Consumer Guide to Insurance

The slides have been updated to include more topic. The talk will 
become more interesting. Read the slides now and enrol for the talk.


Did you buy the right life insurance policy? What do you terminate
a bad policy and take a loss now? 
You can find the answer to these questions at the FISCA
educational talk - Consumer Guide to Insurance.


Here are the slides for the talk
http://tankinlian.com/FramePDF.aspx?ID=666

You can register for this talk here:
http://easyapps.sg/assn/Org/Event.aspx?id=5

Review the CPF minimum sum scheme

27 July 2012 (not published)

Editor, Forum Page
Straits Times

A REVIEW OF THE MINIMUM SUM SCHEME

When the CPF Minimum Sum Scheme was introduced about 25 years ago,  it was kept at a 

modest level. Many members were able to take out a meaningful portion of their CPF savings on 

reaching age 55, sum after setting aside the required sum for the future.

Over the years, the minimum sum had increased significantly. Many members are not able to 

take out any CPF savings on reaching age 55. The lower income members looked forward to getting 

some of the savings for a long awaited vacation or to pay off some debts.

When told that the minimum sum is needed to provide for their future, they argued that

their immediate cash needs are more pressing. After all, it is their own 

money and they should be allowed to decide on their priorities.

I suggest that the strong views of these people be considered. Perhaps they should be allowed

to withdraw up to 30% of their accumulated savings on the recommendation of an approved 

financial planner  who  has gone through a financial needs analysis with the applicant.

Tan Kin Lian

Nostalgia - looking back 20 years

It seems that life was better two decades ago.
http://theonlinecitizen.com/2012/07/why-i-prefer-the-80s-90s/

Provide better health care

Lucky Tan gave his view on providing better health care for the people. I agree with his philosophy and approach.
http://singaporemind.blogspot.sg/2012/03/sdps-healthcare-proposal.html

Investment Performance of GIC

Read my view on the investment performance of GIC (Singapore's wealth fund) in
http://easyapps.sg/assn/Org/Information.aspx?id=5

An excessive sentence

I do not wish to show any disrespect to the court or to the judge or be accused of "scandalizing the court", but I feel compelled to express an honest personal opinion, without any ill intent.

I find the sentence of 12 weeks jail meted out to Mr. Howard Shaw to be excessive (article here). He has given his reason for his mistake (in engaging in sex with an under-aged girl). He should have been given the benefit of the doubt, unless there are strong evidence to the contrary.

I hope that he will be successful in his appeal and the jail sentence should be squashed. I do not wish to condone the wrong doing, but I strongly feel that the punishment must befit the crime and that, under the circumstances, the sentence had been excessive.

I write this blog to express my empathy to Mr. Howard Shaw and his family in their time of distress, and to wish them all the best for the future.

Hobbies for retirees

Hi Kin,

Just writing to say how much I enjoy reading your site. We at Lifeinsurancequotes.org recently published an article, “8 Perfect Hobbies for Retirees”, that we think is tailor-made for your readers. Here’s the link: (http://www.lifeinsurancequotes.org/8-perfect-hobbies-for-retirees/)

If you agree, it’s our hope that you’d be willing to pass it to your readers. Whatever you do, keep up the great work! We’re big fans.

Mediacorp ME Club

Well done to Mediacorp for this creative idea of setting up a club, called the ME Club. It is excellent execution and to give a reward for their loyal fans. Wish them all the best!
http://www.todayonline.com/Singapore/EDC120730-0000022/Reward-for-loyalty--A-date-with-celebrity

Leadership must be a conversation

I like this article in Today paper.
http://www.todayonline.com/CommentaryandAnalysis/Commentary/EDC120730-0000003/Leadership-must-be-a-conversation

I hope that our leaders are reading it. In case they forget, the conversation must be with the ordinary people and not with just one man.

Invest in gold

Should you invest a certain portion of your portfolio in gold? My view is "yes". Read my comments in http://easyapps.sg/assn/Org/Information.aspx?id=5

Posting in FISCA.sg
I agree with the recommendation of this analyst to invest 10% to 30% in gold, as a hedge against the possible turmoil in the financial market. As the price of gold is 15% below its recent peak (US$1,900), it is quite a safe entry point

Review the COE bidding system

28 July 2012 

Editor, Voices
Today Paper

I agree with the decision of the Land Transport Authoirty (LTA)
to take taxis off the bidding system for the Certificate of Entitlement (COE).

This bidding system which was introduced to control the growth of the 

vehicle population has also produced erratic and undesirable results.It has 

also given opportunity for speculators, mainly car dealers, to profit at 

the expense of consumers.

Several attempts were made over the years to tweak the system to

address the undesirable outcomes. It is time to look into the underlying flaws 

of the system and to look for a better alternative.

I suggest the following approach:

• The COE prices should be fixed by the LTA taking into
  account the supply and demand
• If the demand for the COE exceed the supply, the COEs will be
  allotted by ballot.
• To prevent speculation, any transfer of COE within one year
  should be subject to payment of a fee

Let us have responsible people make the judgement on the appropriate COE 

price, rather than leave this matter to the vagrancy of the market and

speculators.

Tan Kin Lian

UPDATE
Read this view by Chua Chin Leng
http://mysingaporenews.blogspot.sg/2012/07/when-tolerance-becomes-unbearable.html

Please in my backyard (PIMBY)

How to get the community to accept public facilities in their backyard. Use better communication!
http://www.todayonline.com/CommentaryandAnalysis/Commentary/EDC120730-0000005/Goodbye-NIMBY,-hello-PIMBY

MyRetirement Policy

Dear Sir,

I wish to seek your advice on the MyRetirement policy by Aviva being sold in DBS. My wife and i are actively searching for places to grow our nest egg in order to retire comfortably. We were enticed into the DBS branch at IMM and it seem a deal too good to be true.

It is a "8-pay" endowment policy whereby, we will have to pay monthly or annually a premium for a total of 8 years. After which, we will not have to pay any more and it is this period when we dont pay till our retirement age, 50, 55, 60, 65. It seems the later we claim back our policy, the lessen a premium we pay. 

Our policy was like, we pay monthly 833 for 8 years and we will get a payout of 1,000 monthly for 10years from 50-60, 55-65. there is also a lump sum payout after that.

Can you help to advise if the policy is worth considering? If all these savings and endowments are not useful, can you help to point us to the right investment direction? Many thanks !

REPLY

You can use an Excel spreadsheet to calculate how much your money will earn for you if you are able to earn a yield of 4% on your investments. You can credit your yearly savings with interest at 4% and draw out the payout yearly based on the illustration giveny by Aviva. If there is still remaining money after the last payout, it means that you can get a better outcome by investing on your own to earn 4%. 

To learn about a better way to invest the money, you can attend the talks given by FISCA, http://easyapps.sg/assn/Org/Event.aspx?id=5

How to buy TKL books

Hi Mr Tan 

I am a business student from NTU and I am highly interested in purchasing some of the books written by Mr Tan. Unfortunately, the additional $3 handling fee is quite a turn-off. May I know if there would be any opportunities to buy the book directly from a bookshop or from the store? Thank you.

REPLY

You can come and buy them from my office and save on the handling fee.

My office address and direction can be found at www.tankinlian.com/contact.aspx

Loss on life insurance policy

26 July 2012 

Editor, Forum Page
Straits Times

Mr. Neo Chern Siang (ST 24 July) said that policyholders who wish to discontinue their life insurance policies have the option to take a policy loan or to convert to a paid-up policy, instead of surrendering their policy.

These other options generally do not help a policyholder who is financially stressed. The policy loan carries a high interest rate, and can eat away the cash value quite quickly. The paid-up policy generally gives a poor yield on the cash value.

The root of the problem is that a life insurance policy is an unsuitable tool for financial planning in an era where jobs and financial needs are uncertain. If the policyholder cannot pay the regular premium, the policy has to be surrendered at a big financial loss to the consumer.

This financial loss is caused by the high distribution cost that is taken away from the premiums paid by the consumer. This distribution cost can amount to almost two years of the premiums!

Financial advisers and insurance agents are doing a disservice to the young people by asking them to commit to the inflexible saving plan in the form of a life insurance policy that has a large front-end charge to pay for the high cost of distribution. Like Mr. Neo, many of them have to face the hard decision of taking a loss on their hard earned savings.

Even if the policyholders continued the regular savings to the maturity of their policies, they get a poor return on their savings, due to the high charges that were usually not explained to them upfront. When they found out about these charges at a later date, there were already locked into the policy.

A better choice is for the consumer to buy a term insurance policy to provide the protection against premature death and to invest their savings in other forms that can give a higher return that provided by the traditional or unit linked policy.

I hope that the Financial Advisory Industry Review (FAIR review) set up by the Monetary Authority of Singapore will look into this issue of the losses on terminated life insurance policies and find effective ways to address it.

Mr. Tan Kin Lian
President
Financial Services Consumer Association

Test on Financial Planning and Insurance

Test your knowledge of financial planning and insurance. See if you know the correct answer to these 10 questions.
http://tankinlian.com/FramePDF.aspx?ID=667

Autumn Leaves in French

Sung by Yves Montard.
http://www.youtube.com/watch?v=sa9VCVWOjjY

Sung by Edith Piaf (English and French)
http://www.youtube.com/watch?v=wj9QTpzIcGU

Sung by Petula Clark
http://www.youtube.com/watch?v=mbBxYa4PzVE

Lyrics

C'est une chanson, qui nous ressemble
Toi tu m'aimais et je t'aimais
Nous vivions tous, les deux ensemble
Toi que m'aimais moi qui t'aimais
Mais la vie sépare ceux qui s'aiment
Tout doucement sans faire de bruit
Et la mer efface sur le sable les pas des amants désunis

Translation (Google Translate)

It's a song that we like
You loved me and you I loved you
We all lived, the two together
That you loved me me who loved you
But life separates those who love
Softly without a sound
And the sea erases on the sand the footsteps of separated lovers

Empty seats at Olympic Games

The organizing committee of the London Olympic Games is embarrassed about the empty seats, as the public seats had been sold out early. They suspect that these are seats allocated to sponsors that did not take up the tickets.
http://www.todayonline.com/Sports/EDC120729-0000021/London-organisers-investigating-empty-seats

This situation is experienced by many organizers of big events. By giving out the batches of tickets to sponsors, there is a high risk that the tickets could be lost or distributed. A better way is to distribute the vouchers to the sponsors, who pass the vouchers electronically to their guests. The guests can use the vouchers to claim the physical tickets.

The chance of the ticket being lost is reduced. If the holder reports a ticket to be lost, a replacement can be given for a fee.

Quality of Life and Fertility

AWARE said that improving fertility requires the quality of life to be improved. I agree with this view.
http://theonlinecitizen.com/2012/07/aware-improving-fertility-requires-re-examining-all-policies-that-affect-quality-of-life-in-singapore/

Forex trading

You can learn forex trading without paying a hefty fee.
http://tankinlian.com/FramePDF.aspx?ID=594