Hi Mr.Tan,
l have been a fan of your blog and would appreciate your advice.
I bought a PruLink ILP policy 10 years ago. The invest $200 a month. At that time, I had no idea on insurance or investment. l am now aware about the high distribution costs and fund management charges, after reading books and reaffirmed by your articles.
I have decided to separate my insurance and investments. I intend to cash out on my ILP policy and invest my $200 separately.
Here are my options:
A) Buy a Term insurance
B) Use my CPF to buy an endowment to get a regular streams of income 10/20 years later
REPLY
The PruLink ILP is actually like a unit trust. You have already incurred the high upfront charges. Going forward, the charges should be quite modest. By now, you are probably investing 100% of your monthly savings, similar to a unit trust.
Before you make a switch, you have to consider the expense ratio of the Prudential fund, with the the unit trust that you wish to invest in. You may find the expense ratio to be similar, so there is no advantage in making a switch.
You can also look at the mortality charges compared to the Term insurance.
If you make a switch, you should go for option A, i.e buy Term and invest the difference. Do not take option B (endowment plan) as you will be incurring high charges again.
Saturday, December 15, 2007
Correction in the Singapore stockmarket
Dear Mr. Tan,
The STI is once again in a correction. It seems to be heading towards the Aug lows again. Do you foresee the correction to approach Aug lows or do you think it will actually go below that?
Lastly, do you foresee a uptrend in the near future?
REPLY:
It seems that the sub-prime and credit problem in America is quite serious. There is also the possibility of a recession. The STI may reach 3000 or even lower.
It is difficult to pick the market bottom. If you are investing for the long term, it may be all right to start accumulating at 3,300. You can do it over several tranches.
The STI is once again in a correction. It seems to be heading towards the Aug lows again. Do you foresee the correction to approach Aug lows or do you think it will actually go below that?
Lastly, do you foresee a uptrend in the near future?
REPLY:
It seems that the sub-prime and credit problem in America is quite serious. There is also the possibility of a recession. The STI may reach 3000 or even lower.
It is difficult to pick the market bottom. If you are investing for the long term, it may be all right to start accumulating at 3,300. You can do it over several tranches.
Insurance for a baby
Hi Mr Tan
I've read up several articles on the purchase of insurance policies for children. My child is only 2 months old. Based on what I have read so far, it seems like I have to purchase hospitalisation/medical plan and education plan for her.
I suppose hospitalisation plan is the same as NTUC living insurance policy? If not, which insurance agency offers the best hospitalisation plan? How different is Medishield from NTUC living insurance?
Reply. The Living policy is suitable for an adult. It is costly and unnecessary for a baby. You should take the Medishield plan from CPF. It is adequate for the baby.
Based on your experience, which insurance agency offers the best investment linked plan and what type of unit trusts should we invest in?
Reply: You should buy the Flexi-Link plan from NTUC Income and invest in the Combined Fund. The Flexi-Link requires a starting single premium of at least $5,000. You can make additional investments through top-ups of a certain minimum amount. The charges are the lowest amongst all ILP plans in the market.
I've read up several articles on the purchase of insurance policies for children. My child is only 2 months old. Based on what I have read so far, it seems like I have to purchase hospitalisation/medical plan and education plan for her.
I suppose hospitalisation plan is the same as NTUC living insurance policy? If not, which insurance agency offers the best hospitalisation plan? How different is Medishield from NTUC living insurance?
Reply. The Living policy is suitable for an adult. It is costly and unnecessary for a baby. You should take the Medishield plan from CPF. It is adequate for the baby.
Based on your experience, which insurance agency offers the best investment linked plan and what type of unit trusts should we invest in?
Reply: You should buy the Flexi-Link plan from NTUC Income and invest in the Combined Fund. The Flexi-Link requires a starting single premium of at least $5,000. You can make additional investments through top-ups of a certain minimum amount. The charges are the lowest amongst all ILP plans in the market.
Traditional Chinese treatment
Recently, I visited a Chung Hwa Medical Center in Toa Payoh to get traditional Chinese treatment to reduce my uric acid.
There were many patients using the medical center. The operation was carried out efficiently, with short waiting time .
Each doctor in a consultation room is able to see a few patients within a time slot. There are a few beds in the consultation room for patients to be treated by acupunture, which lasted 15 minutes. The beds are shielded by a curtain for privacy.
Due to their high productivity of the doctor, the charges are low. I was charged only $12 for the acupunture and two types of medication.
It is possible to bring down cost by operating efficiently. I hope that this high efficiency and low cost can be propogated to other medical centers.
I wish to recommend people to try traditional Chinese treatment for some chronic medical conditions.
There were many patients using the medical center. The operation was carried out efficiently, with short waiting time .
Each doctor in a consultation room is able to see a few patients within a time slot. There are a few beds in the consultation room for patients to be treated by acupunture, which lasted 15 minutes. The beds are shielded by a curtain for privacy.
Due to their high productivity of the doctor, the charges are low. I was charged only $12 for the acupunture and two types of medication.
It is possible to bring down cost by operating efficiently. I hope that this high efficiency and low cost can be propogated to other medical centers.
I wish to recommend people to try traditional Chinese treatment for some chronic medical conditions.
Make credit cards work for you
Here is a brief summary of the article by Dr Money.
CREDIT cards have pros and cons. We are well aware of the pros since banks advertise them all the time. How about the cons? Of course, the banks never mention them.
Dr Money give you tips on the following:
1) Promotions.
2) Take them all.
3) No annual fee.
4) Air miles.
5) Don't roll over.
6) Balance transfer
7) Unauthorised charges
8) Safety first
Read his full article in this webpage:
http://newpaper.asia1.com.sg/columnists/story/0,4136,144958,00.html?
http://www.tankinlian.com/drmoney/
CREDIT cards have pros and cons. We are well aware of the pros since banks advertise them all the time. How about the cons? Of course, the banks never mention them.
Dr Money give you tips on the following:
1) Promotions.
2) Take them all.
3) No annual fee.
4) Air miles.
5) Don't roll over.
6) Balance transfer
7) Unauthorised charges
8) Safety first
Read his full article in this webpage:
http://newpaper.asia1.com.sg/columnists/story/0,4136,144958,00.html?
http://www.tankinlian.com/drmoney/
Logic Quiz A-17
There are five houses in a row. In each house lives a person with a different occupation, drives a different car, plays a different instrument, eats a different fruit and pursues a different hobby.
1. The person who drive Mercedes lives next to the manager.
2. The engineer lives to the left of the scientist.
3. The person who drive Nissan enjoys cards.
4. The third house is occupied by the person who enjoys karaoke.
5. The person who drive Honda eats papaya.
6. The person who eats banana lives next to the person who plays bass.
7. The technician eats orange.
8. The person who plays violin lives next to the person who eats orange.
9. The person who eats apple enjoys movies.
10. The engineer enjoys reading.
11. The person who drive Toyota is the specialist.
12. The person who eats banana lives next to the person who enjoys music.
13. The person who eats durian plays trumpet.
14. The person who drive Mercedes lives in the first house.
15. The person who drive BMW plays flute.
Question: Who plays drum
Please post your answer and time taken.
1. The person who drive Mercedes lives next to the manager.
2. The engineer lives to the left of the scientist.
3. The person who drive Nissan enjoys cards.
4. The third house is occupied by the person who enjoys karaoke.
5. The person who drive Honda eats papaya.
6. The person who eats banana lives next to the person who plays bass.
7. The technician eats orange.
8. The person who plays violin lives next to the person who eats orange.
9. The person who eats apple enjoys movies.
10. The engineer enjoys reading.
11. The person who drive Toyota is the specialist.
12. The person who eats banana lives next to the person who enjoys music.
13. The person who eats durian plays trumpet.
14. The person who drive Mercedes lives in the first house.
15. The person who drive BMW plays flute.
Question: Who plays drum
Please post your answer and time taken.
Logic Quiz J-17
There are four students sitting in a row. Each student plays a different instrument, eats a different fruit and pursues a different hobby.
1. The student who eats orange sits in the second desk.
2. Peter sits to the left of Katherine.
3. The student who eats orange sits to the left of the student who enjoys fishing.
4. The student who plays flute sits to the left of the student who plays violin.
5. Richard sits next to the student who enjoys bicycling.
6. The student who enjoys swimming sits to the left of the student who plays piano.
7. The student who eats pear plays drum.
8. Alice eats orange.
9. The student who eats pineapple sits to the left of the student who eats apple.
Question: Who enjoys reading
Please post your answer and time taken.
1. The student who eats orange sits in the second desk.
2. Peter sits to the left of Katherine.
3. The student who eats orange sits to the left of the student who enjoys fishing.
4. The student who plays flute sits to the left of the student who plays violin.
5. Richard sits next to the student who enjoys bicycling.
6. The student who enjoys swimming sits to the left of the student who plays piano.
7. The student who eats pear plays drum.
8. Alice eats orange.
9. The student who eats pineapple sits to the left of the student who eats apple.
Question: Who enjoys reading
Please post your answer and time taken.
Friday, December 14, 2007
Personal rapid transit
From Wikipedia, the free encyclopedia
Question: Will this work in Singapore?
View the video: http://www.taxi2000.com/aboutus.html
Read this Q&A: http://www.atsltd.co.uk/prt/faq/
Personal rapid transit (PRT), also called personal automated transport (PAT) or podcar, is a public transportation concept that offers automated on-demand non-stop transportation, on a network of specially-built guideways.
A public PRT installation, ULTra, is currently under construction at Heathrow Airport in London, and scheduled to open for public use in 2008.
PRT is a system of small vehicles under independent or semi-independent automatic control, running on fixed guideways. The idea attempts to address a number of perceived weaknesses of public mass transit including fixed timetabling, limited routes, and sharing travel space with unrelated travelers (see comparison below).
In 1988, The Advanced Transit Association (ATRA), a group which advocates the use of technological solutions to transit problems, published a definition for PRT as follows:
* Fully automated vehicles capable of operation without human drivers.
* Vehicles captive to a reserved guideway.
* Small vehicles available for exclusive use by an individual or a small group, typically 1 to 6 passengers, traveling together by choice and available 24 hours a day.
* Small guideways that can be located above ground, at ground level or underground.
* Vehicles able to use all guideways and stations on a fully coupled PRT network.
* Direct origin to destination service, without a necessity to transfer or stop at intervening stations.
* Service available on demand rather than on fixed schedules.
The definition does not specify a particular technology, such as electric motors, linear motors, magnetic levitation, or rubber wheels. It does not specify whether vehicles are to be supported on the guideway or suspended from the guideway. Instead, it is derived from analysis of the functionality, efficiency, scalability, and service provided by the total engineering and design of the system.
Proponents say that the low weight of small vehicles has the important benefit of allowing smaller guideways and support structures compared to other mass transit systems like light rail, translating into lower construction cost, smaller easements, and less visually obtrusive infrastructure.
The concept has been independently reinvented many times since the 1960s. It is considered controversial, and the city-wide deployment with many closely-spaced stations envisaged by proponents has yet to be constructed.
Reasons past projects have failed include lack of financing, cost overruns, regulatory conflicts, political issues, and flaws in engineering or design.
From 2002–2005, the EDICT project, sponsored by the European Union, conducted a study on the feasibility of PRT in four European cities. The study involved 12 research organizations, and concluded that PRT:
* would provide future cities "a highly accessible, user-responsive, environmental friendly transport system which offers a sustainable and economic solution."
* could "cover its operating costs, and provide a return which could pay for most, if not all, of its capital costs."
* would provide "a level of service which is superior to that available from conventional public transport"
* would be "well received by the public, both public transport and car users."
The report also concluded that, despite these advantages, public authorities will not commit to building PRT because of the risks associated with being the first public implementation.
Comparison of Personal Rapid Transit with existing transport systems:
* Similar to automobiles Vehicles are small—typically two to six passengers
* Vehicles are individually hired, like taxis, and shared only with the passengers of one's choosing
* Vehicles travel along a network of guideways, much like a network of streets.
* Travel is point-to-point, with no intermediate stops or transfers
* It can be available on an on-demand, around-the-clock basis
* Stops are designed to be off the main guideway, allowing through traffic to bypass stations unimpeded
* Similar to trams, buses, and monorails
* A public amenity (although not necessarily publicly owned), shared by multiple users
* Reduced local pollution (electric powered)
* Passengers embark and disembark at discrete stations, analogous to bus stops or taxi stands
* Similar to automated people movers
* Fully automated, including vehicle control, routing, and collection of fares
* Usually off-grade—typically elevated—reducing land usage and congestion
Distinct features
* Vehicle movements may be coordinated, unlike the autonomous human control of automobiles and bikes
* Small vehicle size allows infrastructure to be smaller than other transit modes
* Automated vehicles can travel close together.
* Possibilities include dynamically combined "trains" of vehicles, separated by a few inches, to reduce drag and increase speed, energy efficiency and passenger density
Question: Will this work in Singapore?
View the video: http://www.taxi2000.com/aboutus.html
Read this Q&A: http://www.atsltd.co.uk/prt/faq/
Personal rapid transit (PRT), also called personal automated transport (PAT) or podcar, is a public transportation concept that offers automated on-demand non-stop transportation, on a network of specially-built guideways.
A public PRT installation, ULTra, is currently under construction at Heathrow Airport in London, and scheduled to open for public use in 2008.
PRT is a system of small vehicles under independent or semi-independent automatic control, running on fixed guideways. The idea attempts to address a number of perceived weaknesses of public mass transit including fixed timetabling, limited routes, and sharing travel space with unrelated travelers (see comparison below).
In 1988, The Advanced Transit Association (ATRA), a group which advocates the use of technological solutions to transit problems, published a definition for PRT as follows:
* Fully automated vehicles capable of operation without human drivers.
* Vehicles captive to a reserved guideway.
* Small vehicles available for exclusive use by an individual or a small group, typically 1 to 6 passengers, traveling together by choice and available 24 hours a day.
* Small guideways that can be located above ground, at ground level or underground.
* Vehicles able to use all guideways and stations on a fully coupled PRT network.
* Direct origin to destination service, without a necessity to transfer or stop at intervening stations.
* Service available on demand rather than on fixed schedules.
The definition does not specify a particular technology, such as electric motors, linear motors, magnetic levitation, or rubber wheels. It does not specify whether vehicles are to be supported on the guideway or suspended from the guideway. Instead, it is derived from analysis of the functionality, efficiency, scalability, and service provided by the total engineering and design of the system.
Proponents say that the low weight of small vehicles has the important benefit of allowing smaller guideways and support structures compared to other mass transit systems like light rail, translating into lower construction cost, smaller easements, and less visually obtrusive infrastructure.
The concept has been independently reinvented many times since the 1960s. It is considered controversial, and the city-wide deployment with many closely-spaced stations envisaged by proponents has yet to be constructed.
Reasons past projects have failed include lack of financing, cost overruns, regulatory conflicts, political issues, and flaws in engineering or design.
From 2002–2005, the EDICT project, sponsored by the European Union, conducted a study on the feasibility of PRT in four European cities. The study involved 12 research organizations, and concluded that PRT:
* would provide future cities "a highly accessible, user-responsive, environmental friendly transport system which offers a sustainable and economic solution."
* could "cover its operating costs, and provide a return which could pay for most, if not all, of its capital costs."
* would provide "a level of service which is superior to that available from conventional public transport"
* would be "well received by the public, both public transport and car users."
The report also concluded that, despite these advantages, public authorities will not commit to building PRT because of the risks associated with being the first public implementation.
Comparison of Personal Rapid Transit with existing transport systems:
* Similar to automobiles Vehicles are small—typically two to six passengers
* Vehicles are individually hired, like taxis, and shared only with the passengers of one's choosing
* Vehicles travel along a network of guideways, much like a network of streets.
* Travel is point-to-point, with no intermediate stops or transfers
* It can be available on an on-demand, around-the-clock basis
* Stops are designed to be off the main guideway, allowing through traffic to bypass stations unimpeded
* Similar to trams, buses, and monorails
* A public amenity (although not necessarily publicly owned), shared by multiple users
* Reduced local pollution (electric powered)
* Passengers embark and disembark at discrete stations, analogous to bus stops or taxi stands
* Similar to automated people movers
* Fully automated, including vehicle control, routing, and collection of fares
* Usually off-grade—typically elevated—reducing land usage and congestion
Distinct features
* Vehicle movements may be coordinated, unlike the autonomous human control of automobiles and bikes
* Small vehicle size allows infrastructure to be smaller than other transit modes
* Automated vehicles can travel close together.
* Possibilities include dynamically combined "trains" of vehicles, separated by a few inches, to reduce drag and increase speed, energy efficiency and passenger density
Anti-insurance agent
Someone post comments in my blog a few times a day, attacking insurance agents. I stopped several of the postings, as they are rather rude and unfair to agents. I allowed some objective comments to pass through.
I wonder why this person is so much against insurance agents. The attacks seem to be focused on agents from NTUC Income.
Perhaps this person can send an e-mail to tell me the reason for your strong views?
I wonder why this person is so much against insurance agents. The attacks seem to be focused on agents from NTUC Income.
Perhaps this person can send an e-mail to tell me the reason for your strong views?
Visit to Ang Mo Kio Library
I visited Ang Mo Kio Library to read a reference book about SQL Server. I found several books. I stayed at the library for 2 hours. It was quiet, air conditioned and comfortable. The ambience is excellent.
I was able to log into Wireless@SG to access the internet.
These wonderful services are provided free. I wish to encourage people to visit the library, during the non-busy hours and enjoy the facilities.
I was able to log into Wireless@SG to access the internet.
These wonderful services are provided free. I wish to encourage people to visit the library, during the non-busy hours and enjoy the facilities.
Credit check of potential business partners
Over the past few months, I have been approached by several people to be involved in their business venture.
I usually carry out a credit check on the background of the company and the people behind the company. I approach a service provider to carry out a credit check.
The service provider has the following data:
1. Litigation, identified by the parties involved
2. Bankrupcy
3. Company and business registration
These data are publicly available. The service provider has put them in a form that is easy to extract the relevant data and to produce a credit report.
I found the service to be extremely useful, especially for credit check of new or small companies. In some cases, I was notified about litigation or bankrupcy of the parties involved.
I am able to get a report within 1 day at a modest cost. The report can be quite detailed. I find the executive summary to be most useful. I was able to use the relevant information in my business decision.
The service provider will be marketing this service soon through an internet website. Apart from adhoc credit checks, the service provider will be able to carry out a continuing check on a list of business associates, and to alert the subscriber on any litigation involving these assocaites.
This is an example of the use of data in improving the productivity of your business, and to avoid or minimise credit losses.
If you are interested in this service, send an e-mail to me at kinlian@gmail.com. Give some background about your business and the type of credit check that you need.
I usually carry out a credit check on the background of the company and the people behind the company. I approach a service provider to carry out a credit check.
The service provider has the following data:
1. Litigation, identified by the parties involved
2. Bankrupcy
3. Company and business registration
These data are publicly available. The service provider has put them in a form that is easy to extract the relevant data and to produce a credit report.
I found the service to be extremely useful, especially for credit check of new or small companies. In some cases, I was notified about litigation or bankrupcy of the parties involved.
I am able to get a report within 1 day at a modest cost. The report can be quite detailed. I find the executive summary to be most useful. I was able to use the relevant information in my business decision.
The service provider will be marketing this service soon through an internet website. Apart from adhoc credit checks, the service provider will be able to carry out a continuing check on a list of business associates, and to alert the subscriber on any litigation involving these assocaites.
This is an example of the use of data in improving the productivity of your business, and to avoid or minimise credit losses.
If you are interested in this service, send an e-mail to me at kinlian@gmail.com. Give some background about your business and the type of credit check that you need.
Company above board?
By Larry Haverkamp (Doc Money)
LAST week was filled with news stories about Sunshine Empire. The company has convinced 20,000 Singapore investors to part with as much as $12,000 each.
Despite the publicity, no one is still very sure what the company does.
Both the Singapore and Malaysian authorities have put it on their 'investor alert lists'. Entities on such lists are not authorised by the authorities to conduct regulated activity. While not well-known, these lists are extremely useful.
Other governments also have lists which give names of companies doing foreign land sales, internet fraud, lookalike web sites, identity theft, fake lotteries, Nigerian advanced fees, pump and dump, affinity scams, telemarketing and more.
It got me thinking, 'Wouldn't it be great if there was a web site listing all questionable companies? Then, if you hear about a deal that sounds too good to be true, you could check it out.'
Non-transparent but legal
1) Bank Products
2) Insurance companies
3) Reits
Read the full article here:
http://newpaper.asia1.com.sg/columnists/story/0,4136,146946,00.html
http://www.tankinlian.com/drmoney/
LAST week was filled with news stories about Sunshine Empire. The company has convinced 20,000 Singapore investors to part with as much as $12,000 each.
Despite the publicity, no one is still very sure what the company does.
Both the Singapore and Malaysian authorities have put it on their 'investor alert lists'. Entities on such lists are not authorised by the authorities to conduct regulated activity. While not well-known, these lists are extremely useful.
Other governments also have lists which give names of companies doing foreign land sales, internet fraud, lookalike web sites, identity theft, fake lotteries, Nigerian advanced fees, pump and dump, affinity scams, telemarketing and more.
It got me thinking, 'Wouldn't it be great if there was a web site listing all questionable companies? Then, if you hear about a deal that sounds too good to be true, you could check it out.'
Non-transparent but legal
1) Bank Products
2) Insurance companies
3) Reits
Read the full article here:
http://newpaper.asia1.com.sg/columnists/story/0,4136,146946,00.html
http://www.tankinlian.com/drmoney/
Logic Quiz A-5
There are five houses in a row in different colors. In each house lives a person with a different occupation, drinks a different beverage, plays a different sport and keeps a different pet.
1. The doctor plays golf.
2. The person who drinks coffee lives to the left of the person who drinks beer.
3. The green house is occupied by the teacher.
4. The lawyer lives in the third house.
5. The person who plays badminton lives to the left of the person who drinks milk.
6. The blue house is occupied by the person who keeps dogs.
7. The white house is to the left of the person who drinks water.
8. The person who keeps fish plays chess.
9. The red house is to the left of the green house.
10. The person who plays bowling lives to the left of the person who keeps cats.
11. The accountant lives to the left of the salesman.
12. The person who keeps birds lives to the left of the person who keeps hamsters.
13. The white house is the fourth house.
14. The yellow house is occupied by the person who drinks tea.
Question: Who plays tennis
1. The doctor plays golf.
2. The person who drinks coffee lives to the left of the person who drinks beer.
3. The green house is occupied by the teacher.
4. The lawyer lives in the third house.
5. The person who plays badminton lives to the left of the person who drinks milk.
6. The blue house is occupied by the person who keeps dogs.
7. The white house is to the left of the person who drinks water.
8. The person who keeps fish plays chess.
9. The red house is to the left of the green house.
10. The person who plays bowling lives to the left of the person who keeps cats.
11. The accountant lives to the left of the salesman.
12. The person who keeps birds lives to the left of the person who keeps hamsters.
13. The white house is the fourth house.
14. The yellow house is occupied by the person who drinks tea.
Question: Who plays tennis
Logic Quiz J-4
There are four students sitting in a row. Each student plays a different sport, keeps a different pet and drinks a different beverage.
1. Susan sits to the left of the student who keeps kitten.
2. The student who drinks milk sits next to the student who keeps bird.
3. The student who keeps bird sits in the second desk.
4. The student who drinks juice sits to the left of the student who keeps hamster.
5. Mary drinks coffee.
6. The student who plays chess sits to the left of the student who plays hockey.
7. The student who keeps bird sits to the left of the student who plays badminton.
8. The student who plays tennis sits next to Robert.
9. James sits to the left of the student who drinks tea.
Question: Who keeps puppy
1. Susan sits to the left of the student who keeps kitten.
2. The student who drinks milk sits next to the student who keeps bird.
3. The student who keeps bird sits in the second desk.
4. The student who drinks juice sits to the left of the student who keeps hamster.
5. Mary drinks coffee.
6. The student who plays chess sits to the left of the student who plays hockey.
7. The student who keeps bird sits to the left of the student who plays badminton.
8. The student who plays tennis sits next to Robert.
9. James sits to the left of the student who drinks tea.
Question: Who keeps puppy
How to be a better neighbour
Arrange with your neighbour to look after your baby or child when you have to go out for a function. Be ready to look after their baby or child when they go out.
Best Low Cost Funds
What are the charges levied by unit trusts and investment-linked funds? Dr Money has made a study and recommended the best low cost funds in his website:
http://www.askdrmoney.com/Unit_Trusts_and_Funds.htm
http://www.askdrmoney.com/Unit_Trusts_and_Funds.htm
Public Transport Guide
Hi,
I will like to enquire where I will be able to obtain one of the Public Transport Guides that NTUC Income had given out a few years ago. Thank you very much.
REPLY
You can buy from Popular Book Store at $6 plus GST
I will like to enquire where I will be able to obtain one of the Public Transport Guides that NTUC Income had given out a few years ago. Thank you very much.
REPLY
You can buy from Popular Book Store at $6 plus GST
Singapore Equity funds
Dear Mr. Tan,
There are several types of Singapore equity. Eg. AXA Inspire Singapore Equity Fund, DBS Horizon Singapore Equity, DBS Aberdeen Singapore Equity. What is the difference between them all? Isn't all Singapore equity?
REPLY
Each fund manager decides on the stocks, within the class of Singapore equity, that they wish to invest in. The return depends on the stock selection made by each fund manager.
I prefer to invest in a fund, such as the STI ETF that invests in the index stocks. It is well diversified and is low cost. You will get a better net return over the long term.
Read this FAQ:
http://www.tankinlian.com/faq/returns.html
http://www.tankinlian.com/faq/expense.html
There are several types of Singapore equity. Eg. AXA Inspire Singapore Equity Fund, DBS Horizon Singapore Equity, DBS Aberdeen Singapore Equity. What is the difference between them all? Isn't all Singapore equity?
REPLY
Each fund manager decides on the stocks, within the class of Singapore equity, that they wish to invest in. The return depends on the stock selection made by each fund manager.
I prefer to invest in a fund, such as the STI ETF that invests in the index stocks. It is well diversified and is low cost. You will get a better net return over the long term.
Read this FAQ:
http://www.tankinlian.com/faq/returns.html
http://www.tankinlian.com/faq/expense.html
Thursday, December 13, 2007
Benefit illustration for ILP
Dear Mr Tan,
I recently met up with an agent who showed me a benefit illustration at 5% and 9% rate of returns for his company's ILP. However, I am not sure whether I should believe if those returns are reasonable.
Can you advice how should I approach this? Thanks!
REPLY
All insurance companies use 5% and 9% to "illustrate" their projected returns. These interest rates do not reflect what you can get in reality.
The actual returns is based on what the insurnce company can earn on its investments, less its charges.
Insurance companies usually have high upfront charges to pay the commission to their agents and annual charges to meet their fund management expenses.
Read this FAQ:
http://www.tankinlian.com/faq/expense.html
Also, read this webpage:
http://www.askdrmoney.com/Ins_ILP_RP.htm
I recently met up with an agent who showed me a benefit illustration at 5% and 9% rate of returns for his company's ILP. However, I am not sure whether I should believe if those returns are reasonable.
Can you advice how should I approach this? Thanks!
REPLY
All insurance companies use 5% and 9% to "illustrate" their projected returns. These interest rates do not reflect what you can get in reality.
The actual returns is based on what the insurnce company can earn on its investments, less its charges.
Insurance companies usually have high upfront charges to pay the commission to their agents and annual charges to meet their fund management expenses.
Read this FAQ:
http://www.tankinlian.com/faq/expense.html
Also, read this webpage:
http://www.askdrmoney.com/Ins_ILP_RP.htm
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