modest. Do not miss it.
2. I have been on the board of the Singapore Dance Theatre for more than 10 years. The SDT is putting up this performance. I want to help their ticket sales.
Visitors to my blog
During the past week, the day visitors to my blog increased significantly. But the night visitors have dropped. The total has increased to about 720. Are more people visiting during the day now?
I am still short of my target of 1,000 visitors!
I am still short of my target of 1,000 visitors!
Buy Term Insurance Directly
Mr. Tan
My insurance agent discourages me from buying Term insurance. But I like to buy Term insurance and invest the difference. Where can I get it?
REPLY
Read this FAQ:
http://www.tankinlian.com/faq/termd.html
My insurance agent discourages me from buying Term insurance. But I like to buy Term insurance and invest the difference. Where can I get it?
REPLY
Read this FAQ:
http://www.tankinlian.com/faq/termd.html
Swan Lake - tell your friends
Please help me to tell your friends about Swan Lake. Do not miss it.
http://www.singaporedancetheatre.com/performance/swanlake.asp
http://www.singaporedancetheatre.com/performance/swanlake.asp
Critical Illness Policy for $250,000
Insurance agents like to their clients to insure $250,000 for a "whole life" critical illness policy. The tell the clients that you need $250,000 to provide loss of income for 10 years. Why?
The answer: About 18 months of premium goes to pay the commission to the agent and his managers, and the expenses and profit of the insurance company. To insure $250,000, the monthly premium is $500 for a person at age 30. About $9,000 is taken away from your savings to pay the various parties.
If the monthly premium of $500 is invested to earn 5% per annum, it will accumulate to $250,000 within 23 years. You can be 100% sure of getting this sum in 23 years (based on 5% investment return). Compared to this certainty, the proportion of people likely to suffer a critical illness within 23 years (and make a claim of $250,000) is between 5% to 10%.
If you buy the "whole life" critical illness policy, how much is the cash value at the end of 23 years? My estimate is $180,000 (but you can check it out). The cost to you over 23 years is a staggering $70,000.
If you wish to insure for critical illness, take a low cost insurance (like Term insurance but extend to include critical illness) to cover 25 years only. The premium is quite small.
Note: The charges under the Living policy from NTUC Income is lower than the market, so the cost is lower than the example shown above. But, it is still quite high, compared to the "Buy low cost insurance and invest the difference".
The answer: About 18 months of premium goes to pay the commission to the agent and his managers, and the expenses and profit of the insurance company. To insure $250,000, the monthly premium is $500 for a person at age 30. About $9,000 is taken away from your savings to pay the various parties.
If the monthly premium of $500 is invested to earn 5% per annum, it will accumulate to $250,000 within 23 years. You can be 100% sure of getting this sum in 23 years (based on 5% investment return). Compared to this certainty, the proportion of people likely to suffer a critical illness within 23 years (and make a claim of $250,000) is between 5% to 10%.
If you buy the "whole life" critical illness policy, how much is the cash value at the end of 23 years? My estimate is $180,000 (but you can check it out). The cost to you over 23 years is a staggering $70,000.
If you wish to insure for critical illness, take a low cost insurance (like Term insurance but extend to include critical illness) to cover 25 years only. The premium is quite small.
Note: The charges under the Living policy from NTUC Income is lower than the market, so the cost is lower than the example shown above. But, it is still quite high, compared to the "Buy low cost insurance and invest the difference".
Sudoku Workshop at Bishan
The Sudoku (Logic9) workshop at Bishan was packed. There were almost 40 participants in the classroom. Some participants had to sit by the side. Most of them came from Bishan and Toa Payoh Community Club, due to active promotion by the managers.
One participant came to tell me that he reads my blog every morning. He enjoyed my blog because it contains the real life questions faced by many people. I did not ask the other participants if they came in response to the posting in my blog.
The participants thoroughly enjoyed the workshop. One participant said that it is "better than mahjong".
One participant came to tell me that he reads my blog every morning. He enjoyed my blog because it contains the real life questions faced by many people. I did not ask the other participants if they came in response to the posting in my blog.
The participants thoroughly enjoyed the workshop. One participant said that it is "better than mahjong".
SuperSIV Bailout Fund
Dec. 18 (Bloomberg) -- The SuperSIV' fund, set up to provide cash to structured investment vehicles hurt by the collapse of the subprime-mortgage market, plans to start buying assets within weeks,' its sponsors said today.
The fund's size, originally envisioned at about $80 billion, will be based on SIVs' needs and evolving market circumstances, Citigroup Inc., Bank of America Corp., JPMorgan Chase & Co. and BlackRock Inc. said in an e-mailed statement. The banks are raising money for the fund while BlackRock will manage its assets.
The urgency that led to the SuperSIV's creation eased after separate SIV bailouts by banks including Citigroup and London- based HSBC Holdings Plc. New York-based Citigroup said last week it would take over seven SIVs with $58 billion of debt. Banks want to avoid forced assets sales to repay SIV borrowings because that would further roil credit markets and reduce the value of their own debt holdings.
The fund, also known as the Master Liquidity Enhancement Conduit, or M-LEC, can still provide ``an optional source of liquidity for eligible high-quality assets,'' the banks said in the statement.
SIVs, which sell short-term debt and invest the proceeds in higher-yielding securities, have cut their holdings by more than 25 percent since August to $298 billion, according to Moody's Investors Service in New York. That's when investors started shunning SIV commercial paper and medium-term notes amid increasing losses on subprime mortgages.
Question: Will this SuperSIV fund help to stabilise the markets?
The fund's size, originally envisioned at about $80 billion, will be based on SIVs' needs and evolving market circumstances, Citigroup Inc., Bank of America Corp., JPMorgan Chase & Co. and BlackRock Inc. said in an e-mailed statement. The banks are raising money for the fund while BlackRock will manage its assets.
The urgency that led to the SuperSIV's creation eased after separate SIV bailouts by banks including Citigroup and London- based HSBC Holdings Plc. New York-based Citigroup said last week it would take over seven SIVs with $58 billion of debt. Banks want to avoid forced assets sales to repay SIV borrowings because that would further roil credit markets and reduce the value of their own debt holdings.
The fund, also known as the Master Liquidity Enhancement Conduit, or M-LEC, can still provide ``an optional source of liquidity for eligible high-quality assets,'' the banks said in the statement.
SIVs, which sell short-term debt and invest the proceeds in higher-yielding securities, have cut their holdings by more than 25 percent since August to $298 billion, according to Moody's Investors Service in New York. That's when investors started shunning SIV commercial paper and medium-term notes amid increasing losses on subprime mortgages.
Question: Will this SuperSIV fund help to stabilise the markets?
Tuesday, December 18, 2007
Flexi Link and CPF policies
Dear Mr Tan,
I've been reading your blog for more than a year and have thoroughly enjoyed it. Can you help me with the following queries.
1) I bought a Living policy for my daughter 4 years ago. I have read your articles which encourage investment in large, low cost fund. I am thinking of terminating the living policy and using the surrender value to invest in NTUC Income's Flexi-Link plan. I guess the better, long term return should exceed the loss of about $1,000 loss on surrendering the living policy. Appreciate your advice.
Reply: I agree with you. It is probably better to make the switch and get a better long term return. However, the stockmarket is still quite volatile. Perhaps you can wait until it stabilises before you make this change?
2) My husband also bought two endowment policies some 10 years ago and he has been using his CPF fund to pay for the yearly premiums. With the new CPF changes, I read that members can continue to service their regular premium insurance policies but NOT recurring single premium insurance policies even if their CPF balance falls below $20,000. May I know whether the yearly premiums for my husband's policies are considered as regular or recurring single premiums?
Reply: An endowment policy is considered as regular premium. So, your husband should be able to continue to get the annual premium paid through CPF.
I've been reading your blog for more than a year and have thoroughly enjoyed it. Can you help me with the following queries.
1) I bought a Living policy for my daughter 4 years ago. I have read your articles which encourage investment in large, low cost fund. I am thinking of terminating the living policy and using the surrender value to invest in NTUC Income's Flexi-Link plan. I guess the better, long term return should exceed the loss of about $1,000 loss on surrendering the living policy. Appreciate your advice.
Reply: I agree with you. It is probably better to make the switch and get a better long term return. However, the stockmarket is still quite volatile. Perhaps you can wait until it stabilises before you make this change?
2) My husband also bought two endowment policies some 10 years ago and he has been using his CPF fund to pay for the yearly premiums. With the new CPF changes, I read that members can continue to service their regular premium insurance policies but NOT recurring single premium insurance policies even if their CPF balance falls below $20,000. May I know whether the yearly premiums for my husband's policies are considered as regular or recurring single premiums?
Reply: An endowment policy is considered as regular premium. So, your husband should be able to continue to get the annual premium paid through CPF.
Logic Quiz A-8
There are five houses in a row. In each house lives a person with a different occupation, drinks a different beverage, plays a different sport and keeps a different pet.
1. The person who drinks beer lives to the left of the person who drinks milk.
2. The person who keeps fish lives to the left of the person who keeps cats.
3. John lives to the left of the person who drinks beer.
4. Robert lives next to the accountant.
5. Mary keeps birds.
6. The teacher drinks coffee.
7. Susan is the lawyer.
8. The person who plays golf lives next to the doctor.
9. The person who plays badminton lives to the left of Albert.
10. The person who drinks water plays bowling.
11. The person who keeps hamsters drinks tea.
12. The person who plays chess lives to the left of the person who keeps cats.
13. The person who drinks tea lives in the last house.
14. Mary lives next to the salesman.
15. The person who keeps dogs lives in the second house.
Question: Who plays tennis?
Post your answer, time taken and name in this blog.
Answer can be found at:
http://www.tankinlian.com/logicquiz/qs.html
More quiz can be found at:
http://www.tankinlian.com/logicquiz/
1. The person who drinks beer lives to the left of the person who drinks milk.
2. The person who keeps fish lives to the left of the person who keeps cats.
3. John lives to the left of the person who drinks beer.
4. Robert lives next to the accountant.
5. Mary keeps birds.
6. The teacher drinks coffee.
7. Susan is the lawyer.
8. The person who plays golf lives next to the doctor.
9. The person who plays badminton lives to the left of Albert.
10. The person who drinks water plays bowling.
11. The person who keeps hamsters drinks tea.
12. The person who plays chess lives to the left of the person who keeps cats.
13. The person who drinks tea lives in the last house.
14. Mary lives next to the salesman.
15. The person who keeps dogs lives in the second house.
Question: Who plays tennis?
Post your answer, time taken and name in this blog.
Answer can be found at:
http://www.tankinlian.com/logicquiz/qs.html
More quiz can be found at:
http://www.tankinlian.com/logicquiz/
Taxi service in Singapore
I read that the taxi situation remained unsatsifactory, in spite of the recent increase in fares. Commuters have to wait for one hour to get a taxi. Many taxis refuse to pick up passengers at the taxi stand. They wait for a booking.
My friend made this observation. The taxi fares and surcharges in Singapore are confusing. The taxi driver knows how to take the best advantage of the situation. The passengers are helpless.
What is wrong with the taxi service in Singapore? How can the situation be improved? I shall give my suggestions in my website in one or two weeks' time.
My friend made this observation. The taxi fares and surcharges in Singapore are confusing. The taxi driver knows how to take the best advantage of the situation. The passengers are helpless.
What is wrong with the taxi service in Singapore? How can the situation be improved? I shall give my suggestions in my website in one or two weeks' time.
Light buses in Hong Kong
My friend told me about the light bus system in Hong Kong. This is how it worked a few years ago. He is not sure if it has changed in recent years.
* The light bus runs on specific routes
* It provides a feeder service to the train
* It carries 14 to 16 passengers
* It can pick up and drop passengers anywhere on the route (i.e. no designated stops)
* The fare is between $1 to $2, converted to Singapore dollars.
* It is more expensive than a train ride, but cheaper than a taxi.
Many people find the public transport in Hong Kong to be more convenient than Singapore. It is among the best in the world.
* The light bus runs on specific routes
* It provides a feeder service to the train
* It carries 14 to 16 passengers
* It can pick up and drop passengers anywhere on the route (i.e. no designated stops)
* The fare is between $1 to $2, converted to Singapore dollars.
* It is more expensive than a train ride, but cheaper than a taxi.
Many people find the public transport in Hong Kong to be more convenient than Singapore. It is among the best in the world.
CEO uses public transport
My friend, originally from Hong Kong, worked as CEO of a venture capital fund in Singapore for more than 10 years. He is used to taking public transport in Singapore. He finds it to be more convenient than driving a private car. When I asked him to take the train to a meeting, he said, "Of course!"
How much to insure for critical illness?
Dear Mr Tan,
You recommend that $50,000 is sufficient for critical illness cover. May I know how you derive this amount?
In my opinion, if I am diagnosed with a critical illness eg cancer, I would have to stop working. I would probably need $2,000 a month to support myself for 5 years, while waiting to see if the cancer would go into remission. Thus, the amount of my critical illness cover should be $2,000 x 5 years = $120,000.
Please advise if my scenario is realistic and reasonable?
REPLY
Critical illness coverage is expensive. A significant portion of the premium goes for marketing and other expenses. If you spend too much on it, you have less money to save for your other needs.
If you spend less on critical illness insurance, you will have more money to save and invest. This will allow you to accumulate savings which can be drawn down for all kinds of emergency (including critical illness), and also for retirement.
I am not aware of many people who have to suffer a critical illness for 5 years. Have you come across many people in this situation?
If the illness is serious, they will pass away and the family can claim under the life insurance policy. If the critical illness is not serious, they can be cured within a shorter time.
However, if you feel that there is a need to insure for a larger sum, it is all right. It is a question of getting the right balance.
You recommend that $50,000 is sufficient for critical illness cover. May I know how you derive this amount?
In my opinion, if I am diagnosed with a critical illness eg cancer, I would have to stop working. I would probably need $2,000 a month to support myself for 5 years, while waiting to see if the cancer would go into remission. Thus, the amount of my critical illness cover should be $2,000 x 5 years = $120,000.
Please advise if my scenario is realistic and reasonable?
REPLY
Critical illness coverage is expensive. A significant portion of the premium goes for marketing and other expenses. If you spend too much on it, you have less money to save for your other needs.
If you spend less on critical illness insurance, you will have more money to save and invest. This will allow you to accumulate savings which can be drawn down for all kinds of emergency (including critical illness), and also for retirement.
I am not aware of many people who have to suffer a critical illness for 5 years. Have you come across many people in this situation?
If the illness is serious, they will pass away and the family can claim under the life insurance policy. If the critical illness is not serious, they can be cured within a shorter time.
However, if you feel that there is a need to insure for a larger sum, it is all right. It is a question of getting the right balance.
Money Market Fund
1. Is it safe to invest all my money in the money market fund. Is it risk free or not?
It has risk, like all investments, but extremely low. I have a fairly significant sum invested in the money market fund under NTUC Income.
2. After reading your postings, I have started doing some research on the money market fund. There are a few such products on the market, such as NTUC Income, Lion Capital, Philips Securities. Is there any particular reasons why you suggest NTUC instead of the rest ?
I am familiar with the money market fund under NTUC Income. It is invested in safe assets and have low annual charge.
I am not familiar with the investments and charges of the other funds. But, I think that they should be quite safe. Their annual charge is probably higher. However, you have to do your own research.
It has risk, like all investments, but extremely low. I have a fairly significant sum invested in the money market fund under NTUC Income.
2. After reading your postings, I have started doing some research on the money market fund. There are a few such products on the market, such as NTUC Income, Lion Capital, Philips Securities. Is there any particular reasons why you suggest NTUC instead of the rest ?
I am familiar with the money market fund under NTUC Income. It is invested in safe assets and have low annual charge.
I am not familiar with the investments and charges of the other funds. But, I think that they should be quite safe. Their annual charge is probably higher. However, you have to do your own research.
Invest the year-end bonus
Hi Mr Tan,
I've been following your blog for a while. I enjoy your articles and Irecommend it to my friends. Some of them who wanted to improve on their financials are reading your blog too.
This is the first time I'm writing to you. I've been reading a lotabout the USA recession that may be coming, hence I'm hesitant about investing my bonus on global equity funds or the STI ETF.
Is bonds a better option in a pending recession? Or should I continue investing in the STI ETF?
I also read that stocks of food and utitlities companies are more resistant to cyclical movements in a recession. Are these good options?
Or should I leave my money in the bank (unfortunately, annual interest is 0.125%) and wait until the recession sets in, then go about stock picking?
REPLY
I suggest that you put your bonus in the Money Market Fund from NTUC Income for the next 6 to 12 months. You can earn 2% to 2.5% per annum. Wait until the global economic situation becomes clearer.
I've been following your blog for a while. I enjoy your articles and Irecommend it to my friends. Some of them who wanted to improve on their financials are reading your blog too.
This is the first time I'm writing to you. I've been reading a lotabout the USA recession that may be coming, hence I'm hesitant about investing my bonus on global equity funds or the STI ETF.
Is bonds a better option in a pending recession? Or should I continue investing in the STI ETF?
I also read that stocks of food and utitlities companies are more resistant to cyclical movements in a recession. Are these good options?
Or should I leave my money in the bank (unfortunately, annual interest is 0.125%) and wait until the recession sets in, then go about stock picking?
REPLY
I suggest that you put your bonus in the Money Market Fund from NTUC Income for the next 6 to 12 months. You can earn 2% to 2.5% per annum. Wait until the global economic situation becomes clearer.
Monday, December 17, 2007
Swan Lake - the story
Synopsis: from Wikipedia
Act 1
Swan Lake begins at a royal court. Prince Siegfried, heir to the kingdom, must declare a wife at his birthday ball. Upset that he cannot marry for love, Siegfried escapes into the forest at night. As he sees a flock of swans flying overhead, he sets off in pursuit
Act 2
Sigfried aims his crossbow and readies himself for their landing by the lakeside. When one comes into view, however, he stops; before him is a beautiful creature dressed in white feathers, more woman than swan. Enamoured, the two dance and Siegfried learns that the swan maiden is the princess Odette. An evil sorcerer, Von Rothbart, captured her and used his magic to turn Odette into a swan by day and woman by night.
A retinue of other captured swan-maidens attend Odette in the environs of Swan Lake, which was formed by the tears of her parents when she was kidnapped by Von Rothbart. Once Siegfried knows her story, he takes great pity on her and falls in love. As he begins to swear his love to her - an act that will render the sorcerer's spell powerless - Von Rothbart appears. Siegfried threatens to kill him but Odette intercedes; if Von Rothbart dies before the spell is broken, it can never be undone.
Act 3
The Prince returns to the castle to attend the ball. Von Rothbart arrives in disguise with his own daughter Odile, making her seem identical to Odette in all respects except that she wears black while Odette wears white. The prince mistakes her for Odette, dances with her, and proclaims to the court that he intends to make her his wife. Only a moment too late, Siegfried sees the real Odette and realizes his mistake. The method in which Odette appears varies: in some versions she arrives at the castle, while in other versions Von Rothbart shows Siegfried a magical vision of her.
Act 4
In the fourth act, versions of the ballet diverge. In the original version, Odette and Siegfried, realizing that the spell can never be broken, drown themselves by leaping into the lake. This causes Von Rothbart to lose his power over them, and he dies as a result. But many different endings exist, ranging from romantic to tragic.
In a version danced by the Mariinsky Ballet in 2006, the true love between Siegfried and Odette defeats Von Rothbart, who dies after the prince breaks one of his wings. Odette is restored to human form to unite happily with the prince. This version has often been used by Russian and Chinese ballet companies.
In a version which has an ending very close to the original danced by American Ballet Theatre in 2005, Siegfried's mistaken pledge of fidelity to Odile consigns Odette to eternal swanhood.
Realizing that her last moment of humanity is at hand, Odette commits suicide by throwing herself into the lake. The Prince does so as well. This act of sacrifice and love breaks Von Rothbart's power, and he is destroyed. In the final tableau, the lovers are seen rising together to heaven in apotheosis.
In a version danced by New York City Ballet in 2006 (with choreography by Peter Martins after Lev Ivanov, Marius Petipa, and George Balanchine), the Prince's declaration that he wishes to marry Odile constitutes a betrayal that condemns Odette to remain a swan forever. Odette is called away into swan form, and Siegfried is left alone in grief as the curtain falls.
Act 1
Swan Lake begins at a royal court. Prince Siegfried, heir to the kingdom, must declare a wife at his birthday ball. Upset that he cannot marry for love, Siegfried escapes into the forest at night. As he sees a flock of swans flying overhead, he sets off in pursuit
Act 2
Sigfried aims his crossbow and readies himself for their landing by the lakeside. When one comes into view, however, he stops; before him is a beautiful creature dressed in white feathers, more woman than swan. Enamoured, the two dance and Siegfried learns that the swan maiden is the princess Odette. An evil sorcerer, Von Rothbart, captured her and used his magic to turn Odette into a swan by day and woman by night.
A retinue of other captured swan-maidens attend Odette in the environs of Swan Lake, which was formed by the tears of her parents when she was kidnapped by Von Rothbart. Once Siegfried knows her story, he takes great pity on her and falls in love. As he begins to swear his love to her - an act that will render the sorcerer's spell powerless - Von Rothbart appears. Siegfried threatens to kill him but Odette intercedes; if Von Rothbart dies before the spell is broken, it can never be undone.
Act 3
The Prince returns to the castle to attend the ball. Von Rothbart arrives in disguise with his own daughter Odile, making her seem identical to Odette in all respects except that she wears black while Odette wears white. The prince mistakes her for Odette, dances with her, and proclaims to the court that he intends to make her his wife. Only a moment too late, Siegfried sees the real Odette and realizes his mistake. The method in which Odette appears varies: in some versions she arrives at the castle, while in other versions Von Rothbart shows Siegfried a magical vision of her.
Act 4
In the fourth act, versions of the ballet diverge. In the original version, Odette and Siegfried, realizing that the spell can never be broken, drown themselves by leaping into the lake. This causes Von Rothbart to lose his power over them, and he dies as a result. But many different endings exist, ranging from romantic to tragic.
In a version danced by the Mariinsky Ballet in 2006, the true love between Siegfried and Odette defeats Von Rothbart, who dies after the prince breaks one of his wings. Odette is restored to human form to unite happily with the prince. This version has often been used by Russian and Chinese ballet companies.
In a version which has an ending very close to the original danced by American Ballet Theatre in 2005, Siegfried's mistaken pledge of fidelity to Odile consigns Odette to eternal swanhood.
Realizing that her last moment of humanity is at hand, Odette commits suicide by throwing herself into the lake. The Prince does so as well. This act of sacrifice and love breaks Von Rothbart's power, and he is destroyed. In the final tableau, the lovers are seen rising together to heaven in apotheosis.
In a version danced by New York City Ballet in 2006 (with choreography by Peter Martins after Lev Ivanov, Marius Petipa, and George Balanchine), the Prince's declaration that he wishes to marry Odile constitutes a betrayal that condemns Odette to remain a swan forever. Odette is called away into swan form, and Siegfried is left alone in grief as the curtain falls.
Investing in volatile market conditions
Mr, Tan,
I like to seek your advise on investing in SRS accounts. Under today's economic and voilatile stituation in the financial market that might drag on for a year or more, what kind of funds should I invest for SRS?
I am looking for a return of about 10% or more per annum if possible to beat the inflation aspect in Singapore.
REPLY
I do not know any safe investment that can give a return of 10%. I keep my money in the money market fund to earn 2% to 2.5%.
I like to seek your advise on investing in SRS accounts. Under today's economic and voilatile stituation in the financial market that might drag on for a year or more, what kind of funds should I invest for SRS?
I am looking for a return of about 10% or more per annum if possible to beat the inflation aspect in Singapore.
REPLY
I do not know any safe investment that can give a return of 10%. I keep my money in the money market fund to earn 2% to 2.5%.
Swan Lake, 20 - 23 December, Esplanade
The first classical music that I heard was Swan Lake by Peter Tsaikovsky. That was more than 50 years ago. I can still remember the magical tunes to this day.
You can now watch the performance of Swan Lake by the Singapore Dance Theatre during this week at the Esplanade. Swan Lake is considered to be the most well known ballet in the world. You must not miss it.
The story of Swan Lake revolves around a love story between a beautiful princess, Odette, and a prince, Siegfried. Odette is cursed to appear in the form of a swan in the day and can only revert to her human self at night. Siegfried, while fleeing his castle to escape an arranged marriage, chances upon Odette and falls in love with her.
Swan Lake relates the beautiful tale of their love and will mesmerize audiences with stunning sets and breath-taking choreography.
Tickets prices: $88, $68, $58, $48, and $38.
SPECIAL: Sweet Sixteen tickets at $16 per ticket (inclusive of $1 SISTIC fee) available to all full-time students and NSmen.
http://www.singaporedancetheatre.com/performance/swanlake.asp
You can now watch the performance of Swan Lake by the Singapore Dance Theatre during this week at the Esplanade. Swan Lake is considered to be the most well known ballet in the world. You must not miss it.
The story of Swan Lake revolves around a love story between a beautiful princess, Odette, and a prince, Siegfried. Odette is cursed to appear in the form of a swan in the day and can only revert to her human self at night. Siegfried, while fleeing his castle to escape an arranged marriage, chances upon Odette and falls in love with her.
Swan Lake relates the beautiful tale of their love and will mesmerize audiences with stunning sets and breath-taking choreography.
Tickets prices: $88, $68, $58, $48, and $38.
SPECIAL: Sweet Sixteen tickets at $16 per ticket (inclusive of $1 SISTIC fee) available to all full-time students and NSmen.
http://www.singaporedancetheatre.com/performance/swanlake.asp
Renewal of motor insurance
Mr. Tan,
Can I wait for the insurance company to remind me about the renewal of the motor insurance, and then I can go and source for quotations?
REPLY
Sometimes the insurance company sends the renewal notice to you rather late, or you may have overlook it, if you are busy. You may not have sufficient time to source for the best quote. It is better to have a reminder in your diary.
Can I wait for the insurance company to remind me about the renewal of the motor insurance, and then I can go and source for quotations?
REPLY
Sometimes the insurance company sends the renewal notice to you rather late, or you may have overlook it, if you are busy. You may not have sufficient time to source for the best quote. It is better to have a reminder in your diary.
Forward Pricing of Unit Trust
Hi Mr Tan,
I'm really glad that I had the chance to come across your blog and gain so many valuable information from your posting. Your effort in your blog really inspired me and many others. I sincerely hope more people, include myself, can benefits from you and putting forward our gains, to build a better sociality.
As I am not well educated, there are lots of financial terms that I really hope to understand. What does "Forward Price" means and how it works?
I have searched the websites but none of them looks simple to me. I have been struggling with those terms and conditions, regulations and report statements given to me by the investment agent.
REPLY
If you buy or sell shares through a stock exchange, you transact based on the price that the other party is willing to transact with you.
When you buy or sell units in a unit trust, there is no party that is transacting with you through an exchange. The price that you will transact will be based on the price of the units computed by the fund manager (usually based on the net asset value of the fund) at the end of the current or following day. This is called "forward pricing". It means that you are using a price at a future time. Usually, the unit trust will tell you how the forward price is computed.
Do not be shy that you are not familiar with this concept. I was not familiar with it, until recently.
I'm really glad that I had the chance to come across your blog and gain so many valuable information from your posting. Your effort in your blog really inspired me and many others. I sincerely hope more people, include myself, can benefits from you and putting forward our gains, to build a better sociality.
As I am not well educated, there are lots of financial terms that I really hope to understand. What does "Forward Price" means and how it works?
I have searched the websites but none of them looks simple to me. I have been struggling with those terms and conditions, regulations and report statements given to me by the investment agent.
REPLY
If you buy or sell shares through a stock exchange, you transact based on the price that the other party is willing to transact with you.
When you buy or sell units in a unit trust, there is no party that is transacting with you through an exchange. The price that you will transact will be based on the price of the units computed by the fund manager (usually based on the net asset value of the fund) at the end of the current or following day. This is called "forward pricing". It means that you are using a price at a future time. Usually, the unit trust will tell you how the forward price is computed.
Do not be shy that you are not familiar with this concept. I was not familiar with it, until recently.
Buy Motor Insurance Directly
Here are the tips to pay less for your motor insurance.
1. Put a reminder in your diary two months before the expiry date of your motor insurance policy.
2. Get the following particulars of your motor car:
Particulars of car (model, engine capacity*, year of registration, market value*)
Particulars of owner (age, years of driving experience, occcupation)
Type of cover (comprehensive, third party only, third party with fire and theft)
No-claim discount for past year
Any claims during the current year?
Previous year's premium
* these data are optional and may not be asked by some insurers (as they can figure them out using your car model).
Normally, you ask for Comprehensive cover. If your car is too old, the insurer may offer Third Party cover only.
3. Get the hotline number of the top motor insurers, e.g. NTUC Income, AIG, AXA
4. Give a call to the hotline and ask for a quote. Ask them if you give you a discount for calling them directly. If they charge a higher premium than for your previous year, ask them why they are charging more. (They may give you a discount to attract your business).
5. If you are not sure about the quality of the claim service, call the claim hotline now (i.e. do not wait until you have an accident) and see if it is easy to get through and if the staff is polite and friendly.
6. Make your decision two weeks before expiry.
Here are the contact numbers of the insurance companies that are active in motor insurance. You can send a fax to them or call their hotline to ask for a quote for your motor insurance.
American Home (AIG), Tel No. 6419 1000 Fax No. 6835 7401http://www.aig.com.sg/
AXA Insurance, Tel: 6338 7288 Fax: 6338 2522 http://www.axa.com.sg/
China Insurance Tel: 6389 6111 Fax: 6222 1033 http://www.chinainsurance.com.sg/
HSBC Insurance, Tel: 6225 6111Fax : 6732 0743 http://www.hsbc.com.sg/
India International, Tel: 6347 6100 Fax: 6225 7743 6224 4174 http://www.iii.com.sg/
Mitsui Sumitomo, Tel: 6220 9644 Fax: 6225 6371 http://www.ms-ins.com.sg/
NTUC Income, Tel No. 6336 3322 Fax No. 6338 1500 http://www.income.com.sg/
Tenet Insurance, Tel: 6221 2211 Fax: 6221 3302 http://www.tenetinsurance.com/
Tokio Marine, Tel: 6221 6111 Fax: 6224 0895 http://www.tokiomarine.com.sg/
1. Put a reminder in your diary two months before the expiry date of your motor insurance policy.
2. Get the following particulars of your motor car:
Particulars of car (model, engine capacity*, year of registration, market value*)
Particulars of owner (age, years of driving experience, occcupation)
Type of cover (comprehensive, third party only, third party with fire and theft)
No-claim discount for past year
Any claims during the current year?
Previous year's premium
* these data are optional and may not be asked by some insurers (as they can figure them out using your car model).
Normally, you ask for Comprehensive cover. If your car is too old, the insurer may offer Third Party cover only.
3. Get the hotline number of the top motor insurers, e.g. NTUC Income, AIG, AXA
4. Give a call to the hotline and ask for a quote. Ask them if you give you a discount for calling them directly. If they charge a higher premium than for your previous year, ask them why they are charging more. (They may give you a discount to attract your business).
5. If you are not sure about the quality of the claim service, call the claim hotline now (i.e. do not wait until you have an accident) and see if it is easy to get through and if the staff is polite and friendly.
6. Make your decision two weeks before expiry.
Here are the contact numbers of the insurance companies that are active in motor insurance. You can send a fax to them or call their hotline to ask for a quote for your motor insurance.
American Home (AIG), Tel No. 6419 1000 Fax No. 6835 7401http://www.aig.com.sg/
AXA Insurance, Tel: 6338 7288 Fax: 6338 2522 http://www.axa.com.sg/
China Insurance Tel: 6389 6111 Fax: 6222 1033 http://www.chinainsurance.com.sg/
HSBC Insurance, Tel: 6225 6111Fax : 6732 0743 http://www.hsbc.com.sg/
India International, Tel: 6347 6100 Fax: 6225 7743 6224 4174 http://www.iii.com.sg/
Mitsui Sumitomo, Tel: 6220 9644 Fax: 6225 6371 http://www.ms-ins.com.sg/
NTUC Income, Tel No. 6336 3322 Fax No. 6338 1500 http://www.income.com.sg/
Tenet Insurance, Tel: 6221 2211 Fax: 6221 3302 http://www.tenetinsurance.com/
Tokio Marine, Tel: 6221 6111 Fax: 6224 0895 http://www.tokiomarine.com.sg/
Buy Term Insurance Directly
You can buy Term Insurance directly from the life insurance companies.
A list of the companies, with their fax and telephone numbers is shown below. You can try NTUC Income, UOB Life, Asia Life and Aviva. They are likely to be interested to reply to you.
Send a fax to them, asking them to quote the premium for you. You have to specify the
following:
1. Your age and gender
2. Sum assured
3. Term (level or reducing)
Some of them may send a quote to you. You can compare the quote with the benchmark premiums shown in my website:
http://www.tankinlian.com/faq/term.html
If the quoted premium is within 20% of my benchmark rates, they will represent good value to you.
All the best in your search. Share your results in my blog.
American International, Tel 6291 8000 Fax 6298 6000, http://www.aia.com.sg/
Aviva, Tel 6827 7988 Fax 6827 7900, http://www.aviva-singapore.com.sg/
AXA Life, Tel 6880 5500 Fax 6880 5501, http://www.axa.com.sg/
Friends Provident, Tel 6327 4019 Fax 6327 4020, http://www.fpinternational.com/
Great Eastern Life, Tel 6248 2000 Fax 6532 2214, http://www.lifeisgreat.com.sg/
HSBC Insurance. Tel 6225 6111 Fax 6221 2188, http://www.insurance.hsbc.com.sg/
Manulife, Tel 6737 1221 Fax 6737 8488, http://www.manulife.com.sg/
NTUC Income, Tel 6336 3322 Fax 6338 1500, http://www.income.com.sg/
Overseas Assurance, Tel 6248 2000 Fax 6532 2214, http://www.oac.com.sg/
Prudential Assurance, Tel 6535 8988 Fax 6532 4043, http://www.prudential.com.sg/
TM Asia Life, Tel 6224 3181 Fax 6223 9120, http://www.tmasialife.com/
Transamerica Life, Tel 6236 2366 Fax 6236 2123, http://www.transamerica.com.sg/
UOB Life, Tel 6227 8477 Fax 6224 3012, http://www.uoblife.com.sg/
A list of the companies, with their fax and telephone numbers is shown below. You can try NTUC Income, UOB Life, Asia Life and Aviva. They are likely to be interested to reply to you.
Send a fax to them, asking them to quote the premium for you. You have to specify the
following:
1. Your age and gender
2. Sum assured
3. Term (level or reducing)
Some of them may send a quote to you. You can compare the quote with the benchmark premiums shown in my website:
http://www.tankinlian.com/faq/term.html
If the quoted premium is within 20% of my benchmark rates, they will represent good value to you.
All the best in your search. Share your results in my blog.
American International, Tel 6291 8000 Fax 6298 6000, http://www.aia.com.sg/
Aviva, Tel 6827 7988 Fax 6827 7900, http://www.aviva-singapore.com.sg/
AXA Life, Tel 6880 5500 Fax 6880 5501, http://www.axa.com.sg/
Friends Provident, Tel 6327 4019 Fax 6327 4020, http://www.fpinternational.com/
Great Eastern Life, Tel 6248 2000 Fax 6532 2214, http://www.lifeisgreat.com.sg/
HSBC Insurance. Tel 6225 6111 Fax 6221 2188, http://www.insurance.hsbc.com.sg/
Manulife, Tel 6737 1221 Fax 6737 8488, http://www.manulife.com.sg/
NTUC Income, Tel 6336 3322 Fax 6338 1500, http://www.income.com.sg/
Overseas Assurance, Tel 6248 2000 Fax 6532 2214, http://www.oac.com.sg/
Prudential Assurance, Tel 6535 8988 Fax 6532 4043, http://www.prudential.com.sg/
TM Asia Life, Tel 6224 3181 Fax 6223 9120, http://www.tmasialife.com/
Transamerica Life, Tel 6236 2366 Fax 6236 2123, http://www.transamerica.com.sg/
UOB Life, Tel 6227 8477 Fax 6224 3012, http://www.uoblife.com.sg/
Investment-linked plan with high distribution cost
Hi Mr. Tan
I just purchased an invesment linked plan from company X. It covers death, disability and crisis cover with terminal illness. The annual premuim is $3,000.
I want protection and saving for my retirement. I am Y yrs old and self employed with little CPF. The agent said this is the best plan out of all.
Can I take up this plan first as it is much cheaper in premium for my protection coverage and reduce it later to convert it into purely investment? The policy is now within the 14 days free look period.
REPLY
Can you find out how much of your premium is invested in the fund for the first few years, and when will 100% be invested?
I understand that the disctribution cost (to pay commission to the agent) from company X can take away 16 months of your premium. That is a lot of your savings to be taken away. You can look at this webpage, http://www.askdrmoney.com/Ins_ILP_RP.htm
I suggest that you cancel this policy immediately, i.e. within the 14 day free look period, until this matter is cleared up.
I just purchased an invesment linked plan from company X. It covers death, disability and crisis cover with terminal illness. The annual premuim is $3,000.
I want protection and saving for my retirement. I am Y yrs old and self employed with little CPF. The agent said this is the best plan out of all.
Can I take up this plan first as it is much cheaper in premium for my protection coverage and reduce it later to convert it into purely investment? The policy is now within the 14 days free look period.
REPLY
Can you find out how much of your premium is invested in the fund for the first few years, and when will 100% be invested?
I understand that the disctribution cost (to pay commission to the agent) from company X can take away 16 months of your premium. That is a lot of your savings to be taken away. You can look at this webpage, http://www.askdrmoney.com/Ins_ILP_RP.htm
I suggest that you cancel this policy immediately, i.e. within the 14 day free look period, until this matter is cleared up.
NTUC Income's Money Market Fund
Hi Kin Lian,
My thanks for all your contributions to financial education for your readers. May I ask your opinion on whether the NTUC Money Market Fund is safe, in view of the subprime problems please?
REPLY
I have checked the investments of this fund.
It is safe because the fund is invested in very short-term papers, average less than 6 months, mainly in interbank deposits with banks licensed to operate in Singapore. There is no exposure to subprime risk.
Personally, I have a significant investment in this fund.
My thanks for all your contributions to financial education for your readers. May I ask your opinion on whether the NTUC Money Market Fund is safe, in view of the subprime problems please?
REPLY
I have checked the investments of this fund.
It is safe because the fund is invested in very short-term papers, average less than 6 months, mainly in interbank deposits with banks licensed to operate in Singapore. There is no exposure to subprime risk.
Personally, I have a significant investment in this fund.
Government Bonds
FIRST POSTED IN JULY 2007
Hi Mr Tan,
Due to the low fixed deposit interest rate, I intend to buy bonds issued by Singapore Government.
1) How many different types of bond we can buy as an individual?
2) Is there a minimum amount to buy?
3) How to buy and what risks do we have to take?
-------------------------------------
REPLY:
You can approach your bank or stockbroker. You can also view from the MAS website. Government bonds have the lowest risk, ie they are more secure than bank deposits.
Hi Mr Tan,
Due to the low fixed deposit interest rate, I intend to buy bonds issued by Singapore Government.
1) How many different types of bond we can buy as an individual?
2) Is there a minimum amount to buy?
3) How to buy and what risks do we have to take?
-------------------------------------
REPLY:
You can approach your bank or stockbroker. You can also view from the MAS website. Government bonds have the lowest risk, ie they are more secure than bank deposits.
Search my blog
Someone sent an e-mail to ask my views about "Traded Endowment policies". I replied that I had written about it in my blog.
Here is how you can search my blog for a topic of your interest. Go to the top of my blog and look for the box called "Search Blog". Type in the keyword, such as "Traded Endowment" or "Land Banking". You will get postings in my blog on your selected subject.
Someone sent an e-mail to ask me, "Where to buy Government bonds". I searched my blog for "Government bonds" and found a posting in July 2007. I re-dated this posting to appear at the top.
Here is how you can search my blog for a topic of your interest. Go to the top of my blog and look for the box called "Search Blog". Type in the keyword, such as "Traded Endowment" or "Land Banking". You will get postings in my blog on your selected subject.
Someone sent an e-mail to ask me, "Where to buy Government bonds". I searched my blog for "Government bonds" and found a posting in July 2007. I re-dated this posting to appear at the top.
Logic Quiz A-7
There are five houses in a row. In each house lives a person with a different occupation, drinks a different beverage, plays a different sport and keeps a different pet.
1. The person who plays chess lives next to Albert.
2. The lawyer lives to the left of the teacher.
3. The person who plays chess lives next to the person who drinks tea.
4. The accountant lives to the left of the person who keeps cats.
5. The teacher plays golf.
6. The person who plays badminton lives to the left of the person who plays bowling.
7. The teacher lives next to Susan.
8. The salesman drinks beer.
9. The person who plays tennis lives in the second house.
10. Mary lives to the left of the person who drinks water.
11. John keeps birds.
12. The doctor lives in the third house.
13. The person who keeps birds lives to the left of the person who keeps dogs.
14. The person who plays tennis lives next to the salesman.
15. The person who keeps fish lives to the left of the person who keeps hamsters.
16. Robert drinks milk.
Question: Who drinks coffee?
Post your answer, time taken and name in this blog.
Answer can be found at:
http://www.tankinlian.com/logicquiz/qs.html
More quiz can be found at:
http://www.tankinlian.com/logicquiz/
1. The person who plays chess lives next to Albert.
2. The lawyer lives to the left of the teacher.
3. The person who plays chess lives next to the person who drinks tea.
4. The accountant lives to the left of the person who keeps cats.
5. The teacher plays golf.
6. The person who plays badminton lives to the left of the person who plays bowling.
7. The teacher lives next to Susan.
8. The salesman drinks beer.
9. The person who plays tennis lives in the second house.
10. Mary lives to the left of the person who drinks water.
11. John keeps birds.
12. The doctor lives in the third house.
13. The person who keeps birds lives to the left of the person who keeps dogs.
14. The person who plays tennis lives next to the salesman.
15. The person who keeps fish lives to the left of the person who keeps hamsters.
16. Robert drinks milk.
Question: Who drinks coffee?
Post your answer, time taken and name in this blog.
Answer can be found at:
http://www.tankinlian.com/logicquiz/qs.html
More quiz can be found at:
http://www.tankinlian.com/logicquiz/
Logic Quizzes at my website
Here is a treat for enthusiasts of the Logic Quiz.
You can have more quizzes from my website:
http://www.tankinlian.com/logicquiz/
Enjoy.
You can have more quizzes from my website:
http://www.tankinlian.com/logicquiz/
Enjoy.
Answers to 6J16, 6A19
ANSWERS TO QUIZ 6J-17
Question: Who plays drum Answer: Alice
1 2 3 4
student Margaret John Peter Alice
eats banana papaya apple orange
plays trumpet violin piano drum
keeps dog cat parrot tortoise
ANSWERS TO QUIZ 6A-19
Question: Who drives Mercedes Answer: scientist
1 2 3 4 5
house grey purple pink maroon brown
is a professor marketeer scientist engineer manager
drinks coffee tea water wine beer
plays tennis badminton golf basketball soccer
drives Volvo Nissan Mercedes Honda Totota
Sunday, December 16, 2007
Good chance to win the Sudoku Challenge
Someone sent an email to ask me if they have a good chance to win the competition by attending my workshop in Bishan.
The answer is "yes". After learning the four tips, you still have to practice hard with many puzzles (say 4 booklets with 500 puzzles). You will be able to do the puzzles very fast.
If you can solve the difficult puzzes within 10 minutes, your chance is quite good. Most of the participants take a longer time.
The answer is "yes". After learning the four tips, you still have to practice hard with many puzzles (say 4 booklets with 500 puzzles). You will be able to do the puzzles very fast.
If you can solve the difficult puzzes within 10 minutes, your chance is quite good. Most of the participants take a longer time.
Bid and Offer prices of Unit Trust
Hi Mr Tan,
Not really about specific financial product, but I'm keen to know the difference between Bid-offer spread to Single pricing Unit Trusts. Is there a better model or do they work out the same?
REPLY
Most unit trusts indicate the Offer price and Bid price separately. You buy at the Offer price and you sell at the Bid price. The difference is called the Spread. It may vary from 1% to 5%, depending on the fund.
For example, if the spread is 2% and the Bid price is $2,00, the Offer price will be $2.04.
Some unit trust, also called a "no load" fund, will use a single price. You buy or sell at the single price. In some cases, the fund manager may impose a separate charge when you sell the units, especially if the investment is for a short period.
Alternatively, a no-load fund may impose a higher annual charge. For example, if the typical fund charges charges an annual charge of 1.5%, a no load fund may charge 2% yearly.
Not really about specific financial product, but I'm keen to know the difference between Bid-offer spread to Single pricing Unit Trusts. Is there a better model or do they work out the same?
REPLY
Most unit trusts indicate the Offer price and Bid price separately. You buy at the Offer price and you sell at the Bid price. The difference is called the Spread. It may vary from 1% to 5%, depending on the fund.
For example, if the spread is 2% and the Bid price is $2,00, the Offer price will be $2.04.
Some unit trust, also called a "no load" fund, will use a single price. You buy or sell at the single price. In some cases, the fund manager may impose a separate charge when you sell the units, especially if the investment is for a short period.
Alternatively, a no-load fund may impose a higher annual charge. For example, if the typical fund charges charges an annual charge of 1.5%, a no load fund may charge 2% yearly.
Sudoku Challenge 6 and 13 January 2008
The Bishan Community Club is organizing a national Sudoku Challenge as follows:
Preliminary: 6 Jan 2008 at the Bishan Community Club multi purpose hall (to select 16 finalists)
Grand Finals: 13 Jan 2008 at Suntec City (in support of the "Silver Industry Conference & Exhibition 2008)
Eligibility: The competitions are open to all Singapore Citizens and Permanent Residents, who are 40 years old and above (as at 1 January 2008).
Prizes: Top and consolation prizes will be given to all Finalists.
Registration: $3 per person
Walk-in: Bishan Community Club or any Community Centres/Clubs
Internet: http://one.pa.gov.sg/CRMSPortal/CRMSPortal.portal?_nfpb=true&_windowLabel=CRMSPortal_1&_urlType=action&CRMSPortal_1_action=CMFAdvanceSearch&_pageLabel=CRMSPortal_page_1
Bishan CC's Telephone: 6259 4720.
Closing Date: 31 December 2007
Tips on how to play Sudoku (Logic9): attend a workshop at Bishan CC
----------------------------------------------
PRIZES FOR THE NATIONAL SUDOKU CHALLENGE (sponsored by OTO)
Champion : OTO PowerFoot worth $880
1st Runner-up : OTO Big Foot worth $698
2nd Runner-up : OTO Electro Reflexologist worth $438
3rd Runner-up : OTO Trimax worth $328
5th to 8th : 4 pcs OTO Spinex worth $108 (each)
9th to 16th : 8 pcs OTO Eye Motion worth $48 (each)
Preliminary: 6 Jan 2008 at the Bishan Community Club multi purpose hall (to select 16 finalists)
Grand Finals: 13 Jan 2008 at Suntec City (in support of the "Silver Industry Conference & Exhibition 2008)
Eligibility: The competitions are open to all Singapore Citizens and Permanent Residents, who are 40 years old and above (as at 1 January 2008).
Prizes: Top and consolation prizes will be given to all Finalists.
Registration: $3 per person
Walk-in: Bishan Community Club or any Community Centres/Clubs
Internet: http://one.pa.gov.sg/CRMSPortal/CRMSPortal.portal?_nfpb=true&_windowLabel=CRMSPortal_1&_urlType=action&CRMSPortal_1_action=CMFAdvanceSearch&_pageLabel=CRMSPortal_page_1
Bishan CC's Telephone: 6259 4720.
Closing Date: 31 December 2007
Tips on how to play Sudoku (Logic9): attend a workshop at Bishan CC
----------------------------------------------
PRIZES FOR THE NATIONAL SUDOKU CHALLENGE (sponsored by OTO)
Champion : OTO PowerFoot worth $880
1st Runner-up : OTO Big Foot worth $698
2nd Runner-up : OTO Electro Reflexologist worth $438
3rd Runner-up : OTO Trimax worth $328
5th to 8th : 4 pcs OTO Spinex worth $108 (each)
9th to 16th : 8 pcs OTO Eye Motion worth $48 (each)
Sudoku (Logic9) workshop
I am giving a 1.5 hour workshop at Bishan Community Club on Tuesday 18 December at 8 pm. If you are interested to attend, call the Club at 6259 4720. The fee is $5 only. You can pay on attendance at the workshop.
Special: You can buy 4 sets of puzzle books at a discounted price of $10 (normal $20).
If you are 40 years or older, you can register at the workshop to take part in the national Sudoku Challenge. Attractive prizes can be won. If you practice using my tips, you have a good chance to win the competition.
Special: You can buy 4 sets of puzzle books at a discounted price of $10 (normal $20).
If you are 40 years or older, you can register at the workshop to take part in the national Sudoku Challenge. Attractive prizes can be won. If you practice using my tips, you have a good chance to win the competition.
How long does it take to solve a Logic Quiz?
Dear Mr. Tan,
How much time should a person take to solve the Logic Quiz? How did you manage to create so many quizzes? It must have take a lot of time!
REPLY
When I first started to solve a 5X5 quiz (identified as type A), it took 30 minutes. After practicing many times, I am now able to solve it in 6 minutes. For the simple 4X4 quiz (identified as type J), I now take 3 minutes.
I wrote a computer program (using DOS BASIC language) to generate the quizzes. I am now able to produce 100 quizzes in 3 seconds. They follow different rule structures, and jumbles around the people and their characteristics. All the puzzles appear different.
If there is demand, I will print a book of puzzles. If not, I will publish in my website and let people exercise their minds.
You can try more quizzes at my website:
http://www.tankinlian.com/logicquiz/
How much time should a person take to solve the Logic Quiz? How did you manage to create so many quizzes? It must have take a lot of time!
REPLY
When I first started to solve a 5X5 quiz (identified as type A), it took 30 minutes. After practicing many times, I am now able to solve it in 6 minutes. For the simple 4X4 quiz (identified as type J), I now take 3 minutes.
I wrote a computer program (using DOS BASIC language) to generate the quizzes. I am now able to produce 100 quizzes in 3 seconds. They follow different rule structures, and jumbles around the people and their characteristics. All the puzzles appear different.
If there is demand, I will print a book of puzzles. If not, I will publish in my website and let people exercise their minds.
You can try more quizzes at my website:
http://www.tankinlian.com/logicquiz/
Lower the cost of insurance
1. Can the cost of insurance be reduced?
Yes. Insurers have to design and market low cost insurance to cover personal risks, such as death, accidents and medical expenses.
The product has to be kept simple. The cost of marketing should be reduced considerably.
2. What about customers who prefer to have a return on their premiums?
It is better for customers to separate their insurance from investments. They will get a higher return on their investments and greater flexibility.
3. Is there still a role for insurance agents?
Yes. The agent plays a useful role to help the customer to get a competitive rate and to handle the paperwork. The commission can be 10% of the low cost premium.
As the premium is small, the commission is small. The agent cannot spend time to visit the customer. The agent has to improve the productvity. Most of the transactions can be handled through the telephone. If the customer has to be seen by the agent, the customer should visit the agent's office.
This is similar to buying stocks through a stockbroker or consulting a doctor.
4. Why are endowment and whole life products still popular in the developed markets?
They are popular in the markets where the customer can reduce tax by buying these life insurance products. The marketing cost of these products can be covered by the tax savings and still give a net benefit to the customer. The insurance adviser has to find the right customer who can benefit from the tax savings.
This situation does not apply in Singapore, as there is negligble tax savings from life insurance products. The marketing expenses eats into the investment return. Hence, it is better for the investments to be separated from insurance.
Yes. Insurers have to design and market low cost insurance to cover personal risks, such as death, accidents and medical expenses.
The product has to be kept simple. The cost of marketing should be reduced considerably.
2. What about customers who prefer to have a return on their premiums?
It is better for customers to separate their insurance from investments. They will get a higher return on their investments and greater flexibility.
3. Is there still a role for insurance agents?
Yes. The agent plays a useful role to help the customer to get a competitive rate and to handle the paperwork. The commission can be 10% of the low cost premium.
As the premium is small, the commission is small. The agent cannot spend time to visit the customer. The agent has to improve the productvity. Most of the transactions can be handled through the telephone. If the customer has to be seen by the agent, the customer should visit the agent's office.
This is similar to buying stocks through a stockbroker or consulting a doctor.
4. Why are endowment and whole life products still popular in the developed markets?
They are popular in the markets where the customer can reduce tax by buying these life insurance products. The marketing cost of these products can be covered by the tax savings and still give a net benefit to the customer. The insurance adviser has to find the right customer who can benefit from the tax savings.
This situation does not apply in Singapore, as there is negligble tax savings from life insurance products. The marketing expenses eats into the investment return. Hence, it is better for the investments to be separated from insurance.
Types of Liability
I am familiar with liability due to negligence, but not clear about strict liability or absolute liability. Here is the explanation from an insurance book.
Type Description Example
No liability Defendant cannot be held Charitable institution in
liable some cases
.
Negligence Defendant is liable if Liability for damages caused
found to be negligent by motor accidents
.
Strict Defendant is liable Liability for damages resulting
liability even if not negligent from defective products
.
Absolute Defendent is always Liability for damages caused by
liability liability, no defence use of dynamite or dangerous
available animal
Corporate governance and risk management
In recent years, there has been a lot of attention on corporate governance and risk management. The aim was to get businesses to act responsibily and to avoid taking large risks that are not authorised by the shareholders.
Management consultants made a lot of money providing advice to boards of directors to teach them on these exotic matters. Regulators asked the boards to spend a lot of time and money on these matters.
What happened?
We still have the problem with the Special Investment Vehicles (SIV) set up by the large, "well managed" banks. These SIVs borrowed money on short term (where the interest rate is low) and invest them in long term risky assets (to get a high return). In good times, they made profit on the spread, i.e. the difference between the cost of funds and the return on risky assets.
When the subprime problem arose, investors did not want to refinance the short term borrowings. This caused a "credit crunch" to the SIVs. They were not able to pay their borrowings.
If the SIVs had to sell their assets to repay the borrowings, it would cause a collapse in the asset markets. The large banks that set up the SIVs decided to provide several billions of dollars of funding to take over the SIVs, and to write off billions of dollars in losses.
Lesson: After spending a lot of time and money on corporate governance and risk management, these banks still commit a large blunder in taking the risk of the SIVs.
A "common sense" approach would have prevented this mess. Do not borrow short and invest long. It does not require a complicated process of corporate governance or risk management.
Management consultants made a lot of money providing advice to boards of directors to teach them on these exotic matters. Regulators asked the boards to spend a lot of time and money on these matters.
What happened?
We still have the problem with the Special Investment Vehicles (SIV) set up by the large, "well managed" banks. These SIVs borrowed money on short term (where the interest rate is low) and invest them in long term risky assets (to get a high return). In good times, they made profit on the spread, i.e. the difference between the cost of funds and the return on risky assets.
When the subprime problem arose, investors did not want to refinance the short term borrowings. This caused a "credit crunch" to the SIVs. They were not able to pay their borrowings.
If the SIVs had to sell their assets to repay the borrowings, it would cause a collapse in the asset markets. The large banks that set up the SIVs decided to provide several billions of dollars of funding to take over the SIVs, and to write off billions of dollars in losses.
Lesson: After spending a lot of time and money on corporate governance and risk management, these banks still commit a large blunder in taking the risk of the SIVs.
A "common sense" approach would have prevented this mess. Do not borrow short and invest long. It does not require a complicated process of corporate governance or risk management.
Answer to J17, A17
ANSWERS TO QUIZ J-17
Question: Who enjoys reading Answer: Katherine
_
1 2 3 4
student Richard Alice Peter Katherine
eats pear orange pineapple apple
plays drum piano flute violin
enjoys swimming bicycling fishing reading
_
ANSWERS TO QUIZ A-17
Question: Who plays drum Answer: engineer
_
1 2 3 4 5
is a technician manager specialist engineer scientist
drive Mercedes Nissan Toyota Honda BMW
plays bass violin trumpet drum flute
eats orange banana durian papaya apple
enjoys music cards karaoke reading movies
Use credit card to buy shares?
This facility is being advertised by a bank. It looks appealling in a hot market. However, it comes with risks.
Read the advice from Dr Money.
http://newpaper.asia1.com.sg/columnists/story/0,4136,136759,00.html?
http://www.tankinlian.com/drmoney/
Read the advice from Dr Money.
http://newpaper.asia1.com.sg/columnists/story/0,4136,136759,00.html?
http://www.tankinlian.com/drmoney/
Logic Quiz 6A-19
There are five houses in a row with different colors. In each house lives a person with a different occupation, drinks a different beverage, plays a different sport and drives a different car.
1. The professor lives to the left of the person who drinks tea.
2. The engineer drives Honda.
3. The scientist lives to the left of the engineer.
4. The person who drives Honda lives to the left of the manager.
5. The brown house is occupied by the person who drinks beer.
6. The person who drives Totota lives in the last house.
7. The person who plays tennis drives Volvo.
8. The engineer plays basketball.
9. The marketeer lives in the second house.
10. The purple house is the second house.
11. The person who drinks water lives to the left of the person who drinks wine.
12. The grey house is to the left of the person who drives Nissan.
13. The person who drinks coffee lives next to the person who plays badminton.
14. The maroon house is to the left of the person who plays soccer.
15. The pink house is occupied by the person who plays golf.
Question: Who drives Mercedes
Give your answer, time taken and name in my blog.
1. The professor lives to the left of the person who drinks tea.
2. The engineer drives Honda.
3. The scientist lives to the left of the engineer.
4. The person who drives Honda lives to the left of the manager.
5. The brown house is occupied by the person who drinks beer.
6. The person who drives Totota lives in the last house.
7. The person who plays tennis drives Volvo.
8. The engineer plays basketball.
9. The marketeer lives in the second house.
10. The purple house is the second house.
11. The person who drinks water lives to the left of the person who drinks wine.
12. The grey house is to the left of the person who drives Nissan.
13. The person who drinks coffee lives next to the person who plays badminton.
14. The maroon house is to the left of the person who plays soccer.
15. The pink house is occupied by the person who plays golf.
Question: Who drives Mercedes
Give your answer, time taken and name in my blog.
Logic Quiz 6J-17
There are four students sitting in a row. Each student eats a different fruit, plays a different instrument and keeps a different pet.
1. The student who eats papaya sits in the second desk.
2. The student who eats apple sits to the left of the student who eats orange.
3. Margaret sits next to the student who plays violin.
4. Peter sits to the left of Alice.
5. John eats papaya.
6. The student who eats banana keeps dog.
7. The student who eats papaya sits to the left of the student who plays piano.
8. The student who plays trumpet sits to the left of the student who keeps cat.
9. The student who keeps parrot sits to the left of the student who keeps tortoise.
Question: Who plays drum
Give your answer, time and name in my blog.
1. The student who eats papaya sits in the second desk.
2. The student who eats apple sits to the left of the student who eats orange.
3. Margaret sits next to the student who plays violin.
4. Peter sits to the left of Alice.
5. John eats papaya.
6. The student who eats banana keeps dog.
7. The student who eats papaya sits to the left of the student who plays piano.
8. The student who plays trumpet sits to the left of the student who keeps cat.
9. The student who keeps parrot sits to the left of the student who keeps tortoise.
Question: Who plays drum
Give your answer, time and name in my blog.
Saturday, December 15, 2007
Switch to low cost fund
Hi Mr.Tan,
l have been a fan of your blog and would appreciate your advice.
I bought a PruLink ILP policy 10 years ago. The invest $200 a month. At that time, I had no idea on insurance or investment. l am now aware about the high distribution costs and fund management charges, after reading books and reaffirmed by your articles.
I have decided to separate my insurance and investments. I intend to cash out on my ILP policy and invest my $200 separately.
Here are my options:
A) Buy a Term insurance
B) Use my CPF to buy an endowment to get a regular streams of income 10/20 years later
REPLY
The PruLink ILP is actually like a unit trust. You have already incurred the high upfront charges. Going forward, the charges should be quite modest. By now, you are probably investing 100% of your monthly savings, similar to a unit trust.
Before you make a switch, you have to consider the expense ratio of the Prudential fund, with the the unit trust that you wish to invest in. You may find the expense ratio to be similar, so there is no advantage in making a switch.
You can also look at the mortality charges compared to the Term insurance.
If you make a switch, you should go for option A, i.e buy Term and invest the difference. Do not take option B (endowment plan) as you will be incurring high charges again.
l have been a fan of your blog and would appreciate your advice.
I bought a PruLink ILP policy 10 years ago. The invest $200 a month. At that time, I had no idea on insurance or investment. l am now aware about the high distribution costs and fund management charges, after reading books and reaffirmed by your articles.
I have decided to separate my insurance and investments. I intend to cash out on my ILP policy and invest my $200 separately.
Here are my options:
A) Buy a Term insurance
B) Use my CPF to buy an endowment to get a regular streams of income 10/20 years later
REPLY
The PruLink ILP is actually like a unit trust. You have already incurred the high upfront charges. Going forward, the charges should be quite modest. By now, you are probably investing 100% of your monthly savings, similar to a unit trust.
Before you make a switch, you have to consider the expense ratio of the Prudential fund, with the the unit trust that you wish to invest in. You may find the expense ratio to be similar, so there is no advantage in making a switch.
You can also look at the mortality charges compared to the Term insurance.
If you make a switch, you should go for option A, i.e buy Term and invest the difference. Do not take option B (endowment plan) as you will be incurring high charges again.
Correction in the Singapore stockmarket
Dear Mr. Tan,
The STI is once again in a correction. It seems to be heading towards the Aug lows again. Do you foresee the correction to approach Aug lows or do you think it will actually go below that?
Lastly, do you foresee a uptrend in the near future?
REPLY:
It seems that the sub-prime and credit problem in America is quite serious. There is also the possibility of a recession. The STI may reach 3000 or even lower.
It is difficult to pick the market bottom. If you are investing for the long term, it may be all right to start accumulating at 3,300. You can do it over several tranches.
The STI is once again in a correction. It seems to be heading towards the Aug lows again. Do you foresee the correction to approach Aug lows or do you think it will actually go below that?
Lastly, do you foresee a uptrend in the near future?
REPLY:
It seems that the sub-prime and credit problem in America is quite serious. There is also the possibility of a recession. The STI may reach 3000 or even lower.
It is difficult to pick the market bottom. If you are investing for the long term, it may be all right to start accumulating at 3,300. You can do it over several tranches.
Insurance for a baby
Hi Mr Tan
I've read up several articles on the purchase of insurance policies for children. My child is only 2 months old. Based on what I have read so far, it seems like I have to purchase hospitalisation/medical plan and education plan for her.
I suppose hospitalisation plan is the same as NTUC living insurance policy? If not, which insurance agency offers the best hospitalisation plan? How different is Medishield from NTUC living insurance?
Reply. The Living policy is suitable for an adult. It is costly and unnecessary for a baby. You should take the Medishield plan from CPF. It is adequate for the baby.
Based on your experience, which insurance agency offers the best investment linked plan and what type of unit trusts should we invest in?
Reply: You should buy the Flexi-Link plan from NTUC Income and invest in the Combined Fund. The Flexi-Link requires a starting single premium of at least $5,000. You can make additional investments through top-ups of a certain minimum amount. The charges are the lowest amongst all ILP plans in the market.
I've read up several articles on the purchase of insurance policies for children. My child is only 2 months old. Based on what I have read so far, it seems like I have to purchase hospitalisation/medical plan and education plan for her.
I suppose hospitalisation plan is the same as NTUC living insurance policy? If not, which insurance agency offers the best hospitalisation plan? How different is Medishield from NTUC living insurance?
Reply. The Living policy is suitable for an adult. It is costly and unnecessary for a baby. You should take the Medishield plan from CPF. It is adequate for the baby.
Based on your experience, which insurance agency offers the best investment linked plan and what type of unit trusts should we invest in?
Reply: You should buy the Flexi-Link plan from NTUC Income and invest in the Combined Fund. The Flexi-Link requires a starting single premium of at least $5,000. You can make additional investments through top-ups of a certain minimum amount. The charges are the lowest amongst all ILP plans in the market.
Traditional Chinese treatment
Recently, I visited a Chung Hwa Medical Center in Toa Payoh to get traditional Chinese treatment to reduce my uric acid.
There were many patients using the medical center. The operation was carried out efficiently, with short waiting time .
Each doctor in a consultation room is able to see a few patients within a time slot. There are a few beds in the consultation room for patients to be treated by acupunture, which lasted 15 minutes. The beds are shielded by a curtain for privacy.
Due to their high productivity of the doctor, the charges are low. I was charged only $12 for the acupunture and two types of medication.
It is possible to bring down cost by operating efficiently. I hope that this high efficiency and low cost can be propogated to other medical centers.
I wish to recommend people to try traditional Chinese treatment for some chronic medical conditions.
There were many patients using the medical center. The operation was carried out efficiently, with short waiting time .
Each doctor in a consultation room is able to see a few patients within a time slot. There are a few beds in the consultation room for patients to be treated by acupunture, which lasted 15 minutes. The beds are shielded by a curtain for privacy.
Due to their high productivity of the doctor, the charges are low. I was charged only $12 for the acupunture and two types of medication.
It is possible to bring down cost by operating efficiently. I hope that this high efficiency and low cost can be propogated to other medical centers.
I wish to recommend people to try traditional Chinese treatment for some chronic medical conditions.
Make credit cards work for you
Here is a brief summary of the article by Dr Money.
CREDIT cards have pros and cons. We are well aware of the pros since banks advertise them all the time. How about the cons? Of course, the banks never mention them.
Dr Money give you tips on the following:
1) Promotions.
2) Take them all.
3) No annual fee.
4) Air miles.
5) Don't roll over.
6) Balance transfer
7) Unauthorised charges
8) Safety first
Read his full article in this webpage:
http://newpaper.asia1.com.sg/columnists/story/0,4136,144958,00.html?
http://www.tankinlian.com/drmoney/
CREDIT cards have pros and cons. We are well aware of the pros since banks advertise them all the time. How about the cons? Of course, the banks never mention them.
Dr Money give you tips on the following:
1) Promotions.
2) Take them all.
3) No annual fee.
4) Air miles.
5) Don't roll over.
6) Balance transfer
7) Unauthorised charges
8) Safety first
Read his full article in this webpage:
http://newpaper.asia1.com.sg/columnists/story/0,4136,144958,00.html?
http://www.tankinlian.com/drmoney/
Logic Quiz A-17
There are five houses in a row. In each house lives a person with a different occupation, drives a different car, plays a different instrument, eats a different fruit and pursues a different hobby.
1. The person who drive Mercedes lives next to the manager.
2. The engineer lives to the left of the scientist.
3. The person who drive Nissan enjoys cards.
4. The third house is occupied by the person who enjoys karaoke.
5. The person who drive Honda eats papaya.
6. The person who eats banana lives next to the person who plays bass.
7. The technician eats orange.
8. The person who plays violin lives next to the person who eats orange.
9. The person who eats apple enjoys movies.
10. The engineer enjoys reading.
11. The person who drive Toyota is the specialist.
12. The person who eats banana lives next to the person who enjoys music.
13. The person who eats durian plays trumpet.
14. The person who drive Mercedes lives in the first house.
15. The person who drive BMW plays flute.
Question: Who plays drum
Please post your answer and time taken.
1. The person who drive Mercedes lives next to the manager.
2. The engineer lives to the left of the scientist.
3. The person who drive Nissan enjoys cards.
4. The third house is occupied by the person who enjoys karaoke.
5. The person who drive Honda eats papaya.
6. The person who eats banana lives next to the person who plays bass.
7. The technician eats orange.
8. The person who plays violin lives next to the person who eats orange.
9. The person who eats apple enjoys movies.
10. The engineer enjoys reading.
11. The person who drive Toyota is the specialist.
12. The person who eats banana lives next to the person who enjoys music.
13. The person who eats durian plays trumpet.
14. The person who drive Mercedes lives in the first house.
15. The person who drive BMW plays flute.
Question: Who plays drum
Please post your answer and time taken.
Logic Quiz J-17
There are four students sitting in a row. Each student plays a different instrument, eats a different fruit and pursues a different hobby.
1. The student who eats orange sits in the second desk.
2. Peter sits to the left of Katherine.
3. The student who eats orange sits to the left of the student who enjoys fishing.
4. The student who plays flute sits to the left of the student who plays violin.
5. Richard sits next to the student who enjoys bicycling.
6. The student who enjoys swimming sits to the left of the student who plays piano.
7. The student who eats pear plays drum.
8. Alice eats orange.
9. The student who eats pineapple sits to the left of the student who eats apple.
Question: Who enjoys reading
Please post your answer and time taken.
1. The student who eats orange sits in the second desk.
2. Peter sits to the left of Katherine.
3. The student who eats orange sits to the left of the student who enjoys fishing.
4. The student who plays flute sits to the left of the student who plays violin.
5. Richard sits next to the student who enjoys bicycling.
6. The student who enjoys swimming sits to the left of the student who plays piano.
7. The student who eats pear plays drum.
8. Alice eats orange.
9. The student who eats pineapple sits to the left of the student who eats apple.
Question: Who enjoys reading
Please post your answer and time taken.
Friday, December 14, 2007
Personal rapid transit
From Wikipedia, the free encyclopedia
Question: Will this work in Singapore?
View the video: http://www.taxi2000.com/aboutus.html
Read this Q&A: http://www.atsltd.co.uk/prt/faq/
Personal rapid transit (PRT), also called personal automated transport (PAT) or podcar, is a public transportation concept that offers automated on-demand non-stop transportation, on a network of specially-built guideways.
A public PRT installation, ULTra, is currently under construction at Heathrow Airport in London, and scheduled to open for public use in 2008.
PRT is a system of small vehicles under independent or semi-independent automatic control, running on fixed guideways. The idea attempts to address a number of perceived weaknesses of public mass transit including fixed timetabling, limited routes, and sharing travel space with unrelated travelers (see comparison below).
In 1988, The Advanced Transit Association (ATRA), a group which advocates the use of technological solutions to transit problems, published a definition for PRT as follows:
* Fully automated vehicles capable of operation without human drivers.
* Vehicles captive to a reserved guideway.
* Small vehicles available for exclusive use by an individual or a small group, typically 1 to 6 passengers, traveling together by choice and available 24 hours a day.
* Small guideways that can be located above ground, at ground level or underground.
* Vehicles able to use all guideways and stations on a fully coupled PRT network.
* Direct origin to destination service, without a necessity to transfer or stop at intervening stations.
* Service available on demand rather than on fixed schedules.
The definition does not specify a particular technology, such as electric motors, linear motors, magnetic levitation, or rubber wheels. It does not specify whether vehicles are to be supported on the guideway or suspended from the guideway. Instead, it is derived from analysis of the functionality, efficiency, scalability, and service provided by the total engineering and design of the system.
Proponents say that the low weight of small vehicles has the important benefit of allowing smaller guideways and support structures compared to other mass transit systems like light rail, translating into lower construction cost, smaller easements, and less visually obtrusive infrastructure.
The concept has been independently reinvented many times since the 1960s. It is considered controversial, and the city-wide deployment with many closely-spaced stations envisaged by proponents has yet to be constructed.
Reasons past projects have failed include lack of financing, cost overruns, regulatory conflicts, political issues, and flaws in engineering or design.
From 2002–2005, the EDICT project, sponsored by the European Union, conducted a study on the feasibility of PRT in four European cities. The study involved 12 research organizations, and concluded that PRT:
* would provide future cities "a highly accessible, user-responsive, environmental friendly transport system which offers a sustainable and economic solution."
* could "cover its operating costs, and provide a return which could pay for most, if not all, of its capital costs."
* would provide "a level of service which is superior to that available from conventional public transport"
* would be "well received by the public, both public transport and car users."
The report also concluded that, despite these advantages, public authorities will not commit to building PRT because of the risks associated with being the first public implementation.
Comparison of Personal Rapid Transit with existing transport systems:
* Similar to automobiles Vehicles are small—typically two to six passengers
* Vehicles are individually hired, like taxis, and shared only with the passengers of one's choosing
* Vehicles travel along a network of guideways, much like a network of streets.
* Travel is point-to-point, with no intermediate stops or transfers
* It can be available on an on-demand, around-the-clock basis
* Stops are designed to be off the main guideway, allowing through traffic to bypass stations unimpeded
* Similar to trams, buses, and monorails
* A public amenity (although not necessarily publicly owned), shared by multiple users
* Reduced local pollution (electric powered)
* Passengers embark and disembark at discrete stations, analogous to bus stops or taxi stands
* Similar to automated people movers
* Fully automated, including vehicle control, routing, and collection of fares
* Usually off-grade—typically elevated—reducing land usage and congestion
Distinct features
* Vehicle movements may be coordinated, unlike the autonomous human control of automobiles and bikes
* Small vehicle size allows infrastructure to be smaller than other transit modes
* Automated vehicles can travel close together.
* Possibilities include dynamically combined "trains" of vehicles, separated by a few inches, to reduce drag and increase speed, energy efficiency and passenger density
Question: Will this work in Singapore?
View the video: http://www.taxi2000.com/aboutus.html
Read this Q&A: http://www.atsltd.co.uk/prt/faq/
Personal rapid transit (PRT), also called personal automated transport (PAT) or podcar, is a public transportation concept that offers automated on-demand non-stop transportation, on a network of specially-built guideways.
A public PRT installation, ULTra, is currently under construction at Heathrow Airport in London, and scheduled to open for public use in 2008.
PRT is a system of small vehicles under independent or semi-independent automatic control, running on fixed guideways. The idea attempts to address a number of perceived weaknesses of public mass transit including fixed timetabling, limited routes, and sharing travel space with unrelated travelers (see comparison below).
In 1988, The Advanced Transit Association (ATRA), a group which advocates the use of technological solutions to transit problems, published a definition for PRT as follows:
* Fully automated vehicles capable of operation without human drivers.
* Vehicles captive to a reserved guideway.
* Small vehicles available for exclusive use by an individual or a small group, typically 1 to 6 passengers, traveling together by choice and available 24 hours a day.
* Small guideways that can be located above ground, at ground level or underground.
* Vehicles able to use all guideways and stations on a fully coupled PRT network.
* Direct origin to destination service, without a necessity to transfer or stop at intervening stations.
* Service available on demand rather than on fixed schedules.
The definition does not specify a particular technology, such as electric motors, linear motors, magnetic levitation, or rubber wheels. It does not specify whether vehicles are to be supported on the guideway or suspended from the guideway. Instead, it is derived from analysis of the functionality, efficiency, scalability, and service provided by the total engineering and design of the system.
Proponents say that the low weight of small vehicles has the important benefit of allowing smaller guideways and support structures compared to other mass transit systems like light rail, translating into lower construction cost, smaller easements, and less visually obtrusive infrastructure.
The concept has been independently reinvented many times since the 1960s. It is considered controversial, and the city-wide deployment with many closely-spaced stations envisaged by proponents has yet to be constructed.
Reasons past projects have failed include lack of financing, cost overruns, regulatory conflicts, political issues, and flaws in engineering or design.
From 2002–2005, the EDICT project, sponsored by the European Union, conducted a study on the feasibility of PRT in four European cities. The study involved 12 research organizations, and concluded that PRT:
* would provide future cities "a highly accessible, user-responsive, environmental friendly transport system which offers a sustainable and economic solution."
* could "cover its operating costs, and provide a return which could pay for most, if not all, of its capital costs."
* would provide "a level of service which is superior to that available from conventional public transport"
* would be "well received by the public, both public transport and car users."
The report also concluded that, despite these advantages, public authorities will not commit to building PRT because of the risks associated with being the first public implementation.
Comparison of Personal Rapid Transit with existing transport systems:
* Similar to automobiles Vehicles are small—typically two to six passengers
* Vehicles are individually hired, like taxis, and shared only with the passengers of one's choosing
* Vehicles travel along a network of guideways, much like a network of streets.
* Travel is point-to-point, with no intermediate stops or transfers
* It can be available on an on-demand, around-the-clock basis
* Stops are designed to be off the main guideway, allowing through traffic to bypass stations unimpeded
* Similar to trams, buses, and monorails
* A public amenity (although not necessarily publicly owned), shared by multiple users
* Reduced local pollution (electric powered)
* Passengers embark and disembark at discrete stations, analogous to bus stops or taxi stands
* Similar to automated people movers
* Fully automated, including vehicle control, routing, and collection of fares
* Usually off-grade—typically elevated—reducing land usage and congestion
Distinct features
* Vehicle movements may be coordinated, unlike the autonomous human control of automobiles and bikes
* Small vehicle size allows infrastructure to be smaller than other transit modes
* Automated vehicles can travel close together.
* Possibilities include dynamically combined "trains" of vehicles, separated by a few inches, to reduce drag and increase speed, energy efficiency and passenger density
Anti-insurance agent
Someone post comments in my blog a few times a day, attacking insurance agents. I stopped several of the postings, as they are rather rude and unfair to agents. I allowed some objective comments to pass through.
I wonder why this person is so much against insurance agents. The attacks seem to be focused on agents from NTUC Income.
Perhaps this person can send an e-mail to tell me the reason for your strong views?
I wonder why this person is so much against insurance agents. The attacks seem to be focused on agents from NTUC Income.
Perhaps this person can send an e-mail to tell me the reason for your strong views?
Visit to Ang Mo Kio Library
I visited Ang Mo Kio Library to read a reference book about SQL Server. I found several books. I stayed at the library for 2 hours. It was quiet, air conditioned and comfortable. The ambience is excellent.
I was able to log into Wireless@SG to access the internet.
These wonderful services are provided free. I wish to encourage people to visit the library, during the non-busy hours and enjoy the facilities.
I was able to log into Wireless@SG to access the internet.
These wonderful services are provided free. I wish to encourage people to visit the library, during the non-busy hours and enjoy the facilities.
Credit check of potential business partners
Over the past few months, I have been approached by several people to be involved in their business venture.
I usually carry out a credit check on the background of the company and the people behind the company. I approach a service provider to carry out a credit check.
The service provider has the following data:
1. Litigation, identified by the parties involved
2. Bankrupcy
3. Company and business registration
These data are publicly available. The service provider has put them in a form that is easy to extract the relevant data and to produce a credit report.
I found the service to be extremely useful, especially for credit check of new or small companies. In some cases, I was notified about litigation or bankrupcy of the parties involved.
I am able to get a report within 1 day at a modest cost. The report can be quite detailed. I find the executive summary to be most useful. I was able to use the relevant information in my business decision.
The service provider will be marketing this service soon through an internet website. Apart from adhoc credit checks, the service provider will be able to carry out a continuing check on a list of business associates, and to alert the subscriber on any litigation involving these assocaites.
This is an example of the use of data in improving the productivity of your business, and to avoid or minimise credit losses.
If you are interested in this service, send an e-mail to me at kinlian@gmail.com. Give some background about your business and the type of credit check that you need.
I usually carry out a credit check on the background of the company and the people behind the company. I approach a service provider to carry out a credit check.
The service provider has the following data:
1. Litigation, identified by the parties involved
2. Bankrupcy
3. Company and business registration
These data are publicly available. The service provider has put them in a form that is easy to extract the relevant data and to produce a credit report.
I found the service to be extremely useful, especially for credit check of new or small companies. In some cases, I was notified about litigation or bankrupcy of the parties involved.
I am able to get a report within 1 day at a modest cost. The report can be quite detailed. I find the executive summary to be most useful. I was able to use the relevant information in my business decision.
The service provider will be marketing this service soon through an internet website. Apart from adhoc credit checks, the service provider will be able to carry out a continuing check on a list of business associates, and to alert the subscriber on any litigation involving these assocaites.
This is an example of the use of data in improving the productivity of your business, and to avoid or minimise credit losses.
If you are interested in this service, send an e-mail to me at kinlian@gmail.com. Give some background about your business and the type of credit check that you need.
Company above board?
By Larry Haverkamp (Doc Money)
LAST week was filled with news stories about Sunshine Empire. The company has convinced 20,000 Singapore investors to part with as much as $12,000 each.
Despite the publicity, no one is still very sure what the company does.
Both the Singapore and Malaysian authorities have put it on their 'investor alert lists'. Entities on such lists are not authorised by the authorities to conduct regulated activity. While not well-known, these lists are extremely useful.
Other governments also have lists which give names of companies doing foreign land sales, internet fraud, lookalike web sites, identity theft, fake lotteries, Nigerian advanced fees, pump and dump, affinity scams, telemarketing and more.
It got me thinking, 'Wouldn't it be great if there was a web site listing all questionable companies? Then, if you hear about a deal that sounds too good to be true, you could check it out.'
Non-transparent but legal
1) Bank Products
2) Insurance companies
3) Reits
Read the full article here:
http://newpaper.asia1.com.sg/columnists/story/0,4136,146946,00.html
http://www.tankinlian.com/drmoney/
LAST week was filled with news stories about Sunshine Empire. The company has convinced 20,000 Singapore investors to part with as much as $12,000 each.
Despite the publicity, no one is still very sure what the company does.
Both the Singapore and Malaysian authorities have put it on their 'investor alert lists'. Entities on such lists are not authorised by the authorities to conduct regulated activity. While not well-known, these lists are extremely useful.
Other governments also have lists which give names of companies doing foreign land sales, internet fraud, lookalike web sites, identity theft, fake lotteries, Nigerian advanced fees, pump and dump, affinity scams, telemarketing and more.
It got me thinking, 'Wouldn't it be great if there was a web site listing all questionable companies? Then, if you hear about a deal that sounds too good to be true, you could check it out.'
Non-transparent but legal
1) Bank Products
2) Insurance companies
3) Reits
Read the full article here:
http://newpaper.asia1.com.sg/columnists/story/0,4136,146946,00.html
http://www.tankinlian.com/drmoney/
Logic Quiz A-5
There are five houses in a row in different colors. In each house lives a person with a different occupation, drinks a different beverage, plays a different sport and keeps a different pet.
1. The doctor plays golf.
2. The person who drinks coffee lives to the left of the person who drinks beer.
3. The green house is occupied by the teacher.
4. The lawyer lives in the third house.
5. The person who plays badminton lives to the left of the person who drinks milk.
6. The blue house is occupied by the person who keeps dogs.
7. The white house is to the left of the person who drinks water.
8. The person who keeps fish plays chess.
9. The red house is to the left of the green house.
10. The person who plays bowling lives to the left of the person who keeps cats.
11. The accountant lives to the left of the salesman.
12. The person who keeps birds lives to the left of the person who keeps hamsters.
13. The white house is the fourth house.
14. The yellow house is occupied by the person who drinks tea.
Question: Who plays tennis
1. The doctor plays golf.
2. The person who drinks coffee lives to the left of the person who drinks beer.
3. The green house is occupied by the teacher.
4. The lawyer lives in the third house.
5. The person who plays badminton lives to the left of the person who drinks milk.
6. The blue house is occupied by the person who keeps dogs.
7. The white house is to the left of the person who drinks water.
8. The person who keeps fish plays chess.
9. The red house is to the left of the green house.
10. The person who plays bowling lives to the left of the person who keeps cats.
11. The accountant lives to the left of the salesman.
12. The person who keeps birds lives to the left of the person who keeps hamsters.
13. The white house is the fourth house.
14. The yellow house is occupied by the person who drinks tea.
Question: Who plays tennis
Logic Quiz J-4
There are four students sitting in a row. Each student plays a different sport, keeps a different pet and drinks a different beverage.
1. Susan sits to the left of the student who keeps kitten.
2. The student who drinks milk sits next to the student who keeps bird.
3. The student who keeps bird sits in the second desk.
4. The student who drinks juice sits to the left of the student who keeps hamster.
5. Mary drinks coffee.
6. The student who plays chess sits to the left of the student who plays hockey.
7. The student who keeps bird sits to the left of the student who plays badminton.
8. The student who plays tennis sits next to Robert.
9. James sits to the left of the student who drinks tea.
Question: Who keeps puppy
1. Susan sits to the left of the student who keeps kitten.
2. The student who drinks milk sits next to the student who keeps bird.
3. The student who keeps bird sits in the second desk.
4. The student who drinks juice sits to the left of the student who keeps hamster.
5. Mary drinks coffee.
6. The student who plays chess sits to the left of the student who plays hockey.
7. The student who keeps bird sits to the left of the student who plays badminton.
8. The student who plays tennis sits next to Robert.
9. James sits to the left of the student who drinks tea.
Question: Who keeps puppy
How to be a better neighbour
Arrange with your neighbour to look after your baby or child when you have to go out for a function. Be ready to look after their baby or child when they go out.
Best Low Cost Funds
What are the charges levied by unit trusts and investment-linked funds? Dr Money has made a study and recommended the best low cost funds in his website:
http://www.askdrmoney.com/Unit_Trusts_and_Funds.htm
http://www.askdrmoney.com/Unit_Trusts_and_Funds.htm
Public Transport Guide
Hi,
I will like to enquire where I will be able to obtain one of the Public Transport Guides that NTUC Income had given out a few years ago. Thank you very much.
REPLY
You can buy from Popular Book Store at $6 plus GST
I will like to enquire where I will be able to obtain one of the Public Transport Guides that NTUC Income had given out a few years ago. Thank you very much.
REPLY
You can buy from Popular Book Store at $6 plus GST
Singapore Equity funds
Dear Mr. Tan,
There are several types of Singapore equity. Eg. AXA Inspire Singapore Equity Fund, DBS Horizon Singapore Equity, DBS Aberdeen Singapore Equity. What is the difference between them all? Isn't all Singapore equity?
REPLY
Each fund manager decides on the stocks, within the class of Singapore equity, that they wish to invest in. The return depends on the stock selection made by each fund manager.
I prefer to invest in a fund, such as the STI ETF that invests in the index stocks. It is well diversified and is low cost. You will get a better net return over the long term.
Read this FAQ:
http://www.tankinlian.com/faq/returns.html
http://www.tankinlian.com/faq/expense.html
There are several types of Singapore equity. Eg. AXA Inspire Singapore Equity Fund, DBS Horizon Singapore Equity, DBS Aberdeen Singapore Equity. What is the difference between them all? Isn't all Singapore equity?
REPLY
Each fund manager decides on the stocks, within the class of Singapore equity, that they wish to invest in. The return depends on the stock selection made by each fund manager.
I prefer to invest in a fund, such as the STI ETF that invests in the index stocks. It is well diversified and is low cost. You will get a better net return over the long term.
Read this FAQ:
http://www.tankinlian.com/faq/returns.html
http://www.tankinlian.com/faq/expense.html
Thursday, December 13, 2007
Benefit illustration for ILP
Dear Mr Tan,
I recently met up with an agent who showed me a benefit illustration at 5% and 9% rate of returns for his company's ILP. However, I am not sure whether I should believe if those returns are reasonable.
Can you advice how should I approach this? Thanks!
REPLY
All insurance companies use 5% and 9% to "illustrate" their projected returns. These interest rates do not reflect what you can get in reality.
The actual returns is based on what the insurnce company can earn on its investments, less its charges.
Insurance companies usually have high upfront charges to pay the commission to their agents and annual charges to meet their fund management expenses.
Read this FAQ:
http://www.tankinlian.com/faq/expense.html
Also, read this webpage:
http://www.askdrmoney.com/Ins_ILP_RP.htm
I recently met up with an agent who showed me a benefit illustration at 5% and 9% rate of returns for his company's ILP. However, I am not sure whether I should believe if those returns are reasonable.
Can you advice how should I approach this? Thanks!
REPLY
All insurance companies use 5% and 9% to "illustrate" their projected returns. These interest rates do not reflect what you can get in reality.
The actual returns is based on what the insurnce company can earn on its investments, less its charges.
Insurance companies usually have high upfront charges to pay the commission to their agents and annual charges to meet their fund management expenses.
Read this FAQ:
http://www.tankinlian.com/faq/expense.html
Also, read this webpage:
http://www.askdrmoney.com/Ins_ILP_RP.htm
Visits to my blog
I received about 700 visits a day.
Nearly half of the visits were from 9 pm to midnight.
p/hr total
9 am to midnight: 109 327
midnight to 1 am: 29 29
1 am to 2 am: 16 16
2 am to 8 am: 8 48
8 am to 9 pm: 21 273
Total 693
Nearly half of the visits were from 9 pm to midnight.
Invest in BIG-e
Dear Mr. Tan,
What is the risk to shift all CPF-OA fund to AVIVA's Big-e?
REPLY
The risk is minimal. There is the risk that Aviva may reduce their interest rate. At that time, you can shift the money back to CPF. There is no penalty.
What is the risk to shift all CPF-OA fund to AVIVA's Big-e?
REPLY
The risk is minimal. There is the risk that Aviva may reduce their interest rate. At that time, you can shift the money back to CPF. There is no penalty.
Continue policy beyond age 60?
Dear Mr Tan,
I have a Living policy with a clause which guarantee to pay a yearly amount of about $9000 for 10 yrs and 8000 plus for 15 years, if I were to convert to annuity at the age of 60.
Should I convert to annuity or keep paying for the policy. I have two other life policy from other insurance company. I will have no other source of income when I reached 60 and I have no children. My agent advised me to convert to annuity.
Reply: Ask the agent to find out the cash value of your Living policy at age 60 and the amount of annuity that it can convert to. You can make a better decision when you find out the actual figures. Also find out what the projected cash value of the policy is, when you reach age 65.
I am also thinking of surrendering my other two life policy when I reached 65 as the cover for the critical illness seems to stop at age 65 (not very sure of this - does cover for critcal illness stop at 65) and I will not have any source of income and may not be able to contiue paying for the premium.
Reply: If the critical illness cover is a rider that stops at 65, then this statement is true. If it is a whole life critical illness policy (i.e. like the Living policy from NTUC Income), then the critical illness extends to the whole of lifetime. Before you surrender each policy, ask the insurance company to quote to you the following:
a) Cash value now
b) Cash value in 5 years time
c) Total premiums payable for next 5 years.
You can make a better decision, when you have the numbers.
Read this FAQ:
http://www.tankinlian.com/faq/exist.html
I have a Living policy with a clause which guarantee to pay a yearly amount of about $9000 for 10 yrs and 8000 plus for 15 years, if I were to convert to annuity at the age of 60.
Should I convert to annuity or keep paying for the policy. I have two other life policy from other insurance company. I will have no other source of income when I reached 60 and I have no children. My agent advised me to convert to annuity.
Reply: Ask the agent to find out the cash value of your Living policy at age 60 and the amount of annuity that it can convert to. You can make a better decision when you find out the actual figures. Also find out what the projected cash value of the policy is, when you reach age 65.
I am also thinking of surrendering my other two life policy when I reached 65 as the cover for the critical illness seems to stop at age 65 (not very sure of this - does cover for critcal illness stop at 65) and I will not have any source of income and may not be able to contiue paying for the premium.
Reply: If the critical illness cover is a rider that stops at 65, then this statement is true. If it is a whole life critical illness policy (i.e. like the Living policy from NTUC Income), then the critical illness extends to the whole of lifetime. Before you surrender each policy, ask the insurance company to quote to you the following:
a) Cash value now
b) Cash value in 5 years time
c) Total premiums payable for next 5 years.
You can make a better decision, when you have the numbers.
Read this FAQ:
http://www.tankinlian.com/faq/exist.html
Wise sayings (2)
Do you know who said these wise words?
6. Straight forwardness, without the rules of propriety, becomes rudeness.
7. What you do not want done to yourselves, do not do to others.
8. A man of humanity is one who, in seeking to establish himself, finds a foothold for others and who, desiring attainment for himself, helps others to attain.
9. By nature, men are nearly alike; by practice, they get to be wide apart.
10. There are cases in which the blade springs, but the plant does not go on to flower. There are cases where it flowers, but no fruit is subsequently produced.
6. Straight forwardness, without the rules of propriety, becomes rudeness.
7. What you do not want done to yourselves, do not do to others.
8. A man of humanity is one who, in seeking to establish himself, finds a foothold for others and who, desiring attainment for himself, helps others to attain.
9. By nature, men are nearly alike; by practice, they get to be wide apart.
10. There are cases in which the blade springs, but the plant does not go on to flower. There are cases where it flowers, but no fruit is subsequently produced.
Wise sayings (1)
Do you know who said these wise words?
1. Boldness, without the rules of propriety, becomes insubordination.
2. He who requires much from himself and little from others will keep himself from being the object of resentment.
3. To go beyond is as wrong as to fall short.
4. The parent’s age must be remembered, both for joy and for anxiety.
5. The real fault is to have faults and not to amend them.
1. Boldness, without the rules of propriety, becomes insubordination.
2. He who requires much from himself and little from others will keep himself from being the object of resentment.
3. To go beyond is as wrong as to fall short.
4. The parent’s age must be remembered, both for joy and for anxiety.
5. The real fault is to have faults and not to amend them.
700 visitors
I have an average of 700 visitors to my blog. It has been "stuck" at this level for the past few weeks.
I wish to bring the vistors to above 1,000 a day. I need your assistance. Please publicise my blog to 5 friends. If 1 respond, I will be able to achieve my target.
Help me to reach out to more people. I want to educate them on how they can better plan for their future. They will enjoy my stories, like you do.
I wish to bring the vistors to above 1,000 a day. I need your assistance. Please publicise my blog to 5 friends. If 1 respond, I will be able to achieve my target.
Help me to reach out to more people. I want to educate them on how they can better plan for their future. They will enjoy my stories, like you do.
Better return from a Low Cost Fund
Dear Mr Tan,
Would like to have your opinion regarding the Life policy. Kindly refer to the attached.
* Main Benefit Illustration - Basic (Non-Par).
* Supplementary Benefit Illustration (Coupon Schedule).
Yearly premium S$1,136
Sum Assured S$25,000
Policy started on 1st Dec 2002
According to my agent, the cash value is fixed! The return will not be affected by the market performance. I have already received the first payment, S$3,750, recently (every 5 years).
REPLY
You pay a yearly premium of $1136
You get $3,750 every 5 years, which is assumed to be re-invested to earn 4% p.a.
After 40 years, you can expect to receive a total of $80,666, comprising of the guaranteed sum of $44895 (inclusive of the coupons) and the interest of $35,791 (assumed to be 4%, non-guaranteed).
This gives you a net yield of 2.7% over 40 years.
If you have set aside 10% of the premium to buy your Term insurance, you would have obtained a much higher sum assured compared to this policy.
If the remaining 90% were to be invested to earn 4% per annum, you would have received a total of $97,100 at the end of 40 year (i.e. 20% higher than $80,666).
It is likely that you can earn more than 4% per annum in a large, well diversified fund. If the return is 5%, the total amount at the end of 40 years is $123,500 (or 53% more than $80,666).
Your Life policy policy gave you a poor return due to the high charges (to pay commission to the agent and profit to the insurance company).
Read this FAQ:
http://www.tankinlian.com/faq/fptips.html
http://www.tankinlian.com/faq/returns.html
Would like to have your opinion regarding the Life policy. Kindly refer to the attached.
* Main Benefit Illustration - Basic (Non-Par).
* Supplementary Benefit Illustration (Coupon Schedule).
Yearly premium S$1,136
Sum Assured S$25,000
Policy started on 1st Dec 2002
According to my agent, the cash value is fixed! The return will not be affected by the market performance. I have already received the first payment, S$3,750, recently (every 5 years).
REPLY
You pay a yearly premium of $1136
You get $3,750 every 5 years, which is assumed to be re-invested to earn 4% p.a.
After 40 years, you can expect to receive a total of $80,666, comprising of the guaranteed sum of $44895 (inclusive of the coupons) and the interest of $35,791 (assumed to be 4%, non-guaranteed).
This gives you a net yield of 2.7% over 40 years.
If you have set aside 10% of the premium to buy your Term insurance, you would have obtained a much higher sum assured compared to this policy.
If the remaining 90% were to be invested to earn 4% per annum, you would have received a total of $97,100 at the end of 40 year (i.e. 20% higher than $80,666).
It is likely that you can earn more than 4% per annum in a large, well diversified fund. If the return is 5%, the total amount at the end of 40 years is $123,500 (or 53% more than $80,666).
Your Life policy policy gave you a poor return due to the high charges (to pay commission to the agent and profit to the insurance company).
Read this FAQ:
http://www.tankinlian.com/faq/fptips.html
http://www.tankinlian.com/faq/returns.html
Logic Quiz A-17
There are five houses in a row in different colors. In each house
lives a person with a different occupation, drinks a different
beverage, plays a different sport and keeps a different pet.
1. The salesman drinks beer.
2. The person who drinks milk keeps dogs.
3. The yellow house is to the left of the blue house.
4. The person who drinks coffee plays badminton.
5. The lawyer lives next to the green house.
6. The teacher plays golf.
7. The person who keeps hamsters lives next to the person who drinks water.
8. The person who drinks tea lives next to the person who keeps cats.
9. The lawyer lives in the first house.
10. The third house is occupied by the person who plays bowling.
11. The yellow house is occupied by the person who plays chess.
12. The accountant keeps birds.
13. The red house is occupied by the person who drinks water.
14. The person who drinks tea lives next to the person who plays tennis.
15. The doctor lives in the white house.
Question: Who keeps fish
lives a person with a different occupation, drinks a different
beverage, plays a different sport and keeps a different pet.
1. The salesman drinks beer.
2. The person who drinks milk keeps dogs.
3. The yellow house is to the left of the blue house.
4. The person who drinks coffee plays badminton.
5. The lawyer lives next to the green house.
6. The teacher plays golf.
7. The person who keeps hamsters lives next to the person who drinks water.
8. The person who drinks tea lives next to the person who keeps cats.
9. The lawyer lives in the first house.
10. The third house is occupied by the person who plays bowling.
11. The yellow house is occupied by the person who plays chess.
12. The accountant keeps birds.
13. The red house is occupied by the person who drinks water.
14. The person who drinks tea lives next to the person who plays tennis.
15. The doctor lives in the white house.
Question: Who keeps fish
Logic Quiz J-3
There are four students sitting in a row.
Each student plays a different sport, keeps a
different pet and drinks a different beverage.
1. The student who drinks milk sits to the left of the student who keeps fish.
2. The student who plays chess sits to the left of James.
3. The student who drinks coffee sits next to the student who plays badminton.
4. The student who plays tennis keeps cats.
5. Robert plays hockey.
6. Susan sits to the left of the student who keeps hamsters.
7. Mary sits in the second desk.
8. Mary sits to the left of the student who drinks milk.
9. The student who drinks juice sits to the left of the student who drinks tea.
Question: Who keeps birds
Each student plays a different sport, keeps a
different pet and drinks a different beverage.
1. The student who drinks milk sits to the left of the student who keeps fish.
2. The student who plays chess sits to the left of James.
3. The student who drinks coffee sits next to the student who plays badminton.
4. The student who plays tennis keeps cats.
5. Robert plays hockey.
6. Susan sits to the left of the student who keeps hamsters.
7. Mary sits in the second desk.
8. Mary sits to the left of the student who drinks milk.
9. The student who drinks juice sits to the left of the student who drinks tea.
Question: Who keeps birds
Wednesday, December 12, 2007
Understand the function of drugs
A few months ago, I was prescribed certain drugs by the doctor. After a while, I forgot the function of the drugs.
I used the generic name and searched Google for the answer. I was able to get the description of the drug, how it works, what it is prescribed for and how it is taken.
The general names are:
* cimetidine
* orphenadrine citrate
I find the information to be quite useful.
I used the generic name and searched Google for the answer. I was able to get the description of the drug, how it works, what it is prescribed for and how it is taken.
The general names are:
* cimetidine
* orphenadrine citrate
I find the information to be quite useful.
WWANG INSTANT TARGET
1. This CD contains the software and database that is suitable to improve the productivity of your marketing effort.
2. It contains the particulars of 800,000 people with their name, address and telephone number.
3. You can locate a group of people based on their residential street or block. This helps you to target your marketing to people living in a certain locality.
4. The mail merge software allows to print a standard letter (using your own wording) or label to the addresses. You can generate several hundred letters easily.
5. You can easily also search for an individual person using the name, telephone number or address.
6. Property agents have used this software effectively for their marketing. This can also be used for insurance agents or local businesses to target customers living in a locality.
7. The usual price is $199. You can get a discount by calling the provider (Tel: 6356 7215) and mentioning that you were introduced by this blog.
8. You can reduce your cost by sharing the use of the CD with a friend. You may be able to recover the full cost of your investment from one or two successful sale.
Click here to view the powerpoint.
2. It contains the particulars of 800,000 people with their name, address and telephone number.
3. You can locate a group of people based on their residential street or block. This helps you to target your marketing to people living in a certain locality.
4. The mail merge software allows to print a standard letter (using your own wording) or label to the addresses. You can generate several hundred letters easily.
5. You can easily also search for an individual person using the name, telephone number or address.
6. Property agents have used this software effectively for their marketing. This can also be used for insurance agents or local businesses to target customers living in a locality.
7. The usual price is $199. You can get a discount by calling the provider (Tel: 6356 7215) and mentioning that you were introduced by this blog.
8. You can reduce your cost by sharing the use of the CD with a friend. You may be able to recover the full cost of your investment from one or two successful sale.
Click here to view the powerpoint.
Pupsik Studio - for Babies
This website offers innovative products for babies - currently available are baby carriers and nursing covers. Find out more from: http://www.pupsikstudio.com/.
It is offering 10% discounts to readers of this blog. You can use this voucher [TKLBLOG]. Shipping is free for all purchases in Singapore.
If you are a mother or wish to buy a gift for a friend with a baby, take a look at this innovative product:
http://www.pupsikstudio.com/.
It is offering 10% discounts to readers of this blog. You can use this voucher [TKLBLOG]
If you are a mother or wish to buy a gift for a friend with a baby, take a look at this innovative product:
http://www.pupsikstudio.com/.
The baby featured in this website is my granddaughter, Vera.
Director takes public transport
I met the head of a school in a polytechnic. He told me that he has been using public transport for the past ten years. He keeps his car at home to be used by his wife. He prefers to take public transport to work, as it is more convenient. He also save a lot of money on petrol, ERP charges and parking.
His students asked him why he takes public transport, instead of a private cae. He said that it gives him the chance to know see things from the perspective of the students. He gets a better feel of the ground.
I agree.
His students asked him why he takes public transport, instead of a private cae. He said that it gives him the chance to know see things from the perspective of the students. He gets a better feel of the ground.
I agree.
SAFRA Insurance Plans
Hi Mr Tan,
I have come across SAFRA Essential Term and SAFRA Living Care Policies. Both are offered from NTUC Insurance to SAFRA members.
How do they compare with the similiar policies offered by NTUC? Would they be the same with only differece in the pricing?
I am thinking which policy I should be buying from. Your advice will be greatly appreciated.
REPLY
The premium rates for the SAFRA plans are much lower than similar policies sold by NTUC Income to the public. They are good value to the consumer. You should buy these plans to enjoy the attractive rates.
However, the SAFRA policy is a group policy and is subject to cancellation or revision of premium rates. So far, the claim experience has been quite favourable, so any adjustment in premium rates is quite modest.
In addition to the SAFRA insurance plans, you should have your personal Term insurance, as it is guaranteed for the duration of the policy.
Perhaps you should have have of the sum assured under the SAFRA plan and the other half under the personal Term insurance.
I have come across SAFRA Essential Term and SAFRA Living Care Policies. Both are offered from NTUC Insurance to SAFRA members.
How do they compare with the similiar policies offered by NTUC? Would they be the same with only differece in the pricing?
I am thinking which policy I should be buying from. Your advice will be greatly appreciated.
REPLY
The premium rates for the SAFRA plans are much lower than similar policies sold by NTUC Income to the public. They are good value to the consumer. You should buy these plans to enjoy the attractive rates.
However, the SAFRA policy is a group policy and is subject to cancellation or revision of premium rates. So far, the claim experience has been quite favourable, so any adjustment in premium rates is quite modest.
In addition to the SAFRA insurance plans, you should have your personal Term insurance, as it is guaranteed for the duration of the policy.
Perhaps you should have have of the sum assured under the SAFRA plan and the other half under the personal Term insurance.
Logic Quiz A-3
There are five houses in a row. In each house lives a person with a different occupation, drinks a different beverage, plays a different sport and keeps a different pet.
1. The doctor plays chess.
2. The person who drinks beer lives to the left of the lawyer.
3. Albert lives to the left of the person who plays tennis.
4. Robert lives to the left of the person who drinks milk.
5. The doctor drinks beer.
6. The person who drinks tea lives in the last house.
7. The person who plays bowling drinks water.
8. The teacher lives in the second house.
9. John lives in the second house.
10. Mary plays badminton.
11. Susan keeps fish.
12. The person who keeps birds lives next to the person who plays golf.
13. The accountant lives to the left of the doctor.
14. The salesman lives to the left of the person who keeps cats.
15. The person who keeps hamsters lives to the left of the person who keeps dogs.
Question: Who drinks coffee
Write your answer and time taken in my blog.
1. The doctor plays chess.
2. The person who drinks beer lives to the left of the lawyer.
3. Albert lives to the left of the person who plays tennis.
4. Robert lives to the left of the person who drinks milk.
5. The doctor drinks beer.
6. The person who drinks tea lives in the last house.
7. The person who plays bowling drinks water.
8. The teacher lives in the second house.
9. John lives in the second house.
10. Mary plays badminton.
11. Susan keeps fish.
12. The person who keeps birds lives next to the person who plays golf.
13. The accountant lives to the left of the doctor.
14. The salesman lives to the left of the person who keeps cats.
15. The person who keeps hamsters lives to the left of the person who keeps dogs.
Question: Who drinks coffee
Write your answer and time taken in my blog.
Tuesday, December 11, 2007
Investing v Gambling
By Larry Haverkamp (Doc Money)
A NEW form of Internet betting has taken Great Britain by storm - spread betting. We have something similar here, as I will explain.
Read this article:
http://newpaper.asia1.com.sg/columnists/story/0,4136,145626,00.html?
http://www.tankinlian.com/drmoney/
A NEW form of Internet betting has taken Great Britain by storm - spread betting. We have something similar here, as I will explain.
Read this article:
http://newpaper.asia1.com.sg/columnists/story/0,4136,145626,00.html?
http://www.tankinlian.com/drmoney/
Personal Insurance
What type of insurance should you buy? How much should you pay as premium? How much cover do you need?
You should read the tips here before you meet with an adviser:
http://www.tankinlian.com/faq/choice.html
By being aware, you avoid being over-sold or being sold the wrong products. You will be able to evaluate the quality of the advice given by the adviser.
You should read the tips here before you meet with an adviser:
http://www.tankinlian.com/faq/choice.html
By being aware, you avoid being over-sold or being sold the wrong products. You will be able to evaluate the quality of the advice given by the adviser.
Logic Quiz J-2
There are four students sitting in a row.Each student plays a different sport, keeps adifferent pet and drinks a different beverage.
1. The student who plays chess sits left of James.
2. Robert sits left of Susan.
3. The student who plays tennis sits left of the student who keeps hamster.
4. The student who plays hockey sits left of the student who drinks coffee.
5. The student who plays chess sits at the second desk.
6. Mary keeps bird.
7. The student who drinks juice keeps puppy.
8. The student who plays tennis sits next to the student who drinks tea.
9. The student who drinks milk sits next to the student who plays badminton.
Question: Who keeps kitten
Post and answer and the time taken in my blog.
1. The student who plays chess sits left of James.
2. Robert sits left of Susan.
3. The student who plays tennis sits left of the student who keeps hamster.
4. The student who plays hockey sits left of the student who drinks coffee.
5. The student who plays chess sits at the second desk.
6. Mary keeps bird.
7. The student who drinks juice keeps puppy.
8. The student who plays tennis sits next to the student who drinks tea.
9. The student who drinks milk sits next to the student who plays badminton.
Question: Who keeps kitten
Post and answer and the time taken in my blog.
Reduce the time spent by the adviser
Some people have e-mailed to seek my help to get the low cost Term insurance and low cost investment fund. I have referred the enquiry to an adviser.
As the adviser earns a small commission on selling the low cost product, it is fair that the customer should help the adviser to reduce the time spent to transact the sale.
You can communicate with the adviser by e-mail and telephone. If you decide to buy the product, you can visit the adviser at his office. This will make it worth the while of the adviser.
Help the adviser to help you.
As the adviser earns a small commission on selling the low cost product, it is fair that the customer should help the adviser to reduce the time spent to transact the sale.
You can communicate with the adviser by e-mail and telephone. If you decide to buy the product, you can visit the adviser at his office. This will make it worth the while of the adviser.
Help the adviser to help you.
Act in the interest of consumers
Dear Mr. Tan,
You spent three decades promoting insurance. You are now posting anti-insurance articles in your blog. Why?
REPLY
I do not wish to be anti-anything or anti-anybody. My purpose is to educate the public, so that they can make the right choice for their future.
In recent years, the right choice is:
1. Buy Term insurance to provide the protection
2. Invest in a low cost fund, for its flexibility and better return
3. Avoid buying unneccessary insurance.
I hope that insurance advisers will remember your duty to give the right advice that is beneficial to your customers. Do not sell them the wrong products that make them poorer. Do not enrich yourself at the expense of your customers.
During my past three decades as head of NTUC Income, I have always promoted products that are good for consumers. Even the endowment and whole life plans that were promoted during my time give 15% to 20% better value to consumers, compared to similar products in the market.
Someone commented that I worked hard to strick a balance between the interest of the consumers and the need for advisers to make a living. During my time, the advisers can hold their head high, that they have acted in the interest of their customers.
Today, there are insurance products that are good for consumers, including the Flexi-Link and i-Term that are marketed by NTUC Income (introduced during my time). There are other good investment products in the market, such as low cost unit trusts.
You spent three decades promoting insurance. You are now posting anti-insurance articles in your blog. Why?
REPLY
I do not wish to be anti-anything or anti-anybody. My purpose is to educate the public, so that they can make the right choice for their future.
In recent years, the right choice is:
1. Buy Term insurance to provide the protection
2. Invest in a low cost fund, for its flexibility and better return
3. Avoid buying unneccessary insurance.
I hope that insurance advisers will remember your duty to give the right advice that is beneficial to your customers. Do not sell them the wrong products that make them poorer. Do not enrich yourself at the expense of your customers.
During my past three decades as head of NTUC Income, I have always promoted products that are good for consumers. Even the endowment and whole life plans that were promoted during my time give 15% to 20% better value to consumers, compared to similar products in the market.
Someone commented that I worked hard to strick a balance between the interest of the consumers and the need for advisers to make a living. During my time, the advisers can hold their head high, that they have acted in the interest of their customers.
Today, there are insurance products that are good for consumers, including the Flexi-Link and i-Term that are marketed by NTUC Income (introduced during my time). There are other good investment products in the market, such as low cost unit trusts.
Logic Quiz J-1
If you find the earlier puzzles to be too difficult, you can try the following J puzzle. It should take just a few minutes. Write the answer and time taken in my blog.
----------------------------------------------------
There are four students sitting in a row. Each student plays a different sport, keeps a different pet and drinks a different beverage.
1. The student who drinks tea sits left of the student who plays tennis.
2. The student who drinks milk sits left of the student who drinks juice.
3. The student who plays hockey sits left of the student who keeps bird.
4. Susan sits next to the student who plays badminton.
5. The student who keeps kitten sits left of the student who keeps hamster.
6. James drinks tea.
7. The student who drinks tea sits at the second desk.
8. Robert sits left of Mary.
9. The student who drinks coffee keeps puppy.
Question: Who plays chess
----------------------------------------------------
There are four students sitting in a row. Each student plays a different sport, keeps a different pet and drinks a different beverage.
1. The student who drinks tea sits left of the student who plays tennis.
2. The student who drinks milk sits left of the student who drinks juice.
3. The student who plays hockey sits left of the student who keeps bird.
4. Susan sits next to the student who plays badminton.
5. The student who keeps kitten sits left of the student who keeps hamster.
6. James drinks tea.
7. The student who drinks tea sits at the second desk.
8. Robert sits left of Mary.
9. The student who drinks coffee keeps puppy.
Question: Who plays chess
Monday, December 10, 2007
Fun & Money in InfoComm Industry
Do you know what computer programming was like 40 years ago? Read this article:
http://www.tankinlian.com/articles/fun.html
http://www.tankinlian.com/articles/fun.html
Logic Quiz A-3
There are five houses in a row with five different colors.In each house lives a person with a different occupation, drinks a different beverage, plays a different sport and keeps a different pet.
1. The person who keeps fish lives to the left of the accountant.
2. The blue house is to the left of the person who keeps cats.
3. The person who drinks water keeps dogs.
4. The person who keeps hamsters lives in the last house.
5. The person who plays chess lives next to the person who drinks milk.
6. The teacher keeps fish.
7. The red house is the second house.
8. The white house is to the left of the person who drinks tea.
9. The salesman lives to the left of the teacher.
10. The green house owner drinks coffee.
11. The doctor lives in the second house.
12. The lawyer lives to the left of the person who plays badminton.
13. The yellow house owner plays golf.
14. The person who plays tennis lives to the left of the person who plays bowling.
15. The teacher drinks beer.
Question: Who keeps birds
You can post your answer and the time taken in my blog. Enjoy!
1. The person who keeps fish lives to the left of the accountant.
2. The blue house is to the left of the person who keeps cats.
3. The person who drinks water keeps dogs.
4. The person who keeps hamsters lives in the last house.
5. The person who plays chess lives next to the person who drinks milk.
6. The teacher keeps fish.
7. The red house is the second house.
8. The white house is to the left of the person who drinks tea.
9. The salesman lives to the left of the teacher.
10. The green house owner drinks coffee.
11. The doctor lives in the second house.
12. The lawyer lives to the left of the person who plays badminton.
13. The yellow house owner plays golf.
14. The person who plays tennis lives to the left of the person who plays bowling.
15. The teacher drinks beer.
Question: Who keeps birds
You can post your answer and the time taken in my blog. Enjoy!
Retirement Fund and Inflation
A Central Provident Fund member is required to set aside a Minimum Sum of $99,600 on reaching age 55. This Minimum Sum will be adjusted yearly to allow for inflation. The CPF now uses an adjustment of 2% per year.
We can use the real rate of interest of 2% to compute the drawdown of the Minimum Sum.
At present, the CPF member can draw down the Minimum Sum for age 62. The Government is giving a Deferment Bonus to encourage people to delay the draw down to age 65.
If I use the real rate of 2% to calculate the accumulation of the Minimum Sum to age 65 and draws down this sum over 25 years, the drawdown is $6,200 a year or $518 a month. This reflects the value of money today. The “nominal” amount will be higher, due to inflation.
Many people consider $518 a month to be inadequate. I estimate that a retiree should have two times of the Minimum Sum to achieve a more comfortable standard of living. This can be achieved by keeping a larger portion of the CPF savings in the special account or by having personal savings to supplement the CPF savings.
We can use the real rate of interest of 2% to compute the drawdown of the Minimum Sum.
At present, the CPF member can draw down the Minimum Sum for age 62. The Government is giving a Deferment Bonus to encourage people to delay the draw down to age 65.
If I use the real rate of 2% to calculate the accumulation of the Minimum Sum to age 65 and draws down this sum over 25 years, the drawdown is $6,200 a year or $518 a month. This reflects the value of money today. The “nominal” amount will be higher, due to inflation.
Many people consider $518 a month to be inadequate. I estimate that a retiree should have two times of the Minimum Sum to achieve a more comfortable standard of living. This can be achieved by keeping a larger portion of the CPF savings in the special account or by having personal savings to supplement the CPF savings.
Education Fund and Inflation
Assume that you wish to save $100,000 for the tertiary education of your child in 20 years time.
If you expect to earn an average return to be 5% a year, you need to save $3,020 a year.
In 20 years time, the cost of education would have increased, due to the impact of inflation. If inflation is an average of 2% per year, the cost would have increased to $148,000, i.e. an increase of 48% over 20 years.
To get the higher sum of $148,000, you will need to save 48% more, or $4,470. That is a lot of money, especially at the earlier years, when your income is still at a more modest level (i.e. has not reached the peak for your career).
A better approach is to have a saving plan that increases with your salary. If you assume that your saving can increase by 2% per year, you can save a smaller sum at the start.
Here is an easy way to calculate the amount that you need to save to produce $100,000 (in real value) in 20 years, allowing for inflation at 2% per year.
If you expect to earn an average of 5% per year, and you wish to allow for inflation at 2% per year, you use a “real” interest rate of 3% in your calculation (i.e. nominal rate of 5% less inflation adjustment of 2%).
To get $100,000 in real value in 20 years’ time, you need to save $3,720 yearly in real terms, i.e. the saving has to increase by 2% every year.
If you expect to earn an average return to be 5% a year, you need to save $3,020 a year.
In 20 years time, the cost of education would have increased, due to the impact of inflation. If inflation is an average of 2% per year, the cost would have increased to $148,000, i.e. an increase of 48% over 20 years.
To get the higher sum of $148,000, you will need to save 48% more, or $4,470. That is a lot of money, especially at the earlier years, when your income is still at a more modest level (i.e. has not reached the peak for your career).
A better approach is to have a saving plan that increases with your salary. If you assume that your saving can increase by 2% per year, you can save a smaller sum at the start.
Here is an easy way to calculate the amount that you need to save to produce $100,000 (in real value) in 20 years, allowing for inflation at 2% per year.
If you expect to earn an average of 5% per year, and you wish to allow for inflation at 2% per year, you use a “real” interest rate of 3% in your calculation (i.e. nominal rate of 5% less inflation adjustment of 2%).
To get $100,000 in real value in 20 years’ time, you need to save $3,720 yearly in real terms, i.e. the saving has to increase by 2% every year.
Beware agents' glib sales lines
Buying insurance?
Beware agents' glib sales lines
By Larry Haverkamp (Doc Money)
HOW much is your sum assured? Do you have convertibility? How about renewability? How about total confusion?
Hardly anyone understands insurance lingo. That's why some top agents skip the jargon and go straight for the heart.
They talk about life, death, loving, caring and - most of all - responsibility.
Here are the sales pitches I have run across most often. All are highly effective but they don't give you the full picture. How many can you recognise?
Sales pitch #1: 'Do you know how much it will cost to send your child to university?'
Sales pitch #2: 'My honest advice is: Save your money and buy an ILP.'
Sales pitch #3: 'If you buy term insurance, you won't get anything back at the end.
Sales pitch #4: 'Whole life and endowment returns are guaranteed. There are no losses.'
Read this article:
http://newpaper.asia1.com.sg/columnists/story/0,4136,131634,00.html?
http://www.tankinlian.com/drmoney/
Beware agents' glib sales lines
By Larry Haverkamp (Doc Money)
HOW much is your sum assured? Do you have convertibility? How about renewability? How about total confusion?
Hardly anyone understands insurance lingo. That's why some top agents skip the jargon and go straight for the heart.
They talk about life, death, loving, caring and - most of all - responsibility.
Here are the sales pitches I have run across most often. All are highly effective but they don't give you the full picture. How many can you recognise?
Sales pitch #1: 'Do you know how much it will cost to send your child to university?'
Sales pitch #2: 'My honest advice is: Save your money and buy an ILP.'
Sales pitch #3: 'If you buy term insurance, you won't get anything back at the end.
Sales pitch #4: 'Whole life and endowment returns are guaranteed. There are no losses.'
Read this article:
http://newpaper.asia1.com.sg/columnists/story/0,4136,131634,00.html?
http://www.tankinlian.com/drmoney/
Logic Quiz A-2
There are five houses in a row with five different colors.
In each house lives a person with a different occupation,
drinks a different beverage, plays a different sport
and keeps a different pet.
1. The person who keeps fish lives next to the person who drinks water.
2. The person who plays golf lives next to the person who keeps birds.
3. The teacher lives next to the person who drinks coffee.
4. The red house owner is the salesman.
5. The green house is to the left of the blue house.
6. The lawyer drinks milk.
7. The person who plays badminton lives next to the person who drinks tea.
8. The accountant lives to the left of the person who keeps cats.
9. The fourth house is the white house.
10. The yellow house owner plays badminton.
11. The doctor keeps cats.
12. The person who keeps dogs lives to the left of the person who plays chess.
13. The blue house owner plays chess.
14. The third house owner plays tennis.
15. The person who plays bowling keeps hamsters.
Question: Who drinks beer
Please give your answer and the time that you took to solve this quiz - by writing a comment.
In each house lives a person with a different occupation,
drinks a different beverage, plays a different sport
and keeps a different pet.
1. The person who keeps fish lives next to the person who drinks water.
2. The person who plays golf lives next to the person who keeps birds.
3. The teacher lives next to the person who drinks coffee.
4. The red house owner is the salesman.
5. The green house is to the left of the blue house.
6. The lawyer drinks milk.
7. The person who plays badminton lives next to the person who drinks tea.
8. The accountant lives to the left of the person who keeps cats.
9. The fourth house is the white house.
10. The yellow house owner plays badminton.
11. The doctor keeps cats.
12. The person who keeps dogs lives to the left of the person who plays chess.
13. The blue house owner plays chess.
14. The third house owner plays tennis.
15. The person who plays bowling keeps hamsters.
Question: Who drinks beer
Please give your answer and the time that you took to solve this quiz - by writing a comment.
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