A commuter approached me outside Yio Chu Kang MRT station. She wanted to know where to get a bus to go to Techpoint. She asked if it was bus service 70 (as she had checked the street directory), and where is the bus stop?
I took out the Public Transport Guide which I usually carry with me. It was indeed service 70 and indicated the nearest stop to Techpoint.
However, the commuter had walked in the wrong direction and is quite far away from the bus stop. She was not able to get clear direction from the other people.
I find the direction signs in our MRT stations to be inadequate. It is also difficult for someone to get useful directions, if they are not familiar with the bus services.
Monday, January 14, 2008
Sunday, January 13, 2008
Be educated about financial matters
Dear Mr. Tan,
My daughter who has recently started work, was approached by an insurance agent from X at MacDonalds. The agent gave a long sales talk to my daughter. She was not clear about what the product was, and was coerced into buying the policy.
I told her to cancel the policy, as a large part of her hard earned money will be used to pay commission to the agent. I advised her to read your blog and understand insurance and investments better, before she make this type of financial decision.
REPLY
Many young people have been approached in this manner. In many cases, the agent who sells them the policy was their friend or classmate.
It is true that they will waste their hard earned money buying the wrong, expensive product that gives a poor return.
It is better for them to buy Term insurance or personal accident insurance first. They can accumulate their savings in the bank account and decide later on how to invest it.
My daughter who has recently started work, was approached by an insurance agent from X at MacDonalds. The agent gave a long sales talk to my daughter. She was not clear about what the product was, and was coerced into buying the policy.
I told her to cancel the policy, as a large part of her hard earned money will be used to pay commission to the agent. I advised her to read your blog and understand insurance and investments better, before she make this type of financial decision.
REPLY
Many young people have been approached in this manner. In many cases, the agent who sells them the policy was their friend or classmate.
It is true that they will waste their hard earned money buying the wrong, expensive product that gives a poor return.
It is better for them to buy Term insurance or personal accident insurance first. They can accumulate their savings in the bank account and decide later on how to invest it.
Motor insurance joke
Prosecutor to defendant accused of reckless driving, "Is it true that you knocked down five people this year?"
Defendent: "No. I only knocked down four people. One of them was the same person that I knocked down twice."
Defendent: "No. I only knocked down four people. One of them was the same person that I knocked down twice."
Lawyer's joke
A man was being sued for returning a borrowed lawn mower in a damaged condition.
His lawyer told the court, "I will prove my client's innocence in the following ways: Firstly, he never borrowed the lawn mower. Secondly, the lawn mower was already damaged when be borrowed it. Thirdly, the lawn mower was in perfect condition when he returned it. "
Joke: Some lawyer can argue any point in a convincing manner.
His lawyer told the court, "I will prove my client's innocence in the following ways: Firstly, he never borrowed the lawn mower. Secondly, the lawn mower was already damaged when be borrowed it. Thirdly, the lawn mower was in perfect condition when he returned it. "
Joke: Some lawyer can argue any point in a convincing manner.
Index Fund or ETF?
Mr Tan,
Should I invest in an Exchange Traded Fund and an Index Fund? Both funds track an index.
http://stquote.sgx.com/live/st/STETF.asp http://www.lioncapital.com.sg/default.asp?action=category&ID=24&order=rank&sort=asc&limit=0
REPLY
If you are investing for the long term (and not trading for the short term), it is better to buy an indexed fund, as it is based on the net asset value of the fund at the end of the day. You do not have to worry about trading based on the actual price fluctuation during the day.
Should I invest in an Exchange Traded Fund and an Index Fund? Both funds track an index.
http://stquote.sgx.com/live/st/STETF.asp http://www.lioncapital.com.sg/default.asp?action=category&ID=24&order=rank&sort=asc&limit=0
REPLY
If you are investing for the long term (and not trading for the short term), it is better to buy an indexed fund, as it is based on the net asset value of the fund at the end of the day. You do not have to worry about trading based on the actual price fluctuation during the day.
Post Hospital Expenses
Dear Mr. Tan,
I agreed with Ministry of Health that there is no Medi-crisis at the macro level. My family members have been treated in public hospitals, and the charges are affordable.
But we face a financial crisis at the micro level, in meeting the post-hospital expenses covering the following:
Taxi Fare/Ambulance
Consultation Fee
Laboratory Test Scan
Meal at Hospital Foodcourt
Medicine
Food suppliment
The total cost for each medical appointment is more than $200 (not counting loss of productivity). This has to be multiplied by the number of visits over the years for two elderly persons.
Each retiree gets only $297 a month from the CPF savings.
I agreed with Ministry of Health that there is no Medi-crisis at the macro level. My family members have been treated in public hospitals, and the charges are affordable.
But we face a financial crisis at the micro level, in meeting the post-hospital expenses covering the following:
Taxi Fare/Ambulance
Consultation Fee
Laboratory Test Scan
Meal at Hospital Foodcourt
Medicine
Food suppliment
The total cost for each medical appointment is more than $200 (not counting loss of productivity). This has to be multiplied by the number of visits over the years for two elderly persons.
Each retiree gets only $297 a month from the CPF savings.
Decreasing Term
Dear Mr . Tan,
I am 25 years old. Should I take a 40 year Decreasing Term or a 20 year policy and renew it at the end of 20 years?
REPLY
You should take a Decreasing Term for 40 years. It should cover the duration of your expected working career.
If you take a Decreasing Term for 20 years and wish to renew it at the end of 20 years, the renewal is subject to your health condition at that time. The premium will be based on your age at that time, and will be much higher.
This arrangement is not suitable, as the sum insured under the Decreasing Term will reduce during each period of 20 years.
I am 25 years old. Should I take a 40 year Decreasing Term or a 20 year policy and renew it at the end of 20 years?
REPLY
You should take a Decreasing Term for 40 years. It should cover the duration of your expected working career.
If you take a Decreasing Term for 20 years and wish to renew it at the end of 20 years, the renewal is subject to your health condition at that time. The premium will be based on your age at that time, and will be much higher.
This arrangement is not suitable, as the sum insured under the Decreasing Term will reduce during each period of 20 years.
Saturday, January 12, 2008
A Message by George Carlin
The paradox of our time in history is that we have taller buildings but shorter tempers, wider freeways , but narrower viewpoints.
We spend more, but have less, we buy more, but enjoy less. We have bigger houses and smaller families, more conveniences, but less time. We have more degrees but less sense, more knowledge, but less judgment, more experts, yet more problems, more medicine, but less wellness.
We drink too much, smoke too much, spend too recklessly, laugh too little, drive too fast, get too angry, stay up too late, get up too tired, read too little, watch TV too much, and pray too seldom.
We have multiplied our possessions, but reduced our values. We talk too much, love too seldom, and hate too often.
We've learned how to make a living, but not a life. We've added years to life not life to years. We've been all the way to the moon and back, but have trouble crossing the street to meet a new neighbor. We conquered outer space but not inner space. We've done larger things, but not better things.
We've cleaned up the air, but polluted the soul. We've conquered the atom, but not our prejudice. We write more, but learn less. We plan more, but accomplish less. We've learned to rush, but not to wait. We build more computers to hold more information, to produce more copies than ever, but we communicate less and less.
These are the times of fast foods and slow digestion, big men and small character, steep profits and shallow relationships. These are the days of two incomes but more divorce, fancier houses, but broken homes.
These are days of quick trips, disposable diapers, throw away morality, overweight bodies, and pills that do everything from cheer, to quiet, to kill. It is a time when there is much in the showroom window and nothing in the stock room. A time when technology can bring this letter to you, and a time when you can choose either to share this insight, or to just hit delete...
Remember; spend some time with your loved ones, because they are not going to be around forever. Remember, say a kind word to someone who looks up to you in awe, because that little person soon will grow up and leave your side. Remember, to give a warm hug to the one next to you, because that is the only treasure you can give with your heart and it doesn't cost a cent.
Remember, to say, "I love you" to your partner and your loved ones, but most of all mean it. A kiss and an embrace will mend hurt when it comes from deep inside of you. Remember to hold hands and cherish the moment for someday that person will not be there again. Give time to love, give time to speak! And give time to share the precious thoughts in your mind.
AND ALWAYS REMEMBER:
Life is not measured by the number of breaths we take, but by themoments that take our breath away.
George Carlin
We spend more, but have less, we buy more, but enjoy less. We have bigger houses and smaller families, more conveniences, but less time. We have more degrees but less sense, more knowledge, but less judgment, more experts, yet more problems, more medicine, but less wellness.
We drink too much, smoke too much, spend too recklessly, laugh too little, drive too fast, get too angry, stay up too late, get up too tired, read too little, watch TV too much, and pray too seldom.
We have multiplied our possessions, but reduced our values. We talk too much, love too seldom, and hate too often.
We've learned how to make a living, but not a life. We've added years to life not life to years. We've been all the way to the moon and back, but have trouble crossing the street to meet a new neighbor. We conquered outer space but not inner space. We've done larger things, but not better things.
We've cleaned up the air, but polluted the soul. We've conquered the atom, but not our prejudice. We write more, but learn less. We plan more, but accomplish less. We've learned to rush, but not to wait. We build more computers to hold more information, to produce more copies than ever, but we communicate less and less.
These are the times of fast foods and slow digestion, big men and small character, steep profits and shallow relationships. These are the days of two incomes but more divorce, fancier houses, but broken homes.
These are days of quick trips, disposable diapers, throw away morality, overweight bodies, and pills that do everything from cheer, to quiet, to kill. It is a time when there is much in the showroom window and nothing in the stock room. A time when technology can bring this letter to you, and a time when you can choose either to share this insight, or to just hit delete...
Remember; spend some time with your loved ones, because they are not going to be around forever. Remember, say a kind word to someone who looks up to you in awe, because that little person soon will grow up and leave your side. Remember, to give a warm hug to the one next to you, because that is the only treasure you can give with your heart and it doesn't cost a cent.
Remember, to say, "I love you" to your partner and your loved ones, but most of all mean it. A kiss and an embrace will mend hurt when it comes from deep inside of you. Remember to hold hands and cherish the moment for someday that person will not be there again. Give time to love, give time to speak! And give time to share the precious thoughts in your mind.
AND ALWAYS REMEMBER:
Life is not measured by the number of breaths we take, but by themoments that take our breath away.
George Carlin
Crisis in health care?
Do we have a crisis in health-care?
Read the articles in Today paper:
a) Article by Stanley Jeremiah – Medisave, Medishield, Medi-Crisis?
http://www.todayonline.com/articles/230532.asp
b) Article by Alex Har – Medi-Debate: Why I’m Optimistic
http://www.todayonline.com/articles/231761.asp
c) Letter by Karen Tan, M of Health – We can be proud of 3M
http://www.todayonline.com/articles/231791.asp
Some points to ponder:
a) Do we have a medical insurance crisis?
b) Many people have several medical insurance policies. They are over lapping, duplicative and wasteful. Do you agree?
c) Medishield has Deductible and Co-insurance to encourage people to use medical services carefully. This is negated by offering a rider to cover these items. It makes the system more complex and costly to administer. Do you agree?
d) What is portable medical insurance? How can we get more people to be insured under a portable insurance policy?
Read the articles in Today paper:
a) Article by Stanley Jeremiah – Medisave, Medishield, Medi-Crisis?
http://www.todayonline.com/articles/230532.asp
b) Article by Alex Har – Medi-Debate: Why I’m Optimistic
http://www.todayonline.com/articles/231761.asp
c) Letter by Karen Tan, M of Health – We can be proud of 3M
http://www.todayonline.com/articles/231791.asp
Some points to ponder:
a) Do we have a medical insurance crisis?
b) Many people have several medical insurance policies. They are over lapping, duplicative and wasteful. Do you agree?
c) Medishield has Deductible and Co-insurance to encourage people to use medical services carefully. This is negated by offering a rider to cover these items. It makes the system more complex and costly to administer. Do you agree?
d) What is portable medical insurance? How can we get more people to be insured under a portable insurance policy?
Time to enter the market?
Hi Mr Tan,
Is it a good time to enter the market? Should I wait and see, since the market is expected to be volatile in 2008? This is the first time I am investing in unit thrust, so not too sure. I hope to seek your advice.
REPLY:
It depends on whether you are investing a large lump sum or a small monthly sum.
Read this FAQ:
http://www.tankinlian.com/faq/savings.html
Is it a good time to enter the market? Should I wait and see, since the market is expected to be volatile in 2008? This is the first time I am investing in unit thrust, so not too sure. I hope to seek your advice.
REPLY:
It depends on whether you are investing a large lump sum or a small monthly sum.
Read this FAQ:
http://www.tankinlian.com/faq/savings.html
Hide! Here Comes the Insurance Guy
http://www.kevinquinley.com/nlstory.cfm?ID=565&NLID=2231
The Envelope, please … the Top Risk Management Book of the Year … By Kevin M. Quinley CPCU, ARM AIC, AIM, ARe Hide! Here Comes the Insurance Guy by Rick Vassar, iUniverse, 2006, 196 pp., $17.95
Author, risk manager and consultant Rick Vassar has penned an illuminating primer on insurance and risk management in his book, "Hide! Here Comes the Insurance Guy."
The title is a take-off on the notion that, for most people, meeting with an insurance person or discussing coverage is as much fun as a root canal or proctological exam. Part of his theme is that most companies have risks that are overseen by someone whose title is not "Risk Manager."
Most companies do not have risk managers; you need to have a pretty big insurance budget to justify that as a full-time position. No company vies to be paying so much in insurance premium that they spotlight the problem by having a full-time individual to tend to it. Nevertheless, all companies have risks and need to manage it.
For these risk managers without title or formal portfolio, Vassar's book – perhaps the best risk management book of the year even without that phrase in the title -- is an indispensable primer and guide. Reading and heeding his advice will save businesses much money, frustration and Excedrin-consumption.
Vassar divides his book into three main sections. Part I discusses business strategies to even the playing field between policyholders and insurance companies. Part II walks through the major basic forms of insurance coverage for most any business. Part III rounds out with a useful; glossary and index. Vassar's focus is practical and hands-on, leavened with a self-deprecating sense of humor.
Did I say "humor"? Yes, though few comedy clubs are likely to feature an Open Mike night for insurance reps, Vassar takes the human antipathy toward insurance and turns it into a source of mirth and amusement. So run -- but don't hide - and get your copy of "Hide! Here Comes the Insurance Guy." Get out from under the desk. Leave the closet and face your fears. Insurance and risk management may not be fun (though they are occasionally funny), but Rick Vassar has come as close to anyone in blending sharp wit with money saving risk management insights.
The Envelope, please … the Top Risk Management Book of the Year … By Kevin M. Quinley CPCU, ARM AIC, AIM, ARe Hide! Here Comes the Insurance Guy by Rick Vassar, iUniverse, 2006, 196 pp., $17.95
Author, risk manager and consultant Rick Vassar has penned an illuminating primer on insurance and risk management in his book, "Hide! Here Comes the Insurance Guy."
The title is a take-off on the notion that, for most people, meeting with an insurance person or discussing coverage is as much fun as a root canal or proctological exam. Part of his theme is that most companies have risks that are overseen by someone whose title is not "Risk Manager."
Most companies do not have risk managers; you need to have a pretty big insurance budget to justify that as a full-time position. No company vies to be paying so much in insurance premium that they spotlight the problem by having a full-time individual to tend to it. Nevertheless, all companies have risks and need to manage it.
For these risk managers without title or formal portfolio, Vassar's book – perhaps the best risk management book of the year even without that phrase in the title -- is an indispensable primer and guide. Reading and heeding his advice will save businesses much money, frustration and Excedrin-consumption.
Vassar divides his book into three main sections. Part I discusses business strategies to even the playing field between policyholders and insurance companies. Part II walks through the major basic forms of insurance coverage for most any business. Part III rounds out with a useful; glossary and index. Vassar's focus is practical and hands-on, leavened with a self-deprecating sense of humor.
Did I say "humor"? Yes, though few comedy clubs are likely to feature an Open Mike night for insurance reps, Vassar takes the human antipathy toward insurance and turns it into a source of mirth and amusement. So run -- but don't hide - and get your copy of "Hide! Here Comes the Insurance Guy." Get out from under the desk. Leave the closet and face your fears. Insurance and risk management may not be fun (though they are occasionally funny), but Rick Vassar has come as close to anyone in blending sharp wit with money saving risk management insights.
Friday, January 11, 2008
Amazing Numbers - on cards
I showed the Amazing Numbers, printed on cards, to several people during lunch. They were amazed at my ability to guess the number that they picked.
When I showed them the secret, the were even more amazed. They asked me, "How did you generate the numbers on the cards".
Can you guess the secret? Do you know how I generated the numbers?
http://www.tankinlian.com/amazing/index.html
I have decided to make 1,000 sets of cards to be sold at a modest price or given away.
When I showed them the secret, the were even more amazed. They asked me, "How did you generate the numbers on the cards".
Can you guess the secret? Do you know how I generated the numbers?
http://www.tankinlian.com/amazing/index.html
I have decided to make 1,000 sets of cards to be sold at a modest price or given away.
Lesson in Money Management
Someone sent this message to his daughter. He asked me to share it.
-------------------------------------------------------------------
Many Singaporean work hard and earn a lot of money in year 1990's and early 2000's. Under Goh Chok Tong policy, he encouraged investment. A lot of CPF money and personal saving just gone to the sea. Why?
Sale person make a lot of commission and they don't have a heart (conscience). The commission alone can buy at least one condo within a short time. The sales person does not risk their life, like engineer yet enjoy life. Are you working for sales person?
You better read this Blog and Dr Money's article to protect your hard earned money :
http://www.tankinlian.blogspot.com/
http://newpaper.asia1.com.sg/columnists/story/0,4136,150939,00.html?
The blog and articles are updated every day/week. It does not matter if you don't understand the technical term, just go through it. When you need to make a decision later , you know where to find infomation.
Last few days, Lee Kuan Yew advised people NOT TO TAKE RISK. This is a lesson learnt after so many years.
REPLY
My advice to people who visit my blog is to invest in low cost, diversified equity fund for the long term. By investing for the long term, the investor will average the good and bad years and get an average return that is better than the return from safe investments.
The advise is different from your view of "do not take risk". Do you agree with my advice?
Read this FAQ:
http://www.tankinlian.com/faq/savings.html
-------------------------------------------------------------------
Many Singaporean work hard and earn a lot of money in year 1990's and early 2000's. Under Goh Chok Tong policy, he encouraged investment. A lot of CPF money and personal saving just gone to the sea. Why?
Sale person make a lot of commission and they don't have a heart (conscience). The commission alone can buy at least one condo within a short time. The sales person does not risk their life, like engineer yet enjoy life. Are you working for sales person?
You better read this Blog and Dr Money's article to protect your hard earned money :
http://www.tankinlian.blogspot.com/
http://newpaper.asia1.com.sg/columnists/story/0,4136,150939,00.html?
The blog and articles are updated every day/week. It does not matter if you don't understand the technical term, just go through it. When you need to make a decision later , you know where to find infomation.
Last few days, Lee Kuan Yew advised people NOT TO TAKE RISK. This is a lesson learnt after so many years.
REPLY
My advice to people who visit my blog is to invest in low cost, diversified equity fund for the long term. By investing for the long term, the investor will average the good and bad years and get an average return that is better than the return from safe investments.
The advise is different from your view of "do not take risk". Do you agree with my advice?
Read this FAQ:
http://www.tankinlian.com/faq/savings.html
Term Insurance to age 90
Dear Mr. Tan,
What are your views about buying Term insurance to age 90 and above? The agent said that the premium rate is lower than whole life policy.
REPLY
It is much cheaper to buy Term insurance to age 65 or 70 (rather than age 90). After that age, you do not need any life insurance, as you have retired from work.
If you need life insurance beyond age 70, it is better to buy a whole life insurance (rather than life-time Term insurance), as the whole life policy accumulates cash value. The life-time Term insurance is cheaper as it forfeits the cash value when you terminate the policy. There is a chance that you may terminate it by oversight, and suffer a loss.
What are your views about buying Term insurance to age 90 and above? The agent said that the premium rate is lower than whole life policy.
REPLY
It is much cheaper to buy Term insurance to age 65 or 70 (rather than age 90). After that age, you do not need any life insurance, as you have retired from work.
If you need life insurance beyond age 70, it is better to buy a whole life insurance (rather than life-time Term insurance), as the whole life policy accumulates cash value. The life-time Term insurance is cheaper as it forfeits the cash value when you terminate the policy. There is a chance that you may terminate it by oversight, and suffer a loss.
Thursday, January 10, 2008
Private Credit Counselling Service
Dear Sir
I need some advice from you. I have some credit debts amounting to $X from various banks. They are demanding for payment. All the facilities has been cancelled for the past two years, but the amount keeps snow balling.
I am selling flat and will be able to pay off most of the debts when the sale is completed in a few many months time.
I approached a private credit counselling company to get their assistance to work out an instalment plan with the banks. They wrote letters to the banks on my behalf using my name, and charged me a fee. I am not sure if this is the correct approach.
REPLY:
I am not familiar with the business practice of these private credit counselling service.
Maybe, you can talk to the bank directly and see if they can reduce the interest charged on the delayed payment. Alternatively, you can approach this non-profit organisation:
http://www.ccs.org.sg/help.html
I need some advice from you. I have some credit debts amounting to $X from various banks. They are demanding for payment. All the facilities has been cancelled for the past two years, but the amount keeps snow balling.
I am selling flat and will be able to pay off most of the debts when the sale is completed in a few many months time.
I approached a private credit counselling company to get their assistance to work out an instalment plan with the banks. They wrote letters to the banks on my behalf using my name, and charged me a fee. I am not sure if this is the correct approach.
REPLY:
I am not familiar with the business practice of these private credit counselling service.
Maybe, you can talk to the bank directly and see if they can reduce the interest charged on the delayed payment. Alternatively, you can approach this non-profit organisation:
http://www.ccs.org.sg/help.html
Charges under a investment linked policy
Dear Mr. Tan,
I am confused about the many charges under an investment-linked policy. The insurance agent does not explain them clearly to me. I am now stuck with these high charges. Can I get out of them?
REPLY
It is better to buy a low cost Term insurance, to provide the life insurance protection. You should invest in a unit trust or an investment fund with low upfront or annual charges.
If you invest in an investment-linked policy, make sure that 100% of your premium is invested and that the only charges are the initial spread (which should not exceed 3%). Make sure that the annual charges of the fund is less than 1.5%.
A good example is the Combined Fund from NTUC Income, which you can buy through the Flexi-link plan.
You should avoid the regular premium investment linked plan as it has another layer of charges that can take away 15 to 21 months of your savings (with a few exceptions).
You can read the following FAQ to understand the charges in an ILP:
http://www.tankinlian.com/faq/ilp.html
I am confused about the many charges under an investment-linked policy. The insurance agent does not explain them clearly to me. I am now stuck with these high charges. Can I get out of them?
REPLY
It is better to buy a low cost Term insurance, to provide the life insurance protection. You should invest in a unit trust or an investment fund with low upfront or annual charges.
If you invest in an investment-linked policy, make sure that 100% of your premium is invested and that the only charges are the initial spread (which should not exceed 3%). Make sure that the annual charges of the fund is less than 1.5%.
A good example is the Combined Fund from NTUC Income, which you can buy through the Flexi-link plan.
You should avoid the regular premium investment linked plan as it has another layer of charges that can take away 15 to 21 months of your savings (with a few exceptions).
You can read the following FAQ to understand the charges in an ILP:
http://www.tankinlian.com/faq/ilp.html
Insure big loss with small chance of occurring
1. Buy insurance to cover the big lossses, which has a small chance of occuring. For example, total destruction of a property due to fire, or a major accident. You can insure the risks where the chance of occuring is less than 1% in a year.
2. Pay small losses out of your savings, eg deductible under a medical insurance or motor insurance policy. Do not insure these small losses. It is costly, as you have to pay a loading to cover the expenses of the insurance company. It is also a hassle for you to make a small claim.
3. Buy low cost insurance just to cover the risk. It does not matter that you do not get any return, provided that the cost is less than 5% of a similar "investment product".
4. Do not invest in an insurance policy, as the return is low (due to the expenses). It is better to invest separately in a transparent, low cost product.
2. Pay small losses out of your savings, eg deductible under a medical insurance or motor insurance policy. Do not insure these small losses. It is costly, as you have to pay a loading to cover the expenses of the insurance company. It is also a hassle for you to make a small claim.
3. Buy low cost insurance just to cover the risk. It does not matter that you do not get any return, provided that the cost is less than 5% of a similar "investment product".
4. Do not invest in an insurance policy, as the return is low (due to the expenses). It is better to invest separately in a transparent, low cost product.
Medical insurance for Pensioner
Dear Mr. Tan,
I am a pensioner and currently working. I am entitle for class A wards but hve to pay 15% of the total medical bill each time I visit a doctor. Is it necessary for me to take up the Medishield plan?
REPLY:
I assume that you will continue to enjoy the medical benefit provided by the Governmetn after your retire from work and that it will continue to be provided to you for your lifetime.
If this is the case, there is no need for you to buy Medishield. There is no point in paying the premium for a medical cover where you only need to insure for 15% of the total cost. If you are hospitalised, you can pay the 15% from your Medisave account, or even from cash. It is likely to be quite small anyway.
I am a pensioner and currently working. I am entitle for class A wards but hve to pay 15% of the total medical bill each time I visit a doctor. Is it necessary for me to take up the Medishield plan?
REPLY:
I assume that you will continue to enjoy the medical benefit provided by the Governmetn after your retire from work and that it will continue to be provided to you for your lifetime.
If this is the case, there is no need for you to buy Medishield. There is no point in paying the premium for a medical cover where you only need to insure for 15% of the total cost. If you are hospitalised, you can pay the 15% from your Medisave account, or even from cash. It is likely to be quite small anyway.
Tips on financial planning
1. Here are my tips on financial planning.
2. Have adequate life insurance to cover your life. Insure for 5 to 10 years of your income. This ensures that, if anything happens to you, your family will have adequate financial security.
3. Buy decreasing Term insurance over 20 or 30 years. The premium rate is affordable. It should take less than 1% of your earnings. This is better than whole life, endowment or critical illness insurance.
4. Save 10% to 15% of your salary and invest in a low cost, diversified investment fund. You can earn an attractive return over the long term. The savings can be used for emergencies (including paying medical bills) and for your long term needs (such as education for your child or for your own retirement needs).
5. Do not buy financial products (including life insurance policies) where there are high charges that is taken away from your savings.
6. You can insure your children under Medishield. It will take care of the larger bills. The smaller bills can be paid from your Medisave account, or from your savings plan.
7. Do not buy life insurance policies for your children, as they do not provide a good return (due to high charges). It is better for you to save and get a high return from your investment fund. You can use the money for their education or transfer the savings to them when they start their own family.
8. Your children can take their own life insurance policies when they start to work. At that time, they should buy low cost insurance and save in a low cost investment fund.
2. Have adequate life insurance to cover your life. Insure for 5 to 10 years of your income. This ensures that, if anything happens to you, your family will have adequate financial security.
3. Buy decreasing Term insurance over 20 or 30 years. The premium rate is affordable. It should take less than 1% of your earnings. This is better than whole life, endowment or critical illness insurance.
4. Save 10% to 15% of your salary and invest in a low cost, diversified investment fund. You can earn an attractive return over the long term. The savings can be used for emergencies (including paying medical bills) and for your long term needs (such as education for your child or for your own retirement needs).
5. Do not buy financial products (including life insurance policies) where there are high charges that is taken away from your savings.
6. You can insure your children under Medishield. It will take care of the larger bills. The smaller bills can be paid from your Medisave account, or from your savings plan.
7. Do not buy life insurance policies for your children, as they do not provide a good return (due to high charges). It is better for you to save and get a high return from your investment fund. You can use the money for their education or transfer the savings to them when they start their own family.
8. Your children can take their own life insurance policies when they start to work. At that time, they should buy low cost insurance and save in a low cost investment fund.
Get adequate life insurance on your life first
Dear Mr. Tan,
1. You advised me to have medical insurance for my daughter and to save in an investment linked plan with low charges. Do I need to buy other insurance for her, such as a critical illness policy?
Reply: There is no need to buy the critical illness plan. She can buy it later, when she starts to work.
2. When is the appropriate time to buy living insurance? If I buy living insurance, does it mean that I have to terminate the Medishield?
Reply: If you buy critical illness insurance, you do not need to terminate Medishield. They cover different types of expenses.
3. I only have living insurance coverage of 30K. Is this adequate? Do I need to buy a life insurance so that my family's financial needs are covered if something happens to me?
Reply: You should have adequate insurance on your life. Buy a decreasing Term insurance to cover up to 5 years of your income. Your priority is to have adequate insurance on your life. Do not worry about life insurance for your child at this time.
Read this FAQ: http://www.tankinlian.com/faq/choice.html
1. You advised me to have medical insurance for my daughter and to save in an investment linked plan with low charges. Do I need to buy other insurance for her, such as a critical illness policy?
Reply: There is no need to buy the critical illness plan. She can buy it later, when she starts to work.
2. When is the appropriate time to buy living insurance? If I buy living insurance, does it mean that I have to terminate the Medishield?
Reply: If you buy critical illness insurance, you do not need to terminate Medishield. They cover different types of expenses.
3. I only have living insurance coverage of 30K. Is this adequate? Do I need to buy a life insurance so that my family's financial needs are covered if something happens to me?
Reply: You should have adequate insurance on your life. Buy a decreasing Term insurance to cover up to 5 years of your income. Your priority is to have adequate insurance on your life. Do not worry about life insurance for your child at this time.
Read this FAQ: http://www.tankinlian.com/faq/choice.html
Wednesday, January 09, 2008
Late notification of an motor accident
Dear Mr Tan
A few months ago, my friend was involved in a minor accident. He bumped into the back of another vehicle. He contacted his insurance agent and furnished the necessary details to the insurer upon being contacted by the solicitor who was acting on behalf of the claiming party.
He was informed by them a few days ago that the claim will not be entertained, as he had failed to make a report within 2 days of the accident. Is there any guideline on what would be a reasonable notification period?
REPLY
Under a motor insurance policy, the insured person is required to notify the insurance company within a stated period (usually 1 or 2 days) of any accident that may lead to a claim.
If both parties agree not to make a claim, then there is no need to make this report. In this particular case, it appears that the other party must have made a report and wish to claim against your friend.
I suggest that your friend should speak to his insurance company and get their advice on how to handle this claim. The insurance company should assist their customer in such matters.
If the insurance company does not provide reasonable assistance, your friend can lodge a complaint with FIDRec:
http://www.fidrec.com.sg/website/faq.html">http://www.fidrec.com.sg/website/faq.html
A few months ago, my friend was involved in a minor accident. He bumped into the back of another vehicle. He contacted his insurance agent and furnished the necessary details to the insurer upon being contacted by the solicitor who was acting on behalf of the claiming party.
He was informed by them a few days ago that the claim will not be entertained, as he had failed to make a report within 2 days of the accident. Is there any guideline on what would be a reasonable notification period?
REPLY
Under a motor insurance policy, the insured person is required to notify the insurance company within a stated period (usually 1 or 2 days) of any accident that may lead to a claim.
If both parties agree not to make a claim, then there is no need to make this report. In this particular case, it appears that the other party must have made a report and wish to claim against your friend.
I suggest that your friend should speak to his insurance company and get their advice on how to handle this claim. The insurance company should assist their customer in such matters.
If the insurance company does not provide reasonable assistance, your friend can lodge a complaint with FIDRec:
http://www.fidrec.com.sg/website/faq.html">http://www.fidrec.com.sg/website/faq.html
Whole life policies
Hi, Mr. Tan,
I have two whole life which I bought in 1994 and 1995. I am now a pensioner. Should I continue with the policies? I wish to convert them into a life annuity, but I was told that it is not possible. The return from buying insurance is not very encouraging as the returns have been revised downwards in the past years.
REPLY:
You can ask the insurance company to quote the cash value of each policy as follows:
a) if you terminate the policy now
b) if you terminate the policy in 5 years time
c) premium payable for the next 5 years
d) if you temrinate the policy in 10 years time
e) premium payable for the next 10 years
You can make a better decision when these figures are available. You can show me the figures and we can decide together on which option is best for you.
Read this FAQ:
http://www.tankinlian.com/faq/exist.html
I have two whole life which I bought in 1994 and 1995. I am now a pensioner. Should I continue with the policies? I wish to convert them into a life annuity, but I was told that it is not possible. The return from buying insurance is not very encouraging as the returns have been revised downwards in the past years.
REPLY:
You can ask the insurance company to quote the cash value of each policy as follows:
a) if you terminate the policy now
b) if you terminate the policy in 5 years time
c) premium payable for the next 5 years
d) if you temrinate the policy in 10 years time
e) premium payable for the next 10 years
You can make a better decision when these figures are available. You can show me the figures and we can decide together on which option is best for you.
Read this FAQ:
http://www.tankinlian.com/faq/exist.html
American Humour
Humour #1
The people who don't like Hillary Clinton said, "We don't want Hill and Bill back into the White House".
Humour #2
During the days of the Cold War, an American told a Russian, "In America, we have free speech. I can go to the White House and tell President Johnson - President, I don't like the way that you are running America".
The Russian said, "I can do the same in Russia".
American was surprised. "You mean you can go into the Kremlin and said the same to President Breshnez?"
Russian replied, "Of course, I can go into the Kremlin and tell President Breshnev - Comrade President, I don't like the way that President Johnson is running America!"
The people who don't like Hillary Clinton said, "We don't want Hill and Bill back into the White House".
Humour #2
During the days of the Cold War, an American told a Russian, "In America, we have free speech. I can go to the White House and tell President Johnson - President, I don't like the way that you are running America".
The Russian said, "I can do the same in Russia".
American was surprised. "You mean you can go into the Kremlin and said the same to President Breshnez?"
Russian replied, "Of course, I can go into the Kremlin and tell President Breshnev - Comrade President, I don't like the way that President Johnson is running America!"
Primary election in the USA
I am watching the primary election in the USA with great interest.
1. It is interesting to see how the Americans select their candidate for the Presidential election in November. It reflects democracy at its best.
2. Will America select, for the very first time, a woman President or a black President? Or will the Republicans (white, male candidate) win again?
1. It is interesting to see how the Americans select their candidate for the Presidential election in November. It reflects democracy at its best.
2. Will America select, for the very first time, a woman President or a black President? Or will the Republicans (white, male candidate) win again?
Mortality charge under a ILP
Dear Mr. Tan,
I have $300,000 coverage under an investment-linked plan. The mortality charges are about the same as for a Term insurance policy from the same company. Should I continue with the coverage under this policy?
Reply:
You can ask for a quotation on Term insurance (based on your current age and remaining duration) from a few other companies and compare it with the mortality charge that your current policy.
If the difference in premium is quite small, you should continue with the coverage under your policy. If the difference is large, then you can consider making a switch.
Read this FAQ:
http://www.tankinlian.com/faq/termd.html
I have $300,000 coverage under an investment-linked plan. The mortality charges are about the same as for a Term insurance policy from the same company. Should I continue with the coverage under this policy?
Reply:
You can ask for a quotation on Term insurance (based on your current age and remaining duration) from a few other companies and compare it with the mortality charge that your current policy.
If the difference in premium is quite small, you should continue with the coverage under your policy. If the difference is large, then you can consider making a switch.
Read this FAQ:
http://www.tankinlian.com/faq/termd.html
Insurance for a child born premature
Dear Mr. Tan,
Do I really need whole life policy for my three year old son who was born premature?
Most insurance company hesitate to take his insurance proposal. Company X offered a whole life policy with premium paid for 20 years. I am concerned that in future, he may have problem getting policy on his own, due to his past history. I know that based on insurance needs, he only needs medical coverage now.
Reply:
My understanding is that the highest risk for a premature baby is during the first month and there is a smaller risk during the first year. After one year, the risk should be quite small.
There is no need to insure your son now. When he becomes an adult, he should be able to get life insurance on his own. By that time, I hope that he will buy Term insurance and invest the difference in a low cost fund.
It may be a good idea for you to make additional savings for him. Invest in a low cost equity fund for the next 20 years. It can accumulate to a large amount of savings (compared to the whole life policy).
Do I really need whole life policy for my three year old son who was born premature?
Most insurance company hesitate to take his insurance proposal. Company X offered a whole life policy with premium paid for 20 years. I am concerned that in future, he may have problem getting policy on his own, due to his past history. I know that based on insurance needs, he only needs medical coverage now.
Reply:
My understanding is that the highest risk for a premature baby is during the first month and there is a smaller risk during the first year. After one year, the risk should be quite small.
There is no need to insure your son now. When he becomes an adult, he should be able to get life insurance on his own. By that time, I hope that he will buy Term insurance and invest the difference in a low cost fund.
It may be a good idea for you to make additional savings for him. Invest in a low cost equity fund for the next 20 years. It can accumulate to a large amount of savings (compared to the whole life policy).
Premature birth
From Wikipedia, the free encyclopedia
Premature birth is the birth of a baby before the standard period of pregnancy is completed. In most systems of human pregnancy, prematurity is considered to occur when the baby is born sooner than 37 weeks after the beginning of the last menstrual period (LMP).
Approximately 12 percent of babies in the United States are born prematurely each year.
The shorter the term of pregnancy, the greater the risks of complications. Infants born prematurely have an increased risk of death in the first year of life (infant mortality), with most of that occurring in the first month of life (neonatal mortality).
Prematurely born infants are also at greater risk for developing serious health problems such as cerebral palsy, chronic lung disease, gastrointestinal problems, mental retardation, vision or hearing loss and are more susceptible to developing depression as teenagers.
In developed countries premature infants are usually cared for in a Neonatal Intensive Care Unit (NICU).
Some of the complications related to prematurity are not apparent until years after the birth. For example, children who were born prematurely have a higher likelihood of having behavioral problems, delays in motor development, and difficulties in school. Specifically these problems can be described as being within the executive domain and have been speculated to arise due to decreased myelinization of the frontal lobes. Throughout life they are more likely to require services provided by physical therapists, occupational therapists, or speech therapists.
For more details, read:
http://en.wikipedia.org/wiki/Premature_birth
Premature birth is the birth of a baby before the standard period of pregnancy is completed. In most systems of human pregnancy, prematurity is considered to occur when the baby is born sooner than 37 weeks after the beginning of the last menstrual period (LMP).
Approximately 12 percent of babies in the United States are born prematurely each year.
The shorter the term of pregnancy, the greater the risks of complications. Infants born prematurely have an increased risk of death in the first year of life (infant mortality), with most of that occurring in the first month of life (neonatal mortality).
Prematurely born infants are also at greater risk for developing serious health problems such as cerebral palsy, chronic lung disease, gastrointestinal problems, mental retardation, vision or hearing loss and are more susceptible to developing depression as teenagers.
In developed countries premature infants are usually cared for in a Neonatal Intensive Care Unit (NICU).
Some of the complications related to prematurity are not apparent until years after the birth. For example, children who were born prematurely have a higher likelihood of having behavioral problems, delays in motor development, and difficulties in school. Specifically these problems can be described as being within the executive domain and have been speculated to arise due to decreased myelinization of the frontal lobes. Throughout life they are more likely to require services provided by physical therapists, occupational therapists, or speech therapists.
For more details, read:
http://en.wikipedia.org/wiki/Premature_birth
Congenital disorder
Most health insurance excludes congenital disorder. What is a congenital disorder? Here is a description from Wikipedia.
A congenital disorder is any medical condition that is present at birth. However, a congenital disorder can be recognized before birth (prenatally), at birth, years later, or never.
The term congenital does not imply or exclude a genetic cause. Congenital disorders can be a result of genetic abnormalities, the intrauterine environment, a mixture of both, errors of morphogenesis, or unknown factors.
Congenital conditions can be referred to as diseases, defects, disorders, anomalies, or simply genetic differences or uncomfortable. The usage overlaps, but also involves a value judgement as to the harmfulness of the condition. In particular, people may disagree as to whether a specific physical anomaly should be considered a birth defect or a normal variation.
A congenital disorder can have trivial or grave consequences. The most severe, such as anencephaly, are incompatible with life. Others, such as congenital tumors, vary from causing stillbirth to requiring fetal intervention or special delivery procedures such as the EXIT procedure, to needing surgery in the neonatal period.
The most common congenital tumor is teratoma. Congenital physical anomalies (birth defects) are a leading cause of death in early infancy, accounting for the deaths of nearly 2 out every 1000 infants in the United States.
"Congenital disorders" is a broad category that includes a variety of conditions. Congenital disorders include minor physical anomalies (e.g., a birthmark), severe malformations of single systems (e.g., congenital heart disease or dysmelia), and combinations of abnormalities affecting several parts of the body. Congenital defects of metabolism are also considered congenital disorders.
For more details:
http://en.wikipedia.org/wiki/Congenital
A congenital disorder is any medical condition that is present at birth. However, a congenital disorder can be recognized before birth (prenatally), at birth, years later, or never.
The term congenital does not imply or exclude a genetic cause. Congenital disorders can be a result of genetic abnormalities, the intrauterine environment, a mixture of both, errors of morphogenesis, or unknown factors.
Congenital conditions can be referred to as diseases, defects, disorders, anomalies, or simply genetic differences or uncomfortable. The usage overlaps, but also involves a value judgement as to the harmfulness of the condition. In particular, people may disagree as to whether a specific physical anomaly should be considered a birth defect or a normal variation.
A congenital disorder can have trivial or grave consequences. The most severe, such as anencephaly, are incompatible with life. Others, such as congenital tumors, vary from causing stillbirth to requiring fetal intervention or special delivery procedures such as the EXIT procedure, to needing surgery in the neonatal period.
The most common congenital tumor is teratoma. Congenital physical anomalies (birth defects) are a leading cause of death in early infancy, accounting for the deaths of nearly 2 out every 1000 infants in the United States.
"Congenital disorders" is a broad category that includes a variety of conditions. Congenital disorders include minor physical anomalies (e.g., a birthmark), severe malformations of single systems (e.g., congenital heart disease or dysmelia), and combinations of abnormalities affecting several parts of the body. Congenital defects of metabolism are also considered congenital disorders.
For more details:
http://en.wikipedia.org/wiki/Congenital
Tuesday, January 08, 2008
Improve the Singapore MRT system
I am impressed with the following features of the Taipei MRT system:
a) Good signage
b) Helpful staff
c) Short waiting time
d) Easy to get a seat, even during busy hours
These are conditions that are easy for Singapore MRT to achieve, even though the system is older. What cannot be done through hardware can be achieved through software.
What is needed to get the Singapore system to be less crowded?
Operate more trains. The waiting time for trains during off-peak period is now between 5 to 8 minutes. If the waiting time is reduced by 1 or 2 minutes, the capacity can be increased by 25%. This will impose a small increase in operating cost but a big reduction in waiting time and 25% more people can have a seat.
I accept that during peak hours, our MRT trains are already operating at full capacity. But, we can make the system more comfortable during the off-peak hours, like in Taipei.
a) Good signage
b) Helpful staff
c) Short waiting time
d) Easy to get a seat, even during busy hours
These are conditions that are easy for Singapore MRT to achieve, even though the system is older. What cannot be done through hardware can be achieved through software.
What is needed to get the Singapore system to be less crowded?
Operate more trains. The waiting time for trains during off-peak period is now between 5 to 8 minutes. If the waiting time is reduced by 1 or 2 minutes, the capacity can be increased by 25%. This will impose a small increase in operating cost but a big reduction in waiting time and 25% more people can have a seat.
I accept that during peak hours, our MRT trains are already operating at full capacity. But, we can make the system more comfortable during the off-peak hours, like in Taipei.
Public Transport Guide
The Public Transport Guide is sold in Popular Bookstores for $6.42. I wish to share this story on its usefulness.
I have to attend a 1 day event at Ulu Pandan CC today. I have the choice to drive there as I live quite far away. This means paying parking charges for 1 day.
I decided to try MRT but was not sure about how to get there. I looked at the Public Transport Guide and select page 6 (Queenstown). I guessed that the nearest MRT station was Buona Vista. Indeed it was. From there, the guide indicated that I could take bus 92 to my destination.
I found that the distance from the station to the destination. was quite short, so I have the option to walk the last leg.
The advantages of this Public Transport Guide are:
a) It also acts as a street directory
b) It is easy to locate he bus service
c) It is light and can be easily carried
I have suggested to LTA to display a map in each MRT station and bus stop showing the street directory and bus stops within 3 km. I hope that they will take my suggestion. It will be convenient for commuters who do not have the street directory with them.
Some people are not familiar with using a street directory. They can ask for advise from another person at the station or bus stop.
I have to attend a 1 day event at Ulu Pandan CC today. I have the choice to drive there as I live quite far away. This means paying parking charges for 1 day.
I decided to try MRT but was not sure about how to get there. I looked at the Public Transport Guide and select page 6 (Queenstown). I guessed that the nearest MRT station was Buona Vista. Indeed it was. From there, the guide indicated that I could take bus 92 to my destination.
I found that the distance from the station to the destination. was quite short, so I have the option to walk the last leg.
The advantages of this Public Transport Guide are:
a) It also acts as a street directory
b) It is easy to locate he bus service
c) It is light and can be easily carried
I have suggested to LTA to display a map in each MRT station and bus stop showing the street directory and bus stops within 3 km. I hope that they will take my suggestion. It will be convenient for commuters who do not have the street directory with them.
Some people are not familiar with using a street directory. They can ask for advise from another person at the station or bus stop.
Monday, January 07, 2008
Insuring a risk
If you face a risk with possible losses ranging from $0 to $10,000 and an expected loss of $500, will you pay $700 to insure the risk?
The answer should be "yes". Although the expected loss is $500, the actual loss can be as high as $10,000.
The difference of $200 (about 30% of $700) represents the cost of providing the insurance protection. It goes to cover the marketing, underwriting and claim processing cost of the insurance company. An expense margin of 30% is fair, in the case of an insurance contract that provide indemnity for losses. For a competitively priced insurance, the ratio of losses to premiums should be around 70%.
In the case of a life insurance contract that accumulate savings for the future, the expense ratio should be much lower, say from 5% to 10%.
The answer should be "yes". Although the expected loss is $500, the actual loss can be as high as $10,000.
The difference of $200 (about 30% of $700) represents the cost of providing the insurance protection. It goes to cover the marketing, underwriting and claim processing cost of the insurance company. An expense margin of 30% is fair, in the case of an insurance contract that provide indemnity for losses. For a competitively priced insurance, the ratio of losses to premiums should be around 70%.
In the case of a life insurance contract that accumulate savings for the future, the expense ratio should be much lower, say from 5% to 10%.
Secret Formula
Do you know the secret formula for the Amazing Number puzzle?
http://www.tankinlian.com/amazing/index.html
http://www.tankinlian.com/amazing/index.html
High charges on regular premium ILP
Hi Mr. Tan,
I've just realised to my horror that I've tied myself down to a useless investment product - a regular ILP. This is with X. My monthly premium is $100.
I have been paying premiums for the past two years. The value of the investments is only about $600. If I surrender the policy, this is what I'll get back. Should I continue? Will this investment ever even break-even?
REPLY
You have incurred most of the upfront expenses already. From now on, most of your premium will be invested. What you have spent in high charges in the past should be written off. I suggest that you keep this ILP policy.
Lesson: Avoid regular premium ILP. The charges are too high. 18 months of the premium has been taken away to pay commission and marketing expenses.
I've just realised to my horror that I've tied myself down to a useless investment product - a regular ILP. This is with X. My monthly premium is $100.
I have been paying premiums for the past two years. The value of the investments is only about $600. If I surrender the policy, this is what I'll get back. Should I continue? Will this investment ever even break-even?
REPLY
You have incurred most of the upfront expenses already. From now on, most of your premium will be invested. What you have spent in high charges in the past should be written off. I suggest that you keep this ILP policy.
Lesson: Avoid regular premium ILP. The charges are too high. 18 months of the premium has been taken away to pay commission and marketing expenses.
Rejection of medical claim - congenital condition
Dear Mr. Tan,
I have taken medical insurance for my daughter since she was a baby. There was no claim for more than 10 years.
Recently, we discovered that she was suffering from a serious medical condition. The insurance company X rejected the claim as the medical condition was congenital. We feel that this is most unfair. What is your advice?
REPLY
I suggest that you bring this this matter up to the senior management of X. You can point out that this illness was discovered more than 10 years after the policy was taken up. Due to the long lapse of time, it may not be fair for them to apply the congenital clause.
Perhaps you can ask them to get their doctor to certify that the illness is really congenital and should be excluded.
If they do not give you a satisfactory explanation, you can lodge a complaint with the Financial Dispute Resolution Center: http://www.fidrec.com.sg/website/faq.html
I wish to extend my sympathies on your predicament, first on this unexpected illness and second on the rejection of the claim. I hope that the senior management of X will take a sympathetic view. I wish you all the best.
I have taken medical insurance for my daughter since she was a baby. There was no claim for more than 10 years.
Recently, we discovered that she was suffering from a serious medical condition. The insurance company X rejected the claim as the medical condition was congenital. We feel that this is most unfair. What is your advice?
REPLY
I suggest that you bring this this matter up to the senior management of X. You can point out that this illness was discovered more than 10 years after the policy was taken up. Due to the long lapse of time, it may not be fair for them to apply the congenital clause.
Perhaps you can ask them to get their doctor to certify that the illness is really congenital and should be excluded.
If they do not give you a satisfactory explanation, you can lodge a complaint with the Financial Dispute Resolution Center: http://www.fidrec.com.sg/website/faq.html
I wish to extend my sympathies on your predicament, first on this unexpected illness and second on the rejection of the claim. I hope that the senior management of X will take a sympathetic view. I wish you all the best.
Sudoku Challenge - Preliminary Round
The preliminary round of Sudoku Challenge (for people 40 and over) was held at Bishan Community Club on 6 January. A total of about 130 people participated in the two sessions. They spent about 25 to 60 minutes to complete 5 Sudoku puzzles.
The top 16 winners have been identified. They will take part in the Finals to be held at Suntec City on 13 January.
The public is invited to watch this event. There will be other mind games which are being held at the same time. There is also an exhibition.
The top 16 winners have been identified. They will take part in the Finals to be held at Suntec City on 13 January.
The public is invited to watch this event. There will be other mind games which are being held at the same time. There is also an exhibition.
Risk Management and Insurance
I conducted the first class on Risk Management and Insurance at Singapore Management University today.
I enjoy the experience. The students participated well. From their feedback, they like the topics covered, which are useful and relevant to them.
I enjoy teaching and sharing my working experience with the students.
I enjoy the experience. The students participated well. From their feedback, they like the topics covered, which are useful and relevant to them.
I enjoy teaching and sharing my working experience with the students.
Disability income insurance
Dear Mr. Tan,
What are your views about disability income insurance?
REPLY:
As a general principle, disability income insurance is useful. If a person is disabled due to illness or accident and is not able to earn an income, the insurance will make a regular payment to replace the lost income.
In practice, the situation is different.
Here are my views, based on my limited knowledge of the market for disability income insurance in Singapore.
1. The market for disability income insurance taken by individuals is quite undeveloped in Singapore.
2. The premium rate tends to be quite high in relation to the actual cost of the risk. You will probably have to pay a high premium for a cover that is worth much less.
3. There is a long waiting period (usually three months), before the disability income starts to pay. The period of payment may also be limited.
4. If you buy disability insurance in a group, for example through an employer, or an association, you are likely to get more competitive premium rates.
5. For individuals, you can insure for temporary disablement caused by accidents through a personal accident policy. The premium rate is quite competitive.
What are your views about disability income insurance?
REPLY:
As a general principle, disability income insurance is useful. If a person is disabled due to illness or accident and is not able to earn an income, the insurance will make a regular payment to replace the lost income.
In practice, the situation is different.
Here are my views, based on my limited knowledge of the market for disability income insurance in Singapore.
1. The market for disability income insurance taken by individuals is quite undeveloped in Singapore.
2. The premium rate tends to be quite high in relation to the actual cost of the risk. You will probably have to pay a high premium for a cover that is worth much less.
3. There is a long waiting period (usually three months), before the disability income starts to pay. The period of payment may also be limited.
4. If you buy disability insurance in a group, for example through an employer, or an association, you are likely to get more competitive premium rates.
5. For individuals, you can insure for temporary disablement caused by accidents through a personal accident policy. The premium rate is quite competitive.
Sunday, January 06, 2008
Personal savings for your retirement
Many Singaporeans rely on the Central Provident Fund as their main source of savings for retirement.
Many have found it to be inadequate. In 1999, only one-third of people reaching age 55 had sufficient savings to meet the Minimum Sum of $60,000. The Minimum Sum has now been raised to $99,600. This is only sufficient to meet the very basic cost of living in Singapore.
For a more comfortable standard of living, you need at least two times of this Minimum Sum.
Let me share eight tips with you on how you can get adequate savings for your retirement.
Click here for the full article:
http://www.tankinlian.com/articles/savings.html
Many have found it to be inadequate. In 1999, only one-third of people reaching age 55 had sufficient savings to meet the Minimum Sum of $60,000. The Minimum Sum has now been raised to $99,600. This is only sufficient to meet the very basic cost of living in Singapore.
For a more comfortable standard of living, you need at least two times of this Minimum Sum.
Let me share eight tips with you on how you can get adequate savings for your retirement.
Click here for the full article:
http://www.tankinlian.com/articles/savings.html
Technique to solve Logic Quiz E-1
Here is the technique to solve Logic Quiz E-1 (see below).
Start with clue 11 which fixes the house of the engineer. From there, you can use clues 10, 12 and 20 to fix the houses for the stated characteristics. You can use clue 3 to fix the house of the lawyer.
After you have fixed the house of the engineer and the lawyer, you can use clue 13 to fix the house of the accountant and salesman.
Start with clue 11 which fixes the house of the engineer. From there, you can use clues 10, 12 and 20 to fix the houses for the stated characteristics. You can use clue 3 to fix the house of the lawyer.
After you have fixed the house of the engineer and the lawyer, you can use clue 13 to fix the house of the accountant and salesman.
The remaining two occupations are the technician and doctor. If you study the clues 2 and 8, you will be able to find their houses.
It will quite easy to complete the remaining clues. Look for the clues that fit exactly into the blank squares (i.e. only one solution).
If you take step by step, you can complete the whole quiz. It may take you 30 minutes to solve this quiz the first time, but with practice, you can reduce the time down to 10 minutes for a similar quiz.
Logic Quiz E-1
If you want a challenging logic quiz, try the following. Put our name and time taken in this blog. If you can get the answer within 15 minutes, you are very good!
There are six houses with different colours in a row. Each occupant likes a different fruit, drinks a different beverage, drives a different car and speaks a different language.
1. The person who speaks French lives to the left of the person who speaks German.
2. The technician lives to the left of the green house.
3. The person who drinks water is the lawyer.
4. The person who likes melon lives to the left of the person who likes durian.
5. The person who speaks Japanese lives two houses left of the brown house.
6. The person who speaks Italian lives two houses left of the person who drives Hyundai.
7. The person who drives Honda lives two houses left of the person who drives Nissan.
8. The person who likes mango lives two houses left of the doctor.
9. The person who drives BMW lives two houses left of the blue house.
10. The engineer lives two houses left of the person who drinks water.
11. The engineer lives in the third house.
12. The person who likes apple lives to the left of the engineer.
13. The accountant lives to the left of the salesman.
14. The person who likes banana lives two houses left of the person who drinks beer.
15. The person who drives Peugeot lives two houses left of the person who likes strawberry.
16. The person who drinks tea lives two houses left of the yellow house.
17. The person who drinks juice lives to the left of the person who drinks wine.
18. The white house is two houses left of the person who speaks Russian.
19. The person who drives Toyota lives three houses left of the person who drinks milk.
20. The red house is to the left of the person who likes apple.
Question: Who speaks Chinese
There are six houses with different colours in a row. Each occupant likes a different fruit, drinks a different beverage, drives a different car and speaks a different language.
1. The person who speaks French lives to the left of the person who speaks German.
2. The technician lives to the left of the green house.
3. The person who drinks water is the lawyer.
4. The person who likes melon lives to the left of the person who likes durian.
5. The person who speaks Japanese lives two houses left of the brown house.
6. The person who speaks Italian lives two houses left of the person who drives Hyundai.
7. The person who drives Honda lives two houses left of the person who drives Nissan.
8. The person who likes mango lives two houses left of the doctor.
9. The person who drives BMW lives two houses left of the blue house.
10. The engineer lives two houses left of the person who drinks water.
11. The engineer lives in the third house.
12. The person who likes apple lives to the left of the engineer.
13. The accountant lives to the left of the salesman.
14. The person who likes banana lives two houses left of the person who drinks beer.
15. The person who drives Peugeot lives two houses left of the person who likes strawberry.
16. The person who drinks tea lives two houses left of the yellow house.
17. The person who drinks juice lives to the left of the person who drinks wine.
18. The white house is two houses left of the person who speaks Russian.
19. The person who drives Toyota lives three houses left of the person who drinks milk.
20. The red house is to the left of the person who likes apple.
Question: Who speaks Chinese
Low cost Term Insurance
Dear Mr. Tan,
Where can I buy low cost Term insurance?
REPLY
Read this FAQ:
http://www.tankinlian.com/faq/termd.html
Give a call to 3 companies and ask them to quote the Term insurance for your age and sum assured.
Read this FAQ for the benchmark rates:
http://www.tankinlian.com/faq/term.html
Where can I buy low cost Term insurance?
REPLY
Read this FAQ:
http://www.tankinlian.com/faq/termd.html
Give a call to 3 companies and ask them to quote the Term insurance for your age and sum assured.
Read this FAQ for the benchmark rates:
http://www.tankinlian.com/faq/term.html
Low cost insurance and funds
Many people have sent an e-mail to ask for my advice on how they can buy low cost insurance and funds.
I have referred them to the following:
1. Business center of NTUC Income
2. i-Term available from Income's website
3. Flexi-link and Combined Fund from NTUC Income
4. Exchange Traded Funds from the Singapore Exchange
I have also referred them to a few NTUC Income advisers, who have agreed to offer only the low cost insurance and funds. As they earn a small commission, you should not expect them to spend too much time visiting your home. Discuss with them by e-mail or telephone, or visit their office.
Some other people have recommended unit trusts available thorugh Poems (Phillips Securities), Fundsupermart, DollarDex and Finantiq. I agree with the use of these internet portals, but you should choose the low cost funds.
See this FAQ:
http://www.tankinlian.com/faq/savings.html
You can read the following FAQs on how to buy insurance directly:
http://www.tankinlian.com/faq/termd.html
http://www.tankinlian.com/faq/motord.html
I have referred them to the following:
1. Business center of NTUC Income
2. i-Term available from Income's website
3. Flexi-link and Combined Fund from NTUC Income
4. Exchange Traded Funds from the Singapore Exchange
I have also referred them to a few NTUC Income advisers, who have agreed to offer only the low cost insurance and funds. As they earn a small commission, you should not expect them to spend too much time visiting your home. Discuss with them by e-mail or telephone, or visit their office.
Some other people have recommended unit trusts available thorugh Poems (Phillips Securities), Fundsupermart, DollarDex and Finantiq. I agree with the use of these internet portals, but you should choose the low cost funds.
See this FAQ:
http://www.tankinlian.com/faq/savings.html
You can read the following FAQs on how to buy insurance directly:
http://www.tankinlian.com/faq/termd.html
http://www.tankinlian.com/faq/motord.html
People will buy insurance
For decades, insurance professionals have held the view that "insurance has to be sold". People will not buy insurance on their own. The solution was to train insurance agents and pay them high commission to sell the insurance products.
Times have changed. People will buy insurance for the following reasons:
1. They want to be protected financially against the risk of death or disability
2. They want to save and earn a good return for the future
3. They will buy an insurance product that gives good value to them.
4. They need to find someone that they can trust.
In my blog and website, I will educate people about the good value products, including the following:
1. Term insurance
2. Personal accident insurance
3. Low cost, diversified investment funds
Tan Kin Lian
Times have changed. People will buy insurance for the following reasons:
1. They want to be protected financially against the risk of death or disability
2. They want to save and earn a good return for the future
3. They will buy an insurance product that gives good value to them.
4. They need to find someone that they can trust.
In my blog and website, I will educate people about the good value products, including the following:
1. Term insurance
2. Personal accident insurance
3. Low cost, diversified investment funds
Tan Kin Lian
Low cost funds
You can buy low cost funds directly through the following internet portals:
a) Poems, http://www.poems.com.sg/
b) Fundsupermart http://www.fundsupermart.com/main/home/index.svdo
c) DollarDex http://www.dollardex.com/SG/INDEX.CFM
d) Finantiq http://www.finatiq.com/home/index.shtm
More details at:
http://www.tankinlian.com/faq/lowcost.html
a) Poems, http://www.poems.com.sg/
b) Fundsupermart http://www.fundsupermart.com/main/home/index.svdo
c) DollarDex http://www.dollardex.com/SG/INDEX.CFM
d) Finantiq http://www.finatiq.com/home/index.shtm
More details at:
http://www.tankinlian.com/faq/lowcost.html
Low cost Personal Accident
You should buy a Personal Accident insurance to cover 5 years of your income. If you earn $30,000 a year, you can insure for $150,000.
This policy will cover death and permanent disability caused by accidents, as follows:
a) Amount payable on death: $150,000
b) Double indemnity under certain circumstances: $300,000
c) Permanent disablement: depending on extent of disability, up to $150,000
d) Temporary Disablement: $150 a day, up to 104 weeks
e) Medical Expenses: up to a specified amount for any one accident
f) Emergency Evacuation and Repatriation
An accident is usually defined as being caused by an external, violent, unexpected event. This is intended to exclude claims for illness or poor health.
The standard policy will usually exclude pre-existing physical or mental defects,
pregnancy and childbirth, war risks, motorcycling, climbing or mountaineering necessitating ropes or guides, judo, karate and some hazardous sports. You can pay a higher premium rate to cover some of these risks.
The annual premium for a sum assured of $150,000 varies from $100 to $300, depending on your occupation and on the insuranced company that provide the insurance.
More details can be found at:
http://www.tankinlian.com/faq/pa.html
This policy will cover death and permanent disability caused by accidents, as follows:
a) Amount payable on death: $150,000
b) Double indemnity under certain circumstances: $300,000
c) Permanent disablement: depending on extent of disability, up to $150,000
d) Temporary Disablement: $150 a day, up to 104 weeks
e) Medical Expenses: up to a specified amount for any one accident
f) Emergency Evacuation and Repatriation
An accident is usually defined as being caused by an external, violent, unexpected event. This is intended to exclude claims for illness or poor health.
The standard policy will usually exclude pre-existing physical or mental defects,
pregnancy and childbirth, war risks, motorcycling, climbing or mountaineering necessitating ropes or guides, judo, karate and some hazardous sports. You can pay a higher premium rate to cover some of these risks.
The annual premium for a sum assured of $150,000 varies from $100 to $300, depending on your occupation and on the insuranced company that provide the insurance.
More details can be found at:
http://www.tankinlian.com/faq/pa.html
Big change in Taiwan over 32 years
My last visit to Taiwan was 32 years ago. The tourist guide explained the many restrictions under martial law. Strict action was taken against dissenters. People were put behind bars for minor offenses.
Today, the situation has changed considerably in Taiwan. People are free to express their views. Democracy thrived. People are more confident, more courteous, more relaxed. They enjoy life.
Today, the situation has changed considerably in Taiwan. People are free to express their views. Democracy thrived. People are more confident, more courteous, more relaxed. They enjoy life.
Saturday, January 05, 2008
Impression of Taiwan
I have now returned to Singapore, after spending 12 days in Taiwan. This is the longest holiday that I have taken.
My impression of Taiwan is favourable. I like the following:
1. The MRT system and taxi service
2. Taipei 101 and the nearby buildings
3. Politeness and helpfulness of the people
4. Food and snacks
5. Hot spring and spas
My impression of Taiwan is favourable. I like the following:
1. The MRT system and taxi service
2. Taipei 101 and the nearby buildings
3. Politeness and helpfulness of the people
4. Food and snacks
5. Hot spring and spas
Amazing Number game
Write down a Number between 1 to 99. Check your number against the numbers listed in my Amazing Number cards. I will be able to guess your Number.
http://www.tankinlian.com/amazing/index.html
Show it to your children and friends. Ask them the same question, "how is this done?"
Can you guess how I guess your Number? Send your reply to me at kinlian@gmail.com. Do not post your answer and give away your secret.
http://www.tankinlian.com/amazing/index.html
Show it to your children and friends. Ask them the same question, "how is this done?"
Can you guess how I guess your Number? Send your reply to me at kinlian@gmail.com. Do not post your answer and give away your secret.
Friday, January 04, 2008
Coldest winter in 12 years
Taipei is cold. The news reported that the temperature during this winter is the coldest in the last 12 years.
Is this due to global warming, or just the cycle of nature? I suspect that the global warming is causing big climate changes around the world.
Is this due to global warming, or just the cycle of nature? I suspect that the global warming is causing big climate changes around the world.
Ecocities
I found a book entitled Ecocities in the public library in Beitou, Taiwan. It is written by Richard Register. The author described how cities should be developed to be environmentally friendly and to give a better quality of life to the residents.
The author encouraged people to work near their place of residence, and reduce the travel between home and place of work. He also encourage the use of rail transport, instead of private cars.
More details:
http://www.newsociety.com/bookid/3923
http://www.newsociety.com/
I have given similar ideas in this paper:
http://www.tankinlian.com/articles/housing.html
The author encouraged people to work near their place of residence, and reduce the travel between home and place of work. He also encourage the use of rail transport, instead of private cars.
More details:
http://www.newsociety.com/bookid/3923
http://www.newsociety.com/
I have given similar ideas in this paper:
http://www.tankinlian.com/articles/housing.html
Visit to Xin Beitou and Danshui
I visited Xin Beitou and Danshui. Danshu is at the coast and the end of the red MRT line in Taipei. It is a popular tourist destination. The visitors enjoyed the local food, shopping and atmosphere.
The stall holders are helpful. If you ask for information and do not buy their goods, they still thank you for your interest.
I saw an interesting system of garbage collection. The collection truck came at night. The stall holders could hear the classical music that is being played by the truck. They bring their grabage bags to be dumped into the truck. Apart from the driver, there is no need to have any workers.
The red MRT line has a few stations that are underground, a few that are at ground level and a few stations that are elevated.
The stall holders are helpful. If you ask for information and do not buy their goods, they still thank you for your interest.
I saw an interesting system of garbage collection. The collection truck came at night. The stall holders could hear the classical music that is being played by the truck. They bring their grabage bags to be dumped into the truck. Apart from the driver, there is no need to have any workers.
The red MRT line has a few stations that are underground, a few that are at ground level and a few stations that are elevated.
Hot springs
Hot springs are popular with the local people in Taiwan. They are also popular in Japan and China.
The minerals from the hot spring provides some health benefits. After spending two hours at a hot spring spa, I could sleep soundly during the night.
The minerals from the hot spring provides some health benefits. After spending two hours at a hot spring spa, I could sleep soundly during the night.
Bus trip to Xin Beitou
I took the bus from one terminal (Taipei City Hall) to the other terminal (Xin Beitou) in Taipei. The journey took 1.5 hours. 30 minutes was used as a feeder service to pick passengers in the area around Taipei 101. The journey time could have been reduced, if there is a separate dedicated feeder service.
Passengers are allowed to pay the fare on entering or leaving the bus. The bus driver has to be vigilent to identify passengers who did not pay the fare. It depends a lot on the honesty of the passengers.
The fare is NT15 (SGD 0.70) for short distance and NT30 (sge 1.40) for longer distance. The passenger can pay by cash or stored value card. For long distance, the passenger has to tap the stored value card twice (as each tap deducts NT15 from the card).
The bus has segments with one seat and other segments with two seats. Those travelling alone can choose to sit in the single seat segment.
My return journey by MRT took about 30 minutes.
Passengers are allowed to pay the fare on entering or leaving the bus. The bus driver has to be vigilent to identify passengers who did not pay the fare. It depends a lot on the honesty of the passengers.
The fare is NT15 (SGD 0.70) for short distance and NT30 (sge 1.40) for longer distance. The passenger can pay by cash or stored value card. For long distance, the passenger has to tap the stored value card twice (as each tap deducts NT15 from the card).
The bus has segments with one seat and other segments with two seats. Those travelling alone can choose to sit in the single seat segment.
My return journey by MRT took about 30 minutes.
Road names in Taipei
I observed some good features in naming of roads in Taipei:
1. Long roads are identified by sections, such as Zhongxiao E Rd Sec 1, Zhongxia E Rd Sec 2, etc. It is easy to locate an address according to the section of the road.
2 Lanes are identified by reference to the road, eg Yanji St Lane 1, Yanji St Rd Lane 2.
3. The names of Road, Street and Lane in a consistent manner to identify different sizes of roads.
It is useful to adopt these principles in the naming of roads in Singapore. I find the naming of roads in the new towns to be rather inconsistent. The name Avenue, Road and Street are being used for similar size of roads.
1. Long roads are identified by sections, such as Zhongxiao E Rd Sec 1, Zhongxia E Rd Sec 2, etc. It is easy to locate an address according to the section of the road.
2 Lanes are identified by reference to the road, eg Yanji St Lane 1, Yanji St Rd Lane 2.
3. The names of Road, Street and Lane in a consistent manner to identify different sizes of roads.
It is useful to adopt these principles in the naming of roads in Singapore. I find the naming of roads in the new towns to be rather inconsistent. The name Avenue, Road and Street are being used for similar size of roads.
Thursday, January 03, 2008
High distribution cost
Someone said that Axa promoted "Buy Term and invest the difference".
When you invest in the Axa fund, you should select the single premium option, where the charges are quite modest.
If you select the regular premium option, you will have to incur a high distribution cost, which may not be disclosed to you by the agent. This was the experience of my friend, who was being offered a regular premium ILP at a roadshow.
For a comparison of the distribution cost, read this webpage:
http://www.askdrmoney.com/Ins_ILP_RP.htm
The distribution charge of 19 months under the AXA regular premium plan is quite high.
When you invest in the Axa fund, you should select the single premium option, where the charges are quite modest.
If you select the regular premium option, you will have to incur a high distribution cost, which may not be disclosed to you by the agent. This was the experience of my friend, who was being offered a regular premium ILP at a roadshow.
For a comparison of the distribution cost, read this webpage:
http://www.askdrmoney.com/Ins_ILP_RP.htm
The distribution charge of 19 months under the AXA regular premium plan is quite high.
200% increase in premium for Plus rider
Dear Mr. Tan,
Happy New Year to you.
I have just received renewal letters for my medical insurance. Looks like the objective in INCOME has changed since your retirement. They have increased the premium tremendously.
I appended below the details of the "Plus Rider" for my family. The increase of 200% in the premium seems exhorbitant to me at one look. (details deleted).
Most likely we will continue with the plan unless there is a better product in the market. Please give us your expert advice.
REPLY
You have the option to cancel the Plus rider. In my view, there is no need to take the Plus rider to insure the Deductible and Co-insurance. You can pay them out of your Medisave account or by cash.
Read para 3 of this FAQ:
http://www.tankinlian.com/faq/choice.html
Happy New Year to you.
I have just received renewal letters for my medical insurance. Looks like the objective in INCOME has changed since your retirement. They have increased the premium tremendously.
I appended below the details of the "Plus Rider" for my family. The increase of 200% in the premium seems exhorbitant to me at one look. (details deleted).
Most likely we will continue with the plan unless there is a better product in the market. Please give us your expert advice.
REPLY
You have the option to cancel the Plus rider. In my view, there is no need to take the Plus rider to insure the Deductible and Co-insurance. You can pay them out of your Medisave account or by cash.
Read para 3 of this FAQ:
http://www.tankinlian.com/faq/choice.html
Travel tips for Taiwan
Hi Mr. Tan,
I will be going to Taiwan in May 2008 for around ten days. I plan to go Taipei and one more other area. Any places that you would strongly recommend?
REPLY
Perhaps you can visit the places that I mentioned in my blog? You should also try the hot springs, which is popular with the local people.
If you are travelling free and easy, you should try the train system. I was given a guide book of the attractions in each town served by a train station. You should also search the Internet, which has a wealth of information.
I hope that you are travelling with some friends. It is more fun when you have people to travel with.
I will be going to Taiwan in May 2008 for around ten days. I plan to go Taipei and one more other area. Any places that you would strongly recommend?
REPLY
Perhaps you can visit the places that I mentioned in my blog? You should also try the hot springs, which is popular with the local people.
If you are travelling free and easy, you should try the train system. I was given a guide book of the attractions in each town served by a train station. You should also search the Internet, which has a wealth of information.
I hope that you are travelling with some friends. It is more fun when you have people to travel with.
Hot spring in Wulai
I visited the village of Wulai yesterday. I spent 2 hours at a hot spring there. It is refreshing to visit a hot spring during winter. Many of the local people visit the hotspring to relax and be refreshed.
There are separate pools for males and females. You are not allowed to wear any clothing into the pool, not even a swimsuit. You have to wash your body, before entering the pool. This is to ensure cleanliness and hygiene.
The hot spring uses the mineral water from a nearby volcano. It has certain minerals that are good for the body.
If you are shy, you can rent a private pool for 1 or 2 people.
The normal charge for the public pools is NT 500 (SGD 25) per entry. Many places offer a promotional price of NT 250 (SGD 12).
There are separate pools for males and females. You are not allowed to wear any clothing into the pool, not even a swimsuit. You have to wash your body, before entering the pool. This is to ensure cleanliness and hygiene.
The hot spring uses the mineral water from a nearby volcano. It has certain minerals that are good for the body.
If you are shy, you can rent a private pool for 1 or 2 people.
The normal charge for the public pools is NT 500 (SGD 25) per entry. Many places offer a promotional price of NT 250 (SGD 12).
First Prize for the Amazing Number game
Dear Mr. Tan,
Happy New Year to you.
The number is "guessed" by .............................. It seems to work something like a ...... system, so there is only one combinatiion of the cards that can result in a particular number in the range. Working backwards, all the 99 numbers can then be filled up in the cards.
Thanks for another interesting entry to keep my mind thinking.
Due to my enginnering background and being a software engineer, I am able to find out how the program works after a few clicks ........ So I probably have an "unfair" advantage over the other readers who have no similar training.
REPLY
Wonderful. You have a powerful logical mind. You get first prize, for being the first person to send the correct answer to me!
I am printing the Amazing Number cards. Give me your address, so that I can send the prize to you (but it may take 1 or 2 weeks).
It is all right to have an advantage, due to your training. That is what training is about. That is how one becomes a champion. Congratulations!
Happy New Year to you.
The number is "guessed" by .............................. It seems to work something like a ...... system, so there is only one combinatiion of the cards that can result in a particular number in the range. Working backwards, all the 99 numbers can then be filled up in the cards.
Thanks for another interesting entry to keep my mind thinking.
Due to my enginnering background and being a software engineer, I am able to find out how the program works after a few clicks ........ So I probably have an "unfair" advantage over the other readers who have no similar training.
REPLY
Wonderful. You have a powerful logical mind. You get first prize, for being the first person to send the correct answer to me!
I am printing the Amazing Number cards. Give me your address, so that I can send the prize to you (but it may take 1 or 2 weeks).
It is all right to have an advantage, due to your training. That is what training is about. That is how one becomes a champion. Congratulations!
Treating High Blood Pressure
My friend's mother has high blood pressure. He sent an e-mail to ask for my recommendation on a specialist to treat this condition. I asked my wife for advice, as she is familiar with this medical condition.
My wife's advice is:
1. Send your mother to see a doctor (i.e. general practitioner) near your home.
2. The doctor will be able to take the blood pressure and prescribe the medication.
3. If the condition need specialist attention (and this is usually not necessary), the doctor will recommend a specialist.
4. High blood pressure is quite common and can be treated quite easily by a general practitioner in most cases.
My wife's advice is:
1. Send your mother to see a doctor (i.e. general practitioner) near your home.
2. The doctor will be able to take the blood pressure and prescribe the medication.
3. If the condition need specialist attention (and this is usually not necessary), the doctor will recommend a specialist.
4. High blood pressure is quite common and can be treated quite easily by a general practitioner in most cases.
Views on investing your money
COMMENTS POSTED IN MY BLOG
1) KEEP YOUR MONEY IN FIXED DEPOSIT AND CPF
I think it is perfectly fine for a person to buy Term insurance and not invest but use the money for other purposes - go for travel, catch the latest movies/musical, buy a branded watch, touch-up the house etc.
Whether he invest or squanders it away, that is his business. You all have no right to force people to invest. If i think investing is too troublesome, then I don't invest. I have this choice.
I think it is rubbish to force someone to invest. You can still live a good stress-free life with decent income.
I hope this blog do not use fear of inflation, fear of not enough for the future, fear of losing out, to scare people into investing. Using this emotion is just as bad as scaring people to buy insurance.
I find some of the comments and articles on this blog using this "scare" tactics to force people to invest. Your money in 20 years time will halved, etc. This is nonsense.
I have not invested my money for the last twenty years and my money is safe with CPF and I am still have money for travel and others. my insurance cover is $20,000 and I have 3 kids. So?
I don't understand why you all want to force people to invest in low-cost funds. "Low cost" is still cost right?
Are you saying our government is incompetent in managing our money? I think not. Inflation projection is just a "projection". If you saying inflation is 2% p.a, can you guaranteed that next year this time, everything in Singapore go up by 2%?
Therefore, I rather keep my money in fixed deposits and CPF, where it is truly no costs. If investing in low cost funds is right way, our government would have help us to invest already. If Mr. Tan wants to push his own products as part of his retirement business, that's his choice but please don't force people to invest because they have a choice not to and still stay happy and stress-free.
Anonymous.
2. EDUCATING THE PUBLIC
I think that is your business whether you wish to invest or not to invest. Whether you have enough for retirement is also your business. Everything is your business. You have complete freedom.
There is no force nor touting nor promotion of any product. I think you got it all wrong to think Mr. Tan's blog is to promote his products and that he has vested interest whether you agree or not agree to his advice or to other posters' advice.
This blog is to educate the buying public to do what is right. If you disagree with the comments you should rebut or debunk the advice, instead of accusing Mr. Tan of instilling fear and exploiting emotion as tactics to make people buy his products or ideas. He has none of these.
You must be very rich and have a huge balance in your CPF to care whether you earning a decent rate or will have enough to retire. This blog is not for you.
It is for those poor souls who are inevitable victims of unscrupulous insurance agents ..... You are safe from these agents but the poor ones are not. They are uneducated, ignorant, gullible, and too trusting that they get cheated ...................They need protection and help with their personal finances.
So you see the objectives of this blog is not to force anyone to invest in low cost funds. You can invest under your pillow ......... It is your freedom if you think that is the best place to invest your money.
The blog is also to educate and to create awareness of ........ agents on the loose and how to spot them out. It is also to identify the good products from the bad ones. This is a service to people who want to know about insurance and investment.
Zhumeng
3. DISAGREE WITH MY VIEWS
My blog is for people who find my advice to be helpful.
There are people who disagree with my views for the following reasons:
a) They are quite knowledgeable and find my views to be too simplistic
b) They are intermediaries making a living on selling high cost products
If you disagree with my views, you can ignore them, or stop visiting my blog. I am not forcing anyone to my point of view.
I expect to be challenged by intermediaries with a vested interest to sell high cost products. I allow their views to be posted, so that they can give an alternative point of view. I will only edit statements that are offensive and defamatory.
1) KEEP YOUR MONEY IN FIXED DEPOSIT AND CPF
I think it is perfectly fine for a person to buy Term insurance and not invest but use the money for other purposes - go for travel, catch the latest movies/musical, buy a branded watch, touch-up the house etc.
Whether he invest or squanders it away, that is his business. You all have no right to force people to invest. If i think investing is too troublesome, then I don't invest. I have this choice.
I think it is rubbish to force someone to invest. You can still live a good stress-free life with decent income.
I hope this blog do not use fear of inflation, fear of not enough for the future, fear of losing out, to scare people into investing. Using this emotion is just as bad as scaring people to buy insurance.
I find some of the comments and articles on this blog using this "scare" tactics to force people to invest. Your money in 20 years time will halved, etc. This is nonsense.
I have not invested my money for the last twenty years and my money is safe with CPF and I am still have money for travel and others. my insurance cover is $20,000 and I have 3 kids. So?
I don't understand why you all want to force people to invest in low-cost funds. "Low cost" is still cost right?
Are you saying our government is incompetent in managing our money? I think not. Inflation projection is just a "projection". If you saying inflation is 2% p.a, can you guaranteed that next year this time, everything in Singapore go up by 2%?
Therefore, I rather keep my money in fixed deposits and CPF, where it is truly no costs. If investing in low cost funds is right way, our government would have help us to invest already. If Mr. Tan wants to push his own products as part of his retirement business, that's his choice but please don't force people to invest because they have a choice not to and still stay happy and stress-free.
Anonymous.
2. EDUCATING THE PUBLIC
I think that is your business whether you wish to invest or not to invest. Whether you have enough for retirement is also your business. Everything is your business. You have complete freedom.
There is no force nor touting nor promotion of any product. I think you got it all wrong to think Mr. Tan's blog is to promote his products and that he has vested interest whether you agree or not agree to his advice or to other posters' advice.
This blog is to educate the buying public to do what is right. If you disagree with the comments you should rebut or debunk the advice, instead of accusing Mr. Tan of instilling fear and exploiting emotion as tactics to make people buy his products or ideas. He has none of these.
You must be very rich and have a huge balance in your CPF to care whether you earning a decent rate or will have enough to retire. This blog is not for you.
It is for those poor souls who are inevitable victims of unscrupulous insurance agents ..... You are safe from these agents but the poor ones are not. They are uneducated, ignorant, gullible, and too trusting that they get cheated ...................They need protection and help with their personal finances.
So you see the objectives of this blog is not to force anyone to invest in low cost funds. You can invest under your pillow ......... It is your freedom if you think that is the best place to invest your money.
The blog is also to educate and to create awareness of ........ agents on the loose and how to spot them out. It is also to identify the good products from the bad ones. This is a service to people who want to know about insurance and investment.
Zhumeng
3. DISAGREE WITH MY VIEWS
My blog is for people who find my advice to be helpful.
There are people who disagree with my views for the following reasons:
a) They are quite knowledgeable and find my views to be too simplistic
b) They are intermediaries making a living on selling high cost products
If you disagree with my views, you can ignore them, or stop visiting my blog. I am not forcing anyone to my point of view.
I expect to be challenged by intermediaries with a vested interest to sell high cost products. I allow their views to be posted, so that they can give an alternative point of view. I will only edit statements that are offensive and defamatory.
Wednesday, January 02, 2008
Elevated expressways in Taipei
Taipei had a network of elevated expressways. They travelled along the same path as the road beneath them. The traffic moved fast on the expressways. I was never caught in a congested exprssway, even at busy hours.
I think that the road congestion in Singapore can be reduced by building elevated expressways. It will be cheaper, faster to build and less disruption to existing buldings, compared to underground expressways.
When I moved to Yio Chu Kang in 1998, I found the Central Expressway to be quite busy. I wrote to the government to suggest that a second level be build over the Central Expressway. I received a reply that this was not possible, due to difficulty of building the access roads. I did not want to pursue the matter - but I was sure that a solution could have been found.
Ten years have passed. The Central Expressway is very congested. We are still waiting for the completion of the underground Kallang Paya Lebar Expressway (which is expensive and took a long time to complete).
Perhaps, we should try the elevated expressways, which is adopted in Taipei, Shanghai, Beijing and many other cities?
I think that the road congestion in Singapore can be reduced by building elevated expressways. It will be cheaper, faster to build and less disruption to existing buldings, compared to underground expressways.
When I moved to Yio Chu Kang in 1998, I found the Central Expressway to be quite busy. I wrote to the government to suggest that a second level be build over the Central Expressway. I received a reply that this was not possible, due to difficulty of building the access roads. I did not want to pursue the matter - but I was sure that a solution could have been found.
Ten years have passed. The Central Expressway is very congested. We are still waiting for the completion of the underground Kallang Paya Lebar Expressway (which is expensive and took a long time to complete).
Perhaps, we should try the elevated expressways, which is adopted in Taipei, Shanghai, Beijing and many other cities?
MRT ride in Taipei
I took the MRT in Taipei from City Hall Station to Xindian station. The journey of 13 stops took 30 minutes and involved two transfers. The transfers were convenient and easy. One transfer was on the same platform.
All the stations are modern, well designed and standardised. The entire system is underground.
At each door of the train, there is an electronic message board that tells the previous station, current station and the next station.
I find this board to be helpful, as I am not familiar with the stations. I can be sure that I am heading the right direction. I am also know one station ahead. If I missed my station, I could still find out and alight at the next station. There is also a clear voice announcement in Mandarin, Hokkien and English.
The minimum fare is NT 20 (SGD 1) and can take up to approximately 6 stations. The maximum fare is NT 40 (SGD 2). Those using a store value card gets a discount of 20%.t
I was able to get a seat on my forward and return journey, although I travel during the busy time of the day. The train is not as crowded as in Singapore.
I give top marks to Taipei MRT.
All the stations are modern, well designed and standardised. The entire system is underground.
At each door of the train, there is an electronic message board that tells the previous station, current station and the next station.
I find this board to be helpful, as I am not familiar with the stations. I can be sure that I am heading the right direction. I am also know one station ahead. If I missed my station, I could still find out and alight at the next station. There is also a clear voice announcement in Mandarin, Hokkien and English.
The minimum fare is NT 20 (SGD 1) and can take up to approximately 6 stations. The maximum fare is NT 40 (SGD 2). Those using a store value card gets a discount of 20%.t
I was able to get a seat on my forward and return journey, although I travel during the busy time of the day. The train is not as crowded as in Singapore.
I give top marks to Taipei MRT.
Buy the simple, good value product
If you go into the shop to buy product A for $1,000. There is another product B which is similar to A, but it cost $1,500 and gives additional items worth $300. Do you prefer product A or B?
Some life insurance products are designed to be like product B. It charges a higher premium and gives you frills that are worth less than the additional premium. But the customer is not able to know the value of the frills. The sales agent sells the enhanced product, because they can earn a higher commission. The enhanced product gives poorer value to the customer due to the higher marketing cost.
Lesson: Go for the standard products that can be compared easily. You can get better value due to competition. If you buy a complicated product, you are likely to be over-charged.
Some life insurance products are designed to be like product B. It charges a higher premium and gives you frills that are worth less than the additional premium. But the customer is not able to know the value of the frills. The sales agent sells the enhanced product, because they can earn a higher commission. The enhanced product gives poorer value to the customer due to the higher marketing cost.
Lesson: Go for the standard products that can be compared easily. You can get better value due to competition. If you buy a complicated product, you are likely to be over-charged.
New Year Celebration in Taipei
Taipei celebrates the New Year in style. At the stroke of midnight, fireworks are set off in many building in Taipei. The most spectacular is the fireworks at Taipei 101, the tallest building in the world. This is followed by the fireworks at other buildings. Here is a short video clip.
http://www.youtube.com/watch?v=dbVWrIAdD1U
http://www.youtube.com/watch?v=dbVWrIAdD1U
Tuesday, January 01, 2008
Observatory at Taipei 101
I visited the observatory at Taipei 101 on New Year Day, 1 Jan 2008.
It was crowded. I had to queue for 30 minutes to take the lift to the 89th floor. The observatory occupied the entire floor and give a 360 degree view of the city of Taipei from the tallest building in the world.
The observatory provided an audio guide. It explains the various landmarks that can be seen from each side of the building. It uses high-tech in an effective way.
The express lifts to the observatory travelled fast and smooth. It received the world record for being the fastest lifts. It reached 89 floors in 37 seconds, without any jerk or noticeable acceleration.
Admission to the observatory cost NT 350 (SGD 16).
It was crowded. I had to queue for 30 minutes to take the lift to the 89th floor. The observatory occupied the entire floor and give a 360 degree view of the city of Taipei from the tallest building in the world.
The observatory provided an audio guide. It explains the various landmarks that can be seen from each side of the building. It uses high-tech in an effective way.
The express lifts to the observatory travelled fast and smooth. It received the world record for being the fastest lifts. It reached 89 floors in 37 seconds, without any jerk or noticeable acceleration.
Admission to the observatory cost NT 350 (SGD 16).
Get adequate insurance at a low cost
Dear Mr. Tan,
You advised to buy personal accident insurance now, and life insurance later. What happens if at a later date, I am in poor health and not accepted for life insurance?
REPLY
The risk of uninsurability is quite low (less than 0.5% a year).
The bigger risks are:
1. People hesitate in buying expensive insurance, and are inadequately insured against accidents (more than 50%).
2. People buy an expensive life insurance and lapse the policy due to inability to continue paying the premium (5% a year).
It is better to have adequate personal accident insurance now, and upgrade to a more expensive insurance at a later date. For young people, the risk of meeting an accident is much higher than contracting a serious illness.
You advised to buy personal accident insurance now, and life insurance later. What happens if at a later date, I am in poor health and not accepted for life insurance?
REPLY
The risk of uninsurability is quite low (less than 0.5% a year).
The bigger risks are:
1. People hesitate in buying expensive insurance, and are inadequately insured against accidents (more than 50%).
2. People buy an expensive life insurance and lapse the policy due to inability to continue paying the premium (5% a year).
It is better to have adequate personal accident insurance now, and upgrade to a more expensive insurance at a later date. For young people, the risk of meeting an accident is much higher than contracting a serious illness.
High speed train - Taipei to Kaoshiung
What is the fare of the high speed train from Taipei to Kaoshiung? I found this information from the internet.
A brand-new high speed (300 km/h) train service using Japanese bullet train technology started running in January 2007 between Taipei and Kaohsiung. It is run by the Taiwan High Speed Rail Corporation, http://www.thsrc.com.tw/
The 300km/h trains link Taipei and Kaohsiung every half hour throughout the day, or at times more frequently.
Journey time is 1 hour 40 minutes on the faster trains, 1 hour 55 minutes on the slower services. The fare is 1,490 Taiwan dollars (SGD 70) in economy class, 2,440 Taiwan dollars (SGD 110) in business class.
A brand-new high speed (300 km/h) train service using Japanese bullet train technology started running in January 2007 between Taipei and Kaohsiung. It is run by the Taiwan High Speed Rail Corporation, http://www.thsrc.com.tw/
The 300km/h trains link Taipei and Kaohsiung every half hour throughout the day, or at times more frequently.
Journey time is 1 hour 40 minutes on the faster trains, 1 hour 55 minutes on the slower services. The fare is 1,490 Taiwan dollars (SGD 70) in economy class, 2,440 Taiwan dollars (SGD 110) in business class.
Investing in Exchange Traded Funds
Hi Mr Tan,
1) What are the investment risks or disadvantages involved in U.S. Cross-Listed ETFs, listed in
http://www.sgx.com/psv/securities/etf/ETF_US_Cross-Listed.shtml
DIAMONDS®
SPDRs®
iShares S&P500 Index Fund
iShares MSCI Singapore (Free) Index Fund
iShares Dow Jones U.S. Technology Sector Index Fund
REPLY:
I am not aware of any special risk or disadvantages involved in the US Cross Listed ETFs.
In selecting an indexed fund, you want to look for a fund that is managed by a reputed fund manager, charges low fees and provide good service in accounting and execution.
You are taking the investment risk of the specific market. If you are investing for the long term, the risk will averaged out to give you an average return for the period.
2) There are more than 10 ETFs listed on SGX but why is it that you are only recommending STI-ETF. Since STI-ETF is only focused on Singapore, would it be better to invest in e.g. Lyxor ETF MSCI AC Asia-Pacific (covering Asia minus Japan?
REPLY
I recommend the STI ETF for people who are familiar with investing in Singapore stocks and wish to remain in Singapore currency exposure. If they are familiar with investing in Asia, the Lyxor ETF is suitable.
All indexed funds are suitable, if they cost is kept at a competitive level and the investment is for 10 years or longer.
1) What are the investment risks or disadvantages involved in U.S. Cross-Listed ETFs, listed in
http://www.sgx.com/psv/securities/etf/ETF_US_Cross-Listed.shtml
DIAMONDS®
SPDRs®
iShares S&P500 Index Fund
iShares MSCI Singapore (Free) Index Fund
iShares Dow Jones U.S. Technology Sector Index Fund
REPLY:
I am not aware of any special risk or disadvantages involved in the US Cross Listed ETFs.
In selecting an indexed fund, you want to look for a fund that is managed by a reputed fund manager, charges low fees and provide good service in accounting and execution.
You are taking the investment risk of the specific market. If you are investing for the long term, the risk will averaged out to give you an average return for the period.
2) There are more than 10 ETFs listed on SGX but why is it that you are only recommending STI-ETF. Since STI-ETF is only focused on Singapore, would it be better to invest in e.g. Lyxor ETF MSCI AC Asia-Pacific (covering Asia minus Japan?
REPLY
I recommend the STI ETF for people who are familiar with investing in Singapore stocks and wish to remain in Singapore currency exposure. If they are familiar with investing in Asia, the Lyxor ETF is suitable.
All indexed funds are suitable, if they cost is kept at a competitive level and the investment is for 10 years or longer.
Fed Ex Logo
Someone gave me the link to a forum discussing the Fed Ex logo. It is creative. Can you see the arrow between the letters E and x?
Overcome your Fear
Hi Kin Lian,
Thanks for sharing the video of the firework in Taipei.
I read from your blog about your recent experience on upgrading your computer. It is very encouraging and inspiring for computer illiterates like me to want to try too. What holds us back is the Fear Factor. What if our computer hangs! Only we can overcome this fear ourselves. You have shown the way.
Many are held back by their own fears. They fear doing maths or science, making decisions and even making simple comments on matters of special or even common interest. These are too many KIASU people. Unfortuantely some are even proud of this too!.
We all have our own talents to do certain things to make contributions which can benefit others. You and I have been doing this throughout our lives in various ways as a purpose of our lives, if not our mission, to add values to the lives of others.
Thanks for sharing the video of the firework in Taipei.
I read from your blog about your recent experience on upgrading your computer. It is very encouraging and inspiring for computer illiterates like me to want to try too. What holds us back is the Fear Factor. What if our computer hangs! Only we can overcome this fear ourselves. You have shown the way.
Many are held back by their own fears. They fear doing maths or science, making decisions and even making simple comments on matters of special or even common interest. These are too many KIASU people. Unfortuantely some are even proud of this too!.
We all have our own talents to do certain things to make contributions which can benefit others. You and I have been doing this throughout our lives in various ways as a purpose of our lives, if not our mission, to add values to the lives of others.
Carrefour, Taipei
I visited Carrefour in Taipei. It offers mainly local products, unlike the Carrefour stores in Singapore and Dubai.
I learned something about the Carrefour logo. Caj you see the small red arrow pointing to the left and a larger stylish blue arrow pointing to the right. Did you wonder what the two arrows meant?
I discovered it on my visit to Carrefoure in Taipei.
I learned something about the Carrefour logo. Caj you see the small red arrow pointing to the left and a larger stylish blue arrow pointing to the right. Did you wonder what the two arrows meant?
I discovered it on my visit to Carrefoure in Taipei.
Answer: If you look at the white space between the red and blue arrows, you will see the letter C. This is creative!
A new approach to improve the taxi service
To improve the taxi service in Singapore, we have to adopt a new approach. Here are my suggestions:
1. Taxi fares should be regulated (and not left to the market). The regulator can balance the interest of commuters and taxi drivers and seek to achieve an efficient system that that provides quality service at a fair price. This approach is adopted by most countries, including Hong Kong and Taiwan.
2. The regulator can approve premium taxi service that charge differently from the standard service. The premium service has to pick passengers by telephone booking only (i.e. not from the road or taxi stands). Commuters willing to pay a higher price can telephone for the premium service. This service will use a different color of taxis (i.e. not the same as the regular taxis).
3. Booking of taxi should be reduced to $1.50. This will compensate the taxi driver adequately for taking the call and improve the usage of the taxi (instead of plying the road to look for taxis).
4. Commuters should be allowed to share a taxi, if they are travelling in the same direction. The appropriate fare should be fixed. This will improve the usage of the taxi, reduce cost for the commuters and increase earnings for the taxi drivers.
1. Taxi fares should be regulated (and not left to the market). The regulator can balance the interest of commuters and taxi drivers and seek to achieve an efficient system that that provides quality service at a fair price. This approach is adopted by most countries, including Hong Kong and Taiwan.
2. The regulator can approve premium taxi service that charge differently from the standard service. The premium service has to pick passengers by telephone booking only (i.e. not from the road or taxi stands). Commuters willing to pay a higher price can telephone for the premium service. This service will use a different color of taxis (i.e. not the same as the regular taxis).
3. Booking of taxi should be reduced to $1.50. This will compensate the taxi driver adequately for taking the call and improve the usage of the taxi (instead of plying the road to look for taxis).
4. Commuters should be allowed to share a taxi, if they are travelling in the same direction. The appropriate fare should be fixed. This will improve the usage of the taxi, reduce cost for the commuters and increase earnings for the taxi drivers.
Make a lump sum investment
Hello Mr. Tan,
You have mentioned in your blog that up to 21 months of savings can be taken away to pay the agent to sell a monthly sum investment-linked policy. Does it mean it will be more worthwhile to buy a lump sum unit trust instead? I'm looking for long term investment actually.
My insurance agent has been asking me to buy monthly sum investment-linked policy and recommends that I treat it like a savings plan. I am not too sure whether I should take his advice.
REPLY
You should invest in a single premium ILP, such as the Flexi Link from NTUC Income. It has low charges, compared to a monthly plan.
You can see a comparison of the charges here:
http://www.askdrmoney.com/Ins_ILP_RP.htm
Read these FAQs to make your decision:
http://www.tankinlian.com/faq/savings.html
http://www.tankinlian.com/faq/ilp.html
You have mentioned in your blog that up to 21 months of savings can be taken away to pay the agent to sell a monthly sum investment-linked policy. Does it mean it will be more worthwhile to buy a lump sum unit trust instead? I'm looking for long term investment actually.
My insurance agent has been asking me to buy monthly sum investment-linked policy and recommends that I treat it like a savings plan. I am not too sure whether I should take his advice.
REPLY
You should invest in a single premium ILP, such as the Flexi Link from NTUC Income. It has low charges, compared to a monthly plan.
You can see a comparison of the charges here:
http://www.askdrmoney.com/Ins_ILP_RP.htm
Read these FAQs to make your decision:
http://www.tankinlian.com/faq/savings.html
http://www.tankinlian.com/faq/ilp.html
Adequate insurance
Dear Mr. Tan,
I have already bought a five years term insurance($15,000) from NTUC income, do you think I still need the DPS ($46,000) required by CPF board?
REPLY
It depends on your personal circumstances. If you have dependents, you should aim to insure for 5 to 10 years of your earnings. If you have accumulated savings, the insurance cover can be reduced by this amount.
Read this FAQ
http://www.tankinlian.com/faq/choice.html
I have already bought a five years term insurance($15,000) from NTUC income, do you think I still need the DPS ($46,000) required by CPF board?
REPLY
It depends on your personal circumstances. If you have dependents, you should aim to insure for 5 to 10 years of your earnings. If you have accumulated savings, the insurance cover can be reduced by this amount.
Read this FAQ
http://www.tankinlian.com/faq/choice.html
Investing a lump sum at 51 years
Dear Mr. Tan,
My mother is 51 years old now. She has $50,000 of cash to invest. What is your recomendation investment, annuity, etc?
REPLY
If she is investing for 10 years or more, it is better to invest in a low cost, diversified equity fund.
When she needs to draw out a monthly income, she can convert it into a life annuity. At that time, she should wait for a has good time when the investments showed a good gain of 5% to 8% per annum.
Read the following FAQs
http://www.tankinlian.com/faq/life.html
http://www.tankinlian.com/faq/savings.html
My mother is 51 years old now. She has $50,000 of cash to invest. What is your recomendation investment, annuity, etc?
REPLY
If she is investing for 10 years or more, it is better to invest in a low cost, diversified equity fund.
When she needs to draw out a monthly income, she can convert it into a life annuity. At that time, she should wait for a has good time when the investments showed a good gain of 5% to 8% per annum.
Read the following FAQs
http://www.tankinlian.com/faq/life.html
http://www.tankinlian.com/faq/savings.html
Monday, December 31, 2007
New Year Celebration in Taipei
There will be a big celebration to welcome the new year in Taipei. A big firework display will be launched from Taipei 101, which is currently the tallest building in the world. Most people in Taipei will be watching the fireworks.
We will be watching the fireworks from the roof top of my daughter's apartment. It is just 1 kilometer away from Taipei 101. We have to get a pass and pay an admission fee to access the rooftop - as it will be in high demand.
We will be watching the fireworks from the roof top of my daughter's apartment. It is just 1 kilometer away from Taipei 101. We have to get a pass and pay an admission fee to access the rooftop - as it will be in high demand.
Winter in Taipei
It is now winter in Taipei. Although there is no snow here, the temperature can be quite cold. It gets below 10 degree Centrigrade. I enjoy the cold temperature, as it is a good change from the hot climate in Singapore.
Personal accident insurance
I encourage all young people to buy a personal accident insurance to cover $100,000 for an annual premium of less than $100 (for most occupations).
Here are the reasons:
1. It is easy to buy this insurance. You do not have to provide any information about your health status or to take a medical examination.
2. Most young people face an accident risk. They are unlikely to face a health risk, until they are much older.
3. You can invest your savings in a diversified, low cost equity fund to get a better return. Most of the return goes back to you, instead of being spent on agent commission, expenses and profit for the insurance company.
4. Do not buy your life insurance too early, especially the costly plans, such as endowment, whole life or critical illness. You can think about life insurance later, when you have started a family. At that time, you can make a better choice. You will learn that it is better to buy Term insurance.
5. If you wish to buy Term insurance earlier, it is also appropriate. Term insurance covers death from accident and sickness, and is slightly more expensive than accident insurance. It does not cover permanent and temporary disablement (unlike personal accident insurance).
6. The cost of personal accident insurance is so low, that you do not have to think twice about it.
Here are the reasons:
1. It is easy to buy this insurance. You do not have to provide any information about your health status or to take a medical examination.
2. Most young people face an accident risk. They are unlikely to face a health risk, until they are much older.
3. You can invest your savings in a diversified, low cost equity fund to get a better return. Most of the return goes back to you, instead of being spent on agent commission, expenses and profit for the insurance company.
4. Do not buy your life insurance too early, especially the costly plans, such as endowment, whole life or critical illness. You can think about life insurance later, when you have started a family. At that time, you can make a better choice. You will learn that it is better to buy Term insurance.
5. If you wish to buy Term insurance earlier, it is also appropriate. Term insurance covers death from accident and sickness, and is slightly more expensive than accident insurance. It does not cover permanent and temporary disablement (unlike personal accident insurance).
6. The cost of personal accident insurance is so low, that you do not have to think twice about it.
Audio driver for my notebook computer
My notebook computer was running slowly. I decided to remove the unused programs and deframent the hard disk
After re-starting the computer, I learned that the sound card did not work. I had removed the audio driver by mistake, thinking that it was an unused software.
I wish to share this interesting experience.
I searched Google for "Sony Vaio audio driver" and was given a listing of several websites. A few websites were discussion among other owners who also lost their audio driver.
I visited the Sony Online website. It asked for the model number of my notebook. I entered the model number (taken from the back of the notebook) and was told that it was an "unrecognised model".
The discussion forum showed another owner with the same model number. It seemed that this is just a marketing reference and that the actual model number could be found on the front monitor.
I was able to get the correct model number and to locate the audio driver in the internet. I download and installed it in my notebook. It worked - to my considerable surprise!
Previously, I had to depend on a techie to solve the problem for me. I learned today, how it can be done.
Lesson: There is a wealth of information that can be obtained through the internet. Each day, I am discovering its usefulness.
After re-starting the computer, I learned that the sound card did not work. I had removed the audio driver by mistake, thinking that it was an unused software.
I wish to share this interesting experience.
I searched Google for "Sony Vaio audio driver" and was given a listing of several websites. A few websites were discussion among other owners who also lost their audio driver.
I visited the Sony Online website. It asked for the model number of my notebook. I entered the model number (taken from the back of the notebook) and was told that it was an "unrecognised model".
The discussion forum showed another owner with the same model number. It seemed that this is just a marketing reference and that the actual model number could be found on the front monitor.
I was able to get the correct model number and to locate the audio driver in the internet. I download and installed it in my notebook. It worked - to my considerable surprise!
Previously, I had to depend on a techie to solve the problem for me. I learned today, how it can be done.
Lesson: There is a wealth of information that can be obtained through the internet. Each day, I am discovering its usefulness.
Personal accident insurance
Here is an example of a standalone personal accident insurance from the market. Several insurance companies offer similar terms
1. Compensation as % of sum insured
Death: 100%
Double Indemnity on weekends, public holidays and school holidays: 100%
Permanent Disablement: up to 100% depending on extent of disablement (defined in schedule)
Temporary Disablement: up to 0.1% per day, up to 104 weeks
Medical Expenses: up to $10,000 any one accident
Emergency Evacuation and Repatriation
2. General Exclusions (i.e. not covered by the policy):
pre-existing physical or mental defects
pregnancy
suicide
war risks
motorcycling
climbing or mountaineering necessitating ropes or guides
judo, karate and some hazardous sports
Note: you can pay a higher premium rate to cover some of these risks.
3. Example of a typical plan
Death: $100,000
Double Indemnity: $200,000
Permament Disablement: Up to $100,000
Temporary Disablement: $100 a day up to to 104 weeks
Medical Expenses: Up to $2,000
4. Premiums (inclusive of 7% GST) for the typical plan, depends on occupation:
Class 1: $72 (most office bound jobs)
Class 2: $92 (production and outdoor jobs)
Class 3: $127
Class 4: $209
5. You pay a lower premium for the basic cover, i.e. death and permanent disability cover, excluding temporary disablement and medical expenses.
6. You can apply for higher or lower coverage and pay a proportionately adjusted premium. If you change your occupation, the premium rate will be adjusted on each year's renewal.
7. The premium rate for a standalone personal accident policy is much lower than a rider to a life policy (providing similar coverage). It offers higher protection at a lower cost, compared to a life insurance policy.
Class 1: Profession of administrative, supervisory or clerical nature such as accountant, lawyer, banker, doctor, teacher, nurse, secretary, clerk.
Class 2: Professions of outdoor nature, work involving overseas travel or whose duties involves the occasional use of tools or machinery such as foremen, grocers, hairdressers, salesmen, tailors, surveyors, tourist guides.
Class 3: Profession involving manual work or use of tools or machinery, such as carpenter, builder, painter, driver, technician, hawker, unarmed security guard.
Class 4: Full time national serviceman, fireman, policeman, armed security guard, woodworking machinist.
1. Compensation as % of sum insured
Death: 100%
Double Indemnity on weekends, public holidays and school holidays: 100%
Permanent Disablement: up to 100% depending on extent of disablement (defined in schedule)
Temporary Disablement: up to 0.1% per day, up to 104 weeks
Medical Expenses: up to $10,000 any one accident
Emergency Evacuation and Repatriation
2. General Exclusions (i.e. not covered by the policy):
pre-existing physical or mental defects
pregnancy
suicide
war risks
motorcycling
climbing or mountaineering necessitating ropes or guides
judo, karate and some hazardous sports
Note: you can pay a higher premium rate to cover some of these risks.
3. Example of a typical plan
Death: $100,000
Double Indemnity: $200,000
Permament Disablement: Up to $100,000
Temporary Disablement: $100 a day up to to 104 weeks
Medical Expenses: Up to $2,000
4. Premiums (inclusive of 7% GST) for the typical plan, depends on occupation:
Class 1: $72 (most office bound jobs)
Class 2: $92 (production and outdoor jobs)
Class 3: $127
Class 4: $209
5. You pay a lower premium for the basic cover, i.e. death and permanent disability cover, excluding temporary disablement and medical expenses.
6. You can apply for higher or lower coverage and pay a proportionately adjusted premium. If you change your occupation, the premium rate will be adjusted on each year's renewal.
7. The premium rate for a standalone personal accident policy is much lower than a rider to a life policy (providing similar coverage). It offers higher protection at a lower cost, compared to a life insurance policy.
Class 1: Profession of administrative, supervisory or clerical nature such as accountant, lawyer, banker, doctor, teacher, nurse, secretary, clerk.
Class 2: Professions of outdoor nature, work involving overseas travel or whose duties involves the occasional use of tools or machinery such as foremen, grocers, hairdressers, salesmen, tailors, surveyors, tourist guides.
Class 3: Profession involving manual work or use of tools or machinery, such as carpenter, builder, painter, driver, technician, hawker, unarmed security guard.
Class 4: Full time national serviceman, fireman, policeman, armed security guard, woodworking machinist.
Accident and hospital benefit riders
Have you taken an accident or hospital benefit rider with your life insurance policy? They are sold to provide enhanced protection under your policy.
They look attractive, but has a big drawback. The premium rates are quite expensive, compared to standalone policies.
If you buy a standalone personal accident policy to cover $100,000, you need to pay about $80 a year. To buy the same cover as a rider, you will have to pay two times the premium. The hospital benefit rider also charges much higher than a standalone policy.
The standalone policy has to offer more competitive rates, as you are able to shop around and get the best deal from the insurance companies, including the general insurance companies.
If you buy a rider with a life policy, you are a captive customer and has to pay the premium rates that is being sold to you by the agent.
What can you do now?
Look at the premium and the coverage on your riders. Get a quote for a standalone policy that provides similar coverage. If the saving is significant, you can cancel your riders and buy the standalone policy. As the rider does not have any saving component, you do not lose out by cancelling the rider.
You can invest the savings in your premium to accumulate more funds for your retirement.
They look attractive, but has a big drawback. The premium rates are quite expensive, compared to standalone policies.
If you buy a standalone personal accident policy to cover $100,000, you need to pay about $80 a year. To buy the same cover as a rider, you will have to pay two times the premium. The hospital benefit rider also charges much higher than a standalone policy.
The standalone policy has to offer more competitive rates, as you are able to shop around and get the best deal from the insurance companies, including the general insurance companies.
If you buy a rider with a life policy, you are a captive customer and has to pay the premium rates that is being sold to you by the agent.
What can you do now?
Look at the premium and the coverage on your riders. Get a quote for a standalone policy that provides similar coverage. If the saving is significant, you can cancel your riders and buy the standalone policy. As the rider does not have any saving component, you do not lose out by cancelling the rider.
You can invest the savings in your premium to accumulate more funds for your retirement.
National Palace Museum, Taipei
I visited the National Palace Museum. Here are some facts from Wikipedia.
Taipei's National Palace Museum, located in the Shihlin District, is the pride of Taiwan. It ranks as one of the four best museums in the world, in a class with the Louvre, the British Museum and the Metropolitan Museum of Art.
The museum holds the world's largest collection of Chinese artifacts, around 700,000 items in all. Since the museum only has space to display around 15,000 pieces at any given time, the majority of the treasures are kept well protected in air-conditioned vaults buried deep in the mountainside. The displays are rotated once every three months, which means 60,000 pieces can be viewed in a year and it would take nearly 12 years to see them all. Furthermore, the collection continues to grow through donations and purchases.
Some of the oldest artifacts in the collection of the museum are pieces of prehistoric pottery over 5,000 years old. The vast majority of these art objects are from the private collection of China's emperors.
Included in the collection are artifacts made from jade, bronze, porcelain, lacquerware and enamel. There is also tapestry and embroidery, and many priceless documents and books containing excellent examples of ancient Chinese calligraphy.
Taipei's National Palace Museum, located in the Shihlin District, is the pride of Taiwan. It ranks as one of the four best museums in the world, in a class with the Louvre, the British Museum and the Metropolitan Museum of Art.
The museum holds the world's largest collection of Chinese artifacts, around 700,000 items in all. Since the museum only has space to display around 15,000 pieces at any given time, the majority of the treasures are kept well protected in air-conditioned vaults buried deep in the mountainside. The displays are rotated once every three months, which means 60,000 pieces can be viewed in a year and it would take nearly 12 years to see them all. Furthermore, the collection continues to grow through donations and purchases.
Some of the oldest artifacts in the collection of the museum are pieces of prehistoric pottery over 5,000 years old. The vast majority of these art objects are from the private collection of China's emperors.
Included in the collection are artifacts made from jade, bronze, porcelain, lacquerware and enamel. There is also tapestry and embroidery, and many priceless documents and books containing excellent examples of ancient Chinese calligraphy.
Allow for inflation
Hi Mr Tan,
I was reading your article on "Sufficient funds for retirement". You mentioned that to retire comfortably, we need savings of 200K to 400K when we retire. Does that exclude CPF ?
However, for a person retiring in say 5 yr's time, 200K to 400K could be sufficient, but say for a person retiring in 30 yrs' time, due to inflation, this sum of money could be much more.
REPLY
The sum includes CPF. You should allow for inflation at say 2% per annum. In 30 years time, you will need about twice of the amount to keep the real value of money.
Read this FAQ:
http://www.tankinlian.com/articles/financial.html
I was reading your article on "Sufficient funds for retirement". You mentioned that to retire comfortably, we need savings of 200K to 400K when we retire. Does that exclude CPF ?
However, for a person retiring in say 5 yr's time, 200K to 400K could be sufficient, but say for a person retiring in 30 yrs' time, due to inflation, this sum of money could be much more.
REPLY
The sum includes CPF. You should allow for inflation at say 2% per annum. In 30 years time, you will need about twice of the amount to keep the real value of money.
Read this FAQ:
http://www.tankinlian.com/articles/financial.html
Sunday, December 30, 2007
Night market in Shilin, Taipei
I visited the busy night market in Shilin, Taipei. I encountered an interesting experience.
The street was very busy. Suddently, a stall holder started to pack up his goods. We asked him for the reason. He said that the police is making a raid on the illegal stalls.
Within two mintures, a convoy of about 20 illegal stalls were moved in an orderly fashion down an alley to be kept away from the scene. When the police arrived, there were no illegal stalls. After the police left, the stalls were back in business, within half an hour.
How were the stalls alerted? They posted someone to lookout for the police. When the police came, a message was passed by mobile phone.
Wow! This is a new way to use technology!
The street was very busy. Suddently, a stall holder started to pack up his goods. We asked him for the reason. He said that the police is making a raid on the illegal stalls.
Within two mintures, a convoy of about 20 illegal stalls were moved in an orderly fashion down an alley to be kept away from the scene. When the police arrived, there were no illegal stalls. After the police left, the stalls were back in business, within half an hour.
How were the stalls alerted? They posted someone to lookout for the police. When the police came, a message was passed by mobile phone.
Wow! This is a new way to use technology!
Slow economy in Taiwan
My friend told me that the economy has been weak in Taiwan during the past ten years. This is caused by two factors:
1. Relocation of manufacturing to China
2. The unstable political situation.
The people are still cheerful.
1. Relocation of manufacturing to China
2. The unstable political situation.
The people are still cheerful.
Earnings of taxi driver in Taipei
I spoke to two taxi drivers in Taipei.
They work hard and drive a taxi for 12 hours a day, 365 days a year. They earn an average of NT 50,000 a month (SGD 2,500) after deducting their expenses.
They used to earn more a few years ago. Business has reduced due to the slow economy and the opening of the MRT lines.
In spite of their difficult life, they are polite and helpful.
They work hard and drive a taxi for 12 hours a day, 365 days a year. They earn an average of NT 50,000 a month (SGD 2,500) after deducting their expenses.
They used to earn more a few years ago. Business has reduced due to the slow economy and the opening of the MRT lines.
In spite of their difficult life, they are polite and helpful.
The Pen is Mightier than the Sword
This article is Dr. Lee Kum Tatt's message to start the New Year of 2008 with his wife's introductory comments.
www.leekumtatt.blogspot.com
www.leekumtatt.blogspot.com
Saturday, December 29, 2007
Snow Mountain Tunnel
I travelled through the Snow Mountain Tunnel today. Here is a description from Wikipedia.
The Hsuehshan Tunnel (雪山隧道) or "Snow Mountain" tunnel, is the longest tunnel in Taiwan, located on the Taipei-Yilan Freeway (Taiwan National Highway No. 5).
The road connects the city of Taipei to the northeastern county of Yilan (Ilan), cutting down the journey time from two hours to just half an hour.
One of the key aims of constructing the tunnel was to connect the western coast of Taiwan, where 95% of the population live, to the eastern coast of the island and in doing so tackle the unbalanced development on the island.
It is constructed with one pilot tunnel and two main tunnels for eastbound and westbound traffic. The total length is 12.942 km, making the Hsuehshan Tunnel the second longest road tunnel in East Asia and the fifth longest road tunnel in the world.
While excavating the tunnel, engineers encountered difficult geological problems. There were serious tunnel collapses with groundwater flooding took place periodically during tunnel construction. Altogether, 25 lives were lost during 15 years of construction.
It opened in June 2006 to severe traffic jams. The Hsuehshan Tunnel broadcasts a dedicated radio station on two FM channels inside the tunnel. Drivers can tune to either of the two FM stations to hear announcements regarding the Heushshan Tunnel, rules for driving inside the tunnel, and music.
The Hsuehshan Tunnel (雪山隧道) or "Snow Mountain" tunnel, is the longest tunnel in Taiwan, located on the Taipei-Yilan Freeway (Taiwan National Highway No. 5).
The road connects the city of Taipei to the northeastern county of Yilan (Ilan), cutting down the journey time from two hours to just half an hour.
One of the key aims of constructing the tunnel was to connect the western coast of Taiwan, where 95% of the population live, to the eastern coast of the island and in doing so tackle the unbalanced development on the island.
It is constructed with one pilot tunnel and two main tunnels for eastbound and westbound traffic. The total length is 12.942 km, making the Hsuehshan Tunnel the second longest road tunnel in East Asia and the fifth longest road tunnel in the world.
While excavating the tunnel, engineers encountered difficult geological problems. There were serious tunnel collapses with groundwater flooding took place periodically during tunnel construction. Altogether, 25 lives were lost during 15 years of construction.
It opened in June 2006 to severe traffic jams. The Hsuehshan Tunnel broadcasts a dedicated radio station on two FM channels inside the tunnel. Drivers can tune to either of the two FM stations to hear announcements regarding the Heushshan Tunnel, rules for driving inside the tunnel, and music.
Taroko Gorge, Hualien, Taiwan
Taroko Gorge is located on the eastern coast of Taiwan, about 4 hours drive from the capital Taipei. Taroko has the largest marble gorge in the world. After Taipei, this is the most visited site in Taiwan.
The Park is 36 kilometres from north to south and 42 kilometres from east to west. The park has many high mountains and steep gorges, with many peaks towering above 3,000 metres in height, and with many natural watersheds.
The spectacular Taroko Gorge and the scenic beauty of the Liwu River can be viewed conveniently from the Central Cross-Island Highway. The many waterfalls, diverse forms of plant and animal life, and the indigenous Taroko people, together create the rich texture of this unique natural ecosystem.
The Taroko Gorge is basically the 20km stretch of the Cross Island Highway between Taroko National Park HQ and Tiansiang. The narrowest and most amazing parts of the gorge are at the Swallow's Grotto and Tunnel of Nine Turns. The Eternal Spring Shrine was built to commemorate the 212 workers who lost their lives building the cross island highway. The names of the workers are inscribed in rock on the inside of the shrine.
Adequate Taxis in Taipei
There are plenty of taxis in Taipei. It is easy to get a taxi within 1 minute. The supply is more than adequate to meet demand. The service is excellent.
The taxi fares are at the right level. They are 4 to 8 times of public transport. They are not cheap, but not expensive either.
The taxi drivers work hard to meet their operating expenses and to earn a net income. There seem to be enough people willing to drive a taxi. This ensures that there is a correct balance of supply and demand. It is an excellent source of meaningful work for unemployed people.
The excellent public tranport and taxi service in Taipei probably make it less necessary for the city dwellers to own a private car.
The regulated taxi system in Taipei seems to work extremely well, in getting an efficient system that serves the commuters and taxi drivers well.
Perhaps it is time for Singapore to learn from the experience of Taipei in managing their public transport and taxi service?
The taxi fares are at the right level. They are 4 to 8 times of public transport. They are not cheap, but not expensive either.
The taxi drivers work hard to meet their operating expenses and to earn a net income. There seem to be enough people willing to drive a taxi. This ensures that there is a correct balance of supply and demand. It is an excellent source of meaningful work for unemployed people.
The excellent public tranport and taxi service in Taipei probably make it less necessary for the city dwellers to own a private car.
The regulated taxi system in Taipei seems to work extremely well, in getting an efficient system that serves the commuters and taxi drivers well.
Perhaps it is time for Singapore to learn from the experience of Taipei in managing their public transport and taxi service?
Friday, December 28, 2007
Technique to solve Logic Quiz
Try this quiz during the new year holidays.
The original quiz is purported to be created by Einstein. Only 2% of the population could solve it. Most visitors to my blog (like you) probably belong to the 2%.
You can read the quiz in this webpage:
http://www.tankinlian.com/quiz/index.html
Click on "Technique" at the bottom of that page, to learn the steps on how to solve the quiz.
http://www.tankinlian.com/quiz/solution.html
There you are. You now belong to the 2%.
After that, you can try more quizzes here:
http://www.tankinlian.com/logicquiz/
The original quiz is purported to be created by Einstein. Only 2% of the population could solve it. Most visitors to my blog (like you) probably belong to the 2%.
You can read the quiz in this webpage:
http://www.tankinlian.com/quiz/index.html
Click on "Technique" at the bottom of that page, to learn the steps on how to solve the quiz.
http://www.tankinlian.com/quiz/solution.html
There you are. You now belong to the 2%.
After that, you can try more quizzes here:
http://www.tankinlian.com/logicquiz/
Cost and benefit of health insurance
Dr. Money gives a few practical advice regarding your health insurance. He teaches you how to measure the cost and benefit and make the right choice.
http://newpaper.asia1.com.sg/columnists/story/0,4136,142914,00.html?
More articles from Dr. Money
http://www.tankinlian.com/drmoney/
http://newpaper.asia1.com.sg/columnists/story/0,4136,142914,00.html?
More articles from Dr. Money
http://www.tankinlian.com/drmoney/
Existing life insurance policies
Dear Mr. Tan,
I have just retired. I am not sure if I should continue to pay the premium on my current life insurance policies, especially those that require me to pay for the whole of life. I can afford to pay the premium, but I am not sure if the return is worth while. What is your advice to me?
REPLY
If you are able to continue to pay the premium, you can look at the return on your existing policies over the next 5 or 10 years. If the return is higher than other types of investment, then you can continue these policies.
Read this FAQ:
http://www.tankinlian.com/faq/exist.html
I have just retired. I am not sure if I should continue to pay the premium on my current life insurance policies, especially those that require me to pay for the whole of life. I can afford to pay the premium, but I am not sure if the return is worth while. What is your advice to me?
REPLY
If you are able to continue to pay the premium, you can look at the return on your existing policies over the next 5 or 10 years. If the return is higher than other types of investment, then you can continue these policies.
Read this FAQ:
http://www.tankinlian.com/faq/exist.html
Difficult to get a taxi in Singapore
My friend in Taiwan told me that he found it difficult to get a taxi when he was in Singapore. He said politely, "Perhaps Singapore's economy is doing well, that everyone wants to take a taxi."
My first trip on Taipei MRT
I took my first trip on the Taipei MRT today. I bought a stored value ticket for NT 500 (SGD 25). The deposit is NT 100 and the stored value is NT 400.
A trip of up to 6 stops cost NT 20 ($1) cash, NT 16 ($0.80) on the stored value card. The train is not crowded. I was able to get a seat on the forward and return journey.
The experience is better than Singapore MRT. Taipei MRT has received the No 1 award for reliability, safety and quality standards.
A trip of up to 6 stops cost NT 20 ($1) cash, NT 16 ($0.80) on the stored value card. The train is not crowded. I was able to get a seat on the forward and return journey.
The experience is better than Singapore MRT. Taipei MRT has received the No 1 award for reliability, safety and quality standards.
Strategies to make profit
There are three strategies for a company to make profit:
1. Operate efficiently, reduce cost, offer good value to customers and make a fair margin.
2. Exploit the market situation and customer ignorance to increase profit
3. Design products to "rip off" the customer; pay high commission to people to market the product.
I want to encourage businesses to adopt stragegy 1 (i.e. the ethical approach). It is very sad to see more businesses adopt the other two strategies.
1. Operate efficiently, reduce cost, offer good value to customers and make a fair margin.
2. Exploit the market situation and customer ignorance to increase profit
3. Design products to "rip off" the customer; pay high commission to people to market the product.
I want to encourage businesses to adopt stragegy 1 (i.e. the ethical approach). It is very sad to see more businesses adopt the other two strategies.
Avoid high charges
Dear Mr. Tan,
Should I go for those linked with investment (XXX Life Manager Plus) or those (YYY Guaranteed 15 for Life) that only need to pay for 15 yrs and covered for life?
REPLY
Both of these policies have high charges. A large portion of your premium goes to pay the commission of the agent.
My advice is to buy Term insurance and invest the difference in a low cost, diversified equity fund.
Read the following FAQs.
http://www.tankinlian.com/faq/fptips.html
http://www.tankinlian.com/faq/savings.html
http://www.tankinlian.com/faq/ilp.html
http://www.tankinlian.com/faq/term.html
Should I go for those linked with investment (XXX Life Manager Plus) or those (YYY Guaranteed 15 for Life) that only need to pay for 15 yrs and covered for life?
REPLY
Both of these policies have high charges. A large portion of your premium goes to pay the commission of the agent.
My advice is to buy Term insurance and invest the difference in a low cost, diversified equity fund.
Read the following FAQs.
http://www.tankinlian.com/faq/fptips.html
http://www.tankinlian.com/faq/savings.html
http://www.tankinlian.com/faq/ilp.html
http://www.tankinlian.com/faq/term.html
Feeder Bus Service
Some commuters do not like the feeder bus system. They consider it a hassle to take a feeder bus, change to a train, and take another feeder bus. They prefer to have no transfer, if possible.
I find a feeder system to be acceptable, if:
1. Waiting time for the feeder bus is less than 5 minutes
2. Walking distance is short
3. The feeder bus goes directly to the destination, with minimal detour.
By accepting transfers, we can have a more efficient system, with better connections, less waiting time, and lower cost.
In 2000, I took the train in Switzerland from Zurich Airport to St Moritz in the mountains. The journey involved two transfers of train. I have to take the airport train to Zurich main station, change to another train to the foot of the mountain and make a further change to go up to the mountain.
All the transfers were done on the same platform of the station. I get down a train and wait less than 10 minutes for a connecting train. It was quite convenient and easy, although it was my first time to take the train in Switzerland.
The train journey cost about SGD 50. If I took a limousine, the fare would be more than SGD 1,000.
I find a feeder system to be acceptable, if:
1. Waiting time for the feeder bus is less than 5 minutes
2. Walking distance is short
3. The feeder bus goes directly to the destination, with minimal detour.
By accepting transfers, we can have a more efficient system, with better connections, less waiting time, and lower cost.
In 2000, I took the train in Switzerland from Zurich Airport to St Moritz in the mountains. The journey involved two transfers of train. I have to take the airport train to Zurich main station, change to another train to the foot of the mountain and make a further change to go up to the mountain.
All the transfers were done on the same platform of the station. I get down a train and wait less than 10 minutes for a connecting train. It was quite convenient and easy, although it was my first time to take the train in Switzerland.
The train journey cost about SGD 50. If I took a limousine, the fare would be more than SGD 1,000.
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