FROM A LADY COLLEAGUE
I wish to give my views on the pros and cons of getting married early.
I have read your blog and agree that getting married early does have its advantages. I married at the age of 23, gave birth at 25, completed my Masters in Business (Accounting) at 27, gave birth to my second one last year at 31.
Pros:
Able to start family earlier therefore able to plan for retirement better as the age whereby children reach university level does not coincide with retirement age.
After we settle down, time to concentrate on career.
Cons:
Friends and colleagues about the same age are able to enjoy themselves without the commitment as being married, we are tied down. Getting married earlier, financially not strong. Buying house is deferred.
On the whole, I still encourage people to get married early. I have been the envy of many people as my elder son is already in Primary 1. While other people about my age just gave birth to their first child or still have not given birth, I already have my second child.
Getting married and starting family early is like tasting bitter first and then tasting the sweetness at the end of the life journey.
Saturday, July 02, 2005
Sunday, June 26, 2005
Car Navigation System - now available for older cars
You may have seen this system in expensive new cars in Singapore or overseas.
The car naviation is now available for installation into older cars. I have recently installed the system in my 8 year old car, at a cost of $2,000.
The system is useful. It plans my route and has a voice system to alert me to make the correct turns. I use the system even if I am travelling on familiar roads, as it reminds me (in case my thought strays).
We plan to install this system on the shared cars that is being operated by our car coop. If you are interested, you can try the system on our coop ars.
We will make the shared cars available for people to drive into Malaysia. The navigation system now has the maps of Johore Bahru. It will be extended towards the whole of Malaysia towards the end of this year.
The car naviation is now available for installation into older cars. I have recently installed the system in my 8 year old car, at a cost of $2,000.
The system is useful. It plans my route and has a voice system to alert me to make the correct turns. I use the system even if I am travelling on familiar roads, as it reminds me (in case my thought strays).
We plan to install this system on the shared cars that is being operated by our car coop. If you are interested, you can try the system on our coop ars.
We will make the shared cars available for people to drive into Malaysia. The navigation system now has the maps of Johore Bahru. It will be extended towards the whole of Malaysia towards the end of this year.
Reply to: Beware pitfalls of reverse mortgage
Editor
Forum Page
Staits Times
I refer to the letter from Mr Chong Kiam Khiun entitled 'Beware pitfalls of reverse mortgage' (ST, 24 Jul).
NTUC Income offers a reverse mortgage to assist a retiree to receive a monthly income to meet the living expense. The monthly income is taken as a loan charged against a private property and accumulates interest at a modest rate.
The loan is usually repaid at a future date when the retiree sells the property and find another place to live. Alternatively, on death of the retiree, the property is sold to repay the loan and the balance of the proceeds is returned to the estate.
To prevent any misunderstanding on the terms of the loan, we have taken the following measures over the years:
- We explain the working of the reverse mortgage to the retiree
- We ask a family member to acknowledge the retiree's acceptance of the agreement.
- The retiree and a family member have to attend the lawyer's office to execute the agreement
We also send an annual statement to the retiree. Details of the accumulated loan and other particulars, including the prevailing interest rate, are shown in the statement.
In the case quoted by Mr Cheong, the reverse mortgage was taken in 1997. At that time, the agreement was signed in the presence of another family member. Unfortunately, due to the drop in the price of the pledged property, the outstanding loan has reached the 80% level faster than anticipated. The retiree and family member are now discussing with us on the best arrangement to repay the loan. As there is still a buffer of 20%, we have sufficient time over the next two years to work out the best alternative.
The reverse mortgage has been helpful to many people. However, as this example shows, there is a need for the retiree to understand the terms and to make the appropriate adjustment to meet changing circumstances.
Tan Kin Lian
Chief Executive Officer
NTUC Income
Forum Page
Staits Times
I refer to the letter from Mr Chong Kiam Khiun entitled 'Beware pitfalls of reverse mortgage' (ST, 24 Jul).
NTUC Income offers a reverse mortgage to assist a retiree to receive a monthly income to meet the living expense. The monthly income is taken as a loan charged against a private property and accumulates interest at a modest rate.
The loan is usually repaid at a future date when the retiree sells the property and find another place to live. Alternatively, on death of the retiree, the property is sold to repay the loan and the balance of the proceeds is returned to the estate.
To prevent any misunderstanding on the terms of the loan, we have taken the following measures over the years:
- We explain the working of the reverse mortgage to the retiree
- We ask a family member to acknowledge the retiree's acceptance of the agreement.
- The retiree and a family member have to attend the lawyer's office to execute the agreement
We also send an annual statement to the retiree. Details of the accumulated loan and other particulars, including the prevailing interest rate, are shown in the statement.
In the case quoted by Mr Cheong, the reverse mortgage was taken in 1997. At that time, the agreement was signed in the presence of another family member. Unfortunately, due to the drop in the price of the pledged property, the outstanding loan has reached the 80% level faster than anticipated. The retiree and family member are now discussing with us on the best arrangement to repay the loan. As there is still a buffer of 20%, we have sufficient time over the next two years to work out the best alternative.
The reverse mortgage has been helpful to many people. However, as this example shows, there is a need for the retiree to understand the terms and to make the appropriate adjustment to meet changing circumstances.
Tan Kin Lian
Chief Executive Officer
NTUC Income
Reply to "Exercise caution when buying ILPs: Income chief "
Editor
Forum Page
Straits Times
I refer to the article entitled "Exercise caution when buying ILPs: Income chief " (Straits Times, 23 June 2005).
Your correspondent has quoted me correctly on most parts of the article. However, I have been quoted out of context on the following point:
Mr Tan suggested that term insurance without any investment component may be a better option. 'Buy term and invest the difference so that you can avoid paying the commission payable to agents' he said.
I wish to clarify that the insurance adviser receives a commission on the premium paid under the term insurance policy.
In my view, the adviser should also be paid to advise the policyholder on insurance and financial planning. This is a valuable service that should be adequately remunerated. The adviser has to spend considerable time to acquire the knoweldge to provide this advice.
Under the new ILP plan that will soon be launched by NTUC Income, we will pay a modest flat fee to the insurance adviser, which will be recovered from a small charge over the next 20 years.
The adviser will also earn a modest rate of commision on the regular savings in the ILP plan. As the charges are low, this plan will allow the savings to earn a fairly good rate of return over the long term.
Tan Kin Lian
Chief Executive Officer
NTUC Income
Forum Page
Straits Times
I refer to the article entitled "Exercise caution when buying ILPs: Income chief " (Straits Times, 23 June 2005).
Your correspondent has quoted me correctly on most parts of the article. However, I have been quoted out of context on the following point:
Mr Tan suggested that term insurance without any investment component may be a better option. 'Buy term and invest the difference so that you can avoid paying the commission payable to agents' he said.
I wish to clarify that the insurance adviser receives a commission on the premium paid under the term insurance policy.
In my view, the adviser should also be paid to advise the policyholder on insurance and financial planning. This is a valuable service that should be adequately remunerated. The adviser has to spend considerable time to acquire the knoweldge to provide this advice.
Under the new ILP plan that will soon be launched by NTUC Income, we will pay a modest flat fee to the insurance adviser, which will be recovered from a small charge over the next 20 years.
The adviser will also earn a modest rate of commision on the regular savings in the ILP plan. As the charges are low, this plan will allow the savings to earn a fairly good rate of return over the long term.
Tan Kin Lian
Chief Executive Officer
NTUC Income
Sunday, June 19, 2005
Video record your home
Some families leave the maid alone at home. There is the risk that the maid can bring in strangers to the home.
Here is a simple way to take care of this problem. Install a camera with a DVD recorder. Record the view of the entrance throughout the day.
When you return home, you can use 32X speed to view the happenings in your home. This can be done in 15 minutes. Any visitor can be spotted easily.
You do not need to do this all the time. If the maid is aware about the recording, the maid will not take the risk. It will be a useful deterent.
Here is a simple way to take care of this problem. Install a camera with a DVD recorder. Record the view of the entrance throughout the day.
When you return home, you can use 32X speed to view the happenings in your home. This can be done in 15 minutes. Any visitor can be spotted easily.
You do not need to do this all the time. If the maid is aware about the recording, the maid will not take the risk. It will be a useful deterent.
When silence is the norm, but helps no one
I refer to your news comment by Adrian Tan in Today paper of 14 June, entitled "When silence is the norm, but helps no one".
Adrian Tan referred to recent cases involving a few listed companies that are being investigated by the Commercial Affairs Department. The managers and investigators remained silent about what was happening. The investors were caught holding the shares, and did not know what to do with them.
Adrian Tan suggested that a panel of wise people be formed to help decide on what information could be displosed to the investing public.
I strongly support this suggestion. The panel can help to clear the following uncertainty:
- Who should decide? Yes, the panel.
- How to decide when things are uncertain? The decision is made through discussion, judgement and by majority of the panel.
We have to accept that many issues are not clear cut, and some decision has to be taken. We cannot wait until things are certain. We cannot procrastinate.
In America, many issues involving the public are debated over television. This is a healthy process in dealing with diverse views. I hope to see this done more actively in Singapore.
Adrian Tan referred to recent cases involving a few listed companies that are being investigated by the Commercial Affairs Department. The managers and investigators remained silent about what was happening. The investors were caught holding the shares, and did not know what to do with them.
Adrian Tan suggested that a panel of wise people be formed to help decide on what information could be displosed to the investing public.
I strongly support this suggestion. The panel can help to clear the following uncertainty:
- Who should decide? Yes, the panel.
- How to decide when things are uncertain? The decision is made through discussion, judgement and by majority of the panel.
We have to accept that many issues are not clear cut, and some decision has to be taken. We cannot wait until things are certain. We cannot procrastinate.
In America, many issues involving the public are debated over television. This is a healthy process in dealing with diverse views. I hope to see this done more actively in Singapore.
Friday, June 10, 2005
Keep the serial number of your mobilephone
Before anyone loses his/her mobile phone, one should first check the serial number of the phone by keying in *#06# where a 15-digit number will appear on the screen.
Please record it down and keep it for reference. In case the phone is lost, the rightful owner can call the service provider (Singtel, M1, Starhub, etc) to disable the phone by providing the serial number.
That means, the person who took the phone cannot use it at all even if they insert a new SIM card. If everyone knows this procedure, there would not be much use Taking away someone's phone. Please feel free to circulate this message.
Please record it down and keep it for reference. In case the phone is lost, the rightful owner can call the service provider (Singtel, M1, Starhub, etc) to disable the phone by providing the serial number.
That means, the person who took the phone cannot use it at all even if they insert a new SIM card. If everyone knows this procedure, there would not be much use Taking away someone's phone. Please feel free to circulate this message.
Thursday, June 09, 2005
Give the foreign made a day off
Some employers do not give their foreign maid a day off for fear that the maid may engage in promiscuous activity or mix with bad company and may esult in pregnancy or running away from home. This may result in the $5,000 bond being confiscated by the Ministry of Manpower.
The risk is quite small. If the maid gets pregnant, it will be discovered in the medical checkup. The employer can arrange to send the worker home.
The risk is quite small. If the maid gets pregnant, it will be discovered in the medical checkup. The employer can arrange to send the worker home.
Monday, June 06, 2005
Promote Car Pooling
In the United Kingdom, the authority found that there are too many cars on their motorways. They are implementing a system of car-sharing.
We have a similar situation in Singapore. When I attend a social function, eg wedding dinner, I usually find most people come alone in their cars. The car parks are full.
We should encourage people to car-pool. The guests can contact each other, and come in one car.
We tried to introduce an internet-based car pooling system previously. It did not work.
I like to try again. This time, we will use our call center. If anyone wants to car pool, they contact our call center (special number) and indicate their function. The call center should be able to locate another person who is attending the same function and get them to contact each other.
Let us give it a try.
We have a similar situation in Singapore. When I attend a social function, eg wedding dinner, I usually find most people come alone in their cars. The car parks are full.
We should encourage people to car-pool. The guests can contact each other, and come in one car.
We tried to introduce an internet-based car pooling system previously. It did not work.
I like to try again. This time, we will use our call center. If anyone wants to car pool, they contact our call center (special number) and indicate their function. The call center should be able to locate another person who is attending the same function and get them to contact each other.
Let us give it a try.
Sunday, June 05, 2005
Get Married Earlier
I have been encouraging our ladies to get married earlier, before they embark on a career. Most people disagree with me.
I was surprised to hear this story of someone who had actualy done so. Here is her story.
-------------------------------------------------
I MARRIED DURING UNIVERSITY
Marriage for the Singaporeans' ladies seems to be a secondary priority and late marriages and childbearing is most common in Singapore and many developed countries especially for the educated women.
I tend to differ. I believe that early marriage and child birth provides more benefits though the early years are are tougher with lesser income and stronger need for career building.
I married in my third year of University, and gave birth at the age of 24 and 26 years old. This is most rare as most of my friends only got married at the age of 30.
The decision was to settle early and have an "early" retirement from motherhood. Starting early mean that at the age of 40, the prime of my career and life, my 2 children are already teenager and babysitting is no longer required.
Furthermore, youth provides me with more energy to nurture and play with my children.
YO
I was surprised to hear this story of someone who had actualy done so. Here is her story.
-------------------------------------------------
I MARRIED DURING UNIVERSITY
Marriage for the Singaporeans' ladies seems to be a secondary priority and late marriages and childbearing is most common in Singapore and many developed countries especially for the educated women.
I tend to differ. I believe that early marriage and child birth provides more benefits though the early years are are tougher with lesser income and stronger need for career building.
I married in my third year of University, and gave birth at the age of 24 and 26 years old. This is most rare as most of my friends only got married at the age of 30.
The decision was to settle early and have an "early" retirement from motherhood. Starting early mean that at the age of 40, the prime of my career and life, my 2 children are already teenager and babysitting is no longer required.
Furthermore, youth provides me with more energy to nurture and play with my children.
YO
It is stealing
A sushi restaurant installed a system to charge a customer based on the sushi plate that is taken off the conveyor belt. This is captured through a RFID device placed on the plate.
A group of students discuss how to prevent customer from "beating the system" by taking the sushi from the plate, and leaving the plate on the conveyor belt. The system will not be able to detect that the sushi has been removed.
The solution is simple. Put up a sign that say, "Removing the sushi from the plate is considered as stealing".
We should know the difference between stealing and "beating the system".
A group of students discuss how to prevent customer from "beating the system" by taking the sushi from the plate, and leaving the plate on the conveyor belt. The system will not be able to detect that the sushi has been removed.
The solution is simple. Put up a sign that say, "Removing the sushi from the plate is considered as stealing".
We should know the difference between stealing and "beating the system".
Saturday, May 28, 2005
Visit Batam for Tranquility
I attended a retreat at Batam View.
On my return, I waited at the ferry terminal. It was slow pace, tranquil and peaceful.
I enjoy the cool breeze, and the rustling of the leaves on the trees. A few people were at the terminal, including the employees and shop attendants. It was a calm.
I will like to visit again, especially during the weekdays, when there is no crowd.
On my return, I waited at the ferry terminal. It was slow pace, tranquil and peaceful.
I enjoy the cool breeze, and the rustling of the leaves on the trees. A few people were at the terminal, including the employees and shop attendants. It was a calm.
I will like to visit again, especially during the weekdays, when there is no crowd.
Financial Tips - do not roll over your credit card
Excessive spending on credit is the No 1 cause of bankrupcy in Singapore.
4 in 5 young people roll over their credits monthly, and pay interest of up to 24% per year. If late payment and other charges are added, they may be paying up to 30%.
For a credit of $5,000, the charges can be as high as $1,500.
There is a better way. Take a loan from the cash value of your policy, and pay interest at only 5.5% per year. You can save up to $1,200 on a credit of $5,000.
Call 6788 1122
4 in 5 young people roll over their credits monthly, and pay interest of up to 24% per year. If late payment and other charges are added, they may be paying up to 30%.
For a credit of $5,000, the charges can be as high as $1,500.
There is a better way. Take a loan from the cash value of your policy, and pay interest at only 5.5% per year. You can save up to $1,200 on a credit of $5,000.
Call 6788 1122
Tuesday, May 24, 2005
Lower Charge on our Investment Plan
The Straits Times printed a table to show the allocation on investment linked plans offered by various life insurers.
In the case of NTUC Income, our allocation is 85% for the first 3 years, and 100% thereafter. This means that the total charge is 45%. If you invest $1,200 per year, your total charge is $540. This goes to pay the insurance adviser and covers the expenses of issuing the policy.
Some other insurers have total charge of 100% to 150% of the premium. For an annual premium of $1,200, the charge is $1,200 to $1,800. This is much higher than NTUC Income.
Another difference is the spread on the investment. In NTUC Income's case, the spread is 3.5%. For most other insurers, the spread is 5%. A lower spread means that a larger proportion of the premium is invested.
In brief, the charges imposed by NTUC Income are quite modest. They are more than offset by the higher return earned from investing in our Combined Fund.
In the case of NTUC Income, our allocation is 85% for the first 3 years, and 100% thereafter. This means that the total charge is 45%. If you invest $1,200 per year, your total charge is $540. This goes to pay the insurance adviser and covers the expenses of issuing the policy.
Some other insurers have total charge of 100% to 150% of the premium. For an annual premium of $1,200, the charge is $1,200 to $1,800. This is much higher than NTUC Income.
Another difference is the spread on the investment. In NTUC Income's case, the spread is 3.5%. For most other insurers, the spread is 5%. A lower spread means that a larger proportion of the premium is invested.
In brief, the charges imposed by NTUC Income are quite modest. They are more than offset by the higher return earned from investing in our Combined Fund.
Friday, May 20, 2005
Motorist prefer to insure direct
Some motorists prefer to insure directly with NTUC Income at our branches, instead of going through an agent.
We give them a loyalty discount of 5% on the premium. They enjoy this discount on renewal as well. Based on an average premium of $800, they can save $40 by coming direct.
However, many motorists prefer to go through an agent or adviser who can provide advice on the most competitive rate and handle the insurance and road tax renewal for them.
We give them a loyalty discount of 5% on the premium. They enjoy this discount on renewal as well. Based on an average premium of $800, they can save $40 by coming direct.
However, many motorists prefer to go through an agent or adviser who can provide advice on the most competitive rate and handle the insurance and road tax renewal for them.
Cash Settlement having a slow start
We started to offer cash settlement for motor repairs at three Idac centers from 16 May.
It made a slow start with 2 cases for the first day, but activity is picking up. We are now handling 5 cases a day.
We will be taking a weekly advertisement to remind motorists about this option.
It made a slow start with 2 cases for the first day, but activity is picking up. We are now handling 5 cases a day.
We will be taking a weekly advertisement to remind motorists about this option.
Wednesday, May 18, 2005
Casinos in Batam closed down since January
The casinos in Batam has closed down for the past few months, since January 2005. It is probably due to enforcement action taken by the central government in Jakarta. It seemed that the casinos were operating illegally.
With the closure of the casino, several thousand workers in Batam have lost their jobs. Batam was relatively quiet. Few people used the ferries, or visited the island.
The hotel manager in Batam told me that he expects the casino to re-open later in the year, after the Batam and central government has sorted out their jurisdication.
With the closure of the casino, several thousand workers in Batam have lost their jobs. Batam was relatively quiet. Few people used the ferries, or visited the island.
The hotel manager in Batam told me that he expects the casino to re-open later in the year, after the Batam and central government has sorted out their jurisdication.
Monday, May 16, 2005
How to get out of the "time bomb" in your ILP plan
Question:
I bought an investment-linked product from another insurance company (not NTUC Income). It has increasing charges for my life insurance cover. How do I get out of this "time bomb" ?
Reply:
Ask your insurer to give you the coverage and premium that you have to pay for the current and the next few years.
You can compare them with the cost of similar coverage under the Family Insurance Policy offered by NTUC Income.
If our cost is lower (which is likely to be the case), you can ask your current insurer to terminate the insurance coverage. Ask them to state if they have imposed any penalty for this termination. You can continue with the investment with your current ILP plan.
I think that some insurers charge high premium rates for the coverage under their ILP plan.
I bought an investment-linked product from another insurance company (not NTUC Income). It has increasing charges for my life insurance cover. How do I get out of this "time bomb" ?
Reply:
Ask your insurer to give you the coverage and premium that you have to pay for the current and the next few years.
You can compare them with the cost of similar coverage under the Family Insurance Policy offered by NTUC Income.
If our cost is lower (which is likely to be the case), you can ask your current insurer to terminate the insurance coverage. Ask them to state if they have imposed any penalty for this termination. You can continue with the investment with your current ILP plan.
I think that some insurers charge high premium rates for the coverage under their ILP plan.
Tuesday, May 10, 2005
Direct settlement of injury claims
Editor
Forum Page
Straits Times
I refer to your article entitled "Case questions cost-saving tactics"
(Straits Times, May 4, 2005)
You reported a comment from a lawyer, Manoj Raj as follows, "Well before we
begin any proceedings, they call my clients and tell them they have no case."
Mr Roy's statement is not correct.
Here is what actually happens. We approach the injured persons and encourage them to make their claims directly with us. This will allow us to make immediate payment to cover their medical expense and loss of earnings. The compensation for permanent injury will be determined at a later date, when the extent of the injury is determined.
Our action is explained in a practice note which is given to the claimant.
Where our policyholder is liable for the accident, which applies to 80% of these cases, our officer will encourage and assist the injured person to make a direct claim. For the remaining cases, our officer will advice the injured person to claim against the actual party at fault. However, if the injured person wish to make a claim against us, they can still do so.
Our aim is to be pro-active in giving prompt and fair compensation to the injured person and to reduce legal expenses.
Tan Kin Lian
Chief Executive Officer
NTUC Income
Forum Page
Straits Times
I refer to your article entitled "Case questions cost-saving tactics"
(Straits Times, May 4, 2005)
You reported a comment from a lawyer, Manoj Raj as follows, "Well before we
begin any proceedings, they call my clients and tell them they have no case."
Mr Roy's statement is not correct.
Here is what actually happens. We approach the injured persons and encourage them to make their claims directly with us. This will allow us to make immediate payment to cover their medical expense and loss of earnings. The compensation for permanent injury will be determined at a later date, when the extent of the injury is determined.
Our action is explained in a practice note which is given to the claimant.
Where our policyholder is liable for the accident, which applies to 80% of these cases, our officer will encourage and assist the injured person to make a direct claim. For the remaining cases, our officer will advice the injured person to claim against the actual party at fault. However, if the injured person wish to make a claim against us, they can still do so.
Our aim is to be pro-active in giving prompt and fair compensation to the injured person and to reduce legal expenses.
Tan Kin Lian
Chief Executive Officer
NTUC Income
Thursday, May 05, 2005
New or re-conditioned parts?
Editor
Forum Page
Straits Times
I refer to the article in St Times May 2, 2005.
It reported that Mr Abdul Masood was unhappy that the repair to his 7 year old van was done using second-hand parts.
I wish to inform the public that insurers generally practice the following guidelines on the repair of vehciles. This is posted at the website for General Insurance Assocation and stated in the consumer guide that is made available to the public:
quote:
The aim of most policies is to have your vehicle restored to a condition similar to the one it was in before the accident. Based on this principle, for a relatively new vehicle, damaged items will usually be replaced with new parts, which are either genuine or OEM (original equipment manufacturer) parts.
However, for vehicles more than three years old the insurer might opt to use good-quality reconditioned parts. Such parts are carefully checked to ensure they do not compromise the safety or roadworthiness of the vehicle. A six-month warranty for repairs is usually provided by the workshop.
unquote
I wish to state that the practice adopted by NTUC Income conforms with the market practice. Our aim is to give the appropriate repair at a reasonable cost, so that motor insurance premiums can be kept low.
Tan Kin Lian
Chief Executive Officer
Forum Page
Straits Times
I refer to the article in St Times May 2, 2005.
It reported that Mr Abdul Masood was unhappy that the repair to his 7 year old van was done using second-hand parts.
I wish to inform the public that insurers generally practice the following guidelines on the repair of vehciles. This is posted at the website for General Insurance Assocation and stated in the consumer guide that is made available to the public:
quote:
The aim of most policies is to have your vehicle restored to a condition similar to the one it was in before the accident. Based on this principle, for a relatively new vehicle, damaged items will usually be replaced with new parts, which are either genuine or OEM (original equipment manufacturer) parts.
However, for vehicles more than three years old the insurer might opt to use good-quality reconditioned parts. Such parts are carefully checked to ensure they do not compromise the safety or roadworthiness of the vehicle. A six-month warranty for repairs is usually provided by the workshop.
unquote
I wish to state that the practice adopted by NTUC Income conforms with the market practice. Our aim is to give the appropriate repair at a reasonable cost, so that motor insurance premiums can be kept low.
Tan Kin Lian
Chief Executive Officer
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