Last week, there was an article in the newspaper discussing the right of the owner to moderate comments posted in his blog.
Arguments were presented on both sides. Some people felt that the owner has the responsibility to moderate comments that are offensive and defamatory. Others defend the right to "free speech".
My views are:
* As the blog owner, I have the responsibility to ensure that comments are polite
* I welcome opinions, even if they disagree with me, provided that they are polite
* I will remove comments that are impolite to me or to other commentators
* I respect differing opinion, if they are given responsibly and are not anonymous
Wednesday, April 11, 2007
Tuesday, April 10, 2007
Be Confident & Optimistic
When Singapore became an independent nation, many people thought we could not make it. But we did. This is due to the spirit of many Singaporeans who contributed to make Singapore what it is. We refused to accept what others thought was inevitable without trying.
Here is a story from Dr. Lee Kum Tatt and her granddaughter. Blog
Tan Kin Lian
Here is a story from Dr. Lee Kum Tatt and her granddaughter. Blog
Tan Kin Lian
Should I terminate my existing whole life policy?
Questions:
Currently I have a policy "Young Family" with NTUC. I have been paying a monthly premium of $154.50 since 1984.
As this is a life policy, it means that I will be paying premiums for nearly the rest of my life. I am already 59 and retired, and I am thinking of cashing out (about $51000 now) at this point.
As I have 2 children (aged 20, 26) who are almost done studying , I am also looking around for a good term policy available to seniors which will be for 5 or 10 years.
Although one of your officers at NTUC suggested buying an annuity, I do not think this is a good proposal as I am keen on buying a low cost term insurance which can cover for 5 to 10 years.
Does NTUC or other insurance companies plan to offer low-cost short-term policies for seniors?
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My reply:
I suggest that you should continue the young family policy for another 5 years and terminate it at that time.
You can ask NTUC Income to tell you about the following:
* cash value now
* cash value in 5 years time (projected)
* total premiums payable for the next 5 years
* term insurance for 5 years
You can make a better decision, after getting the figures.
You can visit the business center at Bras Basah Road and talk to a consultant.
Currently I have a policy "Young Family" with NTUC. I have been paying a monthly premium of $154.50 since 1984.
As this is a life policy, it means that I will be paying premiums for nearly the rest of my life. I am already 59 and retired, and I am thinking of cashing out (about $51000 now) at this point.
As I have 2 children (aged 20, 26) who are almost done studying , I am also looking around for a good term policy available to seniors which will be for 5 or 10 years.
Although one of your officers at NTUC suggested buying an annuity, I do not think this is a good proposal as I am keen on buying a low cost term insurance which can cover for 5 to 10 years.
Does NTUC or other insurance companies plan to offer low-cost short-term policies for seniors?
------------------
My reply:
I suggest that you should continue the young family policy for another 5 years and terminate it at that time.
You can ask NTUC Income to tell you about the following:
* cash value now
* cash value in 5 years time (projected)
* total premiums payable for the next 5 years
* term insurance for 5 years
You can make a better decision, after getting the figures.
You can visit the business center at Bras Basah Road and talk to a consultant.
Buying a decreasing term assurance
Dear Mr Tan,
I read about your suggestion on buying a 20 years decreasing term assurance. I had a few questions on this policy.
1) If there's protection, what are the protection given?Death and TPD only?
The decreasing term insurance covers death and permant total disability.
2) Can I add a Critical illness rider to this assurance?
Currently, this is not available. But the expenses of treating critical illness is covered through a medical insurance plan (eg Incomeshield).
3) If I buy a decreasing term assurance and do not make any claim during the term, do I have to buy another assurance?
At the end of the term, you probably do not need any life insurance as you have adequate savings (hopefully) and your children are grown up.
4) If I want protection (including whole life, TPD and CI) and good return savings at the same time, is it possible?
I suggest that you buy protection through a decreasing term assurance and to save and invest in a large, well diversified, low cost equity fund. You can read more about this concept in my FAQ at www.tankinlian.com/faq
5) Is it wise to keep my current policy?
Generally, it is wise to keep your current policy, as you have already incurred the upfront load.
I read about your suggestion on buying a 20 years decreasing term assurance. I had a few questions on this policy.
1) If there's protection, what are the protection given?Death and TPD only?
The decreasing term insurance covers death and permant total disability.
2) Can I add a Critical illness rider to this assurance?
Currently, this is not available. But the expenses of treating critical illness is covered through a medical insurance plan (eg Incomeshield).
3) If I buy a decreasing term assurance and do not make any claim during the term, do I have to buy another assurance?
At the end of the term, you probably do not need any life insurance as you have adequate savings (hopefully) and your children are grown up.
4) If I want protection (including whole life, TPD and CI) and good return savings at the same time, is it possible?
I suggest that you buy protection through a decreasing term assurance and to save and invest in a large, well diversified, low cost equity fund. You can read more about this concept in my FAQ at www.tankinlian.com/faq
5) Is it wise to keep my current policy?
Generally, it is wise to keep your current policy, as you have already incurred the upfront load.
Parents wants more term insurance and savings
Hi, Mr Tan,
I wish to find out more about Term insurance. Currently, my husband has the following insurance coverage:
Husband age : 43 years
Annual income: 100k
Existing policies: investment linked, endowment, term, whole life, medishield, eldershield
We are family with 3 kids, with all Term living coverage - 200K each, we have no debt or any loan been paying, now trying to save for the children's university fees.
--------------------------
Reply from insurance adviser:
I checked on a Term Policy for your husband. The premium for $150,000 for your husband is $291.90 yearly (your current term plan charges $800 yearly).
Saving for our children is an excellent thought. Our Ideal Plan is
flexible and gives good returns. How old are your children?
If you are open for discussion, a proper financial planning for your needs is required.
I wish to find out more about Term insurance. Currently, my husband has the following insurance coverage:
Husband age : 43 years
Annual income: 100k
Existing policies: investment linked, endowment, term, whole life, medishield, eldershield
We are family with 3 kids, with all Term living coverage - 200K each, we have no debt or any loan been paying, now trying to save for the children's university fees.
--------------------------
Reply from insurance adviser:
I checked on a Term Policy for your husband. The premium for $150,000 for your husband is $291.90 yearly (your current term plan charges $800 yearly).
Saving for our children is an excellent thought. Our Ideal Plan is
flexible and gives good returns. How old are your children?
If you are open for discussion, a proper financial planning for your needs is required.
More trains for a comfortable ride
I took the commuter train to the city this morning at 10 am. I took the train back home at 9 pm.
On both occasions, the train was quite crowded. I was not able to get a seat for the entire journey.
These are off-peak hours.
I hope that the SMRT will put more trains, so that the commuters can have a more pleasant ride during the off-peak hours. I can understand that, during the peak hours, when there are too many commuters, it may not be easy to add more trains to meet the demand.
It may mean somewhat lower profit for the SMRT to add more trains during the off-peak hours. But, I am sure that it will still be quite profitable for SMRT. And it will mean more comfort for commuters.
If more commuters find the train to be comfortable, then some of them will decide not to use private cars, which congest the roads. It will lead to a more efficient public transport system.
I hope that the public transport council will consider this request.
On both occasions, the train was quite crowded. I was not able to get a seat for the entire journey.
These are off-peak hours.
I hope that the SMRT will put more trains, so that the commuters can have a more pleasant ride during the off-peak hours. I can understand that, during the peak hours, when there are too many commuters, it may not be easy to add more trains to meet the demand.
It may mean somewhat lower profit for the SMRT to add more trains during the off-peak hours. But, I am sure that it will still be quite profitable for SMRT. And it will mean more comfort for commuters.
If more commuters find the train to be comfortable, then some of them will decide not to use private cars, which congest the roads. It will lead to a more efficient public transport system.
I hope that the public transport council will consider this request.
Monday, April 09, 2007
Reduce holdings of Singapore shares
I find the Singapore stockmarket to be too high. I reduced 12% of my holdings today (i.e. individual shares). I intend to continue to reduce my holdings within the next few days by a total of about 50%.
For the time being, I will keep my investments in the combined fund (which is largely invested in global equities and bonds).
For the time being, I will keep my investments in the combined fund (which is largely invested in global equities and bonds).
Accident and term life insurance
Accident insurance covers death and permanent disability (partial or total) caused by accident. An accident is defined as being caused by a violent, external, visible force and excludes illness, self-inflicted injury, natural disasters, war and certain other risks.
Term life insurance covers death and permanent total disability arising from accidents and illness. Nearly all causes of death are covered, except for suicide during the first year of the insurance.
The premium for accident insurance usually vary according to occupation (in a few broad categories), and does not vary according to age.
The premium for term life insurance varies according to age. It can be two times of accident insurance at the younger ages, and much higher at the older ages.
It is better to buy term life insurance to protect the family from death arising from all causes. Alternatively, you can buy say $50,000 in term life insurance and say, an additional $150,000 in accident insurance.
Term life insurance covers death and permanent total disability arising from accidents and illness. Nearly all causes of death are covered, except for suicide during the first year of the insurance.
The premium for accident insurance usually vary according to occupation (in a few broad categories), and does not vary according to age.
The premium for term life insurance varies according to age. It can be two times of accident insurance at the younger ages, and much higher at the older ages.
It is better to buy term life insurance to protect the family from death arising from all causes. Alternatively, you can buy say $50,000 in term life insurance and say, an additional $150,000 in accident insurance.
Delay in payment of death claims
Dear Mr. Tan,
My sister in-law died on 16/12/2006 in New York at age 43.
The only documents at hand are :
1) the death certificate
2) cremation certificate
3) Acknowledgement from the S'pore Consulate for receipt of the deceased's passport and nric.
The family submitted claims to three life insurance companies (not NTUC) in January 2007.
The insurance companies had not approved the claims yet. They are still investigating the cause of death and require more information. All policies were in force and at least more than 2 years from the date of inception.
How can I get the insurance companies to settle the claims earlier?
---------------------
My reply:
If the insurance company is unreasonable in delaying the payment of the claim, you can lodge a complaint with the following organisation:
FiDREC
If there is delay of more than two months in the payment of the claim, the insurance company is required to pay interest for the period of delay.
My sister in-law died on 16/12/2006 in New York at age 43.
The only documents at hand are :
1) the death certificate
2) cremation certificate
3) Acknowledgement from the S'pore Consulate for receipt of the deceased's passport and nric.
The family submitted claims to three life insurance companies (not NTUC) in January 2007.
The insurance companies had not approved the claims yet. They are still investigating the cause of death and require more information. All policies were in force and at least more than 2 years from the date of inception.
How can I get the insurance companies to settle the claims earlier?
---------------------
My reply:
If the insurance company is unreasonable in delaying the payment of the claim, you can lodge a complaint with the following organisation:
FiDREC
If there is delay of more than two months in the payment of the claim, the insurance company is required to pay interest for the period of delay.
Interest on late payment of claims
There is a guideline by the Life Insurance Association which requires a life insurer to pay interest on late payment of maturity and death claims.
The interest is payable if the claim is settled more than two months from the date of receipt of written notification of the death. For an endowment policy, interest is payable if payment is made more than two months from date of maturity.
The interest is calculated based on the 12-month Fixed Deposit rate and savings rates of major local banks, weighted in the ratio of 80:20. It is calculated from the date to the date of payment.
The interest is payable if the claim is settled more than two months from the date of receipt of written notification of the death. For an endowment policy, interest is payable if payment is made more than two months from date of maturity.
The interest is calculated based on the 12-month Fixed Deposit rate and savings rates of major local banks, weighted in the ratio of 80:20. It is calculated from the date to the date of payment.
Inspiration – Human Nuclear Energy
Dr. & Mrs. Lee Kum Tatt, not only shared their lives together. They also helped each other in their professions and careers to do things of interests to them both. This is why they can cope with so much more than otherwise.
How they did this is something we can learn from them. Mrs. Lee gives her account of some of the things she did.
Blog
Tan Kin Lian
How they did this is something we can learn from them. Mrs. Lee gives her account of some of the things she did.
Blog
Tan Kin Lian
Should I withdraw my profit?
Dear Mr Tan,
Last year, I was forced to withdraw 8k from flexilink (the profit). And despite that, there was some more profit by Feb 2007.
Do you normally withdraw the profit (leaving the what we put in initially, i.e. the capital) or do we leave the profit alone, as I understand the capital will double in ten years time?
------------------------------------
My reply:
It is better to leave the gains to accumulate in the fund. If you need to spend some money, you can make a withdrawal, and it does not need to be tied to the amount of profit.
I allow my investments in the fund accumulate and will draw money from my bank account (which earns 1% interest), if I need to spend.
If the fund earns 6% per annum, it will double in value in 12 years (if you leave it to accumulate).
Wish you all the best in your investments.
Last year, I was forced to withdraw 8k from flexilink (the profit). And despite that, there was some more profit by Feb 2007.
Do you normally withdraw the profit (leaving the what we put in initially, i.e. the capital) or do we leave the profit alone, as I understand the capital will double in ten years time?
------------------------------------
My reply:
It is better to leave the gains to accumulate in the fund. If you need to spend some money, you can make a withdrawal, and it does not need to be tied to the amount of profit.
I allow my investments in the fund accumulate and will draw money from my bank account (which earns 1% interest), if I need to spend.
If the fund earns 6% per annum, it will double in value in 12 years (if you leave it to accumulate).
Wish you all the best in your investments.
High coverage at low cost
I met two new friends over a cup of coffee. They asked for my advice on how to obtain high coverage at a low cost.
I said:
* if a person in the late 20s buy a whole life policy for $200,000, he has to pay a monthly premium of $300
* if he buys a 20 year deceasing term assurance, the premium is only $20 a month.
They were surprised that the secnond plan is so affordable.
I explained that they can invest the difference of $280 into a unit trust or mutual fund, and get a good return over the next 20 years, and have a flexible savings plan.
"Why did not insurance agent not offer this option?"
The reason: the insurance agent earns much more by selling a whole life policy, instead of a decreasing term policy.
I said:
* if a person in the late 20s buy a whole life policy for $200,000, he has to pay a monthly premium of $300
* if he buys a 20 year deceasing term assurance, the premium is only $20 a month.
They were surprised that the secnond plan is so affordable.
I explained that they can invest the difference of $280 into a unit trust or mutual fund, and get a good return over the next 20 years, and have a flexible savings plan.
"Why did not insurance agent not offer this option?"
The reason: the insurance agent earns much more by selling a whole life policy, instead of a decreasing term policy.
Savings for retirement
Someone told me that a hawker was sold a 20 year endowment policy with an annual premium of $7,000 as a form of saving for retirement.
Here is my analysis of the product:
* assume that the return on the endowment policy is 3.5% p.a., the maturity benefit is $204,000.
* if the hawker buy a decreasing term assurance and invest the difference in a unit trust to earn a net interest of 6% p.a., the expected maturity benefit (not guaranteed) would be $245,000 (after allowing for the normal charges of the fund). This is 20% higher than the endowment policy.
An endowment policy is rigid and requires the savings to be made for 20 years. If the plan is terminated in the early years, the policyholder may suffer a loss, due to the high marketing charges.
The unit trust is more flexible.
If the policyholder is able to claim tax relief on the insurance premium, then the tax savings will reduce the difference. But, if the policyholder does not pay any tax, then this advantage does not accrue.
Here is my analysis of the product:
* assume that the return on the endowment policy is 3.5% p.a., the maturity benefit is $204,000.
* if the hawker buy a decreasing term assurance and invest the difference in a unit trust to earn a net interest of 6% p.a., the expected maturity benefit (not guaranteed) would be $245,000 (after allowing for the normal charges of the fund). This is 20% higher than the endowment policy.
An endowment policy is rigid and requires the savings to be made for 20 years. If the plan is terminated in the early years, the policyholder may suffer a loss, due to the high marketing charges.
The unit trust is more flexible.
If the policyholder is able to claim tax relief on the insurance premium, then the tax savings will reduce the difference. But, if the policyholder does not pay any tax, then this advantage does not accrue.
Foreign funds are responding to investors' demand
Someone told me that the foreign funds are "not manipulating" the stockmarket. They are just responding to investors' demands to invest in Asian markets. Singapore is an attractive place for their investments.
This is correct.
However, the Singapore market is quite small. When the foreign funds flow into the market, they will push up the prices to a high level. When they have made enough profit, they will sell the shares and move to other Asian markets.
This has happened many times in the past. We must be prepared that it may happen again.
This is correct.
However, the Singapore market is quite small. When the foreign funds flow into the market, they will push up the prices to a high level. When they have made enough profit, they will sell the shares and move to other Asian markets.
This has happened many times in the past. We must be prepared that it may happen again.
Local taxis
In some countries, there is a separate licence for a local taxi. It can only operate within a certain zone. This is to avoid competition with the long distance taxis. The taxi driver probably pays a separate licence fee.
I suggest that we should have this concept to provide a feeder service to MRT stations or bus terminus. We can allow private cars to be used to provide this service. The cost should be kept low, say $1 per passenger or $2 per trip.
If there is an efficient feeder service, more people will use mass transit. There will be less cars on the road.
I suggest that we should have this concept to provide a feeder service to MRT stations or bus terminus. We can allow private cars to be used to provide this service. The cost should be kept low, say $1 per passenger or $2 per trip.
If there is an efficient feeder service, more people will use mass transit. There will be less cars on the road.
Sunday, April 08, 2007
Watch out for outflow of foreign funds
My friend told me that the recent increase in the stockmarket is due to "manipulation" by the foreign funds. They are able to control the market.
I recall that, on three occasions in past years, the market fell a lot when the foreign funds move out (which they did, after they have made enough profit). When the market falls, you will not be able to get any buyer, unless you are prepared to take a big cut in prices.
If you wish to take profits, the best time is when the stockmarket is still moving up. Do not wait for it to turn.
I recall that, on three occasions in past years, the market fell a lot when the foreign funds move out (which they did, after they have made enough profit). When the market falls, you will not be able to get any buyer, unless you are prepared to take a big cut in prices.
If you wish to take profits, the best time is when the stockmarket is still moving up. Do not wait for it to turn.
Organising my folders
I use a folder in Big Trumpet to store my important data, including:
* website address, user names, id
* credit card numbers, telephone, PINS
* bank account number, PIN
As they are stored in a server, it is easy for me to retrieve them from anywhere in the world.
The folders are encripted and are quite secure. I get an e-mail alert, each time that my folder is accessed. So far, all the access are by me.
If someone else made an unauthorised access, I can be notified by the e-mail alert.
* website address, user names, id
* credit card numbers, telephone, PINS
* bank account number, PIN
As they are stored in a server, it is easy for me to retrieve them from anywhere in the world.
The folders are encripted and are quite secure. I get an e-mail alert, each time that my folder is accessed. So far, all the access are by me.
If someone else made an unauthorised access, I can be notified by the e-mail alert.
My impression of Huangshan, China
Many people said that the scenery in Huangshan is magnificent. I agree.
My wife and I have spent three days in Huangshan. We enjoyed the changing scenaries and the long walks along the mountain paths.
The different parts of the mountains are named as the "north sea", "west sea", "front sea", etc. Why do they name them as "sea", when they are high up in the mountains?
The mountains are high and are above the clouds. When you look at the clouds from above, they look like the "sea".
We flew to Huangshan City from Shanghai. We took a taxi to get to the foot of the mountain. To get to the hotel at the top, we had to take another taxi and cable car ride, and walk for 1 kilometer.
On our return, we took the overnight train from Huangshan City to Shanghai. It was a great experience.
My wife and I have spent three days in Huangshan. We enjoyed the changing scenaries and the long walks along the mountain paths.
The different parts of the mountains are named as the "north sea", "west sea", "front sea", etc. Why do they name them as "sea", when they are high up in the mountains?
The mountains are high and are above the clouds. When you look at the clouds from above, they look like the "sea".
We flew to Huangshan City from Shanghai. We took a taxi to get to the foot of the mountain. To get to the hotel at the top, we had to take another taxi and cable car ride, and walk for 1 kilometer.
On our return, we took the overnight train from Huangshan City to Shanghai. It was a great experience.
How to get adequate insurance
In the Sunday Times, there is an article by Lorna Tan. She reported that it is possible to get a large amount of term insurance at an affordable premium. It is even more afforable, under a decreasing term plan. She also quoted a financial adviser.
I agree with the views. They are similar to the views that are advocated in my blog and my website.
FAQ
NTUC Income offers a very attractive rates under its i-Term product. Visit www.income.coop/faq
I agree with the views. They are similar to the views that are advocated in my blog and my website.
FAQ
NTUC Income offers a very attractive rates under its i-Term product. Visit www.income.coop/faq
Difficult to buy Term Insurance in China
A friend told me that she wanted to buy term insurance in China. It was not available. The insurance agents do not carry this product.
Two years ago, she was quoted a premium rate of 2,500 RMB to insure for 250,000 RMB, under a plan that offers a partial premium refund. She found it to be too expensive. This plan was no longer offered.
For her age of 25 years, she would be able to buy a 20 year term insurance of 250,000 RMB in most countries at a premium of about 500 RMB.
Two years ago, she was quoted a premium rate of 2,500 RMB to insure for 250,000 RMB, under a plan that offers a partial premium refund. She found it to be too expensive. This plan was no longer offered.
For her age of 25 years, she would be able to buy a 20 year term insurance of 250,000 RMB in most countries at a premium of about 500 RMB.
Saturday, April 07, 2007
Lower commission rate for life insurance policies in China
I asked a senior manager of a life insurance company in China about the commission rate payable to the agent for selling an endowment or whole life policy.
I was surprised to learn the answer! The commission rate is about half of the level paid in Singapore.
In spite of the rapid expansion of the market, the commission rates in Singapore remained at a high level. The public is paying too much for their life insurance policies.
It appears that competition in China has been more effective in getting insurance companies to provide better value to their customers.
I was surprised to learn the answer! The commission rate is about half of the level paid in Singapore.
In spite of the rapid expansion of the market, the commission rates in Singapore remained at a high level. The public is paying too much for their life insurance policies.
It appears that competition in China has been more effective in getting insurance companies to provide better value to their customers.
Low life insurance coverage for Singaporeans
There is a report that the average Singaporean has inadequate coverage.
The reason? They were buying an expensive product.
If they buy a whole life policy, and they set aside $100 a month (say 5% of earnings), they can only cover about $50,000. This represents about two years of earnings. If they buy an endowment policy, they have to pay two times of the premium, of 10% of earnings.
Insurance agents recommend a whole life or endowment policy, because they can earn a high rate of commission - between 6 to 12 months of premium.
A better plan to buy is a decreasing term assurance. You can get a coverage for $150,000 (say 6 years of salary), and pay a monthly premium of only $15 a month, or less than 1% of your earnngs.
A term insurance policy does not provide any savings. But, you can invest your savings in a mutual fund or unit trust, with low expense charges, and get a better return.
You can read more in this FAQ
The reason? They were buying an expensive product.
If they buy a whole life policy, and they set aside $100 a month (say 5% of earnings), they can only cover about $50,000. This represents about two years of earnings. If they buy an endowment policy, they have to pay two times of the premium, of 10% of earnings.
Insurance agents recommend a whole life or endowment policy, because they can earn a high rate of commission - between 6 to 12 months of premium.
A better plan to buy is a decreasing term assurance. You can get a coverage for $150,000 (say 6 years of salary), and pay a monthly premium of only $15 a month, or less than 1% of your earnngs.
A term insurance policy does not provide any savings. But, you can invest your savings in a mutual fund or unit trust, with low expense charges, and get a better return.
You can read more in this FAQ
Interesting plan for a parent to give to a child
I like to suggest an interesting plan for a parent to take for each child. It covers the parent's life and provides the following parent in the event of the death of the parent during the term:
* a capital sum of $20,000
* a monthly income of $200 payable to the child for the remainder of the term
* the term is for the period until the child reaches a specified age between 18 to 25 years
As this is a term insurance plan (without any refund of premium), the premium rate should be quite low. It provides adequate protection at an affordable cost. I envisage that the annual premium could be less than $50.
The policy can be taken on the mother's life or the father's life. Two policies can be taken to cover both parents.
* a capital sum of $20,000
* a monthly income of $200 payable to the child for the remainder of the term
* the term is for the period until the child reaches a specified age between 18 to 25 years
As this is a term insurance plan (without any refund of premium), the premium rate should be quite low. It provides adequate protection at an affordable cost. I envisage that the annual premium could be less than $50.
The policy can be taken on the mother's life or the father's life. Two policies can be taken to cover both parents.
GIFT policy
GIFT is the name given by NTUC Income for a special product that provides a "guaranteed income for a fixed term".
You invest a lump sum and received a guaranteed income for 5, 10 or 15 years. The rate of return is about 3% to 4% p.a depending on term. This is guaranteed.
This plan is suitable for you to provide a monthly allowance to a parent, child or a family member. After setting aside the lump sum, the monthly payment is made to the bank account of the beneficiary. It is almost like a "gift".
You can also make a gift for yourself.
This is different from a life annuity in the following aspects:
* it is paid for a fixed term, and not for life
* the capital is exhausted at the end of the term
* in the event of death of the beneficary during the term, the discounted value of the remaining payments will be refunded.
You invest a lump sum and received a guaranteed income for 5, 10 or 15 years. The rate of return is about 3% to 4% p.a depending on term. This is guaranteed.
This plan is suitable for you to provide a monthly allowance to a parent, child or a family member. After setting aside the lump sum, the monthly payment is made to the bank account of the beneficiary. It is almost like a "gift".
You can also make a gift for yourself.
This is different from a life annuity in the following aspects:
* it is paid for a fixed term, and not for life
* the capital is exhausted at the end of the term
* in the event of death of the beneficary during the term, the discounted value of the remaining payments will be refunded.
Government employee plans for retirement
1. I am presently 53 years old and plan to retire at 62. Upon retired, if l need money, should l surrender life policies or should I loan from the policies?
Reply: If you need money and you do not require the insurance, it is better to surrender the policies. If you take a loan, interest will be added and you have to repay the loan in the future.
2. I am pensonable and my medical treatment is free, should l or my wife need to buy medical and hospital insurances?
Reply: If your medical insurance is fully covered by the government, there is no need for you to buy medical or hospital insurance.
3. What plan/investment should l have now so that I can have a monthly allowance of $1,500.00 per month when I retired in 9 years time?
Reply: You can buy a guaranteed life annuity. from NTUC Income. It provides good value and has gained a large market share.
You can also read this paper on Financial Planning for Seniors
Reply: If you need money and you do not require the insurance, it is better to surrender the policies. If you take a loan, interest will be added and you have to repay the loan in the future.
2. I am pensonable and my medical treatment is free, should l or my wife need to buy medical and hospital insurances?
Reply: If your medical insurance is fully covered by the government, there is no need for you to buy medical or hospital insurance.
3. What plan/investment should l have now so that I can have a monthly allowance of $1,500.00 per month when I retired in 9 years time?
Reply: You can buy a guaranteed life annuity. from NTUC Income. It provides good value and has gained a large market share.
You can also read this paper on Financial Planning for Seniors
An income benefit
Most people buy a life or accident policy to provide a lump sum, say $100,000 or $200,000. I think that an income benefit is better, say $2,000 a month for 1 years.
If there is a claim, it is likely that the spouse or children may not be knowledgeable about investing the money. There is the risk that the lump sum may tempt other people to find a way to take the money away.
An income benefit avoids the risk.
An income benefit has another advantage. It is possible to specify that the benefit is payable for the remainder of the defined term.
If the term is 20 years, and a claim occupies at year 5, the benefit is payable for 15 years. If the claim occurs at year 18, the benefit is payable for 2 years.
This structure gives a higher coverage for a claim that occurs earlier (and the need is greater) and a lower coverage for a claim that occurs at the later years (when the cost of insurance is higher). A reducing coverge of this type reduces the cost of insurance considerably.
You can insure for a smaller lump sum benefit and add an income benefit. This seems to be the best arrangement.
If there is a claim, it is likely that the spouse or children may not be knowledgeable about investing the money. There is the risk that the lump sum may tempt other people to find a way to take the money away.
An income benefit avoids the risk.
An income benefit has another advantage. It is possible to specify that the benefit is payable for the remainder of the defined term.
If the term is 20 years, and a claim occupies at year 5, the benefit is payable for 15 years. If the claim occurs at year 18, the benefit is payable for 2 years.
This structure gives a higher coverage for a claim that occurs earlier (and the need is greater) and a lower coverage for a claim that occurs at the later years (when the cost of insurance is higher). A reducing coverge of this type reduces the cost of insurance considerably.
You can insure for a smaller lump sum benefit and add an income benefit. This seems to be the best arrangement.
Reasons to avoid structured products
If you invest in a large, well diversified, low cost equity fund, you are able to earn an average return of 6% to 8% per annum, over 10 years or longer. There is risk, but this is already reflected in the average return. The risk is also reduced through diversification.
Some investors do not wish to take any risk. They like to have a safe, guaranteed return. In this case, they should just invest in government bonds, which earns about 3% per annum.
But, they like to earn more, without accepting the risk. To meet this unrealistic desire, the financial institutions came out with structured products. It involves investing in a pool of investments, and shifting the risk and return among various classes of investors.
The total return to all the investors is reduced by the cost of designing, marketing and managing the products. Collectively, the participants are worse off, after paying the high fees to the issuers, lawyers and marketeers.
Guess who gets the best deal? It must be the intelligent investors and the issuer of the structured products.
Guess who gets the worst deal? It is the unsavvy investors.
Lesson: If you do not want risk, invest in government bonds. If you want a better return, invest in a large, well diversified, low cost equity fund for 10 years or longer. Do not invest in structured products.
Some investors do not wish to take any risk. They like to have a safe, guaranteed return. In this case, they should just invest in government bonds, which earns about 3% per annum.
But, they like to earn more, without accepting the risk. To meet this unrealistic desire, the financial institutions came out with structured products. It involves investing in a pool of investments, and shifting the risk and return among various classes of investors.
The total return to all the investors is reduced by the cost of designing, marketing and managing the products. Collectively, the participants are worse off, after paying the high fees to the issuers, lawyers and marketeers.
Guess who gets the best deal? It must be the intelligent investors and the issuer of the structured products.
Guess who gets the worst deal? It is the unsavvy investors.
Lesson: If you do not want risk, invest in government bonds. If you want a better return, invest in a large, well diversified, low cost equity fund for 10 years or longer. Do not invest in structured products.
Financial Planning for Seniors
Two seniors read my script for a 2 hour talk on financial planning, targeted at seniors. They told me that the points are very useful.
My script an be found in Financial Planning for Seniors
I will be giving the talk as part of a 2 day program entitled "Senior Employment Guidance". It is organised by the Center for Seniors.
My script an be found in Financial Planning for Seniors
I will be giving the talk as part of a 2 day program entitled "Senior Employment Guidance". It is organised by the Center for Seniors.
Taxi Service in Shanghai
Taxis are plentiful in Shanghai. It is quite easy to flag down a taxi. The flag down rate is RMB 11 (about SGD 2.20). There are no surcharges.
The taxi driver will always print a receipt for each trip. This is useful, in case you left something in the taxi or wish to complain about poor or rude service.
The taxi drivers are quite polite. They do not complain if the trip is short.
The shortcomings are:
* you have to compete with many other commuters trying to flag down a taxi
* some taxi drivers are not familiar with the destination (as Shanghai is so big and changing so fast)
I am confident that they can find a solution to these shortcomings.
The taxi driver will always print a receipt for each trip. This is useful, in case you left something in the taxi or wish to complain about poor or rude service.
The taxi drivers are quite polite. They do not complain if the trip is short.
The shortcomings are:
* you have to compete with many other commuters trying to flag down a taxi
* some taxi drivers are not familiar with the destination (as Shanghai is so big and changing so fast)
I am confident that they can find a solution to these shortcomings.
Make a career switch
Dear Mr Tan,
Thanks for your prior comments on future career prospects of financial advisor.
I'm a 35yr old mid career engineer earning 5k per month, looking for a switch to a career that is more meaningful, with a purpose in live.
However, I also think i'm quite introvert, not sure if i'm really suitable to be a financial advisor that requires face-to-face sales....
-----------------------
My reply:
As you are drawing a fairly good salary and you are, as you indicated, an introvert, it may be better for you to stay in your current career, rather than make a career switch at this juncture.
To make a switch involve risk. This is all right, provided that the reward is attractive or the motivation is strong. It does not appear to be the case in this instance.
Thanks for your prior comments on future career prospects of financial advisor.
I'm a 35yr old mid career engineer earning 5k per month, looking for a switch to a career that is more meaningful, with a purpose in live.
However, I also think i'm quite introvert, not sure if i'm really suitable to be a financial advisor that requires face-to-face sales....
-----------------------
My reply:
As you are drawing a fairly good salary and you are, as you indicated, an introvert, it may be better for you to stay in your current career, rather than make a career switch at this juncture.
To make a switch involve risk. This is all right, provided that the reward is attractive or the motivation is strong. It does not appear to be the case in this instance.
Center for Seniors
Dear Mr Tan,
What will be your role in Center for Seniors? What do you think will be social entreprises with viable business models that can be pursued for Singapore's Third Age?
------------------
My reply:
I am the chairman of the Center for Seniors.
The Center for Seniors will be launchiing a few programmes that are targetted at seniors. More details will be available when the website is ready.
Watch out for more announcements in the near future.
What will be your role in Center for Seniors? What do you think will be social entreprises with viable business models that can be pursued for Singapore's Third Age?
------------------
My reply:
I am the chairman of the Center for Seniors.
The Center for Seniors will be launchiing a few programmes that are targetted at seniors. More details will be available when the website is ready.
Watch out for more announcements in the near future.
An adventure to reach my hotel in Huangshan
I visited Huangshan with my wife. We did not have any tour guide.
I booked a room in Beihai Hotel. I took a taxi from Huangshan City to Beihai Hotel. I had three luggages and expected to be taken directly to the hotel.
This is not the case.
The hotel took me to the main gate at the foot of the mountain. I was told that I had to take another taxi to the cable car station. I had to change to a crowded cable car to be taken to the station up the mountain. From there, I had to walk 1 kilometer to reach Beihai Hotel.
My luggages weighed 30 kilos.
The stall holder at the foot of the mountain advised us to leave our heavy luggages for their safe keeping, and to carry the light, essential items in a haversack (which they sold to us). We had to pay storage fee for the three days.
This suggestion turned out to be excellent. We enjoyed our stay in the mountain. On our return, our luggages were returned to us, safe and intact.
I booked a room in Beihai Hotel. I took a taxi from Huangshan City to Beihai Hotel. I had three luggages and expected to be taken directly to the hotel.
This is not the case.
The hotel took me to the main gate at the foot of the mountain. I was told that I had to take another taxi to the cable car station. I had to change to a crowded cable car to be taken to the station up the mountain. From there, I had to walk 1 kilometer to reach Beihai Hotel.
My luggages weighed 30 kilos.
The stall holder at the foot of the mountain advised us to leave our heavy luggages for their safe keeping, and to carry the light, essential items in a haversack (which they sold to us). We had to pay storage fee for the three days.
This suggestion turned out to be excellent. We enjoyed our stay in the mountain. On our return, our luggages were returned to us, safe and intact.
Commuter train system in Shanghai
I took the commuter train system in Shanghai.
There are five lines, numbered as line 1 to line 5. I took a taxi from my hotel to the nearby station in line 3, and took this elevated line to the Shanghai Railway station. I changed to underground line 1 to the People's Square station.
When the train leaves each station, there is an announcement in Chinese and English on the terminal station and the next station. This announcement is useful, to ensure that the commuters took the right direction.
At each station, the exits are clearly numbered as exit 1, exit 2, etc.
It is quite convenient to take the transit train. I get to know the layout of Shanghai well.
Lesson: It is better to number the lines and the stations, and also all the exits in each station. It is useful to make an announcement about the next stop and the terminal station.
There are five lines, numbered as line 1 to line 5. I took a taxi from my hotel to the nearby station in line 3, and took this elevated line to the Shanghai Railway station. I changed to underground line 1 to the People's Square station.
When the train leaves each station, there is an announcement in Chinese and English on the terminal station and the next station. This announcement is useful, to ensure that the commuters took the right direction.
At each station, the exits are clearly numbered as exit 1, exit 2, etc.
It is quite convenient to take the transit train. I get to know the layout of Shanghai well.
Lesson: It is better to number the lines and the stations, and also all the exits in each station. It is useful to make an announcement about the next stop and the terminal station.
Recover data in my PDA (mobile device)
I use a PDA (mobile device) to store my contact, calendar, notes and other important information.
The internal battery of my PDA died. I lost the data on my PDA.
I was able to retrieve the data from my desktop computer, as I synchronised them regularly.
I just learned, after losing the data, that I could also backup the data on the PDA into the storage card. This would have also allowed me to recover the data. I shall do it regulaly as well.
The internal battery of my PDA died. I lost the data on my PDA.
I was able to retrieve the data from my desktop computer, as I synchronised them regularly.
I just learned, after losing the data, that I could also backup the data on the PDA into the storage card. This would have also allowed me to recover the data. I shall do it regulaly as well.
Friday, April 06, 2007
Attract and retain talent in information technology
1. What can be done to attract and retain IT (information technology) talent in Singapore?
Reply: We need to create opportunities for big IT projects to be done in Singapore, similar to the approach taken for the life sciences, but perhaps not to the same scale.
There are opportunities to develop new applications that can change the way that people live their lives or do their work. This uses the latest innovation in information and communication technology, and the internet.
Perhaps, we need a big, bold budget to create the opportunities and critical mass.
2. What can the local IT professionals do to differentiate themselves from the cheaper competition in the region?
Reply: We have to accept the higher cost of I.T. professionals in Singapore. We need to be more imaginative and productive, to justify our higher cost and compete with lower cost countries.
We need passion and love for our work. This will allow us to gain special knowledge, insight and competence to move ahead. We have to be prepared to work hard, develop our skills and think for the long term. We need to inculcate the fighting spirit.
Developing software is similar to creating a piece of art. Many people can paint a picture, but a skilled painter can create a excellent painting. I hope that our software developers can develop the skill to create a software that can be like a great work of art.
Reply: We need to create opportunities for big IT projects to be done in Singapore, similar to the approach taken for the life sciences, but perhaps not to the same scale.
There are opportunities to develop new applications that can change the way that people live their lives or do their work. This uses the latest innovation in information and communication technology, and the internet.
Perhaps, we need a big, bold budget to create the opportunities and critical mass.
2. What can the local IT professionals do to differentiate themselves from the cheaper competition in the region?
Reply: We have to accept the higher cost of I.T. professionals in Singapore. We need to be more imaginative and productive, to justify our higher cost and compete with lower cost countries.
We need passion and love for our work. This will allow us to gain special knowledge, insight and competence to move ahead. We have to be prepared to work hard, develop our skills and think for the long term. We need to inculcate the fighting spirit.
Developing software is similar to creating a piece of art. Many people can paint a picture, but a skilled painter can create a excellent painting. I hope that our software developers can develop the skill to create a software that can be like a great work of art.
Can an actuary work in financial engineering?
1. Actuarial science and financial engineering appear to be related disciplines. Will taking actuarial science give me an edge, if I were to work in investment banks?
Reply: The actuarial knowledge will make you a good financial engineer. The skills re related.
2. I have an interest in working in banks, but not insurance related industry. Should I still pursue a degree in actuarial sciencem since actuaries work in banks as well? If I don't have an interest in working in insurance related industry, will my prospects be affected?
Reply: Some parts of actuarial knowledge are suitable for banks, but the major parts are better applied in insurance companies, investments, financial engineering and pension funds. If you wish to work in a bank, it is better to pursue another profession that is more direcly related to banking activities.
3. As an actuary, do I have to decide which area I want to specialise in, say property, pension, early in my career?
Reply: The actuary is trained in all of these areas. He is flexible and can do well in any of these areas, by specialising in the specific area. But he can switch to another area, and do well quite quickly.
4. Do actuaries make investments since their job is to calculate risks for insurance firms?
Reply: The training of an actuary is very suitable for the investment field. Many actuaries can do well as investment analysts.
5. In investment banks, do actuary and financial engineers do the same work since both deal with risks.
Reply: Financial actuaries have to analyse risks in investment products. The actuary is trained in analysing all types of risks, ie financial risks, insurance risks and other risks. The analysis of risks require knowledge in these areas:
* probability of its occurrence
* estimated amount of the loss or gain
* timing and impact on the value of money
Reply: The actuarial knowledge will make you a good financial engineer. The skills re related.
2. I have an interest in working in banks, but not insurance related industry. Should I still pursue a degree in actuarial sciencem since actuaries work in banks as well? If I don't have an interest in working in insurance related industry, will my prospects be affected?
Reply: Some parts of actuarial knowledge are suitable for banks, but the major parts are better applied in insurance companies, investments, financial engineering and pension funds. If you wish to work in a bank, it is better to pursue another profession that is more direcly related to banking activities.
3. As an actuary, do I have to decide which area I want to specialise in, say property, pension, early in my career?
Reply: The actuary is trained in all of these areas. He is flexible and can do well in any of these areas, by specialising in the specific area. But he can switch to another area, and do well quite quickly.
4. Do actuaries make investments since their job is to calculate risks for insurance firms?
Reply: The training of an actuary is very suitable for the investment field. Many actuaries can do well as investment analysts.
5. In investment banks, do actuary and financial engineers do the same work since both deal with risks.
Reply: Financial actuaries have to analyse risks in investment products. The actuary is trained in analysing all types of risks, ie financial risks, insurance risks and other risks. The analysis of risks require knowledge in these areas:
* probability of its occurrence
* estimated amount of the loss or gain
* timing and impact on the value of money
Is it safe to invest in USD?
Dear Mr Tan,
I have US$ fixed deposit of 50K on a one year term. I kept this FD for a few years ie from the exchange rate of 1.7 till now the exhanged rate is l.52.
I am just concerned if the US go into recession will the US$ exchanged rate grow weaker and what is the likely support range if that should happen?
---------------------------
My reply:
I am sorry that I am not able to predict the future direction of the US currency.
I have US$ fixed deposit of 50K on a one year term. I kept this FD for a few years ie from the exchange rate of 1.7 till now the exhanged rate is l.52.
I am just concerned if the US go into recession will the US$ exchanged rate grow weaker and what is the likely support range if that should happen?
---------------------------
My reply:
I am sorry that I am not able to predict the future direction of the US currency.
Stop paying pemiums
Dear Mr Tan,
I have 3 policies with NTUC Income and 4 policies with Prudential, taken over the past 10 years.
I am now 47 years old and no longer working, having been retrenched last year. I cannot continue to pay the premiums.
My husband wants me to surrender my policies and invest the sum elsewhere where it will hopefully generate income for us.
Is it wise to surrender the policies? Are there advantages to convert them to paid up status and what are the implications? Are there other options beside converting to paid up?
-----------------------------------------------
My reply:
If you are not able to pay the premium, you have the following options:
* convert to a paid up policy
* terminate the policy and get a cash value
* take a loan to pay the premium
You should decide which option is best for you.
If you do not need the insurance protection and you need the money for other purpose, you can terminate the policies. But, this decision has to be taken carefully, as you cannot change your mind later.
Perhaps you should consider to surrender some of the policies and convert the other polices to "paid up". You should ask the insurance companies to give you the various options and get an adviser to help you make the best decision.
I have 3 policies with NTUC Income and 4 policies with Prudential, taken over the past 10 years.
I am now 47 years old and no longer working, having been retrenched last year. I cannot continue to pay the premiums.
My husband wants me to surrender my policies and invest the sum elsewhere where it will hopefully generate income for us.
Is it wise to surrender the policies? Are there advantages to convert them to paid up status and what are the implications? Are there other options beside converting to paid up?
-----------------------------------------------
My reply:
If you are not able to pay the premium, you have the following options:
* convert to a paid up policy
* terminate the policy and get a cash value
* take a loan to pay the premium
You should decide which option is best for you.
If you do not need the insurance protection and you need the money for other purpose, you can terminate the policies. But, this decision has to be taken carefully, as you cannot change your mind later.
Perhaps you should consider to surrender some of the policies and convert the other polices to "paid up". You should ask the insurance companies to give you the various options and get an adviser to help you make the best decision.
Choosing my career
Dear Mr Tan,
When you were a teen still in school or university how did you decide this is something that you wanted to do? Ever regretted or
felt you wanted to do something else?
------------------------
My reply:
When I was in school, I wanted to be an engineer. Most of the top students in Raffles Institution wanted to be doctors, but I wanted to be different. I was good in mathmathics, which was a good application for engineering.
Later, I learned about the actuarial profession. I required a high level of competency in mathemathics. I thought that it was suitable for me. I decided to leave school (after secondary 4) and work in an insurance company to pursue this profession.
My school principal was surprised. He tried to encourage me to continue my studies and even offered to get a scholarship for me.
Later, he gave an introduction for me to meet the general manager of a large, local insurance company. I joined this company as a clerk.
I never looked back. I never have any regret on my past actions. I take life as it comes. I never consider myself to be so important to feel any self pity.
When you were a teen still in school or university how did you decide this is something that you wanted to do? Ever regretted or
felt you wanted to do something else?
------------------------
My reply:
When I was in school, I wanted to be an engineer. Most of the top students in Raffles Institution wanted to be doctors, but I wanted to be different. I was good in mathmathics, which was a good application for engineering.
Later, I learned about the actuarial profession. I required a high level of competency in mathemathics. I thought that it was suitable for me. I decided to leave school (after secondary 4) and work in an insurance company to pursue this profession.
My school principal was surprised. He tried to encourage me to continue my studies and even offered to get a scholarship for me.
Later, he gave an introduction for me to meet the general manager of a large, local insurance company. I joined this company as a clerk.
I never looked back. I never have any regret on my past actions. I take life as it comes. I never consider myself to be so important to feel any self pity.
Waiting for the market to correct
Dear Mr Tan,
Presently, most unit trust and share prices are very high and to invest at this moment may not be worth the while and maybe by next year US will be hit by a recession.
So what is your best suggestion for investment for my retirement? Should I wait for the recession to come by before I invest?
What are other means we can look out for to invest for our future retirement? Presently I am 44 and nearing my retirement in 11 years time or maybe have to work till 62 if financially I can't retire early.
I had pay up my housing loan thru CPF so now left only about $10,000 in my ordinary account. So what is your suggestion to increase my savings and any resources I may look into to increase my wealth?
---------------------------------
My reply:
I put most of my savings in the money market fund to earn about 3%. You can read about them in my blog.
You can also read from my website, Ask Mr Tan.
Presently, most unit trust and share prices are very high and to invest at this moment may not be worth the while and maybe by next year US will be hit by a recession.
So what is your best suggestion for investment for my retirement? Should I wait for the recession to come by before I invest?
What are other means we can look out for to invest for our future retirement? Presently I am 44 and nearing my retirement in 11 years time or maybe have to work till 62 if financially I can't retire early.
I had pay up my housing loan thru CPF so now left only about $10,000 in my ordinary account. So what is your suggestion to increase my savings and any resources I may look into to increase my wealth?
---------------------------------
My reply:
I put most of my savings in the money market fund to earn about 3%. You can read about them in my blog.
You can also read from my website, Ask Mr Tan.
Thursday, April 05, 2007
Insurance for people in poor health
Dear Mr Tan,
What is your advise for clients who are already suffering from chronic diseases. I know a friend who has diabetes, high blood and is suffering from kidney failure.
Does this mean these people will not need to buy any insurance now? its too late?
---------------------------
My reply:
Your friend can buy personal accident insurance.
It will be difficult to buy life or medical insurance, if his health is extremely poor. He can find out about how to use the subsidised medical facilities provided by the Government, and keep the medical bills as low as possible.
What is your advise for clients who are already suffering from chronic diseases. I know a friend who has diabetes, high blood and is suffering from kidney failure.
Does this mean these people will not need to buy any insurance now? its too late?
---------------------------
My reply:
Your friend can buy personal accident insurance.
It will be difficult to buy life or medical insurance, if his health is extremely poor. He can find out about how to use the subsidised medical facilities provided by the Government, and keep the medical bills as low as possible.
My insurance and investments
Mr Tan,
What are the types of insurance do you invests in?
My reply:
When my children were young, I took up term and life insurance. The sum assured is 5 times his annual salary. I took up a living policy for his wife, and also for my 3 children. I had comprehensive coverage for accident, medical and education.
I invest in investment-linked products for my retirement. My investments are in large, well-diversified and in low-cost plans. The returns for the past few years, is more than 10 per cent per annum.
For the next 10 to 20 years, I expect the return to be around 5 to 6 per cent. I think it is a suitable investment for everyone.
What are the types of insurance do you invests in?
My reply:
When my children were young, I took up term and life insurance. The sum assured is 5 times his annual salary. I took up a living policy for his wife, and also for my 3 children. I had comprehensive coverage for accident, medical and education.
I invest in investment-linked products for my retirement. My investments are in large, well-diversified and in low-cost plans. The returns for the past few years, is more than 10 per cent per annum.
For the next 10 to 20 years, I expect the return to be around 5 to 6 per cent. I think it is a suitable investment for everyone.
Why did I join NTUC Income?
Someone asked me, "Why did you choose to join NTUC Income?"
I joined NTUC Income by accident. I was approached.
When the selection committee interviewed me, they had three important conditions for a suitable candidate:
* must be able to run a large organisation
* must be able to lead a sales force
* must be able to manage the trade unions (who are the key shareholders)
I did not have any proven record on all three counts.
I was selected because I was the only qualified actuary who was willing to join NTUC Income, without insisting on a high salary and other conditions.
Later, I learned that other candidates were approached, but they were not willing to join NTUC Income.
How did I overcame by lack of experience?
I adopted the entrepreneurial approach. I learned how to find the right answers. Quickly, 30 years have passed.
I joined NTUC Income by accident. I was approached.
When the selection committee interviewed me, they had three important conditions for a suitable candidate:
* must be able to run a large organisation
* must be able to lead a sales force
* must be able to manage the trade unions (who are the key shareholders)
I did not have any proven record on all three counts.
I was selected because I was the only qualified actuary who was willing to join NTUC Income, without insisting on a high salary and other conditions.
Later, I learned that other candidates were approached, but they were not willing to join NTUC Income.
How did I overcame by lack of experience?
I adopted the entrepreneurial approach. I learned how to find the right answers. Quickly, 30 years have passed.
Two types of democratic systems
There are two types of democratic systems practiced around the world:
* British system - the members of parliament (elected by the citizens) will choose a prime minister and other ministers from among themselves; usually from the winning party or a coalition
* American system - the citizens choose the members of the Congress (ie Parliament) separately from the President; the President will choose his secretaries (ie ministers) from the entire population, but they have to be approved by Congress
In recent years, I come to favour the American system. The Congress can focus on passing the laws. The elected President can choose capable persons from the entire population to run the government.
The system in Singapore is largely based on the British system. In recent years, we have modified it to have an elected President, but he has certain specified but limited responsibilities.
It is now possible for us to move towards the American system. A future elected President can appoint his ministers from anywhere in the country (including the members of Parliament). This will give a wider base to choose the leaders to run the country.
Just a thought.
* British system - the members of parliament (elected by the citizens) will choose a prime minister and other ministers from among themselves; usually from the winning party or a coalition
* American system - the citizens choose the members of the Congress (ie Parliament) separately from the President; the President will choose his secretaries (ie ministers) from the entire population, but they have to be approved by Congress
In recent years, I come to favour the American system. The Congress can focus on passing the laws. The elected President can choose capable persons from the entire population to run the government.
The system in Singapore is largely based on the British system. In recent years, we have modified it to have an elected President, but he has certain specified but limited responsibilities.
It is now possible for us to move towards the American system. A future elected President can appoint his ministers from anywhere in the country (including the members of Parliament). This will give a wider base to choose the leaders to run the country.
Just a thought.
Wednesday, April 04, 2007
Avoid this financial product
Hi Mr. TAN,
I'm curious about the SWISSCASH Investment, which my wife's colleague and family already taken-up. Can you advise in some way if this is genuine, and it's legal in Singapore?
---------------------
From an email:
This guys claim that it is a very exciting Savings Programme from Swiss Mutual Fund called Swiss cash. It can help you grow your fund with 200% profits in 15 months.
Since I started on the investment in May 2006, I have already gotten 160% interest (10% interest monthly for the period May - July 2006, 15% interest monthly for the months of August - October 2006, 20% for November 2006 - January 2007, and 25% for February 2007).
I will be receiving another 25% interest for this month and next month, and 30% for the final 3. I have already recovered my principal sum in January 2007 and earned an accumulated gross profit (ie. gross amount less principal sum) of 60% up till this month March 2007. By the end of 15 months, my total profits received will be 200%!
(rest of details deleted)
-------------------------
My reply:
Here is the view of a financial analyst:
"I have looked into it a few times. It is a scam -- a pyramid scheme."
I'm curious about the SWISSCASH Investment, which my wife's colleague and family already taken-up. Can you advise in some way if this is genuine, and it's legal in Singapore?
---------------------
From an email:
This guys claim that it is a very exciting Savings Programme from Swiss Mutual Fund called Swiss cash. It can help you grow your fund with 200% profits in 15 months.
Since I started on the investment in May 2006, I have already gotten 160% interest (10% interest monthly for the period May - July 2006, 15% interest monthly for the months of August - October 2006, 20% for November 2006 - January 2007, and 25% for February 2007).
I will be receiving another 25% interest for this month and next month, and 30% for the final 3. I have already recovered my principal sum in January 2007 and earned an accumulated gross profit (ie. gross amount less principal sum) of 60% up till this month March 2007. By the end of 15 months, my total profits received will be 200%!
(rest of details deleted)
-------------------------
My reply:
Here is the view of a financial analyst:
"I have looked into it a few times. It is a scam -- a pyramid scheme."
Invest CPF money with low risk
Dear Mr Tan,
My wife has just collected her CPF and would like to deposit or invest in a short term low risk instrument- preferably not more than 3 years with capital protection. Could you please advise.
---------------------------
My reply:
I suggest that your wife invest in the money market fund through flexi-cash with NTUC Income. I invest most of my money in this fund. It earns about 3% to 3.5% p.a. and has no lock up period.
Although it is not capital protected, the risk is very, very small.
You can find out more of this product at www.income.coop/faq
You can also visit the business center of NTUC Income at Bras Basah Road.
My wife has just collected her CPF and would like to deposit or invest in a short term low risk instrument- preferably not more than 3 years with capital protection. Could you please advise.
---------------------------
My reply:
I suggest that your wife invest in the money market fund through flexi-cash with NTUC Income. I invest most of my money in this fund. It earns about 3% to 3.5% p.a. and has no lock up period.
Although it is not capital protected, the risk is very, very small.
You can find out more of this product at www.income.coop/faq
You can also visit the business center of NTUC Income at Bras Basah Road.
Good future for an insurance adviser
Dear Mr Tan,
Is being an insurance agent/financial consultant still a viable career option now, as the market is quite saturated right now with many insurance agencies.
What is your view on financial advisor as a career option compared with say property agent?
--------------------
My reply:
There is a good future for an insurance adviser who is willing to act in the interest of the customers. They can make a good income. There are so many customers who looks for an honest adviser who is willing to do the best for them.
I know of many insurance advisers in NTUC Income who offer good products to their customers, and help their customers to get a good return on their investments and good coverage at a low cost.
The insurance advisers are able to earn a fairly good level of income, say $5,000 or higher, but they work hard and effectively. They sell more insurance, even though they earn a lower rate of commisison on each sales.
Many of them continue to be successful for 10 or 20 years.
Is being an insurance agent/financial consultant still a viable career option now, as the market is quite saturated right now with many insurance agencies.
What is your view on financial advisor as a career option compared with say property agent?
--------------------
My reply:
There is a good future for an insurance adviser who is willing to act in the interest of the customers. They can make a good income. There are so many customers who looks for an honest adviser who is willing to do the best for them.
I know of many insurance advisers in NTUC Income who offer good products to their customers, and help their customers to get a good return on their investments and good coverage at a low cost.
The insurance advisers are able to earn a fairly good level of income, say $5,000 or higher, but they work hard and effectively. They sell more insurance, even though they earn a lower rate of commisison on each sales.
Many of them continue to be successful for 10 or 20 years.
Penny stocks
Dear Mr Tan,
Could you give me some opinion on which are some penny stocks I could buy for a long term (1 to 2 yrs) investment.
------------------
My reply:
I do not invest in penny stocks. So, I cannot advice you. Sorry.
Could you give me some opinion on which are some penny stocks I could buy for a long term (1 to 2 yrs) investment.
------------------
My reply:
I do not invest in penny stocks. So, I cannot advice you. Sorry.
Proud of our cooperative beliefs
Message from a manager of NTUC Income.
-------------------------------------------
Dear Mr Tan
I will certainly remember you fondly. There are so many memories. Even after you are gone, I hope many of us will continue to do our best for Income.
I am so proud of our co-operative beliefs. I hope we will stay this way and the future Income will be a constant source of delight for you.
You have taught me many many things. Amongst all, to stand up for what one truly believes in.
-------------------------------------------
Dear Mr Tan
I will certainly remember you fondly. There are so many memories. Even after you are gone, I hope many of us will continue to do our best for Income.
I am so proud of our co-operative beliefs. I hope we will stay this way and the future Income will be a constant source of delight for you.
You have taught me many many things. Amongst all, to stand up for what one truly believes in.
Low public opinion of financial institutions
Mr Tan
There is a recent newspaper report that show that financial institutions, especially life insurers, have a low level of trust among the public. Why is this the case?
---------------------------
My reply:
Many financial institutions design products with the aim of making profit for their shareholders. In many cases, their products do not offer good value to the customers.
They employ advisers to sell these inferior products to the customers. The advisers do not present the honest facts about the products.
As the products are difficult to sell, they have to pay high commission to the advisers. This makes the product even less attractive to the customers.
The customers learned, many years later, that the products give a poor return. It is too late for them to change. They are also locked into the product, as a high cost have already been incurred upfront.
This makes the customers loss trust in the financial products, the financial institutions and the advisers.
What is the alternative?
The financial institutions should design products that give fair value to the customers. They should also reduce their marketing and other cost. They can still make a fair margin on the products, but they have to serve their customers well.
Business can be runned honestly and ethically. This will win over the trust of the customers.
There is a recent newspaper report that show that financial institutions, especially life insurers, have a low level of trust among the public. Why is this the case?
---------------------------
My reply:
Many financial institutions design products with the aim of making profit for their shareholders. In many cases, their products do not offer good value to the customers.
They employ advisers to sell these inferior products to the customers. The advisers do not present the honest facts about the products.
As the products are difficult to sell, they have to pay high commission to the advisers. This makes the product even less attractive to the customers.
The customers learned, many years later, that the products give a poor return. It is too late for them to change. They are also locked into the product, as a high cost have already been incurred upfront.
This makes the customers loss trust in the financial products, the financial institutions and the advisers.
What is the alternative?
The financial institutions should design products that give fair value to the customers. They should also reduce their marketing and other cost. They can still make a fair margin on the products, but they have to serve their customers well.
Business can be runned honestly and ethically. This will win over the trust of the customers.
Better use of manpower
In a socialist economy, everyone is employed, but people do not work too hard. There are more than sufficient people to provide service to customers.
In a free market economy, the business owner try to reduce the manpower to earn more profit. Some people are unemployed. There are insufficient workers to provide good service to customers.
The unemployed people try to make a living to run a small business. There is oversupply of these enterprises. To survive, they have to work long hours. This is not an efficient use of manpower.
I have seen China move from the first situation to the second situation over the past 20 years. In my recent stay in Huangshan, I was surprised that the hotel seem to be short of service workers.
Which economic model is better?
Perhaps there is no clear answer. It probably lies between the two extremes.
In a free market economy, the business owner try to reduce the manpower to earn more profit. Some people are unemployed. There are insufficient workers to provide good service to customers.
The unemployed people try to make a living to run a small business. There is oversupply of these enterprises. To survive, they have to work long hours. This is not an efficient use of manpower.
I have seen China move from the first situation to the second situation over the past 20 years. In my recent stay in Huangshan, I was surprised that the hotel seem to be short of service workers.
Which economic model is better?
Perhaps there is no clear answer. It probably lies between the two extremes.
Study shows why exercise boosts brainpower
I exercise regularly for more than 10 years. According to the following study, it helps to boost my brain power. From my personal experience, it looks correct.
=====================================
WASHINGTON (Reuters) -- Exercise boosts brainpower by building new brain cells in a brain region linked with memory and memory loss, U.S. researchers reported Monday.
Tests on mice showed they grew new brain cells in a brain region called the dentate gyrus, a part of the hippocampus that is known to be affected in the age-related memory decline that begins around age 30 for most humans.
The researchers used magnetic resonance imaging scans to help document the process in mice -- and then used MRIs to look at the brains of people before and after exercise.
They found the same patterns, which suggests that people also grow new brain cells when they exercise.
"No previous research has systematically examined the different regions of the hippocampus and identified which region is most affected by exercise," Dr. Scott Small, a neurologist at Columbia University Medical Center in New York who led the study, said in a statement.
=====================================
WASHINGTON (Reuters) -- Exercise boosts brainpower by building new brain cells in a brain region linked with memory and memory loss, U.S. researchers reported Monday.
Tests on mice showed they grew new brain cells in a brain region called the dentate gyrus, a part of the hippocampus that is known to be affected in the age-related memory decline that begins around age 30 for most humans.
The researchers used magnetic resonance imaging scans to help document the process in mice -- and then used MRIs to look at the brains of people before and after exercise.
They found the same patterns, which suggests that people also grow new brain cells when they exercise.
"No previous research has systematically examined the different regions of the hippocampus and identified which region is most affected by exercise," Dr. Scott Small, a neurologist at Columbia University Medical Center in New York who led the study, said in a statement.
Sub-prime mortgages
Dr Money
There is a lot of news about the default of subprime mortgage. What is the definition of this mortgage?
-------------------------
His reply:
Sub-prime mortgages are the risky ones in the US. They include interest only loans. It keeps the interest payments low.
Another type of sub-prime loan is option adjustable rate mortgages, also known as option ARMs.
They work like credit card payments. You make a minimum payment on your mortgage. It doesn't even have to cover the full amount of the interest due.
The interest that is unpaid gets added back to the principal -- which keeps growing like a mushroom cloud.
For some, it is the only way to afford expensive homes.
Of course, the loans are risky. But the interest rates are higher than prime mortgage rates -- so lenders like banks and savings and loan institutions in the US have been attracted to them.
Sincerely,
Larry H.
There is a lot of news about the default of subprime mortgage. What is the definition of this mortgage?
-------------------------
His reply:
Sub-prime mortgages are the risky ones in the US. They include interest only loans. It keeps the interest payments low.
Another type of sub-prime loan is option adjustable rate mortgages, also known as option ARMs.
They work like credit card payments. You make a minimum payment on your mortgage. It doesn't even have to cover the full amount of the interest due.
The interest that is unpaid gets added back to the principal -- which keeps growing like a mushroom cloud.
For some, it is the only way to afford expensive homes.
Of course, the loans are risky. But the interest rates are higher than prime mortgage rates -- so lenders like banks and savings and loan institutions in the US have been attracted to them.
Sincerely,
Larry H.
Tuesday, April 03, 2007
Use Skype to call home
I am in China. I pay for a whole day boardband access to the internet.
I used Skype-Out to call back to family and friends in Singapoe. Skpye-Out uses the internet connection for the international call, and uses the local system to connect to the telephone of the receiver. I pay only the cost of the local Singapore call.
It is convenient. The quality of the call is good.
I used Skype-Out to call back to family and friends in Singapoe. Skpye-Out uses the internet connection for the international call, and uses the local system to connect to the telephone of the receiver. I pay only the cost of the local Singapore call.
It is convenient. The quality of the call is good.
Unproductive competition
I visited a shopping center in Kuala Lumpur. It had more than 100 stall selling mobilephones.
I visited a seafood market in Shanghai. It had more than 100 stalls selling seafood. The products are quite similar.
In both cases, there are more stall holders than customers.
This is unproductive competition. They need less than half the stall holders to serve the customers. Maybe, they do not have to work long hours.
We need a better way, rather than the "free market" to make better use of our resources. We should avoid unproductive competition that leads to a poorer quality of life for everyone.
In Europe, where business is more regulated (some people consider it to be Over-regulated), there is a better balance between work and leisure. People can afford to have a better standard of living and lead a better quality of life.
Maybe, there is something that we can learn from Europe?
I visited a seafood market in Shanghai. It had more than 100 stalls selling seafood. The products are quite similar.
In both cases, there are more stall holders than customers.
This is unproductive competition. They need less than half the stall holders to serve the customers. Maybe, they do not have to work long hours.
We need a better way, rather than the "free market" to make better use of our resources. We should avoid unproductive competition that leads to a poorer quality of life for everyone.
In Europe, where business is more regulated (some people consider it to be Over-regulated), there is a better balance between work and leisure. People can afford to have a better standard of living and lead a better quality of life.
Maybe, there is something that we can learn from Europe?
Minimum wage
Mr Tan,
I like to seek your views.
Some countries have a minimum age policy. But there is no such policy in Singapore. The reason, I understand, is that a minimum wage policy will push investors to to other countries. Do you agree?
-------------------------
My reply:
I am in favour of a minimum wage policy. A minimum wage will provide the worker with an income that is sufficient to make a decent living.
If there is no minimum wage, the market forces may push the wage to a low level. Our workers have to compete with foreign workers who are willing to come to work in Singapore at a low salary. The cost of feeding their family in their home country is low.
Foreign investors look at the total cost of operating in a country. The total cost comprise of:
* wages
* land
* other costs (eg inefficiency, tax, levy, corruption)
Our economy is quite efficient and corruption is not a problem. We are quite competitive to foreign investors. If wages go up, it can be compensated by a lower cost of land. The total cost can remain quite competitive.
By keeping the wages low, we are largely benefiting the land owners. This is why the cost of land is so high in Singapore.
In my view, we should raise our wages, especially at the lowest level. This is improve the living standard in Singapore. Our people do not have to work long hours, can have more time to be gracious, and maybe raise a bigger family.
I like to seek your views.
Some countries have a minimum age policy. But there is no such policy in Singapore. The reason, I understand, is that a minimum wage policy will push investors to to other countries. Do you agree?
-------------------------
My reply:
I am in favour of a minimum wage policy. A minimum wage will provide the worker with an income that is sufficient to make a decent living.
If there is no minimum wage, the market forces may push the wage to a low level. Our workers have to compete with foreign workers who are willing to come to work in Singapore at a low salary. The cost of feeding their family in their home country is low.
Foreign investors look at the total cost of operating in a country. The total cost comprise of:
* wages
* land
* other costs (eg inefficiency, tax, levy, corruption)
Our economy is quite efficient and corruption is not a problem. We are quite competitive to foreign investors. If wages go up, it can be compensated by a lower cost of land. The total cost can remain quite competitive.
By keeping the wages low, we are largely benefiting the land owners. This is why the cost of land is so high in Singapore.
In my view, we should raise our wages, especially at the lowest level. This is improve the living standard in Singapore. Our people do not have to work long hours, can have more time to be gracious, and maybe raise a bigger family.
Financial planning for Seniors
A detailed paper is presented in my website
FAQ
This paper will be used for a course to be conduced by the Center for Seniors. The course is called Senior Employment Guidance.
FAQ
This paper will be used for a course to be conduced by the Center for Seniors. The course is called Senior Employment Guidance.
Financial planning for the young
Dear Mr Tan,
I am a 19 years old girl who is currently earning to do my further education.
I am earning about $1.5k a month which is not fixed. I have a younger sister who is just 8 years old and an elder brother who is handicapped since birth. My father is doing some odd-jobs earning <$1200 a month. My mother is a housewife. Even the home which we are staying is a rented one and not owned.
I just discovered that my entire family are not covered on any plan. Not even Incomeshield.
In this situation, what kind of plan should I take so that my family is covered? Can I take any plan insuring my elder brother? Is there any plan with low premium where I can actually recommend to my parents for my sister's tertiary education?
I did browse through Income's website looking at Life Insurance Protection. There were a few choices but I am unable to decide which one is suitable for my family.
Hope you can advise me on what I can do and which plan is suitable for my family.
---------------------------
MY REPLY:
It is good for you to be thinking early about your financial plan.
I recommend that you read the FAQs in my website under "Ask Mr Tan". You can get some information there. If not, I suggest that you visit NTUC Income's business center and talk to a salaried consultant.
www.tankinlian.com
I am a 19 years old girl who is currently earning to do my further education.
I am earning about $1.5k a month which is not fixed. I have a younger sister who is just 8 years old and an elder brother who is handicapped since birth. My father is doing some odd-jobs earning <$1200 a month. My mother is a housewife. Even the home which we are staying is a rented one and not owned.
I just discovered that my entire family are not covered on any plan. Not even Incomeshield.
In this situation, what kind of plan should I take so that my family is covered? Can I take any plan insuring my elder brother? Is there any plan with low premium where I can actually recommend to my parents for my sister's tertiary education?
I did browse through Income's website looking at Life Insurance Protection. There were a few choices but I am unable to decide which one is suitable for my family.
Hope you can advise me on what I can do and which plan is suitable for my family.
---------------------------
MY REPLY:
It is good for you to be thinking early about your financial plan.
I recommend that you read the FAQs in my website under "Ask Mr Tan". You can get some information there. If not, I suggest that you visit NTUC Income's business center and talk to a salaried consultant.
www.tankinlian.com
How to be creative
I have posted three interesting stories from Lee Kum Tatt and his wife, about creativity.
Lee Kum Tatt is a creative person. He and his wife like to share some stories about their adventure, over the past years, in creating the Risis orchid and in approaching creative situations.
Read about them in his blog
This will make up for the fewer postings in my blog during the period that I am in China.
Lee Kum Tatt is a creative person. He and his wife like to share some stories about their adventure, over the past years, in creating the Risis orchid and in approaching creative situations.
Read about them in his blog
This will make up for the fewer postings in my blog during the period that I am in China.
Visiting Huangshan, China
I spent the last four days in Huangshan in Anhui Province. It is reputed to be the best mountain to visit in China.
I was not able to access blogspot in Huangshan. So, my posting was interrupted. I could access other websites.
I am now in Shanghai. I can access and post to blogspot.
I was not able to access blogspot in Huangshan. So, my posting was interrupted. I could access other websites.
I am now in Shanghai. I can access and post to blogspot.
Monday, April 02, 2007
Book for hotel rooms through the internet
My friend booked a hotel room for me in Philaphedia, United states. The room rate was USD 309 a night. I found this to be too expensive.
I checked the internet and found a room at the same hotel to be USD 160 a night.
I checked with my friend. Apparently, the hotel quoted a higher rate to his company, but offered a lower rate in the internet, on a non-cancellable basis.
Lesson: If you are willing to be committed to a non-cancelleable booking, it is better to book through the internet and enjoy a lower hotel rate.
I checked the internet and found a room at the same hotel to be USD 160 a night.
I checked with my friend. Apparently, the hotel quoted a higher rate to his company, but offered a lower rate in the internet, on a non-cancellable basis.
Lesson: If you are willing to be committed to a non-cancelleable booking, it is better to book through the internet and enjoy a lower hotel rate.
Sunday, April 01, 2007
China - changes in 20 years
My first visit to China was in 1987. I recall my impressions of that visit:
* foreigners are required to use the "foreign exchange certificate", which has a higher exchange rate compared to the local currency.
* tourists pay a higher admission ticket to the tourist spots, compared to locals
* the toilets were unclean
* there are many people to provide service
I am now in China again, nearly 20 years later. I saw the big changes to the lifestyle and the standard of living.
* the cities are now similar to other cities around the world
* there is only one currency
* prices are now the same for locals and tourists
* there is inadequate workers to provide service
Somehow, I miss the old China.
* foreigners are required to use the "foreign exchange certificate", which has a higher exchange rate compared to the local currency.
* tourists pay a higher admission ticket to the tourist spots, compared to locals
* the toilets were unclean
* there are many people to provide service
I am now in China again, nearly 20 years later. I saw the big changes to the lifestyle and the standard of living.
* the cities are now similar to other cities around the world
* there is only one currency
* prices are now the same for locals and tourists
* there is inadequate workers to provide service
Somehow, I miss the old China.
Thursday, March 29, 2007
Websites that impose their password pattern
Some websites insist that the password must fit their pattern, such as:
* must be at least 8 digits.
* must be more than 8 digits
* must be exactly 8 digits
* must have both numeric and alphabetic characters.
The designers of these websites forget that the ordinary people, like me, have to deal with more than 10 different websites and passwords. By insisting on a password that fit their pattern, they force the user to create an unfamiliar password that they are likely to remember quickly.
Singpass insist that the password must be more than 8 digits. I keep forgetting my password. I must have asked for it to be re-set at leat 10 times.
* must be at least 8 digits.
* must be more than 8 digits
* must be exactly 8 digits
* must have both numeric and alphabetic characters.
The designers of these websites forget that the ordinary people, like me, have to deal with more than 10 different websites and passwords. By insisting on a password that fit their pattern, they force the user to create an unfamiliar password that they are likely to remember quickly.
Singpass insist that the password must be more than 8 digits. I keep forgetting my password. I must have asked for it to be re-set at leat 10 times.
Income Tax Returns for 2007
I filed my income tax returns for 2007 through the internet.
The portal is well designed, but still too complicated. As a taxpayer, I have to read a lot of irrelevant details, just to learn that they do not apply to me.
I had a lot of trouble with the IRAS password. They insist on exactly 8 digits. I had to create a new password just to meet this requirement. I am likely to forget this password, when I need it.
The portal is well designed, but still too complicated. As a taxpayer, I have to read a lot of irrelevant details, just to learn that they do not apply to me.
I had a lot of trouble with the IRAS password. They insist on exactly 8 digits. I had to create a new password just to meet this requirement. I am likely to forget this password, when I need it.
Invest in fixed deposit for one month
Hi Mr Tan,
I have some cash which I need to use for the down payment of my house in May. I have left this in the savings account which gives peanuts.
Is it still worthwhile to put this in the money market and take out after a month or so?
=======================================
My reply:
I suggest that you put the money in 1 month fixed deposit. You should be able to get 2% p.a.
If you put in the money market, it can earn 3% to 3.5% p.a, but you are subject to some risk of fluctuation.
As you are investing for 1 month, it is better to keep things simple and invest in the fixed deposit.
I have some cash which I need to use for the down payment of my house in May. I have left this in the savings account which gives peanuts.
Is it still worthwhile to put this in the money market and take out after a month or so?
=======================================
My reply:
I suggest that you put the money in 1 month fixed deposit. You should be able to get 2% p.a.
If you put in the money market, it can earn 3% to 3.5% p.a, but you are subject to some risk of fluctuation.
As you are investing for 1 month, it is better to keep things simple and invest in the fixed deposit.
How to cope with the next recession
I expect the next recession in the USA to happen in one year's time, maybe in 2008.
If it happens, it will affect the rest of the world. We will feel the impact.
We should take the economic cycle in its stride, and not worry too much about it. When the economy is slow, we will have more leisure time, and time for the family. We can adjust to the slower pace and wait for the economy to recover. We can draw down on our savings.
If we have mortgage payments, we need to work out some arrangement with the bank to defer the payments. If we have some spare savings in the CPF, they can be used to pay the mortgage installments.
Many centuries ago, most people were involved in farming. In good years, their keep some of the harvest. They draw down on the stock during the bad years, eg drought. They accept the cycles are part of the farming life.
If it happens, it will affect the rest of the world. We will feel the impact.
We should take the economic cycle in its stride, and not worry too much about it. When the economy is slow, we will have more leisure time, and time for the family. We can adjust to the slower pace and wait for the economy to recover. We can draw down on our savings.
If we have mortgage payments, we need to work out some arrangement with the bank to defer the payments. If we have some spare savings in the CPF, they can be used to pay the mortgage installments.
Many centuries ago, most people were involved in farming. In good years, their keep some of the harvest. They draw down on the stock during the bad years, eg drought. They accept the cycles are part of the farming life.
Security check at Changi Airport
I find it quite troublesome to go through the security check at Changi Airport.
I am asked to remove our laptops, mobile phones, watches and other metal devices. When I walk through the metal frame, it still beeps. This is followed by a body search. If this is the case, there is no need to ask me to remove all the loose items.
In most airports, I am able to walk with ordinary items. But, not at Changi Airport.
I hope that the security at Changi Airport can be set at a more practical level. After a few years, it is time to review our security arrangement.
I am asked to remove our laptops, mobile phones, watches and other metal devices. When I walk through the metal frame, it still beeps. This is followed by a body search. If this is the case, there is no need to ask me to remove all the loose items.
In most airports, I am able to walk with ordinary items. But, not at Changi Airport.
I hope that the security at Changi Airport can be set at a more practical level. After a few years, it is time to review our security arrangement.
Court fines
Larry Haverkamp has posted an interesting story about court fines in South Africa. Read his blog.
Pays 20 years for a whole life policy
Mr Tan,
Income has introduced a whole life policy where the premium is payable for 20 years only.
What is the difference, compared to a critical year policy?
I find the premium to be quite high for Income's policy.
------------------------------
My reply:
Under the Income policy, you are contratually required to pay the premium for 20 years only, and enjoy the coverage for the whole of life. It does not use the future rate of bonus to pay the future premium. In fact, the future bonus will add to the cash and protection value of the policy.
A "critical year" policy use the future bonus to pay the future premium. It makes a bold assumption on the future rate of bonus to have a shorter "critical year". This is not guaranteed.
Some people find the premium under the "limited payment" policy to be expensive. It could be more than twice of the premium under a whole life or living policy, where the premium is payable until age 85.
If you wish to enjoy a lower premium, you should take a whole life or living policy, with premium payable for life. You can stop the premium at any time, and convert the policy into a paid up policy for a reduced sum assured.
What's wrong with the "critical year" policy?
The insurance agent project a high rate of bonus and tells the customer that the premium will be self funding after x years. When the rate of bonus drops, the critical year is extended for many more years. The customer enjoys a lower premium rate, but is not guaranteed that the premium will actually stop at the critical year.
Conclusion: To enjoy a lower premium, take an ordinary whole life or living policy. To enjoy a "limited premium", be prepared to pay a higher premium.
Income has introduced a whole life policy where the premium is payable for 20 years only.
What is the difference, compared to a critical year policy?
I find the premium to be quite high for Income's policy.
------------------------------
My reply:
Under the Income policy, you are contratually required to pay the premium for 20 years only, and enjoy the coverage for the whole of life. It does not use the future rate of bonus to pay the future premium. In fact, the future bonus will add to the cash and protection value of the policy.
A "critical year" policy use the future bonus to pay the future premium. It makes a bold assumption on the future rate of bonus to have a shorter "critical year". This is not guaranteed.
Some people find the premium under the "limited payment" policy to be expensive. It could be more than twice of the premium under a whole life or living policy, where the premium is payable until age 85.
If you wish to enjoy a lower premium, you should take a whole life or living policy, with premium payable for life. You can stop the premium at any time, and convert the policy into a paid up policy for a reduced sum assured.
What's wrong with the "critical year" policy?
The insurance agent project a high rate of bonus and tells the customer that the premium will be self funding after x years. When the rate of bonus drops, the critical year is extended for many more years. The customer enjoys a lower premium rate, but is not guaranteed that the premium will actually stop at the critical year.
Conclusion: To enjoy a lower premium, take an ordinary whole life or living policy. To enjoy a "limited premium", be prepared to pay a higher premium.
Sudoku fan enjoys birthday gift
Dear Mr. Tan,
I am the mother of J, a Guest Service Manager at H Kuala Lumpur.
Yesterday was my 53rd birthday and she presented two of your Logic9 (Vol 4 & 5) to me. I just love it and keep doing it on the bus journey from K.L. to Port Dickson (on a day trip with some senior citizen).
I would like to say thank you for the gift, which I really appreciate very much.
Where can I get the rest of the volume after I have finished these two, and how much it is in Malaysian Ringgit?
Once again, a big Thank You and all the best in your future.
Yours Sincerely,
I am the mother of J, a Guest Service Manager at H Kuala Lumpur.
Yesterday was my 53rd birthday and she presented two of your Logic9 (Vol 4 & 5) to me. I just love it and keep doing it on the bus journey from K.L. to Port Dickson (on a day trip with some senior citizen).
I would like to say thank you for the gift, which I really appreciate very much.
Where can I get the rest of the volume after I have finished these two, and how much it is in Malaysian Ringgit?
Once again, a big Thank You and all the best in your future.
Yours Sincerely,
Wednesday, March 28, 2007
My name, Liang
My father gave me the name, Liang. It means "bright". The Chinese character is shown on the right panel of this blog. It is not common for males to have this name.
I was delighted to learn, recently, that there is another personality in Chinese history, that has this name. He is Zhuge Liang.
Here is a short description, taken from Wikipedia:
Zhuge Liang was one of the greatest Chinese strategists of the Three Kingdoms era, as well as a statesman, engineer, scholar, and inventor.
Zhuge is an uncommon two-character compound family name. His name (or even just his surname) has become synonymous with intelligence and wit in Chinese culture.
Some books rumored to be written by Zhuge Liang can be found today, for example the Thirty-six Strategies of Zhuge Liang, and Mastering the Art of War are two that are generally available. Supposedly, his mastery of infantry and cavalry formation tactics were unrivalled.
I was delighted to learn, recently, that there is another personality in Chinese history, that has this name. He is Zhuge Liang.
Here is a short description, taken from Wikipedia:
Zhuge Liang was one of the greatest Chinese strategists of the Three Kingdoms era, as well as a statesman, engineer, scholar, and inventor.
Zhuge is an uncommon two-character compound family name. His name (or even just his surname) has become synonymous with intelligence and wit in Chinese culture.
Some books rumored to be written by Zhuge Liang can be found today, for example the Thirty-six Strategies of Zhuge Liang, and Mastering the Art of War are two that are generally available. Supposedly, his mastery of infantry and cavalry formation tactics were unrivalled.
Know a city through its train system
I have visited Kuala Lumpur many times in the past. But, I did not get to know the city well.
On this trip, I decided to learn the commuter train system. There are a few lines which travelled through different parts of the city.
I begin to get to know the city better, by recognising the train stations. It is quite interesting.
Tip: Learn a city through the train system. You can get to know the most important places in the city, as the train stations will be located there.
On this trip, I decided to learn the commuter train system. There are a few lines which travelled through different parts of the city.
I begin to get to know the city better, by recognising the train stations. It is quite interesting.
Tip: Learn a city through the train system. You can get to know the most important places in the city, as the train stations will be located there.
Tuesday, March 27, 2007
Alvin Soong's Blog
I wish to introduce you to the Soong family - Henry, Michael, Wendy and Alvin. Henry and Michael are twin brothers. Wendy and Alvin are Michael's children.
They are dedicated insurance advisers of NTUC Income. They served their customers with dedication over the years.
Alvin has written a blog. I like you to visit his blog. You may find some useful insights and advice.
Alvin Soong's blog
---------------------------------------
There is another famous Soong family in recent Chinese history. They are the Soong sisters. They married Sun Yat Sen, Chiang Kai Shek and a rich businessman.
They are dedicated insurance advisers of NTUC Income. They served their customers with dedication over the years.
Alvin has written a blog. I like you to visit his blog. You may find some useful insights and advice.
Alvin Soong's blog
---------------------------------------
There is another famous Soong family in recent Chinese history. They are the Soong sisters. They married Sun Yat Sen, Chiang Kai Shek and a rich businessman.
Thomas Phua's Blog
Last week, I recommended my blog visitors to contact Thomas Phua, through his blog, if they are interested in motor insurance.
Many people visited Thomas' blog. Initially, there were a few enquiries, but no buyers.
Recently, some of the enquiries have turned out to be business for Thomas. He now wants to invite me for lunch.
I recommend Thomas, because he takes good care of his motor insurance clients. Many of them stick with him loyally for many years.
Many people visited Thomas' blog. Initially, there were a few enquiries, but no buyers.
Recently, some of the enquiries have turned out to be business for Thomas. He now wants to invite me for lunch.
I recommend Thomas, because he takes good care of his motor insurance clients. Many of them stick with him loyally for many years.
Better to invest in the Money Market
Dear Mr Tan
I am looking at investing in bonds. How do I go about it?
----------------------
Reply from Dr Money (Larry Haverkamp):
I recommend money market funds instead -- since the interest rates are the same and you can withdraw your money at any time -- (with no penalty and no cost).
You can check out the best 4 money market funds at www.AskDrMoney.com < Best Bank Depost Rates
---------------------------
I agree with Dr Money. I invest my spare funds in the money market, instead of a bond fund.
The return from the bond funds available in Singapore, after deducting charges, are not attractive.
I am looking at investing in bonds. How do I go about it?
----------------------
Reply from Dr Money (Larry Haverkamp):
I recommend money market funds instead -- since the interest rates are the same and you can withdraw your money at any time -- (with no penalty and no cost).
You can check out the best 4 money market funds at www.AskDrMoney.com < Best Bank Depost Rates
---------------------------
I agree with Dr Money. I invest my spare funds in the money market, instead of a bond fund.
The return from the bond funds available in Singapore, after deducting charges, are not attractive.
Taxi service in Singapore
Someone posted this comment.
Basically all the additional charges we have to pay for taxi has escalated to a ridiculous situation. In addition, it is also causing a lot of confusion to tourists. I have many overseas friends who have complained about the confusion they have on taxi surcharges, ERP charges, peak hour charges. I don't blamed them because I get confused too.
I think the authorities should look into simplifying these charges i.e. build these into fare structure. I also agreed that some charges should be lower to prevent abuse by taxi drivers. Take for example, the situation with midnight surcharge. I remembered it used to be impossible to get a cab between 10.3o pm to 12 midnight.
Some of these surcharges are killing the business of taxi driver slowly but surely. To call for a cab during peak hour in the city will cost you at least $9 before the journey starts. This certainly puts me off from using the service as taxi fare has become exorbitant.
The ERP gantry at Plaza Singapura. I cannot believe that I have to pay to get out of city.
Anonymous
Basically all the additional charges we have to pay for taxi has escalated to a ridiculous situation. In addition, it is also causing a lot of confusion to tourists. I have many overseas friends who have complained about the confusion they have on taxi surcharges, ERP charges, peak hour charges. I don't blamed them because I get confused too.
I think the authorities should look into simplifying these charges i.e. build these into fare structure. I also agreed that some charges should be lower to prevent abuse by taxi drivers. Take for example, the situation with midnight surcharge. I remembered it used to be impossible to get a cab between 10.3o pm to 12 midnight.
Some of these surcharges are killing the business of taxi driver slowly but surely. To call for a cab during peak hour in the city will cost you at least $9 before the journey starts. This certainly puts me off from using the service as taxi fare has become exorbitant.
The ERP gantry at Plaza Singapura. I cannot believe that I have to pay to get out of city.
Anonymous
Importance of values in our life
Someone sent this comment on the blog posted by Dr. Lee Kum Tatt’s wife:
“With the present trend of couples (or may be juz ladies) in Singapore not wanting to have children, furnishing the excuse of “career”, I am surprised and amazed at Mrs. Lee’s credentials.
Not her academics, but her life. 4 children?! With a successful career, and a supportive wife. I am interested in her views and thinking. Is there anyway to obtain a copy of her books?
Here are the answers given by Mrs Lee Kum Tatt.
Blog
Tan Kin Lian
“With the present trend of couples (or may be juz ladies) in Singapore not wanting to have children, furnishing the excuse of “career”, I am surprised and amazed at Mrs. Lee’s credentials.
Not her academics, but her life. 4 children?! With a successful career, and a supportive wife. I am interested in her views and thinking. Is there anyway to obtain a copy of her books?
Here are the answers given by Mrs Lee Kum Tatt.
Blog
Tan Kin Lian
Commuter train service in Kuala Lumpur
I wish to share my experience with the commuter train service in Kuala Lumpur.
I took the Putra LRT Line from KL Sentral to Dang Wangi (3 stops). It is like the MRT in Singapore, but is less crowded and slightly slower. The ride is comfortable.
On my return, I took the KTM Commuter from Bank Negara to KL Sentral. The train is slow, but is air conditioned. The stations are sold (except for KL Sentral).
The disadvantage is that the commuter train system in Kuala Lumpur is not well integrated. If I have to change trains to reach my destination, I have to pay a separate fare for each line. This is not convenient.
I took the Putra LRT Line from KL Sentral to Dang Wangi (3 stops). It is like the MRT in Singapore, but is less crowded and slightly slower. The ride is comfortable.
On my return, I took the KTM Commuter from Bank Negara to KL Sentral. The train is slow, but is air conditioned. The stations are sold (except for KL Sentral).
The disadvantage is that the commuter train system in Kuala Lumpur is not well integrated. If I have to change trains to reach my destination, I have to pay a separate fare for each line. This is not convenient.
Taxi service in Kuala Lumpur
It is easy to get a taxi in Kuala Lumpur. If you wait at a taxi stop outside a shopping complex, a taxi will appear soon. There is a queue of taxis waiting for passengers at the KL Sentral station.
I understand that the taxi service in Singapore used to be like this many years ago. But not any more now.
Some commuters complained that it is quite difficult to get a taxi during the busy period. You can wait in the taxi stop for a long time without any taxi appearing. The only way to get a taxi is to make a call and pay an additional fee of $2.50 or $4.
Some taxi drivers prefer to wait for a call, rather than pick up a passenger at the taxi stop.
To prevent this bad habit, some commuters have asked for the call fee to be abolished.
I think that the call fee should be allowed, but it should be reduced to $1. This will remove the incentive for the taxi driver to wait for a call.
I understand that the taxi service in Singapore used to be like this many years ago. But not any more now.
Some commuters complained that it is quite difficult to get a taxi during the busy period. You can wait in the taxi stop for a long time without any taxi appearing. The only way to get a taxi is to make a call and pay an additional fee of $2.50 or $4.
Some taxi drivers prefer to wait for a call, rather than pick up a passenger at the taxi stop.
To prevent this bad habit, some commuters have asked for the call fee to be abolished.
I think that the call fee should be allowed, but it should be reduced to $1. This will remove the incentive for the taxi driver to wait for a call.
Traffic congestion in Kuala Lumpur
I am now in Kuala Lumpur.
My friend complained about the traffic congestion. It takes him more than one hour to drive to the office and back, and the distance is quite short. He envied the traffic situation in Singapore, which he though was much better.
I told my friend that the many roads in Singapore are now quite contested. The situation has worsened in recent years. There are too many cars on the road.
It seems that many cities suffer from the same problem - inadequate public transport, too many private cars congesting the roads.
My friend complained about the traffic congestion. It takes him more than one hour to drive to the office and back, and the distance is quite short. He envied the traffic situation in Singapore, which he though was much better.
I told my friend that the many roads in Singapore are now quite contested. The situation has worsened in recent years. There are too many cars on the road.
It seems that many cities suffer from the same problem - inadequate public transport, too many private cars congesting the roads.
Technology for car pooling to an event
Here is my concept of a system, using technology, to facilitate car pooling to an event.
* the event organiser notify the guests to send a SMS to a certain number, if they wish to car pool
* the SMS message contains the event code (eg 1234), postal code of the pickup point (eg 80) and role (1=driver 2=passenger)
* the computer system match the people by event and date and send a SMS to notify them to contact each other.
* there is an understanding that the passenger should pay $3 to $5 for each trip, i.e. to help the driver to defray the expenses.
I hope that this idea can catch on. Or someone can come forward with a better, more practical concept.
* the event organiser notify the guests to send a SMS to a certain number, if they wish to car pool
* the SMS message contains the event code (eg 1234), postal code of the pickup point (eg 80) and role (1=driver 2=passenger)
* the computer system match the people by event and date and send a SMS to notify them to contact each other.
* there is an understanding that the passenger should pay $3 to $5 for each trip, i.e. to help the driver to defray the expenses.
I hope that this idea can catch on. Or someone can come forward with a better, more practical concept.
My vision of the public transport system
Here is my vision of a public transport system:
* the MRT forms the backbone of public transport
* express bus services join the town centers to provide a shorter, faster way (if the MRT takes a long way)
* feeder services (using light buses or cars) bring passengers to the MRT stations or town centers (to take the express buses).
The express bus services should have few stops, maybe at the town centers.
It is easier for commuters to understand this system. They have fewer bus services to remember. They only need to be familiar with the local feeder systems.
Under my vision, there is a need to make one or two changes, from the feeder to the main line. This may be slightly inconvenient, but the commuter can get used to it. I talk from personal experience.
* the MRT forms the backbone of public transport
* express bus services join the town centers to provide a shorter, faster way (if the MRT takes a long way)
* feeder services (using light buses or cars) bring passengers to the MRT stations or town centers (to take the express buses).
The express bus services should have few stops, maybe at the town centers.
It is easier for commuters to understand this system. They have fewer bus services to remember. They only need to be familiar with the local feeder systems.
Under my vision, there is a need to make one or two changes, from the feeder to the main line. This may be slightly inconvenient, but the commuter can get used to it. I talk from personal experience.
My childhood
A few people told me that they were touched by the story in Monday Interview. As a child, I frequently waited at the bus stop for my father to return home after a sea trip.
This was 50 years ago.
Each trip took three days. He went out to sea to bring food provisions to the Riau Islands and return to Singapore with a boat load of fish.
He usually returned at a certain time at night. I went earlier to wait for his usual bus.
Sometimes, he was late. I had to wait for two or three buses to pass by, before he alighted. Those times, I had to wait for one hour or longer.
But, it was all right. In those days, there was no television, and no computer games to occupy our time.
This was 50 years ago.
Each trip took three days. He went out to sea to bring food provisions to the Riau Islands and return to Singapore with a boat load of fish.
He usually returned at a certain time at night. I went earlier to wait for his usual bus.
Sometimes, he was late. I had to wait for two or three buses to pass by, before he alighted. Those times, I had to wait for one hour or longer.
But, it was all right. In those days, there was no television, and no computer games to occupy our time.
Sincerity
A few people have described me as being "sincere". I wonder, what gives them this impression?
Perhaps, I am willing to speak my mind, honestly. I also think in the interest of the wider community, and not for self interest. I also take a positive approach towards matters, and see the brighter side.
To summarise:
* be honest
* look towards wider interest
* be positive
I hope that many people can cultivate these qualities and join the "sincere" club!
Perhaps, I am willing to speak my mind, honestly. I also think in the interest of the wider community, and not for self interest. I also take a positive approach towards matters, and see the brighter side.
To summarise:
* be honest
* look towards wider interest
* be positive
I hope that many people can cultivate these qualities and join the "sincere" club!
High oil prices and the stockmarket
Someone asked me.
The oil price has increased above US$60 again. This should be bad for the global economy. Why is the stockmarket still going up?
My reply:
It is a matter of timing. Investors expect the high oil price to increase the profits of the oil companies and the oil service sector. They bought these shares, resulting in a higher market index.
The high oil price will result in lower consumer spending. The effect will be felt in a few months' time. When this occurs, then the stockmarket will come down.
This is only my guess. Generally, I do not like the high stockmarket prices. I think that it will correct downwards, but it may take a few more months.
The oil price has increased above US$60 again. This should be bad for the global economy. Why is the stockmarket still going up?
My reply:
It is a matter of timing. Investors expect the high oil price to increase the profits of the oil companies and the oil service sector. They bought these shares, resulting in a higher market index.
The high oil price will result in lower consumer spending. The effect will be felt in a few months' time. When this occurs, then the stockmarket will come down.
This is only my guess. Generally, I do not like the high stockmarket prices. I think that it will correct downwards, but it may take a few more months.
Monday, March 26, 2007
Good experience with Wireless@SG
I used by notebook PC to access Wireless@SG at Starbucks in Raffles City and in Changi Airport. I was able to get connected easily in both locations. The surfing speed was quite fast.
My experience with Wireless@SG has been satisfactory. You can have access at many hotspots in Singapore. It is free for the first three years.
This is helpful for me, as I intend to work outside an office. If I visit town and have to spend a few hours there for the next meeting, I will bring my notebook PC to do my work at a coffee place.
This is my new lifestyle. It is a mobile lifestyle. It is fun. Wow!
My experience with Wireless@SG has been satisfactory. You can have access at many hotspots in Singapore. It is free for the first three years.
This is helpful for me, as I intend to work outside an office. If I visit town and have to spend a few hours there for the next meeting, I will bring my notebook PC to do my work at a coffee place.
This is my new lifestyle. It is a mobile lifestyle. It is fun. Wow!
Monday Interview in Straits Times
I received this e-mail from a friend, very early in the morning.
Kin Lian,
I saw your story in Monday Interview in the Straits Times. It is interesting to read about your childhood days and your values that shape your character. There is a lot of mention about your blog. Keep up the good work.
Kin Lian,
I saw your story in Monday Interview in the Straits Times. It is interesting to read about your childhood days and your values that shape your character. There is a lot of mention about your blog. Keep up the good work.
Sunday, March 25, 2007
The Woman behind Dr. Lee Kum Tatt
Behind every successful man there is a woman. Dr. Lee Kum Tatt’s woman is his wife of more than 50 years. Mrs. Engeline Lee herself is quite a unique lady. I encouraged her to share some of her philosophy and experiences with us under her husband’s blog. She can complement what her husband does. She can give her views on what motivates her husband, how he responds to his own fantasies and produced the results.
Mrs. Engeline Lee, who has contributed much to the development of the famous RISIS orchids, tells us her story and her feelings on this project.
Story
Tan Kin Lian
Mrs. Engeline Lee, who has contributed much to the development of the famous RISIS orchids, tells us her story and her feelings on this project.
Story
Tan Kin Lian
A better transport system
There is a complaint that the buses, MRT trains and taxis are very busy during the peak period. Of course.
It does not help if more people buy private cars. The roads will be congested as well.
We need to find more practical solutions, including:
* stagger the office hours
* have more buses and MRT trains, so that more people are encouraged to use public transport.
It does not help if more people buy private cars. The roads will be congested as well.
We need to find more practical solutions, including:
* stagger the office hours
* have more buses and MRT trains, so that more people are encouraged to use public transport.
Shuttle bus to an event
Someone suggested that the organiser of an event (eg wedding or corporate dinner) should arrange a shuttle service to a nearby MRT station, and encourage their guests to take public transport. This will reduce the congestion on the road or insufficient parking spaces.
I agree.
We should also look for a practical way for people to car pool to the same event.
I agree.
We should also look for a practical way for people to car pool to the same event.
Market Salaries for Top People
Sent to two newspapers.
25 March 2007
Editor
I believe that most Singaporeans accept the rationale of paying attractive salaries to government ministers and top civil servants, and adjusting their salaries to reflect changes in the market.
Perhaps the concern is the use of the current benchmark, which is based on the top 8 salaries in Singapore. This is a small sample and is likely to produce highly volatile results that are affected by exceptional factors.
I wish to suggest a modified formula:
* calculate the benchmark based on the top 100, 500 or 1000 salaries in Singapore
* calculate the salaries of the office holders at certain percentages (could be more than 100%) of the benchmark according to their level of responsibility
* this will result in a more stable benchmark that will reflect changes in the market for the top people in Singapore.
For the younger top civil servants, the benchmark can be computed based on the top 100, 500 or 1000 salaries for people below 35 years.
Tan Kin Lian
25 March 2007
Editor
I believe that most Singaporeans accept the rationale of paying attractive salaries to government ministers and top civil servants, and adjusting their salaries to reflect changes in the market.
Perhaps the concern is the use of the current benchmark, which is based on the top 8 salaries in Singapore. This is a small sample and is likely to produce highly volatile results that are affected by exceptional factors.
I wish to suggest a modified formula:
* calculate the benchmark based on the top 100, 500 or 1000 salaries in Singapore
* calculate the salaries of the office holders at certain percentages (could be more than 100%) of the benchmark according to their level of responsibility
* this will result in a more stable benchmark that will reflect changes in the market for the top people in Singapore.
For the younger top civil servants, the benchmark can be computed based on the top 100, 500 or 1000 salaries for people below 35 years.
Tan Kin Lian
Google Mail
I use google mail. It allows me to keep all my previous mails in the server. I can search for any mail by entering the search words.
I find this feature to be very useful. For example, if I serach for "Kuala Lumpur", I get all the e-mails with this name in the message. This allows me to look for the relevant e-mails.
I find it easier to keep my mails in the server and to call for them when needed. If I print and file the papers, I may not be able to find them. Electronic filing is more useful.
I find this feature to be very useful. For example, if I serach for "Kuala Lumpur", I get all the e-mails with this name in the message. This allows me to look for the relevant e-mails.
I find it easier to keep my mails in the server and to call for them when needed. If I print and file the papers, I may not be able to find them. Electronic filing is more useful.
Active use of PDA
I make active use of a PDA (personal digital assistant).
It provides the following functions:
* mobilephone
* contacts
* calendar
* notes
I have some programs in the PDA, including:
* bus guide
* digital street directory
* logic9 puzzles
My PDA can be synchronised with my personal computer. If I lose my PDA, the data is still available.
The digital street directory is very useful. I can enter a street name or postal code, and the map is displayed immediately. This directory is developed on my specification and will be made available to distributors of new PDAs.
It provides the following functions:
* mobilephone
* contacts
* calendar
* notes
I have some programs in the PDA, including:
* bus guide
* digital street directory
* logic9 puzzles
My PDA can be synchronised with my personal computer. If I lose my PDA, the data is still available.
The digital street directory is very useful. I can enter a street name or postal code, and the map is displayed immediately. This directory is developed on my specification and will be made available to distributors of new PDAs.
Active Blogs
My blog has 400 visitors a day. I used to think that it is very active.
I asked a friend to search for the most active blogs in Singapore. She found the following:
www.mrbrown.com
www.xiaxue.blogspot.com
They have much more visitors than me. Wow!
I asked a friend to search for the most active blogs in Singapore. She found the following:
www.mrbrown.com
www.xiaxue.blogspot.com
They have much more visitors than me. Wow!
An excellent ballet, Coppellia
I watched the ballet performance of Coppelia at Victoria Theatre on Saturday night.
It was an excellent performance. The sets, customer, dancing and story line were very good. The show was enjoyable, one of the best that I have seen.
The theatre was nearly full. They gave a resounding applause throughout the show. One third of the audience were children.
The show will be performed for one more night, ie Sunday. Tickets are still available at $28 to $58.
Here are some tips:
* Buy the program and read the story line. You will enjoy the show better
* Bring your children. They will like the show.
* Do not miss this show.
It was an excellent performance. The sets, customer, dancing and story line were very good. The show was enjoyable, one of the best that I have seen.
The theatre was nearly full. They gave a resounding applause throughout the show. One third of the audience were children.
The show will be performed for one more night, ie Sunday. Tickets are still available at $28 to $58.
Here are some tips:
* Buy the program and read the story line. You will enjoy the show better
* Bring your children. They will like the show.
* Do not miss this show.
Saturday, March 24, 2007
Stay - when you are needed
A long time friend sent me this story.
--------------------
A nurse took the tired, anxious serviceman to the bedside. "Your son is here," she said to the old man. She had to repeat the words several times before the patient's eyes opened.
Heavily sedated because of the pain of his heart attack, he dimly saw the young
uniformed Marine standing outside the oxygen tent. He reached out his hand. The Marine wrapped his toughened fingers around the old man's limp ones, squeezing a
message of love and encouragement.
The nurse brought a chair so that the Marine could sit beside the bed.All through the night, the young Marine sat there in the poorly lighted ward, holding the old man's hand and offering him words of love and strength. Occasionally, the nurse suggested that the Marine move away and rest awhile.
He refused. Whenever the nurse came into the ward, the Marine was oblivious of her and of the night noises of the hospital - the clanking of the oxygen tank, the laughter of the night staff members exchanging greetings, the cries and moans of the other patients.
Now and then she heard him say a few gentle words. The dying man said nothing, only held tightly to his son all through the night.
Along towards dawn, the old man died. The Marine released the now lifeless hand he had been holding and went to tell the nurse. While she did what she had to do, he
waited.
Finally, she returned. She started to offer words of sympathy, but the Marine interrupted her. "Who was that man?" he asked.
The nurse was startled, "He was your father," she answered.
"No, he wasn't," the Marine replied. "I never saw him before in my life."
"Then why didn't you say something when I took you to him?"
"I knew right away there had been a mistake, but I also knew he needed his son, and
his son just wasn't here. When I realized that he was too sick to tell whether or not I was his son, knowing how much he needed me, I stayed."
The next time someone needs you ... just be there. Stay.
--------------------
A nurse took the tired, anxious serviceman to the bedside. "Your son is here," she said to the old man. She had to repeat the words several times before the patient's eyes opened.
Heavily sedated because of the pain of his heart attack, he dimly saw the young
uniformed Marine standing outside the oxygen tent. He reached out his hand. The Marine wrapped his toughened fingers around the old man's limp ones, squeezing a
message of love and encouragement.
The nurse brought a chair so that the Marine could sit beside the bed.All through the night, the young Marine sat there in the poorly lighted ward, holding the old man's hand and offering him words of love and strength. Occasionally, the nurse suggested that the Marine move away and rest awhile.
He refused. Whenever the nurse came into the ward, the Marine was oblivious of her and of the night noises of the hospital - the clanking of the oxygen tank, the laughter of the night staff members exchanging greetings, the cries and moans of the other patients.
Now and then she heard him say a few gentle words. The dying man said nothing, only held tightly to his son all through the night.
Along towards dawn, the old man died. The Marine released the now lifeless hand he had been holding and went to tell the nurse. While she did what she had to do, he
waited.
Finally, she returned. She started to offer words of sympathy, but the Marine interrupted her. "Who was that man?" he asked.
The nurse was startled, "He was your father," she answered.
"No, he wasn't," the Marine replied. "I never saw him before in my life."
"Then why didn't you say something when I took you to him?"
"I knew right away there had been a mistake, but I also knew he needed his son, and
his son just wasn't here. When I realized that he was too sick to tell whether or not I was his son, knowing how much he needed me, I stayed."
The next time someone needs you ... just be there. Stay.
Engage in a debate
Dear Mr Tan
I can say I am among the first to discover, read and enjoy your blog at least some long while ago. I am reading it every day now.
I hope your blog will inspire more local senior executives, public figures and thought leaders to come up with even better form of blogging.
I like your genre of blog, very practical, insightful, helpful observations and perspectives on financial and social issues.
One may or need not always agree with your sincere views.
I wonder why no senior executives in the same or related industry, public figures or thought leaders come by your blog and engage you in debate about your views or offer alternative perspectives especially on financial matters? Perhaps you could encourage more meaningful responses to make your blog even more interesting and useful for your readers.
It is often we read, learn and quote western foreign management gurus such as Jack Welch, perhaps we should more appreciate our own local managers who are so willing to share their observations, local wisdom and insights, more relevant at least in the local context.
Cheers
BP Pan
I can say I am among the first to discover, read and enjoy your blog at least some long while ago. I am reading it every day now.
I hope your blog will inspire more local senior executives, public figures and thought leaders to come up with even better form of blogging.
I like your genre of blog, very practical, insightful, helpful observations and perspectives on financial and social issues.
One may or need not always agree with your sincere views.
I wonder why no senior executives in the same or related industry, public figures or thought leaders come by your blog and engage you in debate about your views or offer alternative perspectives especially on financial matters? Perhaps you could encourage more meaningful responses to make your blog even more interesting and useful for your readers.
It is often we read, learn and quote western foreign management gurus such as Jack Welch, perhaps we should more appreciate our own local managers who are so willing to share their observations, local wisdom and insights, more relevant at least in the local context.
Cheers
BP Pan
USA Treasury Secretary
Someone told me.
Henry Paulson was chairman of Goldman Sachs. He earned more than USD 30 million in 2005.
He was invited by President Bush to be the Secretary of the Treasury, for a salary of less than USD 200,000. He accepted. He did not need to be paid the same salary as he earned in the private sector.
Perhaps, there are other motivation for people, such as Henry Paulson, to serve in the top levels of government?
Henry Paulson was chairman of Goldman Sachs. He earned more than USD 30 million in 2005.
He was invited by President Bush to be the Secretary of the Treasury, for a salary of less than USD 200,000. He accepted. He did not need to be paid the same salary as he earned in the private sector.
Perhaps, there are other motivation for people, such as Henry Paulson, to serve in the top levels of government?
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