Hi Mr Tan,
The letter mentioned in your blog entry "Fertility rate continues to drop" hit the nail on its head. How does the government expect S'poreans to re-produce more when national policies make life so hard for the middle and lower income groups. For example, how does/can one think about having babies when the threat of being replaced by a cheap foreigner at work is very real once a person turns 40?
The scary belief I hold is that the PAP government is fully aware of this, but they are keeping the floodgates open to foreigners nonetheless. Reason being PAP have no solution to restore the national procreation rate. PAP is simply being myopic and taking the easy way out by artificially increasing the population to offset the declining birth rate (I say "artificially" because the foreigners we get are only here to earn their bucks and return to their homeland either once they have earned enough or when S'pore is in trouble). This may lead to short term economic growth, but will undoubtedly result in long term damage not only to the economy, but to social cohesion as well.
TY
Wednesday, January 05, 2011
TKL book - Get value from your life insurance
My new book will be launched in February. It will contain 20 case studies of actual life insurance policies bought by consumers. These are the policies that are most commonly sold in Singapore. If you have bought a life insurance policy previously, you are likely to find it featured among the case studies.
My analysis will show the effect of deduction taken away from the policy after 25 years. If the deduction is more than 20%, the consumer is getting a poor yield (representing a reduction in yield of 2% or higher). I also tell you what to do about your existing policy, i.e how to decide if you should continue or terminate the policy.
More importantly, it tells the consumer, especially the new entrants to the workforce, on how to manage their personal fiannces and insurance coverage. I describe a new policy that does not have any upfront deduction, i.e. 100% of the savings is invested from the first month. This is the type of life insurance policy that is suitable for consumers.
More details about my book will be given later. (I am now at the airport waiting to board the plane to Jakarta).
Tan Kin Lian
My analysis will show the effect of deduction taken away from the policy after 25 years. If the deduction is more than 20%, the consumer is getting a poor yield (representing a reduction in yield of 2% or higher). I also tell you what to do about your existing policy, i.e how to decide if you should continue or terminate the policy.
More importantly, it tells the consumer, especially the new entrants to the workforce, on how to manage their personal fiannces and insurance coverage. I describe a new policy that does not have any upfront deduction, i.e. 100% of the savings is invested from the first month. This is the type of life insurance policy that is suitable for consumers.
More details about my book will be given later. (I am now at the airport waiting to board the plane to Jakarta).
Tan Kin Lian
Unfair Train Penalty
I wrote this letter which was published in the Straits Times Forum page today.
My aim is to tell the commercial enterprises that they should balance corporate profits with fair treatment of their customers.
I also intend the same message to go to our government leaders and remind them about their responsibility to the citizens. They should not allow the citizens to bear the burden of higher cost as commercial enterprises seek to increase their profits.
http://www.straitstimes.com/STForum/Story/STIStory_620600.html
Tan Kin Lian
My aim is to tell the commercial enterprises that they should balance corporate profits with fair treatment of their customers.
I also intend the same message to go to our government leaders and remind them about their responsibility to the citizens. They should not allow the citizens to bear the burden of higher cost as commercial enterprises seek to increase their profits.
http://www.straitstimes.com/STForum/Story/STIStory_620600.html
Tan Kin Lian
Tuesday, January 04, 2011
Editor of SGEP
Read this message from the Editor of SGEP.
Play your part as a citizen of Singapore in making the general election reflects your views.
http://www.easyapps.sg/SGEP/
Play your part as a citizen of Singapore in making the general election reflects your views.
http://www.easyapps.sg/SGEP/
Wisdom on how to live life - on special offer
Tommy Wong’s books “Wisdom on How to Live Life” are currently on special offer.
The books can be ordered here.
SGEP Editorial
SGEP now has an "editorial" on the home page that contains a summary of the key news for the day. You can visit SGEP home page visting the "Latest" page. SGEP or www.easyapps.sg/sgep Do make it a point to visit the home page of SGEP daily. Learn about the issues that affect your voting at the general election.
Competition and professional fees
Chan Ban Choon wrote to the Straits Times about the need to provide the Law Society or government to provide guidelines on lawyer's fees. He pointed out that some lawyers are charing fees that are too high and "as they like".
It is not possible for consumers to know what are the fair rates of fees for professional services, and to know the standard of the fees. This has to be set by knowledgeable people who takes into account the interest of the consumers and the professionals. The old arrangement, where the professional bodies provide the guidelines, used to work fairly well.
There used to be a guideline on professional fees set by the various bodies. I recall that the Competition Competition asked the doctors to remove the guidelines, so that the fees can be reduced by free market competition. I heard that this was not the outcome of the removal of fees. Some doctors increased their fees, and charged "what they like".
It is not possible for consumers to know what are the fair rates of fees for professional services, and to know the standard of the fees. This has to be set by knowledgeable people who takes into account the interest of the consumers and the professionals. The old arrangement, where the professional bodies provide the guidelines, used to work fairly well.
I suggest that the old arrangement be restored. It should be clear that the fees are guidelines and that professionals can deviate from the guidelines if they have specific reasons and have informed consumers about the deviation and the reason.
Another arrangement is for the Competitions Competition to maintain a website (or outsource the work to an authorized party) showing the fees for various types of standard work that are charged by various professional firms, such as lawyers, doctors and engineers. This will be helpful to consumers who can check the website and get to a professional that charge competitive rates. It will encourage competition and bring down the fees to a reasonable level.
Tan Kin Lian
Taipei International Flora Show
Two letters were printed in the Straits Times about the poor standard of the Singapore pavilion at the Taipei International Flora Show. This is unacceptable as Singapore has prided itself for several decades as a "garden city".
This is another example of the bad state of affairs that has occurred in Singapore in recent years. The change to a "hands off" approach and "leave it to the private sector" is probably the cause of this deterioration. It is time for us to change our policies or find new leaders.
This is another example of the bad state of affairs that has occurred in Singapore in recent years. The change to a "hands off" approach and "leave it to the private sector" is probably the cause of this deterioration. It is time for us to change our policies or find new leaders.
Monday, January 03, 2011
GRC and arrogance
Dear Mr. Tan,
I refer to your blog entry "Damage caused by the GRC system". I fully agree with your friend that this system has actually resulted in the typical arrogance (get out of my elite face) we see in MPs nowadays. Our ministers and MPs even publicly called us names such as "daft", "champion grumblers" (LKY), "very very selfish" (Vivian), "lesser mortals" (Charles Chong), etc.
That said, the recent announcement by PM Lee to have smaller GRCs and more SMCs is telling. Basically, the PAP is very afraid of losing a GRC at the next election, thereby knocking down 6 MPs at a sweep. Thus the party wants to reduce the potential damage.
Thanks.
I refer to your blog entry "Damage caused by the GRC system". I fully agree with your friend that this system has actually resulted in the typical arrogance (get out of my elite face) we see in MPs nowadays. Our ministers and MPs even publicly called us names such as "daft", "champion grumblers" (LKY), "very very selfish" (Vivian), "lesser mortals" (Charles Chong), etc.
That said, the recent announcement by PM Lee to have smaller GRCs and more SMCs is telling. Basically, the PAP is very afraid of losing a GRC at the next election, thereby knocking down 6 MPs at a sweep. Thus the party wants to reduce the potential damage.
Thanks.
Business cost and SCCCI
The Singapore Chinese Chamber of Commerce and Industry has also expressed concern over the increasing business costs:
http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1102440/1/.html
http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1102440/1/.html
Regulation of estate agents
A new body has been set up to regulate estate agents. This body has the goal of enforcing standards of service.
This body should have another role, that is, to ensure that consumers are paying a fair fee for property transactions and that the fees charged by the agencies are advertised. This will allow consumers to get access to the efficent agencies that charge lower fees.
The fees for making property transactions are too high in Singapore. An estate agent can make one transaction a month and earn more than a regular job. This is why this industry attracts so many people, including professionals trained in other fields, to handle the property transactions. It is a waste of resources for the economy.
Some people pointed out that fees are higher in other countries. But, unlike Singapore, these countries are big and have properties located in sparsely populated areas. .
Singapore does not need so many property agents, especially those who are qualified in other fields. The first step to stop this wasteful use of resources and to bring the cost down, is to regulate the fee for property transactions (especially for sale and rental of HDB flats) to half of the current level, or to make it easy for the consumers to handle these transactions directly without going through an agent.
Tan Kin Lian
This body should have another role, that is, to ensure that consumers are paying a fair fee for property transactions and that the fees charged by the agencies are advertised. This will allow consumers to get access to the efficent agencies that charge lower fees.
The fees for making property transactions are too high in Singapore. An estate agent can make one transaction a month and earn more than a regular job. This is why this industry attracts so many people, including professionals trained in other fields, to handle the property transactions. It is a waste of resources for the economy.
Some people pointed out that fees are higher in other countries. But, unlike Singapore, these countries are big and have properties located in sparsely populated areas. .
Singapore does not need so many property agents, especially those who are qualified in other fields. The first step to stop this wasteful use of resources and to bring the cost down, is to regulate the fee for property transactions (especially for sale and rental of HDB flats) to half of the current level, or to make it easy for the consumers to handle these transactions directly without going through an agent.
Tan Kin Lian
Advertisement on cataract surgery
A medical center advertised their service on cataract surgery. I looked for the price of the surgery but it was not listed. This is the most important information for the consumers, but is not disclosed.
In the past, there is a ban against advertisements by medical practitioners. This ban has now been removed in the interest of promoting a "free market". What is the point of allowing advertising when the most essential information is not provided? This will encourage unnecessary consumption by consumers, without the benefit of market competition on prices. Consumers seemed to be getting the worst of the situation.
Tan Kin Lian
In the past, there is a ban against advertisements by medical practitioners. This ban has now been removed in the interest of promoting a "free market". What is the point of allowing advertising when the most essential information is not provided? This will encourage unnecessary consumption by consumers, without the benefit of market competition on prices. Consumers seemed to be getting the worst of the situation.
Tan Kin Lian
Regulation of TCM specialists
The papers reported that the Ministry of Health is now investigating TCM (traditional Chinese medicine) practitioners for operating as "TCM specialists" without a licence. Well done to MOH.
I am glad that MOH did not take the stand that this matter can be sorted out by the free market, that the public should be "educated" to decide on TCM and that the public should "open their eyes" before they buy TCM from the so-called specialists.
It is right that MOH take the responsibility to regulate the practitioners and make sure that they are operating ethically in the interest of the public. I hope that MAS will also adopt a similar approach on financial products, especially those that are toxic and harmful.
Tan Kin Lian
I am glad that MOH did not take the stand that this matter can be sorted out by the free market, that the public should be "educated" to decide on TCM and that the public should "open their eyes" before they buy TCM from the so-called specialists.
It is right that MOH take the responsibility to regulate the practitioners and make sure that they are operating ethically in the interest of the public. I hope that MAS will also adopt a similar approach on financial products, especially those that are toxic and harmful.
Tan Kin Lian
Bank transfer by standing order
The Straits Times Forum published a letter from Stuart King about the time taken by the bank to make a transfer from one bank to another in Singapore. He asked why does it have to take three days, when banks are not connected electronically and can make the transfer instantaneously.
This is just another example where the "free market" does not work. MAS has to come in and tell the banks to improve their service to the public!
This is just another example where the "free market" does not work. MAS has to come in and tell the banks to improve their service to the public!
Damage caused by the GRC system
A friend who migrated and became a citizen 20 years ago made this observation. In the past, the MPs in Singapore were responsive to the needs and views of the people. They had to serve the people well to get re-elected.
Their changed gradually under the GRC system. They did not have to have to bother with the people and only need to please one or two persons at the top. The situation has got to be quite bad over the years.
As my friend was brought up in a different environment, he was able to see a different perspective from a local citizen. The local people tend to overlook the gradual change in environment, like the frog which was boiled in hot water.
The frog was put into a pot of cold water and felt comfortable. The water was gradually heated up. The frog adjusted to the increasing temperature of the water and did not realize the danger until the frog was finally boiled alive.
If the people of Singapore does not want to face the fate of the boiled frog, they have to get rid of the GRC system and elect MPs who are accountable to the people. The first step is to vote against the ruling party in the GRCs in the next general election so that the leaders realize the harm that is caused by this kind of bad system.
Tan Kin Lian
Their changed gradually under the GRC system. They did not have to have to bother with the people and only need to please one or two persons at the top. The situation has got to be quite bad over the years.
As my friend was brought up in a different environment, he was able to see a different perspective from a local citizen. The local people tend to overlook the gradual change in environment, like the frog which was boiled in hot water.
The frog was put into a pot of cold water and felt comfortable. The water was gradually heated up. The frog adjusted to the increasing temperature of the water and did not realize the danger until the frog was finally boiled alive.
If the people of Singapore does not want to face the fate of the boiled frog, they have to get rid of the GRC system and elect MPs who are accountable to the people. The first step is to vote against the ruling party in the GRCs in the next general election so that the leaders realize the harm that is caused by this kind of bad system.
Tan Kin Lian
High cost of doing business
I experienced the high cost of doing business in Singapore. I had to pay a professional fee of $3,500 for an engineer to certify that the renovation to my premises is safe. I saw the drawing done by the engineer. It is similar to the drawing that done by me to ask for quotation. A fee of $500 would be more than adequate.
My staff faced a lot of trouble in applying for a work permit through the online process of the Ministry of Manpower. Each application took more than 10 hours of my staff's time to go through the many stages of the complicated process. Many telephone calls have to be made to seek clarification to go though the computer system.
The application for utility supply to the premises also took many hours. The process is complicated. Many telephone calls have to be made to the utilities company and the building developer to get information for the application. Many telephone calls are not answered.
The time spent by my staff has to be reflected in my cost of doing business. My staff do not work for free.
Each government agency and privatized company, operating under a near monopoly, can impose its costly requirements in time and money on the public, but the government leaders must realize that they add to the cost of doing business, which has to be covered by higher prices to be paid by the citizens.
The situation has become very bad in recent years, and is exacerbated by the high property prices, also an outcome of government policies, which adds to the cost of doing business and the cost of living. Matters have really got out of hand.
Tan Kin Lian
My staff faced a lot of trouble in applying for a work permit through the online process of the Ministry of Manpower. Each application took more than 10 hours of my staff's time to go through the many stages of the complicated process. Many telephone calls have to be made to seek clarification to go though the computer system.
The application for utility supply to the premises also took many hours. The process is complicated. Many telephone calls have to be made to the utilities company and the building developer to get information for the application. Many telephone calls are not answered.
The time spent by my staff has to be reflected in my cost of doing business. My staff do not work for free.
Each government agency and privatized company, operating under a near monopoly, can impose its costly requirements in time and money on the public, but the government leaders must realize that they add to the cost of doing business, which has to be covered by higher prices to be paid by the citizens.
The situation has become very bad in recent years, and is exacerbated by the high property prices, also an outcome of government policies, which adds to the cost of doing business and the cost of living. Matters have really got out of hand.
Tan Kin Lian
Sunday, January 02, 2011
ERP fine
My car pass a ERP gantry point with the ERP card not properly inserted. I discovered it immediately and called to inform LTA. They said, "wait for the notice".
The ERP notice came one week later. The ERP fee was $1 and the fine was $10. I wonder why the LTA refused to collect the $1 from me, when I found the mistake. They wanted to impose the fine of $10 for the oversight. This is inconsiderate. They government wants to make a profit from an honest mistake!
I am aware that the LTA did have some administrative work to print and mail the notice. But this is work that they create for themselves under their system. If they have a friendlier system, they could have taken my report and notify the computer that the matter was settled. But, the LTA preferred to follow their own procedure, for their own convenience, and impost a cost on the citizens.
I hope that our government leaders and civil servants realize that they have to treat the people fairly and not impose a burden on them.
Tan Kin Lian
The ERP notice came one week later. The ERP fee was $1 and the fine was $10. I wonder why the LTA refused to collect the $1 from me, when I found the mistake. They wanted to impose the fine of $10 for the oversight. This is inconsiderate. They government wants to make a profit from an honest mistake!
I am aware that the LTA did have some administrative work to print and mail the notice. But this is work that they create for themselves under their system. If they have a friendlier system, they could have taken my report and notify the computer that the matter was settled. But, the LTA preferred to follow their own procedure, for their own convenience, and impost a cost on the citizens.
I hope that our government leaders and civil servants realize that they have to treat the people fairly and not impose a burden on them.
Tan Kin Lian
Fidrec and fairness of its process
An slightly edited version of this letter was published in the Straits Times Forum, 1 January 2011
I refer to the letter entitled “Fidrec adjudicators’ decision not binding on complainant” by Ms. Eileen Pek, head of Banking & Capital Markets of this center.
Fidrec was established as an alternative avenue for consumers to resolve their disputes with the financial institutions, instead of using the expensive route of taking legal action in court.
It is important for Fidrec to be seen by consumers as being impartial and fair in its decisions. In his letter of 8 December, Larry Haverkamp had pointed out several aspects of the process which were unfair to consumers. These issues were not adequately addressed in Ms. Pek reply. The main justification of her reply seemed to be that the adjudicator’s decisions are not binding on the complainant.
Ms. Pek said that if the complainant is not happy with the decision, the complaint is free to continue with legal action. Mr. Haverkamp had pointed out that the consumer would have been placed in a weaker position after the Fidrec process, as they would have given valuable information for the financial institution to mount its defence in court.
Many consumers, who have gone through the Fidrec process to resolve their complaints of mis-selling of the structured financial products, had told me that the process was unfair, disappointing and biased against them.
It is important that Fidrec built up trust among consumers of its role as an alternative dispute resolution center. I suggest that Fidrec or the Monetary Authority of Singapore should arrange an independent organisation to carry out a survey among consumers who have gone through their process to find out if they felt that their cases have been fairly dealt with through the Fidrec process.
Tan Kin Lian
Family Life 1.1
Here is a book, to be published, that explains how to play the game Family Life 1.1 and learn the skill of being successful in life.
http://tankinlian.com/admin/file.aspx?id=353
CALL FOR PROMOTERS
http://tankinlian.com/admin/file.aspx?id=353
CALL FOR PROMOTERS
I wish to look for people who are willing to help me to promote this book and the web game. You can help to promote through the social media, such as Facebook, Twitter, Blogs and other places.
All promoters will be named in the book with their e-mail adderss and website (if applicable) and country of residence.. If there are business opportunities in the future, priority will be given to the promoters who have been active in the promotion. If you are interested, send your name, e-mail address and telephone number to kinlian@gmail.com
Saturday, January 01, 2011
Welcome to the New Singapore
Read this article
URL: http://thestar.com.my/news/
You can also find interesting articles on social and political issues in SGEP.
Keep reading SGEP to decide on how to vote at the next general election.
URL: http://thestar.com.my/news/
You can also find interesting articles on social and political issues in SGEP.
Keep reading SGEP to decide on how to vote at the next general election.
DPIS and young people
Spare young people the premium shock
Make DPS an optional scheme for young people
and spare them the shock of seeing their hard-earned money disappear in no time
Review system
I was surprised to read an insurance company's letter
addressed to my 19-year-old daughter
informing her that a premium of $36 was being deducted
from her CPF account under the Dependants' Protection Scheme (DPS).
Fidrec needs to build up trust
Read this letter published in the Straits Times Forum:
http://www.straitstimes.com/STForum/Story/STIStory_619435.html
http://www.straitstimes.com/STForum/Story/STIStory_619435.html
Family Life 1.1
This game has been revised. The new description of the game is shown here:
http://tankinlian.com/admin/file.aspx?id=335
This game helps young people to understand the impact of key decisions that they have to make during their lifetime and how it affects their work and family. It will be ready for launch on 9 March 2011.
http://tankinlian.com/admin/file.aspx?id=335
This game helps young people to understand the impact of key decisions that they have to make during their lifetime and how it affects their work and family. It will be ready for launch on 9 March 2011.
Friday, December 31, 2010
CPF Life
Here are information about CPF Life, the 4 options and the L-bonus and V-bonus.
http://www.blogger.com/post-create.g?blogID=11702093
http://www.blogger.com/post-create.g?blogID=11702093
Thursday, December 30, 2010
Refund of bus fares
hi
I don't understand why must every ezlink card holder goes to MRT station to check if they are entitled to any bus fare refund. Since ezlink office knows which card is entitled to refund, cant they just automatically credit the refund into these affected ezlink cardholders? A simple computer programme can do this job.
Ezlink already over-charge... why make any mistake by troubling every Singaporean ? A waste of productivity! It is not right to donate un-claim $$ to charity. We should demand better service from our service providers. If they make mistake they should refund and compensate us.
JS
I don't understand why must every ezlink card holder goes to MRT station to check if they are entitled to any bus fare refund. Since ezlink office knows which card is entitled to refund, cant they just automatically credit the refund into these affected ezlink cardholders? A simple computer programme can do this job.
Ezlink already over-charge... why make any mistake by troubling every Singaporean ? A waste of productivity! It is not right to donate un-claim $$ to charity. We should demand better service from our service providers. If they make mistake they should refund and compensate us.
JS
Social Life 1.0
A game for singles. Let your avatar do the scouting for you. You create an avatar with characteristics that reflect your personality and indicate the personal qualities of the person that you look for as a life time partner. Your avatar will meet other avatars through activities held over 52 virtual weeks and go out on dates with other avatars that meet your criteria. At the end of the game in 7 actual days, you have the option to know the real persons behind the avatars that have dated your avatar a few times.
Financial Plan - help to promote this tool
Please inform your friends and other contacts, by email or facebook, that they can get a financial plan using the following website:
The financial plan is free and is important for consumers to have a feel of their financial future. It will help them to make the right way to save and invest their savings, and avoid getting a poor yield.
If you are an active user of Facebook or other social media, you can these channels and viral marketing to tell your friends and ask them to tell their friends.
Tan Kin Lian
Wednesday, December 29, 2010
A consumer view about Fidrec
Mr. Tan
Just like the first comment on your blog, both FIDREC and the adjudicator are on the FI's side, be it the Bank or the Brokerage.
FIDREC's expenses in staff and office are financed by annual contributions from the FIs, so this body knows exactly who is their boss,honestly the adjudication stage is just a show, the process and outcome is just the same.
We could only show sympathy for the victims in private, no use bringing up to MAS, all of them work in collaboration for show only.
We put too much trust in this Govt, who let us down in times of need. One investor said that the adjudicator finally said during hearing, that investor should put the entire blame on MAS who allowed the derivatives to be sold to retail investors, not fault the FI who sold them, the FI is only the go between agent.
With such feedback, would it be much help to bring up to MAS attention about the adjudication's process. The buck is being pushed around in a merry go round. Just swallow the humiliation, and move on.
Consumer
Just like the first comment on your blog, both FIDREC and the adjudicator are on the FI's side, be it the Bank or the Brokerage.
FIDREC's expenses in staff and office are financed by annual contributions from the FIs, so this body knows exactly who is their boss,honestly the adjudication stage is just a show, the process and outcome is just the same.
We could only show sympathy for the victims in private, no use bringing up to MAS, all of them work in collaboration for show only.
We put too much trust in this Govt, who let us down in times of need. One investor said that the adjudicator finally said during hearing, that investor should put the entire blame on MAS who allowed the derivatives to be sold to retail investors, not fault the FI who sold them, the FI is only the go between agent.
With such feedback, would it be much help to bring up to MAS attention about the adjudication's process. The buck is being pushed around in a merry go round. Just swallow the humiliation, and move on.
Consumer
Spa victims writes to political parties
Dear Sir,
Thank you for your civic mindedness once again.
I would like ask an open question.
I had written to all the opposition parties about the True Spa Subtle Senses incident, but no one has taken up this issue to be discussed in the coming election. Neither have they responded to me.
Ministry of Trade and Industry recently introduced changes to the consumer protection law, albeit very late. At least they are responding but it is still too little too late. And they are also not addressing the petition that some 400 true spa victims have submitted to MTI.
I being to wonder if when the Opposition comes to power one day, will they also act like the PAP.
Thank you,
Spa Victim
My reply
It is not fair to expect the "opposition" politicians to do anything when they are not in power, and not even in Parliament. It is the duty of the elected leaders and MPs to address these issues.
My reply
It is not fair to expect the "opposition" politicians to do anything when they are not in power, and not even in Parliament. It is the duty of the elected leaders and MPs to address these issues.
Oil price and US recovery
Hi Mr.Tan,
With the already highest COE price for cars in Singapore and in the World, the next scenario of higher oil prices with surely put a dent on all the prospects of sustained recovery etc. as I can't imagine the impact of higher petrol price here?
$5 Gas In 2012, Ex Shell President Predicts
http://money.cnn.com/2010/12/27/markets/oil_commodities/
With the already highest COE price for cars in Singapore and in the World, the next scenario of higher oil prices with surely put a dent on all the prospects of sustained recovery etc. as I can't imagine the impact of higher petrol price here?
$5 Gas In 2012, Ex Shell President Predicts
http://money.cnn.com/2010/12/27/markets/oil_commodities/
Theft of information from credit card
Here are three ways for thiefs to steal information from your credit and debit card and made fraudulent payments. Be careful
www.tankinlian.com/latest.aspx
http://tankinlian.com/admin/file.aspx?id=351
www.tankinlian.com/latest.aspx
http://tankinlian.com/admin/file.aspx?id=351
The Property Bubble and Investment Trap
Hi Mr Tan
I wrote this piece on Property in my Blog inconjunction with my last posting and article for SGEP on ""Concepts About Aging - Nanjing YY Li vs Singapore MM Lee" for year-end closing. I have received some positive comments via emails.
http://de-leviathan.blogspot.com/2010/12/property-bubble-investment-trap-part_28.html
C H
I wrote this piece on Property in my Blog inconjunction with my last posting and article for SGEP on ""Concepts About Aging - Nanjing YY Li vs Singapore MM Lee" for year-end closing. I have received some positive comments via emails.
http://de-leviathan.blogspot.com/2010/12/property-bubble-investment-trap-part_28.html
C H
Note: This article has alse been published in SGEP
Cars in Singapore
COE prices have gone up due to the cut in quotas. Many people, especially those with children, said that they need a car due to the poor transport system, e.g. overcrowded trains and unreliable bus schedules. Allowing more cars to be owned will not solve the problem, as our roads are too congested and there are insufficient parking spaces in the offices and residential estates.
In brief, we have a bad transport system in Singapore. Our hope is that in 5 to 10 years time, when more MRT lines are opened, it will be better. Meanwhile, the construction of the MRT lines add to the congestion and pain. We have to be prepared to suffer many more years, due to the bad planning during the recent 15 years.
There is something that can be done urgently to improve the situation. We need the Land Transport Authority and the two Transport Ministers to be willing to listen. They only need to look to Hong Kong and find out why their transport system is so much better than Singapore. Hong Kong has light buses to bring people conveniently to the train stations and an efficient taxi system (compared to the terrible de-regulated system in Singapore). Many people said that the Hong Kong system is convenient and inexpensive, compared to Singapore.
Tan Kin Lian
In brief, we have a bad transport system in Singapore. Our hope is that in 5 to 10 years time, when more MRT lines are opened, it will be better. Meanwhile, the construction of the MRT lines add to the congestion and pain. We have to be prepared to suffer many more years, due to the bad planning during the recent 15 years.
There is something that can be done urgently to improve the situation. We need the Land Transport Authority and the two Transport Ministers to be willing to listen. They only need to look to Hong Kong and find out why their transport system is so much better than Singapore. Hong Kong has light buses to bring people conveniently to the train stations and an efficient taxi system (compared to the terrible de-regulated system in Singapore). Many people said that the Hong Kong system is convenient and inexpensive, compared to Singapore.
Tan Kin Lian
US economy is still disappointing
There were two bad news last night on the US economy:
- Consumer confidence is low
- Housing prices continue to slump
Snooping on e-mails
There is a news report of a case in America where the husband hack into the e-mail account of the wife and found that she was having an affair. The husband divorced the wife. He was later charged and found guilty of snooping, i.e. reading e-mails of the wife without her permission.
The law in Singapore is not clear on such issues of privacy. There is a need for such clarity. These are important issues governing the rights of people (for privacy) and the free access of information.
We need out laws to be clear on many issues affecting the rights of people and their proper social conduct. We also need the laws to be enforced. I hope that our elected MPs do their duty to bring up issues in Parliament. This is their duty and what they are elected for. We need MPs to be full time, so that they can do their job well. They are adequately paid now to be full time.
Tan Kin Lian
The law in Singapore is not clear on such issues of privacy. There is a need for such clarity. These are important issues governing the rights of people (for privacy) and the free access of information.
We need out laws to be clear on many issues affecting the rights of people and their proper social conduct. We also need the laws to be enforced. I hope that our elected MPs do their duty to bring up issues in Parliament. This is their duty and what they are elected for. We need MPs to be full time, so that they can do their job well. They are adequately paid now to be full time.
Tan Kin Lian
Accidents in Malaysia
There were two recent cases of accidents in Malaysia that should cause concern to visitors. A bus travelling down from Cameron Highlands went into a ravine killing many tourists. A boat capsized after a trip from a kelong in Sibu Island and 4 Singaporeans drowned.
I want to quote these two incidents about the harm caused by the free market, without adequate regulation. The tour operators had to compete fiercely for business by reducing their prices. They pay low wages to workers who have to work long hours to earn enough to make a living. There is inadequate regulation on working hours, minimum wage and safety standards. The consumers are not able to know about the poor safety standards, until they are in the bus or the boat, and then it is too late.
I am in favor of a regulated market, where there is regulation on fair practices and safety standards. The regulation will apply to all business entities. This may cause the price to be higher, e.g. due to minimum wage levels, but it is better for consumers in the long run. We see this type of regulated practices in the advanced countries of Europe, America and Australia. The standards should apply to Singapore, Malaysia and other Asian countries. I am impressed that China is giving attention to this type of issues, rather than just leave matter to the market to sort out.
Tan Kin Lian
I want to quote these two incidents about the harm caused by the free market, without adequate regulation. The tour operators had to compete fiercely for business by reducing their prices. They pay low wages to workers who have to work long hours to earn enough to make a living. There is inadequate regulation on working hours, minimum wage and safety standards. The consumers are not able to know about the poor safety standards, until they are in the bus or the boat, and then it is too late.
I am in favor of a regulated market, where there is regulation on fair practices and safety standards. The regulation will apply to all business entities. This may cause the price to be higher, e.g. due to minimum wage levels, but it is better for consumers in the long run. We see this type of regulated practices in the advanced countries of Europe, America and Australia. The standards should apply to Singapore, Malaysia and other Asian countries. I am impressed that China is giving attention to this type of issues, rather than just leave matter to the market to sort out.
Tan Kin Lian
Fidrec decisions
Fidrec was established to be an alternative dispute resolution center. For Fidrec to gain the trust of consumers, it has to be seen as being impartial and fair to consumers. Has Fidrec met up with this expectation? Please share your experience by sending a confidential e-mail to kinlian@gmail.com. I will not disclose your identity, but I need to gather some feedback to pass to the authority. Please share your experience briefly and state why you felt the process to be fair or not fair.
Straits Times Forum 29 Dec 2010
Provide e-mail addresses on websites of govt agencies
Fidrec adjudicators' decision not binding on complainant
Insurer says sorry for lapses
Tuesday, December 28, 2010
What does it mean being poor?
What does it mean being poor? A young man from a rich family found out that it is not too bad.
www.tankinlian.com/latest.aspx
http://tankinlian.com/admin/file.aspx?id=350
www.tankinlian.com/latest.aspx
http://tankinlian.com/admin/file.aspx?id=350
Fascination by Night
Beautiful night scenes of cities around the world accompanied by my favorite song Fascination sung by Nat King Cole.
www.tankinlian.com/latest.aspx
http://tankinlian.com/admin/file.aspx?id=349
www.tankinlian.com/latest.aspx
http://tankinlian.com/admin/file.aspx?id=349
Bus-fare refunds go unclaimed
Hi Mr Tan,
I refer to Asiaone headline today.
After reading the report in Shin Ming Daily news dated 19th Dec, a retiree claimed that he got back only 1 cent refund, though he and his wife take buses almost everyday. LTA reportedly insisted that their computation cannot goes wrong on the same day report.
My personal experience proof that this is not very true. I went to the AVM machine to try the refund on 21st Dec. I was shocked to see a quick flash, indicating that the refund I was entitled was only 10 cents (no details of how the amount was being derived). As I seldom take bus to work, for the 3 days in Nov, I took down the amount that was deducted wrongly from my card. After reading the report that LTA claimed the refund cannot go wrong, I made a manual claim from transitlink website, and got back another 60 cents that were being deducted for the 2 days (3rd day was correct).
My question is, how accurate the refund system is then ? Do they expect all the commuters to take note the amount that was deducted everyday and do a manual claim themselves? The problem is not only the few cents, but the faulty system. Having to even refund wrongly to the customers, then why spent so much money to set up rather then donate this amount of money to the charity ?
Till date, I still encounter overcharging of few cents, but do not bother to claim anymore. Just wish to share with everyone else who read your blog frequently.
JL
I refer to Asiaone headline today.
After reading the report in Shin Ming Daily news dated 19th Dec, a retiree claimed that he got back only 1 cent refund, though he and his wife take buses almost everyday. LTA reportedly insisted that their computation cannot goes wrong on the same day report.
My personal experience proof that this is not very true. I went to the AVM machine to try the refund on 21st Dec. I was shocked to see a quick flash, indicating that the refund I was entitled was only 10 cents (no details of how the amount was being derived). As I seldom take bus to work, for the 3 days in Nov, I took down the amount that was deducted wrongly from my card. After reading the report that LTA claimed the refund cannot go wrong, I made a manual claim from transitlink website, and got back another 60 cents that were being deducted for the 2 days (3rd day was correct).
My question is, how accurate the refund system is then ? Do they expect all the commuters to take note the amount that was deducted everyday and do a manual claim themselves? The problem is not only the few cents, but the faulty system. Having to even refund wrongly to the customers, then why spent so much money to set up rather then donate this amount of money to the charity ?
Till date, I still encounter overcharging of few cents, but do not bother to claim anymore. Just wish to share with everyone else who read your blog frequently.
JL
BEST Competition
Join in the competition for 3 industries (insurance, hotel, airlines) each night and win a prize for being the best player. The game starts on 27 December 2010 and three new games will be started every night until further notice.
Details available here: http://tankinlian.com/admin/file.aspx?id=334
Find out who runs the best insurance company, the best hotel and the best airline! Prizes are donated by Tan Kin Lian & Associates Pte Ltd
Watch this video on how th play this game. Login here to practice the game and take part in the competition: www.easyapps.sg/besta
Details available here: http://tankinlian.com/admin/file.aspx?id=334
Find out who runs the best insurance company, the best hotel and the best airline! Prizes are donated by Tan Kin Lian & Associates Pte Ltd
Watch this video on how th play this game. Login here to practice the game and take part in the competition: www.easyapps.sg/besta
FISCA Talks
Here are the educational talks being organised by FISCA. I will be conducting the talk on financial planning in February and on insurance in March. I hope that consumers will register early for these talks.
http://www.fisca.sg/events
http://www.fisca.sg/events
BEST Game - for practice and fun
You can practice the best game at any time against the simulated players. This allows you to learn the technique.
You can have fun by asking a few friends to compete with you. They go at a fixed time and choose the same game as you. After year 5, which takes 50 mins, you will know who is the winner. You can have a friendly bet with your friend and pay $1 to the person who reaches the top of the game. The game can be played here: www.easyapps.sg/besta
Enjoy and learn the skill of running an insurance company, hotel, airline or other types of business. Join the competition at 8 pm, 9 pm and 10 pm each night and compete against other players.
You can have fun by asking a few friends to compete with you. They go at a fixed time and choose the same game as you. After year 5, which takes 50 mins, you will know who is the winner. You can have a friendly bet with your friend and pay $1 to the person who reaches the top of the game. The game can be played here: www.easyapps.sg/besta
Enjoy and learn the skill of running an insurance company, hotel, airline or other types of business. Join the competition at 8 pm, 9 pm and 10 pm each night and compete against other players.
Financial Plan for John Tan
This is a sample financial plan for John Tan prepared from the website www.easysearch.sg/life21. There is a link at the bottom of the document to seek further explanation from an expert.
www.tankinlian.com/ask.aspx
http://tankinlian.com/admin/file.aspx?id=348
www.tankinlian.com/ask.aspx
http://tankinlian.com/admin/file.aspx?id=348
Monday, December 27, 2010
End of holidays
As the December holidays come closer to an end, the visitors to my blog and website are now returning to normal, i.e.
2,500 for blog
400 for website
2,500 for blog
400 for website
Unfair contract terms
We have a law against unfair contract terms. How does the law define what is an unfair contract term? Would the following contract terms be deemed to be unfair to consumers?
a) The bank imposes a penalty for late payment that is why above what it cost the bank to process the late payment? If the actual cost is $2, can the bank impose a fee of $200?
b) If an personal accident policy require the consumer to notify the insurance company about a change of occupation, can the insurance company deny a claim due to failure to comply with this requirement, even though the change of occupation did not have any impact on the nature of the risk?
As businesses now aim to increase their profits, they may be imposing penalties and conditions that are onerous and unfair to consumers. What redress does the consumer have under the law against unfair contract terms?
Tan Kin Lian
a) The bank imposes a penalty for late payment that is why above what it cost the bank to process the late payment? If the actual cost is $2, can the bank impose a fee of $200?
b) If an personal accident policy require the consumer to notify the insurance company about a change of occupation, can the insurance company deny a claim due to failure to comply with this requirement, even though the change of occupation did not have any impact on the nature of the risk?
As businesses now aim to increase their profits, they may be imposing penalties and conditions that are onerous and unfair to consumers. What redress does the consumer have under the law against unfair contract terms?
Tan Kin Lian
Utmost good faith and incontestability
The principle of utmost good faith in insurance applies in both directions. The insurer expects the consumer to declare truthfully what he knows or ought to know about the nature of the risk. The consumer expects the insurer to declare truthfully the nature of the insurance contract and also to settle the claim fairly, as was promised.
It would be wrong for the insurer to find unjustified grounds to reject the claim. As it is difficult to monitor the bad behavior of insurers, some countries have introduced the incontestability clause to govern life and health insurance policies. This is to prevent the insurer from finding flimsy excuse to reject claims due to alleged non-disclosure, especially if the consumer does not even know about the condition that they failed to disclose.
I hope that insurers and regulators understand the need for fair treatment of consumers and the correct application of the principles of utmost good faith and the incontestability clause. If consumers are unfairly treated, they will lose trust in insurance contracts.
Tan Kin Lian
It would be wrong for the insurer to find unjustified grounds to reject the claim. As it is difficult to monitor the bad behavior of insurers, some countries have introduced the incontestability clause to govern life and health insurance policies. This is to prevent the insurer from finding flimsy excuse to reject claims due to alleged non-disclosure, especially if the consumer does not even know about the condition that they failed to disclose.
I hope that insurers and regulators understand the need for fair treatment of consumers and the correct application of the principles of utmost good faith and the incontestability clause. If consumers are unfairly treated, they will lose trust in insurance contracts.
Tan Kin Lian
Incontestability clause in life and health insurance policies
Read this explanation about incontestability clause in a life insurance policy. And this explanation about its application to a health insurance policy.
I am not sure if there is an incontestability clause in Medishield or a Shield policy issued by an insurance company. There is need for this type of protection of consumers against unfair rejection of claims.
I am not sure if there is an incontestability clause in Medishield or a Shield policy issued by an insurance company. There is need for this type of protection of consumers against unfair rejection of claims.
Corporate e-mail address
I looked for the corporate e-mail address of MAS. They do not provide it. They provide the fax number and mailing address. I don't know why they prefer to have the inefficient way of communicating with the public?
MAS can provide a corporate e-mail address such as inbox@mas.gov.sg. They can have a staff to check the inbox regularly and forward the mail to the colleague handling the matter. They have to do the forwarding with mail received by post and fax anyway.
Some corporations allow the public to submit a web form. Maybe MAS has this web form. In most cases, the web form is difficult to find, difficult to use (e.g. ask for many unnecessary information), have a text box that is too small and do not allow attachments.
Why create so much trouble for everyone? Just provide a corporate e-mail address! I hope that corporate IT manager or admin managers are reading this blog!
Read this suggestion:
http://tankinlian.com/admin/file.aspx?id=47
Tan Kin Lian
MAS can provide a corporate e-mail address such as inbox@mas.gov.sg. They can have a staff to check the inbox regularly and forward the mail to the colleague handling the matter. They have to do the forwarding with mail received by post and fax anyway.
Some corporations allow the public to submit a web form. Maybe MAS has this web form. In most cases, the web form is difficult to find, difficult to use (e.g. ask for many unnecessary information), have a text box that is too small and do not allow attachments.
Why create so much trouble for everyone? Just provide a corporate e-mail address! I hope that corporate IT manager or admin managers are reading this blog!
Read this suggestion:
http://tankinlian.com/admin/file.aspx?id=47
Tan Kin Lian
Renovating a small industrial premise
I complained earlier that I had to spend $3,500 to get a qualified engineer to certify the fire safety for the renovation to my industrial premise of 1,600 sf. The contractor told me that if I did not get the stamp from the engineer, the building manager would not give approval for the work to start.
I now learned that the process took three weeks for the engineer to do the drawing. What a waste of time! What a waste of money! I am angry that that the fire safety regulations is adding a lot of unnecessary cost to me. It is why the cost of doing business is so high in Singapore - due to these wasteful requirements. I have written to the Pro-Enterprise Panel. I hope that they are reading this blog.
Tan Kin Lian
I now learned that the process took three weeks for the engineer to do the drawing. What a waste of time! What a waste of money! I am angry that that the fire safety regulations is adding a lot of unnecessary cost to me. It is why the cost of doing business is so high in Singapore - due to these wasteful requirements. I have written to the Pro-Enterprise Panel. I hope that they are reading this blog.
Tan Kin Lian
Unfair rejection of Shield claim
Here is another case of an unfair rejection of a shield claim. The rejection was based on a medical condition that occurred 5 year previously and was not of a long term nature. The agent had advised the consumer that it was not necessary to declare this condition. The consumer was insured with another company previously but made this change after getting the assurance of the agent.
www.tankinlian.com/latest.aspx
http://tankinlian.com/admin/file.aspx?id=347
My view
The agent is greedy to make a few dollars of commission on the Shield plan. The agent had harmed the consumer considerably through this irresponsible behavior.
www.tankinlian.com/latest.aspx
http://tankinlian.com/admin/file.aspx?id=347
My view
The agent is greedy to make a few dollars of commission on the Shield plan. The agent had harmed the consumer considerably through this irresponsible behavior.
Private hospitals
Malaysia is also facing problems with the charges in private hospitals. The journalist advice consumers to insist on itemised bills. SGEP
Best and Worst of Singapore in 2010
What are the best and worst of Singapore in 2010? Be ready for a surprise! Read SGEP
HDB prices and government subsidy
Are HDB flats being sold at subsidised prices? Here is an update. SGEP
Shark's Fin
This article contains photos of how sharks are being killed for their fins. The writer wants us to stop eating shark's fin.
http://tankinlian.com/admin/file.aspx?id=344
www.tankinlian.com/latest.aspx
http://tankinlian.com/admin/file.aspx?id=344
www.tankinlian.com/latest.aspx
Explanation on Financial Planning Projection
Here are some questions that the consumer may ask about the financial planning projection that has been printed from http://www.easysearch.sg/life21 and the expert who can provide the explanation.
www.tankinlian.com/latest.aspx
http://tankinlian.com/admin/file.aspx?id=342
www.tankinlian.com/latest.aspx
http://tankinlian.com/admin/file.aspx?id=342
TKL Website (www.tankinlian.com)
Do this survey. Thank you.
I created the TKL website using the PDF centric format in August 2010, slightly more than 4 months ago. I wish to share my experience with this style of website:
Positive
1. It is easy for me to create content in PDF and to upload them into the website. I create several PDF each week.
2. It is easy to search for the PDF using the keyword. I have to use it often to locate PDF to answer questions from my readers.
3. My reader are able to use the "Enquiry" tab to send questions to me. I receive a few questions daily.
4. It is fast to retrieve information from my website, using the web browser.
Negative
1. Some readers said that they had difficulty in reading the PDF on their mobile device. I am not able to find a solution to this weakness. My intent is that the PDF should be read on a web browser and not a mobile device. I have tried to use the HTML format, but I found it difficult to embed graphics in the HTML format under the database structure of this website.
Overview
I believe that a public or business corporation should have an actively managed website with dynamic content and allow the public to search for information in an easy and fast way. The PDF centric website seems to provide this capability. The ease of creating content on PDF should encourage the corporation to have an active website, compared to the traditional HTML website.
I welcome feedback and suggestions to be posted here or sent to kinlian@gmail.com.
Tan Kin Lian
I created the TKL website using the PDF centric format in August 2010, slightly more than 4 months ago. I wish to share my experience with this style of website:
Positive
1. It is easy for me to create content in PDF and to upload them into the website. I create several PDF each week.
2. It is easy to search for the PDF using the keyword. I have to use it often to locate PDF to answer questions from my readers.
3. My reader are able to use the "Enquiry" tab to send questions to me. I receive a few questions daily.
4. It is fast to retrieve information from my website, using the web browser.
Negative
1. Some readers said that they had difficulty in reading the PDF on their mobile device. I am not able to find a solution to this weakness. My intent is that the PDF should be read on a web browser and not a mobile device. I have tried to use the HTML format, but I found it difficult to embed graphics in the HTML format under the database structure of this website.
Overview
I believe that a public or business corporation should have an actively managed website with dynamic content and allow the public to search for information in an easy and fast way. The PDF centric website seems to provide this capability. The ease of creating content on PDF should encourage the corporation to have an active website, compared to the traditional HTML website.
I welcome feedback and suggestions to be posted here or sent to kinlian@gmail.com.
Tan Kin Lian
Private Shield and the well off
Are you well off?
If you are - it is all right to have private shield, as you can afford the higher premium and higher co-payment and you are assured of a better choice of doctors.
But, if you are not well off, and money is an issue, do read these FAQs:
http://tankinlian.com/admin/file.aspx?id=183
http://tankinlian.com/admin/file.aspx?id=229
http://tankinlian.com/admin/file.aspx?id=179
Do not be mistaken that private shield will cover more of your medical bills. They do not. With a private shield, you are likely to end up paying more for your medical treatment. Whether you really get better quality of treatment is a separate issue.
If you are - it is all right to have private shield, as you can afford the higher premium and higher co-payment and you are assured of a better choice of doctors.
But, if you are not well off, and money is an issue, do read these FAQs:
http://tankinlian.com/admin/file.aspx?id=183
http://tankinlian.com/admin/file.aspx?id=229
http://tankinlian.com/admin/file.aspx?id=179
Do not be mistaken that private shield will cover more of your medical bills. They do not. With a private shield, you are likely to end up paying more for your medical treatment. Whether you really get better quality of treatment is a separate issue.
Sunday, December 26, 2010
Suzy Orman and Life Insurance agents
Suzy Orman does not like life insurance agents. Watch this video for the reasons.
Life insurance - its useful role
Most of the life insurance policies sold in the market in Singapore are bad for consumers, as they take a lot of money and give a poor yield. But life insurance, as a tool for managing personal finances is good, provided that is is designed to give a fair yield to consumers. It has to be sold directly. See this article.
Find out more about the flexi-life policy in www.easysearch.sg/life21. You can also generate a financial plan and watch the tips on financial planning and insurance.
Find out more about the flexi-life policy in www.easysearch.sg/life21. You can also generate a financial plan and watch the tips on financial planning and insurance.
Motor insurance with Direct Asia
I recommended a friend to check with Direct Asia on the motor insurance for her car. She obtained a lower quote than her existing insurer and moved to Direct Asia. She found their service to be excellent. She preferred to deal directly with the insurance company, rather than go through an agent. See: www.directasia.com
Competing with the experts
When a consumer buys insurance, the consumer has the compete with the insurance experts, e.g. the actuaries, on what is a fair price for the insurance protection. The insurance company will naturally want to make a bigger profit, if they can, and will charge more to the consumer for the protection. There is no way that the consumer can compete with the insurance company as they have the statistics and the expert to do the calculation. The unwary consumer is likely to pay too much and get a bad deal.
The best protection for the consumer is:
The best protection for the consumer is:
- Deal with an insurance company that is pro-consumer, i.e. they will charge a fair price. An example is an insurance company that is not profit-driven. Today, it is difficult to find such a company in Singapore.
- Buy a standard insurance policy that is offered on similar coverages by several companies. The market competition will force the company to lower their margin and make a modest profit. Examples are term insurance, motor insurance, personal accident insurance and fire insurance.
- Avoid a specially designed product, under an exotic name, that is marketed to you by an insurance agent, adviser or consultant. This applies especially to a life insurance policy that combines protection with investment of savings. You can be sure that this policy cannot be compared, and is likely to be highly priced to give a big margin to the agent and the insurance company.
Tan Kin Lian
Accept low yield or take market risk
We are in a period of low interest rate. Consumers should accept this low yield and do not be greedy. If you want higher interest rate, take the risk of investing in an indexed fund, comprising of equities. Accept the volatility and average out the good and bad years.
The worse investment decision is to buy structured products or unregulated products that seemed to promise high yield. The investor is likely to fall into a trap from cheats and scams or from financial institution that take off a large margin on the structured products and do not tell the real risk of these products.
Do not believe any marketing person who assure you that you can get a good return without risk. They are likely to tell you a lie. When you find out later, you are not able to hold them accountable, as they will deny the statement.
You should read my book, Practical Guide on Financial Planning or attend the educational talks organised by FISCA. If you do not put in the time to be educated, be prepared to lose a lot of money from bad investments!
Tan Kin Lian
The worse investment decision is to buy structured products or unregulated products that seemed to promise high yield. The investor is likely to fall into a trap from cheats and scams or from financial institution that take off a large margin on the structured products and do not tell the real risk of these products.
Do not believe any marketing person who assure you that you can get a good return without risk. They are likely to tell you a lie. When you find out later, you are not able to hold them accountable, as they will deny the statement.
You should read my book, Practical Guide on Financial Planning or attend the educational talks organised by FISCA. If you do not put in the time to be educated, be prepared to lose a lot of money from bad investments!
Tan Kin Lian
Risk of long duration bonds
If current interest rate is 0.5% and government bonds for 10 years give a yield of 1.5%, which is better for the investor?
If interest rate remains at the low level for the next 10 years, it is better to invest in the government bonds and earn an additional 1% interest yearly. However, the risk to the investor is an increase in interest rate. If the interet rate increase to 3% per annum, the investor is stuck with 1.5% interest on the government bond for the remaining period. If the investor decides to sell the government bond at that time, there will be a capital loss of about 1.5% times the remaining period. If the remaining period is 8 years, the capital loss can be 12% (or thereabouts). The loss is higher, if the yield goes up to 5% (say).
It is difficult to predict the future interest rate. Even the the fund managers or analysts or the government leaders are not able to predict this trend. So, the investor cannot make this prediction. They should not ask other people, as nobody knows.
If you decide to invest in long term government bonds during a period of low interest rate, you should be prepared to wait out the entire period at the current yield. If you do not want to take this risk, you should invest in a bond for a short duration, say 3 to 5 years, even if you get a lower interest rate compared to long duration bonds.
Tan Kin Lian
.
If interest rate remains at the low level for the next 10 years, it is better to invest in the government bonds and earn an additional 1% interest yearly. However, the risk to the investor is an increase in interest rate. If the interet rate increase to 3% per annum, the investor is stuck with 1.5% interest on the government bond for the remaining period. If the investor decides to sell the government bond at that time, there will be a capital loss of about 1.5% times the remaining period. If the remaining period is 8 years, the capital loss can be 12% (or thereabouts). The loss is higher, if the yield goes up to 5% (say).
It is difficult to predict the future interest rate. Even the the fund managers or analysts or the government leaders are not able to predict this trend. So, the investor cannot make this prediction. They should not ask other people, as nobody knows.
If you decide to invest in long term government bonds during a period of low interest rate, you should be prepared to wait out the entire period at the current yield. If you do not want to take this risk, you should invest in a bond for a short duration, say 3 to 5 years, even if you get a lower interest rate compared to long duration bonds.
Tan Kin Lian
.
Investing in equities
Many consumers find it difficult in deciding on which stock to invest in. My advice to them is to invest in an indexed fund or an exchange traded fund. They should not worry about stock picking (which is difficult) and market timing (which is also difficulty). If they are not sure about the timing, they can invest in several installments based on the principle of dollar cost averaging. Read this FAQ
Apple iPad
This writer explains why he is NOT buying the Apple iPad
www.easyapps.sg/sgep/latest.aspx
http://online.wsj.com/article/SB10001424052748704259704576033941846942596.html?mod=rss_Technology
I agree with his reasons.
www.easyapps.sg/sgep/latest.aspx
http://online.wsj.com/article/SB10001424052748704259704576033941846942596.html?mod=rss_Technology
I agree with his reasons.
Saturday, December 25, 2010
Understand your biggest risk
Your biggest risk is NOT premature death. It is NOT critical illness. It is earning a poor yield due to the bad life insurance products sold to you by an insurance agent (who wants to earn a fat commission from selling the product). By earning a poor yield, you will not have sufficient savings for retirement, even though you have been frugal and have saved as much as you can during your working life.
Your priority is to get a good yield on your investment, at least 2% higher than inflation. You should avoid life insurance products that take away 40% or more of your accumulated savings. You can buy term insurance for 25 years to cover premature death and earn a good yield by investing in a ETF. It is explained in my book, Practical Guide on Financial Planning. You can also read this article.
Tan Kin Lian
Your priority is to get a good yield on your investment, at least 2% higher than inflation. You should avoid life insurance products that take away 40% or more of your accumulated savings. You can buy term insurance for 25 years to cover premature death and earn a good yield by investing in a ETF. It is explained in my book, Practical Guide on Financial Planning. You can also read this article.
Tan Kin Lian
Personal Financial Plan [3]
I encourage consumers to carry out a personal financial plan, using the calculator shown in this website, www.easysearch.sg/life21. The key feature of this calculator is:
Tan Kin Lian
- It is free (unlike the fee charged by a financial adviser)
- It is easy to understand
- It shows you the projected income, after adjusting for inflation
- It highlights the difference in your income, based on a 2% difference in yield
- It shows the importance of getting a yield that is 2% above inflation
- It show the danger of buying a life insurance policy that gives you a poor yield, due to high deduction.
Tan Kin Lian
Singapore is the happiest place on Earth
Do you agree with this view expressed by an author of a newly published book? Read SGEP for an alternative view. http://www.temasekreview.com/2010/12/24/singapore-is-happiest-place-in-asia/
Art of being minimalist
I received this message from a reader.
Dear Mr. Tan
In these days of blatant consumerism, especially in Spore, and during this holiday season, please find attached an e-book for your reading pleasure...
The e-book can be viewed here:
Term insurance to age 99
I wrote this letter to the Straits Times to comment about the comparison between whole life and term insurance to age 99. I said that this comparison is misleading to consumers. The Straits Times did not publish my letter.
www.tankinlian.com/latest.aspx
http://tankinlian.com/admin/file.aspx?id=339
The insurance agents used this type of comparison to mislead the public to buy whole life or investment linked insurance. It is disappointing that the Sunday Times used the same approach.
Tan Kin Lian
www.tankinlian.com/latest.aspx
http://tankinlian.com/admin/file.aspx?id=339
The insurance agents used this type of comparison to mislead the public to buy whole life or investment linked insurance. It is disappointing that the Sunday Times used the same approach.
Tan Kin Lian
An unusual cautious view for 2011
Many people are predicting better times ahead. But this writer has sounded a note of caution. Read his views in SGEP.
http://www.ritholtz.com/blog/2010/12/10-reasons-to-be-cautious-for-the-2011-market-outlook/
http://www.ritholtz.com/blog/2010/12/10-reasons-to-be-cautious-for-the-2011-market-outlook/
WikiLeaks and Damage Control
While Singaporeans largely blame WikiLeaks,a minority is attributing the underlying cause of recent problems
to a “condescending attitude” towards friends and neighbours less successful than them. Read SGEP
Friday, December 24, 2010
Project work for Family Life game
I need an artist to draw cartoons and an expert to create animated graphics. See details here: http://tankinlian.com/admin/file.aspx?id=337
Here are the details of the Family Life game.
Here are the details of the Family Life game.
High income and integrity
A young graduate is torn between the attraction of becoming a financial adviser, with the promise by the agency manager of 3 to 4 times of the typical earnings, and the knowledge that she might be causing harm to her friends and relatives. The agency manager had advised her to approach the people she knows and get them to switch to the investment-linked policy that is actively sold by their insurance company. She realized that this policy has a high deduction from the consumers.
She asked for my views on this important choice. Should she take up the job to be a financial adviser?
REPLY
The easiest way to earn a lot of money is to sell products that give a large margin to the seller (i.e. the financial adviser and the insurance company), but this must surely be at the expense of the buyer. There is no magic that can give a good income to the seller without harming the buyer.
Some new financial advisers do not know that they are doing harm to their friends and family members, because they have been misled by the agency manager. Some financial advisers know the truth, but they only take care of their own interest and do not bother about the people that they are harming.
It is easy to fool consumers to switch to a new investment-linked policy. I have seen many cases where the financial adviser tells half truths and blatant lies to an unsavvy customer, such as:
You have to decide for yourself which route you wish to take. It depends on your conscience. I believe that it is better to earn less, but in an honest way. You can also talk to your parents and get their advice.
Tan Kin Lian
She asked for my views on this important choice. Should she take up the job to be a financial adviser?
REPLY
The easiest way to earn a lot of money is to sell products that give a large margin to the seller (i.e. the financial adviser and the insurance company), but this must surely be at the expense of the buyer. There is no magic that can give a good income to the seller without harming the buyer.
Some new financial advisers do not know that they are doing harm to their friends and family members, because they have been misled by the agency manager. Some financial advisers know the truth, but they only take care of their own interest and do not bother about the people that they are harming.
It is easy to fool consumers to switch to a new investment-linked policy. I have seen many cases where the financial adviser tells half truths and blatant lies to an unsavvy customer, such as:
- They can earn 9% projected return (This is not true, as the 9% is just an assumption which is too optimistic in the uncertain environment today)
- The adviser does not tell the client that there is a big deduction that can reduce the yield of 9% to 4% or lower. If the yield of 9% is too optimistic, the net yield will be terribly low.
You have to decide for yourself which route you wish to take. It depends on your conscience. I believe that it is better to earn less, but in an honest way. You can also talk to your parents and get their advice.
Tan Kin Lian
Video clips and animated graphics
I am looking for a knowledge person to make video clips of 10 to 15 secs of events. The clip can be a video or animated graphic with sound and should be less than 0.5 to 1 M. It can depict lifetime events such as wedding, birth of baby, getting a job, getting fired, etc. It should be in a format that can be played on a mobile phone. Interested, please write to kinlian@gmail.com.
Note. These video clips are to be used for the mobile game called Family Life, as explained here: http://tankinlian.com/admin/file.aspx?id=335
Note. These video clips are to be used for the mobile game called Family Life, as explained here: http://tankinlian.com/admin/file.aspx?id=335
Thursday, December 23, 2010
Sometimes, all that glitters ...
Gold investment firm placed on MAS' Investor Alert List
Former NTUC Income chief executive and consumer rights advocate Tan Kin Lian said such gold investment schemes could be operating on the basis that money from later investors is used to pay the earlier ones.
He also urged for greater regulation, saying: "The Government should make it illegal for any company to operate an investment scheme without getting a licence from MAS. They should not be allowed to collect deposits or investments and promise a high return, when they do not have the assets to back up their liabilities."
http://www.todayonline.com/Singapore/EDC101223-0000225/Gold-investment-firm-placed-on-MAS-Investor-Alert-List
Former NTUC Income chief executive and consumer rights advocate Tan Kin Lian said such gold investment schemes could be operating on the basis that money from later investors is used to pay the earlier ones.
He also urged for greater regulation, saying: "The Government should make it illegal for any company to operate an investment scheme without getting a licence from MAS. They should not be allowed to collect deposits or investments and promise a high return, when they do not have the assets to back up their liabilities."
http://www.todayonline.com/Singapore/EDC101223-0000225/Gold-investment-firm-placed-on-MAS-Investor-Alert-List
Offering packages at Temple
Hi Mr. Tan,
I would like to share with readers and hopefully, authority can pick up the message. I went to 财神庙 at sembawang for "return prayers" to 太岁. I noticed that the offering packages are at $10 per packet. I've 5 packets to buy. I remember other temples used to offer just like $2 per packet. Hence total amount paid today is about $50.00. I could have paid $10.00 in other temples. Just feel that a temple should review the sales price of the offering packages and offer wider selection, e.g. $5, $2 packages for devotees/visitors.
Thanks,
Sembawang resident
I would like to share with readers and hopefully, authority can pick up the message. I went to 财神庙 at sembawang for "return prayers" to 太岁. I noticed that the offering packages are at $10 per packet. I've 5 packets to buy. I remember other temples used to offer just like $2 per packet. Hence total amount paid today is about $50.00. I could have paid $10.00 in other temples. Just feel that a temple should review the sales price of the offering packages and offer wider selection, e.g. $5, $2 packages for devotees/visitors.
Thanks,
Sembawang resident
Mobile App - Family Life
This application is being developed to let the player experience the important decisions that affect the work and family life.
It will be good for the young people in Singapore. It may even be an interesting mobile app, like Second Life.
Property agent for Rajah Tower
My friend wishes to get a property agent to sell his apartment in Rajah Towers. If you know of any agent who specializes in this condo, please ask him to contact me at kinlian@gmail.com.
Prepare Your Financial Plan [2]
You can prepare your financial plan in this website, www.easysearch.sg/life21. There were 30 requests on 22 December. This tool has the following special features:
I will get investors to set up a new life insurance company to market the Flexi-Life product that is shown in this website. You can view the 3 videos to see how this policy works from the perspective of the consumer.
- Adjust for the impact of inflation
- Shows you the amount that you can get on retirement
- Shows the impact caused by a different in investment yield
- Highlights the importance of getting a yield that is 2% more than inflation
- Allows you to do further calculation of your regular savings, to achieve your retirement goal.
You can also see the Tips on Financial Planning and Buying Insurance in this website.
I will get investors to set up a new life insurance company to market the Flexi-Life product that is shown in this website. You can view the 3 videos to see how this policy works from the perspective of the consumer.
Tan Kin Lian
Wednesday, December 22, 2010
Prepare Your Financial Plan
You can use this calculator to project your savings to retirement and the drawdown of your savings to give a monthly income. This amount is adjusted for inflation. The amount of monthly income that you see will have the same value as today.
www.easysearch.sg/life21
http://projects.easyapps.sg/life21d/Planning.aspx
You have to provide your actual e-mail address for the plan to be sent to you. It will not be displayed on the browser.
www.easysearch.sg/life21
http://projects.easyapps.sg/life21d/Planning.aspx
You have to provide your actual e-mail address for the plan to be sent to you. It will not be displayed on the browser.
Pro-Enterprise Panel
I gave my feedback to the Pro-Enterprise Panel about the charges for the fire safety requirements. There was no reply for one week. I mention in my blog that I wanted to send them another feedback and that I do not expect any reply from them.
I just received an acknowledgement from the secretariat to my first feedback that they are contacting the Fire Safety department. Perhaps my blog did the trick in getting the reply?
I just received an acknowledgement from the secretariat to my first feedback that they are contacting the Fire Safety department. Perhaps my blog did the trick in getting the reply?
One-sided stories and half truths
A financial adviser wrote to me to complain that my postings on rejection of private Shield claims are negative and one sided, and that it did not contain details of the reasons for the rejection.
I am not able to post the details as the claimant usually does not wish to be identified. In some cases, the claims are still under appeal, and they do not wish to damage their chances. They do not wish their friends or family to know of their difficulty.
On the contrary, I know of many instances where the insurance agents tell one side stories, exaggerations and half truths to get consumers to buy life insurance or private Shield insurance that are a waste of money. These are told verbally to the consumers, without any written record. The agents are more likely to be the people who are responsible for one-sided stories.
Here are the half truth stories.
Tan Kin Lian
I am not able to post the details as the claimant usually does not wish to be identified. In some cases, the claims are still under appeal, and they do not wish to damage their chances. They do not wish their friends or family to know of their difficulty.
On the contrary, I know of many instances where the insurance agents tell one side stories, exaggerations and half truths to get consumers to buy life insurance or private Shield insurance that are a waste of money. These are told verbally to the consumers, without any written record. The agents are more likely to be the people who are responsible for one-sided stories.
Here are the half truth stories.
Tan Kin Lian
Test your skill as an Entrepeneur
Take part in this competition every night AT 8, 9 and 10 pm
http://tankinlian.blogspot.com/2010/12/best-competition.html
http://tankinlian.blogspot.com/2010/12/best-competition.html
Cost of medical report - who pays?
This letter was printed in the Straits Times Forum.
Some consumers have to pay $90 or more to get a medical report that is usually required by another party, e.g. the insurance company, employer or for National Service deferment.
Tan Kin Lian
Some consumers have to pay $90 or more to get a medical report that is usually required by another party, e.g. the insurance company, employer or for National Service deferment.
I suggest that the government should make it clear that the cost of these requirements should be borne by the party that needs the report, and not the consumer.
These big organisations that ask for the medical report are in a better position to negotiate down the fee for the medical report, or to change their requirements to reduce the cost of the report. They should not impose expensive requirements to be borne by the hapless consumers.
Tan Kin Lian
Avoid exclusions on your private Shield
Dear Mr. Tan,
NTUC offered to upgrade my Medishield, but with exclusion in 2008. I rejected it as I believe this exclusion may lead to debatable claims in the future. However, I am now under the basic plan which is not restricted by the exclusion. What I am looking for is to allow me to upgrade my medi-shield plan without the exclusion and also, can extend the coverage with rider if possible. If NTUC Income is not prepare to do anything about it, I don’t see any options at all… Do advise me if there is any suggestions.
REPLY
My view is that it is better for you to say with basic Medishield, rather than ask for an upgrade to a private shield. Even if Income is willing to accept you with less onerous restrictions, it may not be worth while for you to face future uncertainty. Read this FAQ.
.
REPLY
My view is that it is better for you to say with basic Medishield, rather than ask for an upgrade to a private shield. Even if Income is willing to accept you with less onerous restrictions, it may not be worth while for you to face future uncertainty. Read this FAQ.
Learning Tips - Nightlife in Singapore
Where are the interesting night life in Singapore? You can find out from Learning Tips. This app is now available on Windows Phone, which you can download from Microsoft Marketplace. You can also learn from the tips on other topics covering financial planning, insurance, health and tourism. Watch the video of Learning Tip on the web and on the Window Phone.
Tuesday, December 21, 2010
Financial Planning - do your plan
This video shows how to prepare the financial plan and to understand the results. It is most suitable for young people who has just started work, or has been working for a few years. You should use this tool to prepare your financial plan before you put your savings in a life insurance policy (that gives you a poor yield).
You can do your financial plan in this website, www.easysearch.sg/flexilife.
You can do your financial plan in this website, www.easysearch.sg/flexilife.
Fight against True Spa, True Yoga...all True Group biz..
Hi Sir,
Here is an update on the True Spa Victims case for your update on your blog.
http://news.asiaone.com/News/Mailbox/Story/A1Story20101221-253869.html
spa victim
Here is an update on the True Spa Victims case for your update on your blog.
http://news.asiaone.com/News/Mailbox/Story/A1Story20101221-253869.html
spa victim
Easy to make a death claim under Term Insurance
Hi Mr Tan
I have been following your approach of doing DIY for my term coverage, SAF Term Insurance and shield plan, I find that I have much left over to invest in STI ETF. I am very pleased with this approach indeed.
One thing I would like to find out is the ease of claiming in case of death and illness. For example, if something were to happen to me, will it be very tough for my spouse to handle all the claims? Not forgetting that she will be in much emotional distress at this stage. Based on your experience, have you encountered any person, who is still in the right frame of mind, while in mourning of a loved ones, to go to the insurance company customer service centre to do claim?
REPLY
Making a death claim should be quite easy for the dependents. Many people handle it daily. There is really no hurry - so it can be done after all the other arrangements have been completed. No need to worry about it.
An underground city
Mike Hansford sends this collecting of interesting photos of an underground city in Turkey. You can view it without actually visiting this site.
http://tankinlian.com/admin/file.aspx?id=331
http://tankinlian.com/admin/file.aspx?id=331
Images of the past
My friend, Mike Hansford, collects pictures of interesting places around the world. Here are some images from the past.
http://tankinlian.com/admin/file.aspx?id=330
http://tankinlian.com/admin/file.aspx?id=330
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