I conducted the first class on Risk Management and Insurance at Singapore Management University today.
I enjoy the experience. The students participated well. From their feedback, they like the topics covered, which are useful and relevant to them.
I enjoy teaching and sharing my working experience with the students.
Monday, January 07, 2008
Disability income insurance
Dear Mr. Tan,
What are your views about disability income insurance?
REPLY:
As a general principle, disability income insurance is useful. If a person is disabled due to illness or accident and is not able to earn an income, the insurance will make a regular payment to replace the lost income.
In practice, the situation is different.
Here are my views, based on my limited knowledge of the market for disability income insurance in Singapore.
1. The market for disability income insurance taken by individuals is quite undeveloped in Singapore.
2. The premium rate tends to be quite high in relation to the actual cost of the risk. You will probably have to pay a high premium for a cover that is worth much less.
3. There is a long waiting period (usually three months), before the disability income starts to pay. The period of payment may also be limited.
4. If you buy disability insurance in a group, for example through an employer, or an association, you are likely to get more competitive premium rates.
5. For individuals, you can insure for temporary disablement caused by accidents through a personal accident policy. The premium rate is quite competitive.
What are your views about disability income insurance?
REPLY:
As a general principle, disability income insurance is useful. If a person is disabled due to illness or accident and is not able to earn an income, the insurance will make a regular payment to replace the lost income.
In practice, the situation is different.
Here are my views, based on my limited knowledge of the market for disability income insurance in Singapore.
1. The market for disability income insurance taken by individuals is quite undeveloped in Singapore.
2. The premium rate tends to be quite high in relation to the actual cost of the risk. You will probably have to pay a high premium for a cover that is worth much less.
3. There is a long waiting period (usually three months), before the disability income starts to pay. The period of payment may also be limited.
4. If you buy disability insurance in a group, for example through an employer, or an association, you are likely to get more competitive premium rates.
5. For individuals, you can insure for temporary disablement caused by accidents through a personal accident policy. The premium rate is quite competitive.
Sunday, January 06, 2008
Personal savings for your retirement
Many Singaporeans rely on the Central Provident Fund as their main source of savings for retirement.
Many have found it to be inadequate. In 1999, only one-third of people reaching age 55 had sufficient savings to meet the Minimum Sum of $60,000. The Minimum Sum has now been raised to $99,600. This is only sufficient to meet the very basic cost of living in Singapore.
For a more comfortable standard of living, you need at least two times of this Minimum Sum.
Let me share eight tips with you on how you can get adequate savings for your retirement.
Click here for the full article:
http://www.tankinlian.com/articles/savings.html
Many have found it to be inadequate. In 1999, only one-third of people reaching age 55 had sufficient savings to meet the Minimum Sum of $60,000. The Minimum Sum has now been raised to $99,600. This is only sufficient to meet the very basic cost of living in Singapore.
For a more comfortable standard of living, you need at least two times of this Minimum Sum.
Let me share eight tips with you on how you can get adequate savings for your retirement.
Click here for the full article:
http://www.tankinlian.com/articles/savings.html
Technique to solve Logic Quiz E-1
Here is the technique to solve Logic Quiz E-1 (see below).
Start with clue 11 which fixes the house of the engineer. From there, you can use clues 10, 12 and 20 to fix the houses for the stated characteristics. You can use clue 3 to fix the house of the lawyer.
After you have fixed the house of the engineer and the lawyer, you can use clue 13 to fix the house of the accountant and salesman.
Start with clue 11 which fixes the house of the engineer. From there, you can use clues 10, 12 and 20 to fix the houses for the stated characteristics. You can use clue 3 to fix the house of the lawyer.
After you have fixed the house of the engineer and the lawyer, you can use clue 13 to fix the house of the accountant and salesman.
The remaining two occupations are the technician and doctor. If you study the clues 2 and 8, you will be able to find their houses.
It will quite easy to complete the remaining clues. Look for the clues that fit exactly into the blank squares (i.e. only one solution).
If you take step by step, you can complete the whole quiz. It may take you 30 minutes to solve this quiz the first time, but with practice, you can reduce the time down to 10 minutes for a similar quiz.
Logic Quiz E-1
If you want a challenging logic quiz, try the following. Put our name and time taken in this blog. If you can get the answer within 15 minutes, you are very good!
There are six houses with different colours in a row. Each occupant likes a different fruit, drinks a different beverage, drives a different car and speaks a different language.
1. The person who speaks French lives to the left of the person who speaks German.
2. The technician lives to the left of the green house.
3. The person who drinks water is the lawyer.
4. The person who likes melon lives to the left of the person who likes durian.
5. The person who speaks Japanese lives two houses left of the brown house.
6. The person who speaks Italian lives two houses left of the person who drives Hyundai.
7. The person who drives Honda lives two houses left of the person who drives Nissan.
8. The person who likes mango lives two houses left of the doctor.
9. The person who drives BMW lives two houses left of the blue house.
10. The engineer lives two houses left of the person who drinks water.
11. The engineer lives in the third house.
12. The person who likes apple lives to the left of the engineer.
13. The accountant lives to the left of the salesman.
14. The person who likes banana lives two houses left of the person who drinks beer.
15. The person who drives Peugeot lives two houses left of the person who likes strawberry.
16. The person who drinks tea lives two houses left of the yellow house.
17. The person who drinks juice lives to the left of the person who drinks wine.
18. The white house is two houses left of the person who speaks Russian.
19. The person who drives Toyota lives three houses left of the person who drinks milk.
20. The red house is to the left of the person who likes apple.
Question: Who speaks Chinese
There are six houses with different colours in a row. Each occupant likes a different fruit, drinks a different beverage, drives a different car and speaks a different language.
1. The person who speaks French lives to the left of the person who speaks German.
2. The technician lives to the left of the green house.
3. The person who drinks water is the lawyer.
4. The person who likes melon lives to the left of the person who likes durian.
5. The person who speaks Japanese lives two houses left of the brown house.
6. The person who speaks Italian lives two houses left of the person who drives Hyundai.
7. The person who drives Honda lives two houses left of the person who drives Nissan.
8. The person who likes mango lives two houses left of the doctor.
9. The person who drives BMW lives two houses left of the blue house.
10. The engineer lives two houses left of the person who drinks water.
11. The engineer lives in the third house.
12. The person who likes apple lives to the left of the engineer.
13. The accountant lives to the left of the salesman.
14. The person who likes banana lives two houses left of the person who drinks beer.
15. The person who drives Peugeot lives two houses left of the person who likes strawberry.
16. The person who drinks tea lives two houses left of the yellow house.
17. The person who drinks juice lives to the left of the person who drinks wine.
18. The white house is two houses left of the person who speaks Russian.
19. The person who drives Toyota lives three houses left of the person who drinks milk.
20. The red house is to the left of the person who likes apple.
Question: Who speaks Chinese
Low cost Term Insurance
Dear Mr. Tan,
Where can I buy low cost Term insurance?
REPLY
Read this FAQ:
http://www.tankinlian.com/faq/termd.html
Give a call to 3 companies and ask them to quote the Term insurance for your age and sum assured.
Read this FAQ for the benchmark rates:
http://www.tankinlian.com/faq/term.html
Where can I buy low cost Term insurance?
REPLY
Read this FAQ:
http://www.tankinlian.com/faq/termd.html
Give a call to 3 companies and ask them to quote the Term insurance for your age and sum assured.
Read this FAQ for the benchmark rates:
http://www.tankinlian.com/faq/term.html
Low cost insurance and funds
Many people have sent an e-mail to ask for my advice on how they can buy low cost insurance and funds.
I have referred them to the following:
1. Business center of NTUC Income
2. i-Term available from Income's website
3. Flexi-link and Combined Fund from NTUC Income
4. Exchange Traded Funds from the Singapore Exchange
I have also referred them to a few NTUC Income advisers, who have agreed to offer only the low cost insurance and funds. As they earn a small commission, you should not expect them to spend too much time visiting your home. Discuss with them by e-mail or telephone, or visit their office.
Some other people have recommended unit trusts available thorugh Poems (Phillips Securities), Fundsupermart, DollarDex and Finantiq. I agree with the use of these internet portals, but you should choose the low cost funds.
See this FAQ:
http://www.tankinlian.com/faq/savings.html
You can read the following FAQs on how to buy insurance directly:
http://www.tankinlian.com/faq/termd.html
http://www.tankinlian.com/faq/motord.html
I have referred them to the following:
1. Business center of NTUC Income
2. i-Term available from Income's website
3. Flexi-link and Combined Fund from NTUC Income
4. Exchange Traded Funds from the Singapore Exchange
I have also referred them to a few NTUC Income advisers, who have agreed to offer only the low cost insurance and funds. As they earn a small commission, you should not expect them to spend too much time visiting your home. Discuss with them by e-mail or telephone, or visit their office.
Some other people have recommended unit trusts available thorugh Poems (Phillips Securities), Fundsupermart, DollarDex and Finantiq. I agree with the use of these internet portals, but you should choose the low cost funds.
See this FAQ:
http://www.tankinlian.com/faq/savings.html
You can read the following FAQs on how to buy insurance directly:
http://www.tankinlian.com/faq/termd.html
http://www.tankinlian.com/faq/motord.html
People will buy insurance
For decades, insurance professionals have held the view that "insurance has to be sold". People will not buy insurance on their own. The solution was to train insurance agents and pay them high commission to sell the insurance products.
Times have changed. People will buy insurance for the following reasons:
1. They want to be protected financially against the risk of death or disability
2. They want to save and earn a good return for the future
3. They will buy an insurance product that gives good value to them.
4. They need to find someone that they can trust.
In my blog and website, I will educate people about the good value products, including the following:
1. Term insurance
2. Personal accident insurance
3. Low cost, diversified investment funds
Tan Kin Lian
Times have changed. People will buy insurance for the following reasons:
1. They want to be protected financially against the risk of death or disability
2. They want to save and earn a good return for the future
3. They will buy an insurance product that gives good value to them.
4. They need to find someone that they can trust.
In my blog and website, I will educate people about the good value products, including the following:
1. Term insurance
2. Personal accident insurance
3. Low cost, diversified investment funds
Tan Kin Lian
Low cost funds
You can buy low cost funds directly through the following internet portals:
a) Poems, http://www.poems.com.sg/
b) Fundsupermart http://www.fundsupermart.com/main/home/index.svdo
c) DollarDex http://www.dollardex.com/SG/INDEX.CFM
d) Finantiq http://www.finatiq.com/home/index.shtm
More details at:
http://www.tankinlian.com/faq/lowcost.html
a) Poems, http://www.poems.com.sg/
b) Fundsupermart http://www.fundsupermart.com/main/home/index.svdo
c) DollarDex http://www.dollardex.com/SG/INDEX.CFM
d) Finantiq http://www.finatiq.com/home/index.shtm
More details at:
http://www.tankinlian.com/faq/lowcost.html
Low cost Personal Accident
You should buy a Personal Accident insurance to cover 5 years of your income. If you earn $30,000 a year, you can insure for $150,000.
This policy will cover death and permanent disability caused by accidents, as follows:
a) Amount payable on death: $150,000
b) Double indemnity under certain circumstances: $300,000
c) Permanent disablement: depending on extent of disability, up to $150,000
d) Temporary Disablement: $150 a day, up to 104 weeks
e) Medical Expenses: up to a specified amount for any one accident
f) Emergency Evacuation and Repatriation
An accident is usually defined as being caused by an external, violent, unexpected event. This is intended to exclude claims for illness or poor health.
The standard policy will usually exclude pre-existing physical or mental defects,
pregnancy and childbirth, war risks, motorcycling, climbing or mountaineering necessitating ropes or guides, judo, karate and some hazardous sports. You can pay a higher premium rate to cover some of these risks.
The annual premium for a sum assured of $150,000 varies from $100 to $300, depending on your occupation and on the insuranced company that provide the insurance.
More details can be found at:
http://www.tankinlian.com/faq/pa.html
This policy will cover death and permanent disability caused by accidents, as follows:
a) Amount payable on death: $150,000
b) Double indemnity under certain circumstances: $300,000
c) Permanent disablement: depending on extent of disability, up to $150,000
d) Temporary Disablement: $150 a day, up to 104 weeks
e) Medical Expenses: up to a specified amount for any one accident
f) Emergency Evacuation and Repatriation
An accident is usually defined as being caused by an external, violent, unexpected event. This is intended to exclude claims for illness or poor health.
The standard policy will usually exclude pre-existing physical or mental defects,
pregnancy and childbirth, war risks, motorcycling, climbing or mountaineering necessitating ropes or guides, judo, karate and some hazardous sports. You can pay a higher premium rate to cover some of these risks.
The annual premium for a sum assured of $150,000 varies from $100 to $300, depending on your occupation and on the insuranced company that provide the insurance.
More details can be found at:
http://www.tankinlian.com/faq/pa.html
Big change in Taiwan over 32 years
My last visit to Taiwan was 32 years ago. The tourist guide explained the many restrictions under martial law. Strict action was taken against dissenters. People were put behind bars for minor offenses.
Today, the situation has changed considerably in Taiwan. People are free to express their views. Democracy thrived. People are more confident, more courteous, more relaxed. They enjoy life.
Today, the situation has changed considerably in Taiwan. People are free to express their views. Democracy thrived. People are more confident, more courteous, more relaxed. They enjoy life.
Saturday, January 05, 2008
Impression of Taiwan
I have now returned to Singapore, after spending 12 days in Taiwan. This is the longest holiday that I have taken.
My impression of Taiwan is favourable. I like the following:
1. The MRT system and taxi service
2. Taipei 101 and the nearby buildings
3. Politeness and helpfulness of the people
4. Food and snacks
5. Hot spring and spas
My impression of Taiwan is favourable. I like the following:
1. The MRT system and taxi service
2. Taipei 101 and the nearby buildings
3. Politeness and helpfulness of the people
4. Food and snacks
5. Hot spring and spas
Amazing Number game
Write down a Number between 1 to 99. Check your number against the numbers listed in my Amazing Number cards. I will be able to guess your Number.
http://www.tankinlian.com/amazing/index.html
Show it to your children and friends. Ask them the same question, "how is this done?"
Can you guess how I guess your Number? Send your reply to me at kinlian@gmail.com. Do not post your answer and give away your secret.
http://www.tankinlian.com/amazing/index.html
Show it to your children and friends. Ask them the same question, "how is this done?"
Can you guess how I guess your Number? Send your reply to me at kinlian@gmail.com. Do not post your answer and give away your secret.
Friday, January 04, 2008
Coldest winter in 12 years
Taipei is cold. The news reported that the temperature during this winter is the coldest in the last 12 years.
Is this due to global warming, or just the cycle of nature? I suspect that the global warming is causing big climate changes around the world.
Is this due to global warming, or just the cycle of nature? I suspect that the global warming is causing big climate changes around the world.
Ecocities
I found a book entitled Ecocities in the public library in Beitou, Taiwan. It is written by Richard Register. The author described how cities should be developed to be environmentally friendly and to give a better quality of life to the residents.
The author encouraged people to work near their place of residence, and reduce the travel between home and place of work. He also encourage the use of rail transport, instead of private cars.
More details:
http://www.newsociety.com/bookid/3923
http://www.newsociety.com/
I have given similar ideas in this paper:
http://www.tankinlian.com/articles/housing.html
The author encouraged people to work near their place of residence, and reduce the travel between home and place of work. He also encourage the use of rail transport, instead of private cars.
More details:
http://www.newsociety.com/bookid/3923
http://www.newsociety.com/
I have given similar ideas in this paper:
http://www.tankinlian.com/articles/housing.html
Visit to Xin Beitou and Danshui
I visited Xin Beitou and Danshui. Danshu is at the coast and the end of the red MRT line in Taipei. It is a popular tourist destination. The visitors enjoyed the local food, shopping and atmosphere.
The stall holders are helpful. If you ask for information and do not buy their goods, they still thank you for your interest.
I saw an interesting system of garbage collection. The collection truck came at night. The stall holders could hear the classical music that is being played by the truck. They bring their grabage bags to be dumped into the truck. Apart from the driver, there is no need to have any workers.
The red MRT line has a few stations that are underground, a few that are at ground level and a few stations that are elevated.
The stall holders are helpful. If you ask for information and do not buy their goods, they still thank you for your interest.
I saw an interesting system of garbage collection. The collection truck came at night. The stall holders could hear the classical music that is being played by the truck. They bring their grabage bags to be dumped into the truck. Apart from the driver, there is no need to have any workers.
The red MRT line has a few stations that are underground, a few that are at ground level and a few stations that are elevated.
Hot springs
Hot springs are popular with the local people in Taiwan. They are also popular in Japan and China.
The minerals from the hot spring provides some health benefits. After spending two hours at a hot spring spa, I could sleep soundly during the night.
The minerals from the hot spring provides some health benefits. After spending two hours at a hot spring spa, I could sleep soundly during the night.
Bus trip to Xin Beitou
I took the bus from one terminal (Taipei City Hall) to the other terminal (Xin Beitou) in Taipei. The journey took 1.5 hours. 30 minutes was used as a feeder service to pick passengers in the area around Taipei 101. The journey time could have been reduced, if there is a separate dedicated feeder service.
Passengers are allowed to pay the fare on entering or leaving the bus. The bus driver has to be vigilent to identify passengers who did not pay the fare. It depends a lot on the honesty of the passengers.
The fare is NT15 (SGD 0.70) for short distance and NT30 (sge 1.40) for longer distance. The passenger can pay by cash or stored value card. For long distance, the passenger has to tap the stored value card twice (as each tap deducts NT15 from the card).
The bus has segments with one seat and other segments with two seats. Those travelling alone can choose to sit in the single seat segment.
My return journey by MRT took about 30 minutes.
Passengers are allowed to pay the fare on entering or leaving the bus. The bus driver has to be vigilent to identify passengers who did not pay the fare. It depends a lot on the honesty of the passengers.
The fare is NT15 (SGD 0.70) for short distance and NT30 (sge 1.40) for longer distance. The passenger can pay by cash or stored value card. For long distance, the passenger has to tap the stored value card twice (as each tap deducts NT15 from the card).
The bus has segments with one seat and other segments with two seats. Those travelling alone can choose to sit in the single seat segment.
My return journey by MRT took about 30 minutes.
Road names in Taipei
I observed some good features in naming of roads in Taipei:
1. Long roads are identified by sections, such as Zhongxiao E Rd Sec 1, Zhongxia E Rd Sec 2, etc. It is easy to locate an address according to the section of the road.
2 Lanes are identified by reference to the road, eg Yanji St Lane 1, Yanji St Rd Lane 2.
3. The names of Road, Street and Lane in a consistent manner to identify different sizes of roads.
It is useful to adopt these principles in the naming of roads in Singapore. I find the naming of roads in the new towns to be rather inconsistent. The name Avenue, Road and Street are being used for similar size of roads.
1. Long roads are identified by sections, such as Zhongxiao E Rd Sec 1, Zhongxia E Rd Sec 2, etc. It is easy to locate an address according to the section of the road.
2 Lanes are identified by reference to the road, eg Yanji St Lane 1, Yanji St Rd Lane 2.
3. The names of Road, Street and Lane in a consistent manner to identify different sizes of roads.
It is useful to adopt these principles in the naming of roads in Singapore. I find the naming of roads in the new towns to be rather inconsistent. The name Avenue, Road and Street are being used for similar size of roads.
Thursday, January 03, 2008
High distribution cost
Someone said that Axa promoted "Buy Term and invest the difference".
When you invest in the Axa fund, you should select the single premium option, where the charges are quite modest.
If you select the regular premium option, you will have to incur a high distribution cost, which may not be disclosed to you by the agent. This was the experience of my friend, who was being offered a regular premium ILP at a roadshow.
For a comparison of the distribution cost, read this webpage:
http://www.askdrmoney.com/Ins_ILP_RP.htm
The distribution charge of 19 months under the AXA regular premium plan is quite high.
When you invest in the Axa fund, you should select the single premium option, where the charges are quite modest.
If you select the regular premium option, you will have to incur a high distribution cost, which may not be disclosed to you by the agent. This was the experience of my friend, who was being offered a regular premium ILP at a roadshow.
For a comparison of the distribution cost, read this webpage:
http://www.askdrmoney.com/Ins_ILP_RP.htm
The distribution charge of 19 months under the AXA regular premium plan is quite high.
200% increase in premium for Plus rider
Dear Mr. Tan,
Happy New Year to you.
I have just received renewal letters for my medical insurance. Looks like the objective in INCOME has changed since your retirement. They have increased the premium tremendously.
I appended below the details of the "Plus Rider" for my family. The increase of 200% in the premium seems exhorbitant to me at one look. (details deleted).
Most likely we will continue with the plan unless there is a better product in the market. Please give us your expert advice.
REPLY
You have the option to cancel the Plus rider. In my view, there is no need to take the Plus rider to insure the Deductible and Co-insurance. You can pay them out of your Medisave account or by cash.
Read para 3 of this FAQ:
http://www.tankinlian.com/faq/choice.html
Happy New Year to you.
I have just received renewal letters for my medical insurance. Looks like the objective in INCOME has changed since your retirement. They have increased the premium tremendously.
I appended below the details of the "Plus Rider" for my family. The increase of 200% in the premium seems exhorbitant to me at one look. (details deleted).
Most likely we will continue with the plan unless there is a better product in the market. Please give us your expert advice.
REPLY
You have the option to cancel the Plus rider. In my view, there is no need to take the Plus rider to insure the Deductible and Co-insurance. You can pay them out of your Medisave account or by cash.
Read para 3 of this FAQ:
http://www.tankinlian.com/faq/choice.html
Travel tips for Taiwan
Hi Mr. Tan,
I will be going to Taiwan in May 2008 for around ten days. I plan to go Taipei and one more other area. Any places that you would strongly recommend?
REPLY
Perhaps you can visit the places that I mentioned in my blog? You should also try the hot springs, which is popular with the local people.
If you are travelling free and easy, you should try the train system. I was given a guide book of the attractions in each town served by a train station. You should also search the Internet, which has a wealth of information.
I hope that you are travelling with some friends. It is more fun when you have people to travel with.
I will be going to Taiwan in May 2008 for around ten days. I plan to go Taipei and one more other area. Any places that you would strongly recommend?
REPLY
Perhaps you can visit the places that I mentioned in my blog? You should also try the hot springs, which is popular with the local people.
If you are travelling free and easy, you should try the train system. I was given a guide book of the attractions in each town served by a train station. You should also search the Internet, which has a wealth of information.
I hope that you are travelling with some friends. It is more fun when you have people to travel with.
Hot spring in Wulai
I visited the village of Wulai yesterday. I spent 2 hours at a hot spring there. It is refreshing to visit a hot spring during winter. Many of the local people visit the hotspring to relax and be refreshed.
There are separate pools for males and females. You are not allowed to wear any clothing into the pool, not even a swimsuit. You have to wash your body, before entering the pool. This is to ensure cleanliness and hygiene.
The hot spring uses the mineral water from a nearby volcano. It has certain minerals that are good for the body.
If you are shy, you can rent a private pool for 1 or 2 people.
The normal charge for the public pools is NT 500 (SGD 25) per entry. Many places offer a promotional price of NT 250 (SGD 12).
There are separate pools for males and females. You are not allowed to wear any clothing into the pool, not even a swimsuit. You have to wash your body, before entering the pool. This is to ensure cleanliness and hygiene.
The hot spring uses the mineral water from a nearby volcano. It has certain minerals that are good for the body.
If you are shy, you can rent a private pool for 1 or 2 people.
The normal charge for the public pools is NT 500 (SGD 25) per entry. Many places offer a promotional price of NT 250 (SGD 12).
First Prize for the Amazing Number game
Dear Mr. Tan,
Happy New Year to you.
The number is "guessed" by .............................. It seems to work something like a ...... system, so there is only one combinatiion of the cards that can result in a particular number in the range. Working backwards, all the 99 numbers can then be filled up in the cards.
Thanks for another interesting entry to keep my mind thinking.
Due to my enginnering background and being a software engineer, I am able to find out how the program works after a few clicks ........ So I probably have an "unfair" advantage over the other readers who have no similar training.
REPLY
Wonderful. You have a powerful logical mind. You get first prize, for being the first person to send the correct answer to me!
I am printing the Amazing Number cards. Give me your address, so that I can send the prize to you (but it may take 1 or 2 weeks).
It is all right to have an advantage, due to your training. That is what training is about. That is how one becomes a champion. Congratulations!
Happy New Year to you.
The number is "guessed" by .............................. It seems to work something like a ...... system, so there is only one combinatiion of the cards that can result in a particular number in the range. Working backwards, all the 99 numbers can then be filled up in the cards.
Thanks for another interesting entry to keep my mind thinking.
Due to my enginnering background and being a software engineer, I am able to find out how the program works after a few clicks ........ So I probably have an "unfair" advantage over the other readers who have no similar training.
REPLY
Wonderful. You have a powerful logical mind. You get first prize, for being the first person to send the correct answer to me!
I am printing the Amazing Number cards. Give me your address, so that I can send the prize to you (but it may take 1 or 2 weeks).
It is all right to have an advantage, due to your training. That is what training is about. That is how one becomes a champion. Congratulations!
Treating High Blood Pressure
My friend's mother has high blood pressure. He sent an e-mail to ask for my recommendation on a specialist to treat this condition. I asked my wife for advice, as she is familiar with this medical condition.
My wife's advice is:
1. Send your mother to see a doctor (i.e. general practitioner) near your home.
2. The doctor will be able to take the blood pressure and prescribe the medication.
3. If the condition need specialist attention (and this is usually not necessary), the doctor will recommend a specialist.
4. High blood pressure is quite common and can be treated quite easily by a general practitioner in most cases.
My wife's advice is:
1. Send your mother to see a doctor (i.e. general practitioner) near your home.
2. The doctor will be able to take the blood pressure and prescribe the medication.
3. If the condition need specialist attention (and this is usually not necessary), the doctor will recommend a specialist.
4. High blood pressure is quite common and can be treated quite easily by a general practitioner in most cases.
Views on investing your money
COMMENTS POSTED IN MY BLOG
1) KEEP YOUR MONEY IN FIXED DEPOSIT AND CPF
I think it is perfectly fine for a person to buy Term insurance and not invest but use the money for other purposes - go for travel, catch the latest movies/musical, buy a branded watch, touch-up the house etc.
Whether he invest or squanders it away, that is his business. You all have no right to force people to invest. If i think investing is too troublesome, then I don't invest. I have this choice.
I think it is rubbish to force someone to invest. You can still live a good stress-free life with decent income.
I hope this blog do not use fear of inflation, fear of not enough for the future, fear of losing out, to scare people into investing. Using this emotion is just as bad as scaring people to buy insurance.
I find some of the comments and articles on this blog using this "scare" tactics to force people to invest. Your money in 20 years time will halved, etc. This is nonsense.
I have not invested my money for the last twenty years and my money is safe with CPF and I am still have money for travel and others. my insurance cover is $20,000 and I have 3 kids. So?
I don't understand why you all want to force people to invest in low-cost funds. "Low cost" is still cost right?
Are you saying our government is incompetent in managing our money? I think not. Inflation projection is just a "projection". If you saying inflation is 2% p.a, can you guaranteed that next year this time, everything in Singapore go up by 2%?
Therefore, I rather keep my money in fixed deposits and CPF, where it is truly no costs. If investing in low cost funds is right way, our government would have help us to invest already. If Mr. Tan wants to push his own products as part of his retirement business, that's his choice but please don't force people to invest because they have a choice not to and still stay happy and stress-free.
Anonymous.
2. EDUCATING THE PUBLIC
I think that is your business whether you wish to invest or not to invest. Whether you have enough for retirement is also your business. Everything is your business. You have complete freedom.
There is no force nor touting nor promotion of any product. I think you got it all wrong to think Mr. Tan's blog is to promote his products and that he has vested interest whether you agree or not agree to his advice or to other posters' advice.
This blog is to educate the buying public to do what is right. If you disagree with the comments you should rebut or debunk the advice, instead of accusing Mr. Tan of instilling fear and exploiting emotion as tactics to make people buy his products or ideas. He has none of these.
You must be very rich and have a huge balance in your CPF to care whether you earning a decent rate or will have enough to retire. This blog is not for you.
It is for those poor souls who are inevitable victims of unscrupulous insurance agents ..... You are safe from these agents but the poor ones are not. They are uneducated, ignorant, gullible, and too trusting that they get cheated ...................They need protection and help with their personal finances.
So you see the objectives of this blog is not to force anyone to invest in low cost funds. You can invest under your pillow ......... It is your freedom if you think that is the best place to invest your money.
The blog is also to educate and to create awareness of ........ agents on the loose and how to spot them out. It is also to identify the good products from the bad ones. This is a service to people who want to know about insurance and investment.
Zhumeng
3. DISAGREE WITH MY VIEWS
My blog is for people who find my advice to be helpful.
There are people who disagree with my views for the following reasons:
a) They are quite knowledgeable and find my views to be too simplistic
b) They are intermediaries making a living on selling high cost products
If you disagree with my views, you can ignore them, or stop visiting my blog. I am not forcing anyone to my point of view.
I expect to be challenged by intermediaries with a vested interest to sell high cost products. I allow their views to be posted, so that they can give an alternative point of view. I will only edit statements that are offensive and defamatory.
1) KEEP YOUR MONEY IN FIXED DEPOSIT AND CPF
I think it is perfectly fine for a person to buy Term insurance and not invest but use the money for other purposes - go for travel, catch the latest movies/musical, buy a branded watch, touch-up the house etc.
Whether he invest or squanders it away, that is his business. You all have no right to force people to invest. If i think investing is too troublesome, then I don't invest. I have this choice.
I think it is rubbish to force someone to invest. You can still live a good stress-free life with decent income.
I hope this blog do not use fear of inflation, fear of not enough for the future, fear of losing out, to scare people into investing. Using this emotion is just as bad as scaring people to buy insurance.
I find some of the comments and articles on this blog using this "scare" tactics to force people to invest. Your money in 20 years time will halved, etc. This is nonsense.
I have not invested my money for the last twenty years and my money is safe with CPF and I am still have money for travel and others. my insurance cover is $20,000 and I have 3 kids. So?
I don't understand why you all want to force people to invest in low-cost funds. "Low cost" is still cost right?
Are you saying our government is incompetent in managing our money? I think not. Inflation projection is just a "projection". If you saying inflation is 2% p.a, can you guaranteed that next year this time, everything in Singapore go up by 2%?
Therefore, I rather keep my money in fixed deposits and CPF, where it is truly no costs. If investing in low cost funds is right way, our government would have help us to invest already. If Mr. Tan wants to push his own products as part of his retirement business, that's his choice but please don't force people to invest because they have a choice not to and still stay happy and stress-free.
Anonymous.
2. EDUCATING THE PUBLIC
I think that is your business whether you wish to invest or not to invest. Whether you have enough for retirement is also your business. Everything is your business. You have complete freedom.
There is no force nor touting nor promotion of any product. I think you got it all wrong to think Mr. Tan's blog is to promote his products and that he has vested interest whether you agree or not agree to his advice or to other posters' advice.
This blog is to educate the buying public to do what is right. If you disagree with the comments you should rebut or debunk the advice, instead of accusing Mr. Tan of instilling fear and exploiting emotion as tactics to make people buy his products or ideas. He has none of these.
You must be very rich and have a huge balance in your CPF to care whether you earning a decent rate or will have enough to retire. This blog is not for you.
It is for those poor souls who are inevitable victims of unscrupulous insurance agents ..... You are safe from these agents but the poor ones are not. They are uneducated, ignorant, gullible, and too trusting that they get cheated ...................They need protection and help with their personal finances.
So you see the objectives of this blog is not to force anyone to invest in low cost funds. You can invest under your pillow ......... It is your freedom if you think that is the best place to invest your money.
The blog is also to educate and to create awareness of ........ agents on the loose and how to spot them out. It is also to identify the good products from the bad ones. This is a service to people who want to know about insurance and investment.
Zhumeng
3. DISAGREE WITH MY VIEWS
My blog is for people who find my advice to be helpful.
There are people who disagree with my views for the following reasons:
a) They are quite knowledgeable and find my views to be too simplistic
b) They are intermediaries making a living on selling high cost products
If you disagree with my views, you can ignore them, or stop visiting my blog. I am not forcing anyone to my point of view.
I expect to be challenged by intermediaries with a vested interest to sell high cost products. I allow their views to be posted, so that they can give an alternative point of view. I will only edit statements that are offensive and defamatory.
Wednesday, January 02, 2008
Elevated expressways in Taipei
Taipei had a network of elevated expressways. They travelled along the same path as the road beneath them. The traffic moved fast on the expressways. I was never caught in a congested exprssway, even at busy hours.
I think that the road congestion in Singapore can be reduced by building elevated expressways. It will be cheaper, faster to build and less disruption to existing buldings, compared to underground expressways.
When I moved to Yio Chu Kang in 1998, I found the Central Expressway to be quite busy. I wrote to the government to suggest that a second level be build over the Central Expressway. I received a reply that this was not possible, due to difficulty of building the access roads. I did not want to pursue the matter - but I was sure that a solution could have been found.
Ten years have passed. The Central Expressway is very congested. We are still waiting for the completion of the underground Kallang Paya Lebar Expressway (which is expensive and took a long time to complete).
Perhaps, we should try the elevated expressways, which is adopted in Taipei, Shanghai, Beijing and many other cities?
I think that the road congestion in Singapore can be reduced by building elevated expressways. It will be cheaper, faster to build and less disruption to existing buldings, compared to underground expressways.
When I moved to Yio Chu Kang in 1998, I found the Central Expressway to be quite busy. I wrote to the government to suggest that a second level be build over the Central Expressway. I received a reply that this was not possible, due to difficulty of building the access roads. I did not want to pursue the matter - but I was sure that a solution could have been found.
Ten years have passed. The Central Expressway is very congested. We are still waiting for the completion of the underground Kallang Paya Lebar Expressway (which is expensive and took a long time to complete).
Perhaps, we should try the elevated expressways, which is adopted in Taipei, Shanghai, Beijing and many other cities?
MRT ride in Taipei
I took the MRT in Taipei from City Hall Station to Xindian station. The journey of 13 stops took 30 minutes and involved two transfers. The transfers were convenient and easy. One transfer was on the same platform.
All the stations are modern, well designed and standardised. The entire system is underground.
At each door of the train, there is an electronic message board that tells the previous station, current station and the next station.
I find this board to be helpful, as I am not familiar with the stations. I can be sure that I am heading the right direction. I am also know one station ahead. If I missed my station, I could still find out and alight at the next station. There is also a clear voice announcement in Mandarin, Hokkien and English.
The minimum fare is NT 20 (SGD 1) and can take up to approximately 6 stations. The maximum fare is NT 40 (SGD 2). Those using a store value card gets a discount of 20%.t
I was able to get a seat on my forward and return journey, although I travel during the busy time of the day. The train is not as crowded as in Singapore.
I give top marks to Taipei MRT.
All the stations are modern, well designed and standardised. The entire system is underground.
At each door of the train, there is an electronic message board that tells the previous station, current station and the next station.
I find this board to be helpful, as I am not familiar with the stations. I can be sure that I am heading the right direction. I am also know one station ahead. If I missed my station, I could still find out and alight at the next station. There is also a clear voice announcement in Mandarin, Hokkien and English.
The minimum fare is NT 20 (SGD 1) and can take up to approximately 6 stations. The maximum fare is NT 40 (SGD 2). Those using a store value card gets a discount of 20%.t
I was able to get a seat on my forward and return journey, although I travel during the busy time of the day. The train is not as crowded as in Singapore.
I give top marks to Taipei MRT.
Buy the simple, good value product
If you go into the shop to buy product A for $1,000. There is another product B which is similar to A, but it cost $1,500 and gives additional items worth $300. Do you prefer product A or B?
Some life insurance products are designed to be like product B. It charges a higher premium and gives you frills that are worth less than the additional premium. But the customer is not able to know the value of the frills. The sales agent sells the enhanced product, because they can earn a higher commission. The enhanced product gives poorer value to the customer due to the higher marketing cost.
Lesson: Go for the standard products that can be compared easily. You can get better value due to competition. If you buy a complicated product, you are likely to be over-charged.
Some life insurance products are designed to be like product B. It charges a higher premium and gives you frills that are worth less than the additional premium. But the customer is not able to know the value of the frills. The sales agent sells the enhanced product, because they can earn a higher commission. The enhanced product gives poorer value to the customer due to the higher marketing cost.
Lesson: Go for the standard products that can be compared easily. You can get better value due to competition. If you buy a complicated product, you are likely to be over-charged.
New Year Celebration in Taipei
Taipei celebrates the New Year in style. At the stroke of midnight, fireworks are set off in many building in Taipei. The most spectacular is the fireworks at Taipei 101, the tallest building in the world. This is followed by the fireworks at other buildings. Here is a short video clip.
http://www.youtube.com/watch?v=dbVWrIAdD1U
http://www.youtube.com/watch?v=dbVWrIAdD1U
Tuesday, January 01, 2008
Observatory at Taipei 101
I visited the observatory at Taipei 101 on New Year Day, 1 Jan 2008.
It was crowded. I had to queue for 30 minutes to take the lift to the 89th floor. The observatory occupied the entire floor and give a 360 degree view of the city of Taipei from the tallest building in the world.
The observatory provided an audio guide. It explains the various landmarks that can be seen from each side of the building. It uses high-tech in an effective way.
The express lifts to the observatory travelled fast and smooth. It received the world record for being the fastest lifts. It reached 89 floors in 37 seconds, without any jerk or noticeable acceleration.
Admission to the observatory cost NT 350 (SGD 16).
It was crowded. I had to queue for 30 minutes to take the lift to the 89th floor. The observatory occupied the entire floor and give a 360 degree view of the city of Taipei from the tallest building in the world.
The observatory provided an audio guide. It explains the various landmarks that can be seen from each side of the building. It uses high-tech in an effective way.
The express lifts to the observatory travelled fast and smooth. It received the world record for being the fastest lifts. It reached 89 floors in 37 seconds, without any jerk or noticeable acceleration.
Admission to the observatory cost NT 350 (SGD 16).
Get adequate insurance at a low cost
Dear Mr. Tan,
You advised to buy personal accident insurance now, and life insurance later. What happens if at a later date, I am in poor health and not accepted for life insurance?
REPLY
The risk of uninsurability is quite low (less than 0.5% a year).
The bigger risks are:
1. People hesitate in buying expensive insurance, and are inadequately insured against accidents (more than 50%).
2. People buy an expensive life insurance and lapse the policy due to inability to continue paying the premium (5% a year).
It is better to have adequate personal accident insurance now, and upgrade to a more expensive insurance at a later date. For young people, the risk of meeting an accident is much higher than contracting a serious illness.
You advised to buy personal accident insurance now, and life insurance later. What happens if at a later date, I am in poor health and not accepted for life insurance?
REPLY
The risk of uninsurability is quite low (less than 0.5% a year).
The bigger risks are:
1. People hesitate in buying expensive insurance, and are inadequately insured against accidents (more than 50%).
2. People buy an expensive life insurance and lapse the policy due to inability to continue paying the premium (5% a year).
It is better to have adequate personal accident insurance now, and upgrade to a more expensive insurance at a later date. For young people, the risk of meeting an accident is much higher than contracting a serious illness.
High speed train - Taipei to Kaoshiung
What is the fare of the high speed train from Taipei to Kaoshiung? I found this information from the internet.
A brand-new high speed (300 km/h) train service using Japanese bullet train technology started running in January 2007 between Taipei and Kaohsiung. It is run by the Taiwan High Speed Rail Corporation, http://www.thsrc.com.tw/
The 300km/h trains link Taipei and Kaohsiung every half hour throughout the day, or at times more frequently.
Journey time is 1 hour 40 minutes on the faster trains, 1 hour 55 minutes on the slower services. The fare is 1,490 Taiwan dollars (SGD 70) in economy class, 2,440 Taiwan dollars (SGD 110) in business class.
A brand-new high speed (300 km/h) train service using Japanese bullet train technology started running in January 2007 between Taipei and Kaohsiung. It is run by the Taiwan High Speed Rail Corporation, http://www.thsrc.com.tw/
The 300km/h trains link Taipei and Kaohsiung every half hour throughout the day, or at times more frequently.
Journey time is 1 hour 40 minutes on the faster trains, 1 hour 55 minutes on the slower services. The fare is 1,490 Taiwan dollars (SGD 70) in economy class, 2,440 Taiwan dollars (SGD 110) in business class.
Investing in Exchange Traded Funds
Hi Mr Tan,
1) What are the investment risks or disadvantages involved in U.S. Cross-Listed ETFs, listed in
http://www.sgx.com/psv/securities/etf/ETF_US_Cross-Listed.shtml
DIAMONDS®
SPDRs®
iShares S&P500 Index Fund
iShares MSCI Singapore (Free) Index Fund
iShares Dow Jones U.S. Technology Sector Index Fund
REPLY:
I am not aware of any special risk or disadvantages involved in the US Cross Listed ETFs.
In selecting an indexed fund, you want to look for a fund that is managed by a reputed fund manager, charges low fees and provide good service in accounting and execution.
You are taking the investment risk of the specific market. If you are investing for the long term, the risk will averaged out to give you an average return for the period.
2) There are more than 10 ETFs listed on SGX but why is it that you are only recommending STI-ETF. Since STI-ETF is only focused on Singapore, would it be better to invest in e.g. Lyxor ETF MSCI AC Asia-Pacific (covering Asia minus Japan?
REPLY
I recommend the STI ETF for people who are familiar with investing in Singapore stocks and wish to remain in Singapore currency exposure. If they are familiar with investing in Asia, the Lyxor ETF is suitable.
All indexed funds are suitable, if they cost is kept at a competitive level and the investment is for 10 years or longer.
1) What are the investment risks or disadvantages involved in U.S. Cross-Listed ETFs, listed in
http://www.sgx.com/psv/securities/etf/ETF_US_Cross-Listed.shtml
DIAMONDS®
SPDRs®
iShares S&P500 Index Fund
iShares MSCI Singapore (Free) Index Fund
iShares Dow Jones U.S. Technology Sector Index Fund
REPLY:
I am not aware of any special risk or disadvantages involved in the US Cross Listed ETFs.
In selecting an indexed fund, you want to look for a fund that is managed by a reputed fund manager, charges low fees and provide good service in accounting and execution.
You are taking the investment risk of the specific market. If you are investing for the long term, the risk will averaged out to give you an average return for the period.
2) There are more than 10 ETFs listed on SGX but why is it that you are only recommending STI-ETF. Since STI-ETF is only focused on Singapore, would it be better to invest in e.g. Lyxor ETF MSCI AC Asia-Pacific (covering Asia minus Japan?
REPLY
I recommend the STI ETF for people who are familiar with investing in Singapore stocks and wish to remain in Singapore currency exposure. If they are familiar with investing in Asia, the Lyxor ETF is suitable.
All indexed funds are suitable, if they cost is kept at a competitive level and the investment is for 10 years or longer.
Fed Ex Logo
Someone gave me the link to a forum discussing the Fed Ex logo. It is creative. Can you see the arrow between the letters E and x?
Overcome your Fear
Hi Kin Lian,
Thanks for sharing the video of the firework in Taipei.
I read from your blog about your recent experience on upgrading your computer. It is very encouraging and inspiring for computer illiterates like me to want to try too. What holds us back is the Fear Factor. What if our computer hangs! Only we can overcome this fear ourselves. You have shown the way.
Many are held back by their own fears. They fear doing maths or science, making decisions and even making simple comments on matters of special or even common interest. These are too many KIASU people. Unfortuantely some are even proud of this too!.
We all have our own talents to do certain things to make contributions which can benefit others. You and I have been doing this throughout our lives in various ways as a purpose of our lives, if not our mission, to add values to the lives of others.
Thanks for sharing the video of the firework in Taipei.
I read from your blog about your recent experience on upgrading your computer. It is very encouraging and inspiring for computer illiterates like me to want to try too. What holds us back is the Fear Factor. What if our computer hangs! Only we can overcome this fear ourselves. You have shown the way.
Many are held back by their own fears. They fear doing maths or science, making decisions and even making simple comments on matters of special or even common interest. These are too many KIASU people. Unfortuantely some are even proud of this too!.
We all have our own talents to do certain things to make contributions which can benefit others. You and I have been doing this throughout our lives in various ways as a purpose of our lives, if not our mission, to add values to the lives of others.
Carrefour, Taipei
I visited Carrefour in Taipei. It offers mainly local products, unlike the Carrefour stores in Singapore and Dubai.
I learned something about the Carrefour logo. Caj you see the small red arrow pointing to the left and a larger stylish blue arrow pointing to the right. Did you wonder what the two arrows meant?
I discovered it on my visit to Carrefoure in Taipei.
I learned something about the Carrefour logo. Caj you see the small red arrow pointing to the left and a larger stylish blue arrow pointing to the right. Did you wonder what the two arrows meant?
I discovered it on my visit to Carrefoure in Taipei.
Answer: If you look at the white space between the red and blue arrows, you will see the letter C. This is creative!
A new approach to improve the taxi service
To improve the taxi service in Singapore, we have to adopt a new approach. Here are my suggestions:
1. Taxi fares should be regulated (and not left to the market). The regulator can balance the interest of commuters and taxi drivers and seek to achieve an efficient system that that provides quality service at a fair price. This approach is adopted by most countries, including Hong Kong and Taiwan.
2. The regulator can approve premium taxi service that charge differently from the standard service. The premium service has to pick passengers by telephone booking only (i.e. not from the road or taxi stands). Commuters willing to pay a higher price can telephone for the premium service. This service will use a different color of taxis (i.e. not the same as the regular taxis).
3. Booking of taxi should be reduced to $1.50. This will compensate the taxi driver adequately for taking the call and improve the usage of the taxi (instead of plying the road to look for taxis).
4. Commuters should be allowed to share a taxi, if they are travelling in the same direction. The appropriate fare should be fixed. This will improve the usage of the taxi, reduce cost for the commuters and increase earnings for the taxi drivers.
1. Taxi fares should be regulated (and not left to the market). The regulator can balance the interest of commuters and taxi drivers and seek to achieve an efficient system that that provides quality service at a fair price. This approach is adopted by most countries, including Hong Kong and Taiwan.
2. The regulator can approve premium taxi service that charge differently from the standard service. The premium service has to pick passengers by telephone booking only (i.e. not from the road or taxi stands). Commuters willing to pay a higher price can telephone for the premium service. This service will use a different color of taxis (i.e. not the same as the regular taxis).
3. Booking of taxi should be reduced to $1.50. This will compensate the taxi driver adequately for taking the call and improve the usage of the taxi (instead of plying the road to look for taxis).
4. Commuters should be allowed to share a taxi, if they are travelling in the same direction. The appropriate fare should be fixed. This will improve the usage of the taxi, reduce cost for the commuters and increase earnings for the taxi drivers.
Make a lump sum investment
Hello Mr. Tan,
You have mentioned in your blog that up to 21 months of savings can be taken away to pay the agent to sell a monthly sum investment-linked policy. Does it mean it will be more worthwhile to buy a lump sum unit trust instead? I'm looking for long term investment actually.
My insurance agent has been asking me to buy monthly sum investment-linked policy and recommends that I treat it like a savings plan. I am not too sure whether I should take his advice.
REPLY
You should invest in a single premium ILP, such as the Flexi Link from NTUC Income. It has low charges, compared to a monthly plan.
You can see a comparison of the charges here:
http://www.askdrmoney.com/Ins_ILP_RP.htm
Read these FAQs to make your decision:
http://www.tankinlian.com/faq/savings.html
http://www.tankinlian.com/faq/ilp.html
You have mentioned in your blog that up to 21 months of savings can be taken away to pay the agent to sell a monthly sum investment-linked policy. Does it mean it will be more worthwhile to buy a lump sum unit trust instead? I'm looking for long term investment actually.
My insurance agent has been asking me to buy monthly sum investment-linked policy and recommends that I treat it like a savings plan. I am not too sure whether I should take his advice.
REPLY
You should invest in a single premium ILP, such as the Flexi Link from NTUC Income. It has low charges, compared to a monthly plan.
You can see a comparison of the charges here:
http://www.askdrmoney.com/Ins_ILP_RP.htm
Read these FAQs to make your decision:
http://www.tankinlian.com/faq/savings.html
http://www.tankinlian.com/faq/ilp.html
Adequate insurance
Dear Mr. Tan,
I have already bought a five years term insurance($15,000) from NTUC income, do you think I still need the DPS ($46,000) required by CPF board?
REPLY
It depends on your personal circumstances. If you have dependents, you should aim to insure for 5 to 10 years of your earnings. If you have accumulated savings, the insurance cover can be reduced by this amount.
Read this FAQ
http://www.tankinlian.com/faq/choice.html
I have already bought a five years term insurance($15,000) from NTUC income, do you think I still need the DPS ($46,000) required by CPF board?
REPLY
It depends on your personal circumstances. If you have dependents, you should aim to insure for 5 to 10 years of your earnings. If you have accumulated savings, the insurance cover can be reduced by this amount.
Read this FAQ
http://www.tankinlian.com/faq/choice.html
Investing a lump sum at 51 years
Dear Mr. Tan,
My mother is 51 years old now. She has $50,000 of cash to invest. What is your recomendation investment, annuity, etc?
REPLY
If she is investing for 10 years or more, it is better to invest in a low cost, diversified equity fund.
When she needs to draw out a monthly income, she can convert it into a life annuity. At that time, she should wait for a has good time when the investments showed a good gain of 5% to 8% per annum.
Read the following FAQs
http://www.tankinlian.com/faq/life.html
http://www.tankinlian.com/faq/savings.html
My mother is 51 years old now. She has $50,000 of cash to invest. What is your recomendation investment, annuity, etc?
REPLY
If she is investing for 10 years or more, it is better to invest in a low cost, diversified equity fund.
When she needs to draw out a monthly income, she can convert it into a life annuity. At that time, she should wait for a has good time when the investments showed a good gain of 5% to 8% per annum.
Read the following FAQs
http://www.tankinlian.com/faq/life.html
http://www.tankinlian.com/faq/savings.html
Monday, December 31, 2007
New Year Celebration in Taipei
There will be a big celebration to welcome the new year in Taipei. A big firework display will be launched from Taipei 101, which is currently the tallest building in the world. Most people in Taipei will be watching the fireworks.
We will be watching the fireworks from the roof top of my daughter's apartment. It is just 1 kilometer away from Taipei 101. We have to get a pass and pay an admission fee to access the rooftop - as it will be in high demand.
We will be watching the fireworks from the roof top of my daughter's apartment. It is just 1 kilometer away from Taipei 101. We have to get a pass and pay an admission fee to access the rooftop - as it will be in high demand.
Winter in Taipei
It is now winter in Taipei. Although there is no snow here, the temperature can be quite cold. It gets below 10 degree Centrigrade. I enjoy the cold temperature, as it is a good change from the hot climate in Singapore.
Personal accident insurance
I encourage all young people to buy a personal accident insurance to cover $100,000 for an annual premium of less than $100 (for most occupations).
Here are the reasons:
1. It is easy to buy this insurance. You do not have to provide any information about your health status or to take a medical examination.
2. Most young people face an accident risk. They are unlikely to face a health risk, until they are much older.
3. You can invest your savings in a diversified, low cost equity fund to get a better return. Most of the return goes back to you, instead of being spent on agent commission, expenses and profit for the insurance company.
4. Do not buy your life insurance too early, especially the costly plans, such as endowment, whole life or critical illness. You can think about life insurance later, when you have started a family. At that time, you can make a better choice. You will learn that it is better to buy Term insurance.
5. If you wish to buy Term insurance earlier, it is also appropriate. Term insurance covers death from accident and sickness, and is slightly more expensive than accident insurance. It does not cover permanent and temporary disablement (unlike personal accident insurance).
6. The cost of personal accident insurance is so low, that you do not have to think twice about it.
Here are the reasons:
1. It is easy to buy this insurance. You do not have to provide any information about your health status or to take a medical examination.
2. Most young people face an accident risk. They are unlikely to face a health risk, until they are much older.
3. You can invest your savings in a diversified, low cost equity fund to get a better return. Most of the return goes back to you, instead of being spent on agent commission, expenses and profit for the insurance company.
4. Do not buy your life insurance too early, especially the costly plans, such as endowment, whole life or critical illness. You can think about life insurance later, when you have started a family. At that time, you can make a better choice. You will learn that it is better to buy Term insurance.
5. If you wish to buy Term insurance earlier, it is also appropriate. Term insurance covers death from accident and sickness, and is slightly more expensive than accident insurance. It does not cover permanent and temporary disablement (unlike personal accident insurance).
6. The cost of personal accident insurance is so low, that you do not have to think twice about it.
Audio driver for my notebook computer
My notebook computer was running slowly. I decided to remove the unused programs and deframent the hard disk
After re-starting the computer, I learned that the sound card did not work. I had removed the audio driver by mistake, thinking that it was an unused software.
I wish to share this interesting experience.
I searched Google for "Sony Vaio audio driver" and was given a listing of several websites. A few websites were discussion among other owners who also lost their audio driver.
I visited the Sony Online website. It asked for the model number of my notebook. I entered the model number (taken from the back of the notebook) and was told that it was an "unrecognised model".
The discussion forum showed another owner with the same model number. It seemed that this is just a marketing reference and that the actual model number could be found on the front monitor.
I was able to get the correct model number and to locate the audio driver in the internet. I download and installed it in my notebook. It worked - to my considerable surprise!
Previously, I had to depend on a techie to solve the problem for me. I learned today, how it can be done.
Lesson: There is a wealth of information that can be obtained through the internet. Each day, I am discovering its usefulness.
After re-starting the computer, I learned that the sound card did not work. I had removed the audio driver by mistake, thinking that it was an unused software.
I wish to share this interesting experience.
I searched Google for "Sony Vaio audio driver" and was given a listing of several websites. A few websites were discussion among other owners who also lost their audio driver.
I visited the Sony Online website. It asked for the model number of my notebook. I entered the model number (taken from the back of the notebook) and was told that it was an "unrecognised model".
The discussion forum showed another owner with the same model number. It seemed that this is just a marketing reference and that the actual model number could be found on the front monitor.
I was able to get the correct model number and to locate the audio driver in the internet. I download and installed it in my notebook. It worked - to my considerable surprise!
Previously, I had to depend on a techie to solve the problem for me. I learned today, how it can be done.
Lesson: There is a wealth of information that can be obtained through the internet. Each day, I am discovering its usefulness.
Personal accident insurance
Here is an example of a standalone personal accident insurance from the market. Several insurance companies offer similar terms
1. Compensation as % of sum insured
Death: 100%
Double Indemnity on weekends, public holidays and school holidays: 100%
Permanent Disablement: up to 100% depending on extent of disablement (defined in schedule)
Temporary Disablement: up to 0.1% per day, up to 104 weeks
Medical Expenses: up to $10,000 any one accident
Emergency Evacuation and Repatriation
2. General Exclusions (i.e. not covered by the policy):
pre-existing physical or mental defects
pregnancy
suicide
war risks
motorcycling
climbing or mountaineering necessitating ropes or guides
judo, karate and some hazardous sports
Note: you can pay a higher premium rate to cover some of these risks.
3. Example of a typical plan
Death: $100,000
Double Indemnity: $200,000
Permament Disablement: Up to $100,000
Temporary Disablement: $100 a day up to to 104 weeks
Medical Expenses: Up to $2,000
4. Premiums (inclusive of 7% GST) for the typical plan, depends on occupation:
Class 1: $72 (most office bound jobs)
Class 2: $92 (production and outdoor jobs)
Class 3: $127
Class 4: $209
5. You pay a lower premium for the basic cover, i.e. death and permanent disability cover, excluding temporary disablement and medical expenses.
6. You can apply for higher or lower coverage and pay a proportionately adjusted premium. If you change your occupation, the premium rate will be adjusted on each year's renewal.
7. The premium rate for a standalone personal accident policy is much lower than a rider to a life policy (providing similar coverage). It offers higher protection at a lower cost, compared to a life insurance policy.
Class 1: Profession of administrative, supervisory or clerical nature such as accountant, lawyer, banker, doctor, teacher, nurse, secretary, clerk.
Class 2: Professions of outdoor nature, work involving overseas travel or whose duties involves the occasional use of tools or machinery such as foremen, grocers, hairdressers, salesmen, tailors, surveyors, tourist guides.
Class 3: Profession involving manual work or use of tools or machinery, such as carpenter, builder, painter, driver, technician, hawker, unarmed security guard.
Class 4: Full time national serviceman, fireman, policeman, armed security guard, woodworking machinist.
1. Compensation as % of sum insured
Death: 100%
Double Indemnity on weekends, public holidays and school holidays: 100%
Permanent Disablement: up to 100% depending on extent of disablement (defined in schedule)
Temporary Disablement: up to 0.1% per day, up to 104 weeks
Medical Expenses: up to $10,000 any one accident
Emergency Evacuation and Repatriation
2. General Exclusions (i.e. not covered by the policy):
pre-existing physical or mental defects
pregnancy
suicide
war risks
motorcycling
climbing or mountaineering necessitating ropes or guides
judo, karate and some hazardous sports
Note: you can pay a higher premium rate to cover some of these risks.
3. Example of a typical plan
Death: $100,000
Double Indemnity: $200,000
Permament Disablement: Up to $100,000
Temporary Disablement: $100 a day up to to 104 weeks
Medical Expenses: Up to $2,000
4. Premiums (inclusive of 7% GST) for the typical plan, depends on occupation:
Class 1: $72 (most office bound jobs)
Class 2: $92 (production and outdoor jobs)
Class 3: $127
Class 4: $209
5. You pay a lower premium for the basic cover, i.e. death and permanent disability cover, excluding temporary disablement and medical expenses.
6. You can apply for higher or lower coverage and pay a proportionately adjusted premium. If you change your occupation, the premium rate will be adjusted on each year's renewal.
7. The premium rate for a standalone personal accident policy is much lower than a rider to a life policy (providing similar coverage). It offers higher protection at a lower cost, compared to a life insurance policy.
Class 1: Profession of administrative, supervisory or clerical nature such as accountant, lawyer, banker, doctor, teacher, nurse, secretary, clerk.
Class 2: Professions of outdoor nature, work involving overseas travel or whose duties involves the occasional use of tools or machinery such as foremen, grocers, hairdressers, salesmen, tailors, surveyors, tourist guides.
Class 3: Profession involving manual work or use of tools or machinery, such as carpenter, builder, painter, driver, technician, hawker, unarmed security guard.
Class 4: Full time national serviceman, fireman, policeman, armed security guard, woodworking machinist.
Accident and hospital benefit riders
Have you taken an accident or hospital benefit rider with your life insurance policy? They are sold to provide enhanced protection under your policy.
They look attractive, but has a big drawback. The premium rates are quite expensive, compared to standalone policies.
If you buy a standalone personal accident policy to cover $100,000, you need to pay about $80 a year. To buy the same cover as a rider, you will have to pay two times the premium. The hospital benefit rider also charges much higher than a standalone policy.
The standalone policy has to offer more competitive rates, as you are able to shop around and get the best deal from the insurance companies, including the general insurance companies.
If you buy a rider with a life policy, you are a captive customer and has to pay the premium rates that is being sold to you by the agent.
What can you do now?
Look at the premium and the coverage on your riders. Get a quote for a standalone policy that provides similar coverage. If the saving is significant, you can cancel your riders and buy the standalone policy. As the rider does not have any saving component, you do not lose out by cancelling the rider.
You can invest the savings in your premium to accumulate more funds for your retirement.
They look attractive, but has a big drawback. The premium rates are quite expensive, compared to standalone policies.
If you buy a standalone personal accident policy to cover $100,000, you need to pay about $80 a year. To buy the same cover as a rider, you will have to pay two times the premium. The hospital benefit rider also charges much higher than a standalone policy.
The standalone policy has to offer more competitive rates, as you are able to shop around and get the best deal from the insurance companies, including the general insurance companies.
If you buy a rider with a life policy, you are a captive customer and has to pay the premium rates that is being sold to you by the agent.
What can you do now?
Look at the premium and the coverage on your riders. Get a quote for a standalone policy that provides similar coverage. If the saving is significant, you can cancel your riders and buy the standalone policy. As the rider does not have any saving component, you do not lose out by cancelling the rider.
You can invest the savings in your premium to accumulate more funds for your retirement.
National Palace Museum, Taipei
I visited the National Palace Museum. Here are some facts from Wikipedia.
Taipei's National Palace Museum, located in the Shihlin District, is the pride of Taiwan. It ranks as one of the four best museums in the world, in a class with the Louvre, the British Museum and the Metropolitan Museum of Art.
The museum holds the world's largest collection of Chinese artifacts, around 700,000 items in all. Since the museum only has space to display around 15,000 pieces at any given time, the majority of the treasures are kept well protected in air-conditioned vaults buried deep in the mountainside. The displays are rotated once every three months, which means 60,000 pieces can be viewed in a year and it would take nearly 12 years to see them all. Furthermore, the collection continues to grow through donations and purchases.
Some of the oldest artifacts in the collection of the museum are pieces of prehistoric pottery over 5,000 years old. The vast majority of these art objects are from the private collection of China's emperors.
Included in the collection are artifacts made from jade, bronze, porcelain, lacquerware and enamel. There is also tapestry and embroidery, and many priceless documents and books containing excellent examples of ancient Chinese calligraphy.
Taipei's National Palace Museum, located in the Shihlin District, is the pride of Taiwan. It ranks as one of the four best museums in the world, in a class with the Louvre, the British Museum and the Metropolitan Museum of Art.
The museum holds the world's largest collection of Chinese artifacts, around 700,000 items in all. Since the museum only has space to display around 15,000 pieces at any given time, the majority of the treasures are kept well protected in air-conditioned vaults buried deep in the mountainside. The displays are rotated once every three months, which means 60,000 pieces can be viewed in a year and it would take nearly 12 years to see them all. Furthermore, the collection continues to grow through donations and purchases.
Some of the oldest artifacts in the collection of the museum are pieces of prehistoric pottery over 5,000 years old. The vast majority of these art objects are from the private collection of China's emperors.
Included in the collection are artifacts made from jade, bronze, porcelain, lacquerware and enamel. There is also tapestry and embroidery, and many priceless documents and books containing excellent examples of ancient Chinese calligraphy.
Allow for inflation
Hi Mr Tan,
I was reading your article on "Sufficient funds for retirement". You mentioned that to retire comfortably, we need savings of 200K to 400K when we retire. Does that exclude CPF ?
However, for a person retiring in say 5 yr's time, 200K to 400K could be sufficient, but say for a person retiring in 30 yrs' time, due to inflation, this sum of money could be much more.
REPLY
The sum includes CPF. You should allow for inflation at say 2% per annum. In 30 years time, you will need about twice of the amount to keep the real value of money.
Read this FAQ:
http://www.tankinlian.com/articles/financial.html
I was reading your article on "Sufficient funds for retirement". You mentioned that to retire comfortably, we need savings of 200K to 400K when we retire. Does that exclude CPF ?
However, for a person retiring in say 5 yr's time, 200K to 400K could be sufficient, but say for a person retiring in 30 yrs' time, due to inflation, this sum of money could be much more.
REPLY
The sum includes CPF. You should allow for inflation at say 2% per annum. In 30 years time, you will need about twice of the amount to keep the real value of money.
Read this FAQ:
http://www.tankinlian.com/articles/financial.html
Sunday, December 30, 2007
Night market in Shilin, Taipei
I visited the busy night market in Shilin, Taipei. I encountered an interesting experience.
The street was very busy. Suddently, a stall holder started to pack up his goods. We asked him for the reason. He said that the police is making a raid on the illegal stalls.
Within two mintures, a convoy of about 20 illegal stalls were moved in an orderly fashion down an alley to be kept away from the scene. When the police arrived, there were no illegal stalls. After the police left, the stalls were back in business, within half an hour.
How were the stalls alerted? They posted someone to lookout for the police. When the police came, a message was passed by mobile phone.
Wow! This is a new way to use technology!
The street was very busy. Suddently, a stall holder started to pack up his goods. We asked him for the reason. He said that the police is making a raid on the illegal stalls.
Within two mintures, a convoy of about 20 illegal stalls were moved in an orderly fashion down an alley to be kept away from the scene. When the police arrived, there were no illegal stalls. After the police left, the stalls were back in business, within half an hour.
How were the stalls alerted? They posted someone to lookout for the police. When the police came, a message was passed by mobile phone.
Wow! This is a new way to use technology!
Slow economy in Taiwan
My friend told me that the economy has been weak in Taiwan during the past ten years. This is caused by two factors:
1. Relocation of manufacturing to China
2. The unstable political situation.
The people are still cheerful.
1. Relocation of manufacturing to China
2. The unstable political situation.
The people are still cheerful.
Earnings of taxi driver in Taipei
I spoke to two taxi drivers in Taipei.
They work hard and drive a taxi for 12 hours a day, 365 days a year. They earn an average of NT 50,000 a month (SGD 2,500) after deducting their expenses.
They used to earn more a few years ago. Business has reduced due to the slow economy and the opening of the MRT lines.
In spite of their difficult life, they are polite and helpful.
They work hard and drive a taxi for 12 hours a day, 365 days a year. They earn an average of NT 50,000 a month (SGD 2,500) after deducting their expenses.
They used to earn more a few years ago. Business has reduced due to the slow economy and the opening of the MRT lines.
In spite of their difficult life, they are polite and helpful.
The Pen is Mightier than the Sword
This article is Dr. Lee Kum Tatt's message to start the New Year of 2008 with his wife's introductory comments.
www.leekumtatt.blogspot.com
www.leekumtatt.blogspot.com
Saturday, December 29, 2007
Snow Mountain Tunnel
I travelled through the Snow Mountain Tunnel today. Here is a description from Wikipedia.
The Hsuehshan Tunnel (雪山隧道) or "Snow Mountain" tunnel, is the longest tunnel in Taiwan, located on the Taipei-Yilan Freeway (Taiwan National Highway No. 5).
The road connects the city of Taipei to the northeastern county of Yilan (Ilan), cutting down the journey time from two hours to just half an hour.
One of the key aims of constructing the tunnel was to connect the western coast of Taiwan, where 95% of the population live, to the eastern coast of the island and in doing so tackle the unbalanced development on the island.
It is constructed with one pilot tunnel and two main tunnels for eastbound and westbound traffic. The total length is 12.942 km, making the Hsuehshan Tunnel the second longest road tunnel in East Asia and the fifth longest road tunnel in the world.
While excavating the tunnel, engineers encountered difficult geological problems. There were serious tunnel collapses with groundwater flooding took place periodically during tunnel construction. Altogether, 25 lives were lost during 15 years of construction.
It opened in June 2006 to severe traffic jams. The Hsuehshan Tunnel broadcasts a dedicated radio station on two FM channels inside the tunnel. Drivers can tune to either of the two FM stations to hear announcements regarding the Heushshan Tunnel, rules for driving inside the tunnel, and music.
The Hsuehshan Tunnel (雪山隧道) or "Snow Mountain" tunnel, is the longest tunnel in Taiwan, located on the Taipei-Yilan Freeway (Taiwan National Highway No. 5).
The road connects the city of Taipei to the northeastern county of Yilan (Ilan), cutting down the journey time from two hours to just half an hour.
One of the key aims of constructing the tunnel was to connect the western coast of Taiwan, where 95% of the population live, to the eastern coast of the island and in doing so tackle the unbalanced development on the island.
It is constructed with one pilot tunnel and two main tunnels for eastbound and westbound traffic. The total length is 12.942 km, making the Hsuehshan Tunnel the second longest road tunnel in East Asia and the fifth longest road tunnel in the world.
While excavating the tunnel, engineers encountered difficult geological problems. There were serious tunnel collapses with groundwater flooding took place periodically during tunnel construction. Altogether, 25 lives were lost during 15 years of construction.
It opened in June 2006 to severe traffic jams. The Hsuehshan Tunnel broadcasts a dedicated radio station on two FM channels inside the tunnel. Drivers can tune to either of the two FM stations to hear announcements regarding the Heushshan Tunnel, rules for driving inside the tunnel, and music.
Taroko Gorge, Hualien, Taiwan
Taroko Gorge is located on the eastern coast of Taiwan, about 4 hours drive from the capital Taipei. Taroko has the largest marble gorge in the world. After Taipei, this is the most visited site in Taiwan.
The Park is 36 kilometres from north to south and 42 kilometres from east to west. The park has many high mountains and steep gorges, with many peaks towering above 3,000 metres in height, and with many natural watersheds.
The spectacular Taroko Gorge and the scenic beauty of the Liwu River can be viewed conveniently from the Central Cross-Island Highway. The many waterfalls, diverse forms of plant and animal life, and the indigenous Taroko people, together create the rich texture of this unique natural ecosystem.
The Taroko Gorge is basically the 20km stretch of the Cross Island Highway between Taroko National Park HQ and Tiansiang. The narrowest and most amazing parts of the gorge are at the Swallow's Grotto and Tunnel of Nine Turns. The Eternal Spring Shrine was built to commemorate the 212 workers who lost their lives building the cross island highway. The names of the workers are inscribed in rock on the inside of the shrine.
Adequate Taxis in Taipei
There are plenty of taxis in Taipei. It is easy to get a taxi within 1 minute. The supply is more than adequate to meet demand. The service is excellent.
The taxi fares are at the right level. They are 4 to 8 times of public transport. They are not cheap, but not expensive either.
The taxi drivers work hard to meet their operating expenses and to earn a net income. There seem to be enough people willing to drive a taxi. This ensures that there is a correct balance of supply and demand. It is an excellent source of meaningful work for unemployed people.
The excellent public tranport and taxi service in Taipei probably make it less necessary for the city dwellers to own a private car.
The regulated taxi system in Taipei seems to work extremely well, in getting an efficient system that serves the commuters and taxi drivers well.
Perhaps it is time for Singapore to learn from the experience of Taipei in managing their public transport and taxi service?
The taxi fares are at the right level. They are 4 to 8 times of public transport. They are not cheap, but not expensive either.
The taxi drivers work hard to meet their operating expenses and to earn a net income. There seem to be enough people willing to drive a taxi. This ensures that there is a correct balance of supply and demand. It is an excellent source of meaningful work for unemployed people.
The excellent public tranport and taxi service in Taipei probably make it less necessary for the city dwellers to own a private car.
The regulated taxi system in Taipei seems to work extremely well, in getting an efficient system that serves the commuters and taxi drivers well.
Perhaps it is time for Singapore to learn from the experience of Taipei in managing their public transport and taxi service?
Friday, December 28, 2007
Technique to solve Logic Quiz
Try this quiz during the new year holidays.
The original quiz is purported to be created by Einstein. Only 2% of the population could solve it. Most visitors to my blog (like you) probably belong to the 2%.
You can read the quiz in this webpage:
http://www.tankinlian.com/quiz/index.html
Click on "Technique" at the bottom of that page, to learn the steps on how to solve the quiz.
http://www.tankinlian.com/quiz/solution.html
There you are. You now belong to the 2%.
After that, you can try more quizzes here:
http://www.tankinlian.com/logicquiz/
The original quiz is purported to be created by Einstein. Only 2% of the population could solve it. Most visitors to my blog (like you) probably belong to the 2%.
You can read the quiz in this webpage:
http://www.tankinlian.com/quiz/index.html
Click on "Technique" at the bottom of that page, to learn the steps on how to solve the quiz.
http://www.tankinlian.com/quiz/solution.html
There you are. You now belong to the 2%.
After that, you can try more quizzes here:
http://www.tankinlian.com/logicquiz/
Cost and benefit of health insurance
Dr. Money gives a few practical advice regarding your health insurance. He teaches you how to measure the cost and benefit and make the right choice.
http://newpaper.asia1.com.sg/columnists/story/0,4136,142914,00.html?
More articles from Dr. Money
http://www.tankinlian.com/drmoney/
http://newpaper.asia1.com.sg/columnists/story/0,4136,142914,00.html?
More articles from Dr. Money
http://www.tankinlian.com/drmoney/
Existing life insurance policies
Dear Mr. Tan,
I have just retired. I am not sure if I should continue to pay the premium on my current life insurance policies, especially those that require me to pay for the whole of life. I can afford to pay the premium, but I am not sure if the return is worth while. What is your advice to me?
REPLY
If you are able to continue to pay the premium, you can look at the return on your existing policies over the next 5 or 10 years. If the return is higher than other types of investment, then you can continue these policies.
Read this FAQ:
http://www.tankinlian.com/faq/exist.html
I have just retired. I am not sure if I should continue to pay the premium on my current life insurance policies, especially those that require me to pay for the whole of life. I can afford to pay the premium, but I am not sure if the return is worth while. What is your advice to me?
REPLY
If you are able to continue to pay the premium, you can look at the return on your existing policies over the next 5 or 10 years. If the return is higher than other types of investment, then you can continue these policies.
Read this FAQ:
http://www.tankinlian.com/faq/exist.html
Difficult to get a taxi in Singapore
My friend in Taiwan told me that he found it difficult to get a taxi when he was in Singapore. He said politely, "Perhaps Singapore's economy is doing well, that everyone wants to take a taxi."
My first trip on Taipei MRT
I took my first trip on the Taipei MRT today. I bought a stored value ticket for NT 500 (SGD 25). The deposit is NT 100 and the stored value is NT 400.
A trip of up to 6 stops cost NT 20 ($1) cash, NT 16 ($0.80) on the stored value card. The train is not crowded. I was able to get a seat on the forward and return journey.
The experience is better than Singapore MRT. Taipei MRT has received the No 1 award for reliability, safety and quality standards.
A trip of up to 6 stops cost NT 20 ($1) cash, NT 16 ($0.80) on the stored value card. The train is not crowded. I was able to get a seat on the forward and return journey.
The experience is better than Singapore MRT. Taipei MRT has received the No 1 award for reliability, safety and quality standards.
Strategies to make profit
There are three strategies for a company to make profit:
1. Operate efficiently, reduce cost, offer good value to customers and make a fair margin.
2. Exploit the market situation and customer ignorance to increase profit
3. Design products to "rip off" the customer; pay high commission to people to market the product.
I want to encourage businesses to adopt stragegy 1 (i.e. the ethical approach). It is very sad to see more businesses adopt the other two strategies.
1. Operate efficiently, reduce cost, offer good value to customers and make a fair margin.
2. Exploit the market situation and customer ignorance to increase profit
3. Design products to "rip off" the customer; pay high commission to people to market the product.
I want to encourage businesses to adopt stragegy 1 (i.e. the ethical approach). It is very sad to see more businesses adopt the other two strategies.
Avoid high charges
Dear Mr. Tan,
Should I go for those linked with investment (XXX Life Manager Plus) or those (YYY Guaranteed 15 for Life) that only need to pay for 15 yrs and covered for life?
REPLY
Both of these policies have high charges. A large portion of your premium goes to pay the commission of the agent.
My advice is to buy Term insurance and invest the difference in a low cost, diversified equity fund.
Read the following FAQs.
http://www.tankinlian.com/faq/fptips.html
http://www.tankinlian.com/faq/savings.html
http://www.tankinlian.com/faq/ilp.html
http://www.tankinlian.com/faq/term.html
Should I go for those linked with investment (XXX Life Manager Plus) or those (YYY Guaranteed 15 for Life) that only need to pay for 15 yrs and covered for life?
REPLY
Both of these policies have high charges. A large portion of your premium goes to pay the commission of the agent.
My advice is to buy Term insurance and invest the difference in a low cost, diversified equity fund.
Read the following FAQs.
http://www.tankinlian.com/faq/fptips.html
http://www.tankinlian.com/faq/savings.html
http://www.tankinlian.com/faq/ilp.html
http://www.tankinlian.com/faq/term.html
Feeder Bus Service
Some commuters do not like the feeder bus system. They consider it a hassle to take a feeder bus, change to a train, and take another feeder bus. They prefer to have no transfer, if possible.
I find a feeder system to be acceptable, if:
1. Waiting time for the feeder bus is less than 5 minutes
2. Walking distance is short
3. The feeder bus goes directly to the destination, with minimal detour.
By accepting transfers, we can have a more efficient system, with better connections, less waiting time, and lower cost.
In 2000, I took the train in Switzerland from Zurich Airport to St Moritz in the mountains. The journey involved two transfers of train. I have to take the airport train to Zurich main station, change to another train to the foot of the mountain and make a further change to go up to the mountain.
All the transfers were done on the same platform of the station. I get down a train and wait less than 10 minutes for a connecting train. It was quite convenient and easy, although it was my first time to take the train in Switzerland.
The train journey cost about SGD 50. If I took a limousine, the fare would be more than SGD 1,000.
I find a feeder system to be acceptable, if:
1. Waiting time for the feeder bus is less than 5 minutes
2. Walking distance is short
3. The feeder bus goes directly to the destination, with minimal detour.
By accepting transfers, we can have a more efficient system, with better connections, less waiting time, and lower cost.
In 2000, I took the train in Switzerland from Zurich Airport to St Moritz in the mountains. The journey involved two transfers of train. I have to take the airport train to Zurich main station, change to another train to the foot of the mountain and make a further change to go up to the mountain.
All the transfers were done on the same platform of the station. I get down a train and wait less than 10 minutes for a connecting train. It was quite convenient and easy, although it was my first time to take the train in Switzerland.
The train journey cost about SGD 50. If I took a limousine, the fare would be more than SGD 1,000.
Taipei Rapid Transit System
From Wikipedia, the free encyclopedia
Began operation March 28, 1996
System length In service: 74.4 km
No. of lines 8
No. of stations 67
Daily ridership 1,214,728 (in November 2007)
Operator Taipei Rapid Transit Corporation (TRTC)
Taipei Rapid Transit System
Traditional Chinese: 台北大眾捷運系統
Estimated cost: US$ 32 billion (phase 1 and 2)
The Taipei Rapid Transit System, also known as the MRT (Metropolitan Rapid Transit), or by locals simply as the Metro Taipei is a rapid transit system connecting the Taipei metropolitan area. The system is currently operated by the Taipei Rapid Transit Corporation (TRTC).
Since Taipei Metro joined the Nova International Railway Benchmarking Group and the Community of Metros (Nova/CoMET) in 2002, it has started collecting and analyzing data of the 33 Key Performance Indicators set by Nova/CoMET in order to compare them with those of other metro systems around the world, as a reference to improve its operation. Taipei Metro also has gained keys to success from case studies on different subjects such as safety, reliability, and incidents, and from the operational experiences of other metro systems.
According to a study conducted by the Railway Technology Strategy Centre of Imperial College, and data gathered by Nova/CoMET, the Taipei Metro has ranked number 1 in the world for three consecutive years in terms of reliability, safety and quality standards.
The Taipei Metro is one of the most expensive rapid transit systems ever constructed.
Since its completion, the TRTS has reduced travel time from one end of Taipei to the other from up to three or more hours to less than an hour, and has been effective in relieving some of Taipei's traffic congestion problems.
The TRTS also includes several public facilities such as Maokong Gondola, underground shopping malls, parks, and public squares. Modifications to existing railway lines to integrate into the MRT are underway.
Began operation March 28, 1996
System length In service: 74.4 km
No. of lines 8
No. of stations 67
Daily ridership 1,214,728 (in November 2007)
Operator Taipei Rapid Transit Corporation (TRTC)
Taipei Rapid Transit System
Traditional Chinese: 台北大眾捷運系統
Estimated cost: US$ 32 billion (phase 1 and 2)
The Taipei Rapid Transit System, also known as the MRT (Metropolitan Rapid Transit), or by locals simply as the Metro Taipei is a rapid transit system connecting the Taipei metropolitan area. The system is currently operated by the Taipei Rapid Transit Corporation (TRTC).
Since Taipei Metro joined the Nova International Railway Benchmarking Group and the Community of Metros (Nova/CoMET) in 2002, it has started collecting and analyzing data of the 33 Key Performance Indicators set by Nova/CoMET in order to compare them with those of other metro systems around the world, as a reference to improve its operation. Taipei Metro also has gained keys to success from case studies on different subjects such as safety, reliability, and incidents, and from the operational experiences of other metro systems.
According to a study conducted by the Railway Technology Strategy Centre of Imperial College, and data gathered by Nova/CoMET, the Taipei Metro has ranked number 1 in the world for three consecutive years in terms of reliability, safety and quality standards.
The Taipei Metro is one of the most expensive rapid transit systems ever constructed.
Since its completion, the TRTS has reduced travel time from one end of Taipei to the other from up to three or more hours to less than an hour, and has been effective in relieving some of Taipei's traffic congestion problems.
The TRTS also includes several public facilities such as Maokong Gondola, underground shopping malls, parks, and public squares. Modifications to existing railway lines to integrate into the MRT are underway.
Taxi Fares for 5 km trip
Here is a rough comparison of taxi fares for a 5 km trip during the peak hours.
Taxi fares are no longer cheap in Singapore. The most expensive is London.
London GBP 9 SGD 30
Sydney AUD 12 SGD 16
New York USD 8 SGD 12
Singapore SGD 7 (plus ERP and CBD)
Hong Kong HKD 40 SGD 8
Taipei NT 160 SGD 8
Taxi fares are no longer cheap in Singapore. The most expensive is London.
Thursday, December 27, 2007
Shops in Hualien
Hualien is a tourist town in the east of Taiwan. The shops are closed in the day. The roads are almost deserted. There are only a few cars moving around.
The shops open for business at night. The streets are busy.
I have never seen a town operate like this before. In many places in Europe, the shops are open during the day and closed at night.
The shops open for business at night. The streets are busy.
I have never seen a town operate like this before. In many places in Europe, the shops are open during the day and closed at night.
Taxi Fares in London
Taxi fares in London are quite complicated.
The meter calculates the maximum fare based on:
Time of day
Distance travelled
Taxi speed
The passenger will be expected to pay the full fare displayed on the meter at the end of the journey unless the driver and passenger agree on the final fare to be charged before the start of the journey.
Taxi fares
There are three tariffs, as follows:
Tariff code 1: Monday to Friday 06:00 - 20:00
Tariff code 2: Monday to Friday20:00 - 22:00, Saturday and Sunday 06:00 - 22:00
Tariff code 3: Every night 22:00 - 06:00 and Public holidays
Fare for tariff code 1:
1 mile £4.20 - £6.20
2 miles: £6.60 - £9.40
4 miles: £11 - £15
6 miles: £14 - £20
For tariff code 2 and 3, the fare is upto 20% higher than tariff code 1.
There is a minimum fare of £2.20 at all times.
Extra charges
Extra charges must be added on the meter at the start of the journey. There are no extra charges for luggage or additional passengers.
Telephone Bookings: up to £2 if the taxi is booked by telephone
Heathrow extra: £2 for journeys that start from Heathrow Airport ranks
Christmas and New Year: £4 for journeys
Bank cards: 10 per cent and 15 per cent of the metered fare
The meter calculates the maximum fare based on:
Time of day
Distance travelled
Taxi speed
The passenger will be expected to pay the full fare displayed on the meter at the end of the journey unless the driver and passenger agree on the final fare to be charged before the start of the journey.
Taxi fares
There are three tariffs, as follows:
Tariff code 1: Monday to Friday 06:00 - 20:00
Tariff code 2: Monday to Friday20:00 - 22:00, Saturday and Sunday 06:00 - 22:00
Tariff code 3: Every night 22:00 - 06:00 and Public holidays
Fare for tariff code 1:
1 mile £4.20 - £6.20
2 miles: £6.60 - £9.40
4 miles: £11 - £15
6 miles: £14 - £20
For tariff code 2 and 3, the fare is upto 20% higher than tariff code 1.
There is a minimum fare of £2.20 at all times.
Extra charges
Extra charges must be added on the meter at the start of the journey. There are no extra charges for luggage or additional passengers.
Telephone Bookings: up to £2 if the taxi is booked by telephone
Heathrow extra: £2 for journeys that start from Heathrow Airport ranks
Christmas and New Year: £4 for journeys
Bank cards: 10 per cent and 15 per cent of the metered fare
Taxi Fares in Sydney
Current Fares - Effective From 27 August 2007
Hiring Charges: $3.00
Distance Rate:
Tariff 1: $1.79 per kilometre Between 6 a.m. and 10 p.m. daily
Tariff 2: Tariff 1 + 20% Between 10 p.m. and 6 a.m. daily
Radio Booking fee: $1.60 surcharge in addition to the fare.
Waiting time: $46.20 per hour (72.17c per minute - less than 25.77 KPH)
Luggage Rates:
First 25kg no charge - then 10c for each subsequent 25kg or part thereof. Maximum payable 55c
Toll and ferry Charges:
The hirer must pay all road, bridge, ferry, tunnel and airport tolls that apply to the journey.
Maxi Cabs:
Except in the case of a multiple hiring, where 75% of the authorised fare applies, all the above maximum fares and charges apply only in the case of the maxi-cab hire from a taxi zone or hailed on the street to carry up to 5 passengers. For any other hiring (except a multiple hiring) up to 150% of the above maximum fares and charges may be charged.
Note: A return toll is payable on the Sydney Harbour Bridge and in the Sydney Harbour Tunnel. Any electronic toll administration fee is not payable by the hirer.
Hiring Charges: $3.00
Distance Rate:
Tariff 1: $1.79 per kilometre Between 6 a.m. and 10 p.m. daily
Tariff 2: Tariff 1 + 20% Between 10 p.m. and 6 a.m. daily
Radio Booking fee: $1.60 surcharge in addition to the fare.
Waiting time: $46.20 per hour (72.17c per minute - less than 25.77 KPH)
Luggage Rates:
First 25kg no charge - then 10c for each subsequent 25kg or part thereof. Maximum payable 55c
Toll and ferry Charges:
The hirer must pay all road, bridge, ferry, tunnel and airport tolls that apply to the journey.
Maxi Cabs:
Except in the case of a multiple hiring, where 75% of the authorised fare applies, all the above maximum fares and charges apply only in the case of the maxi-cab hire from a taxi zone or hailed on the street to carry up to 5 passengers. For any other hiring (except a multiple hiring) up to 150% of the above maximum fares and charges may be charged.
Note: A return toll is payable on the Sydney Harbour Bridge and in the Sydney Harbour Tunnel. Any electronic toll administration fee is not payable by the hirer.
Taxi Fares in New York
Taxi FaresCabs are cash only. While cabs are relatively expensive for a single person, they can actually be a bargain with 3 or more riders. The rates for taxicabs are as follows (last updated 2007-07):
Initial fare.............$2.50
Each 1/5 mile (4 blocks).$0.40
Each 1 minute idle.......$0.40
Peak surcharge...........$1.00 (after 4pm until 8pm Mon-Fri)
Night surcharge..........$0.50 (after 8pm until 6am)
Tolls....................$extra
Additional riders........FREE
Pay only what's on the meter, plus a 15-20 percent gratuity. There are additional charges for crossings outside the metropolitan area and New Jersey. Passengers are required to pay one way. If you are going to airports, there are set fees plus toll and tip.
Initial fare.............$2.50
Each 1/5 mile (4 blocks).$0.40
Each 1 minute idle.......$0.40
Peak surcharge...........$1.00 (after 4pm until 8pm Mon-Fri)
Night surcharge..........$0.50 (after 8pm until 6am)
Tolls....................$extra
Additional riders........FREE
Pay only what's on the meter, plus a 15-20 percent gratuity. There are additional charges for crossings outside the metropolitan area and New Jersey. Passengers are required to pay one way. If you are going to airports, there are set fees plus toll and tip.
Easy to get a taxi from Taipei Main Station
On returning from Hualien, my wife and I hailed a taxi at the roadside outside Taipei Main Station. Although this was a busy time of the night, a taxi picked us within 1 minute. Surprising, but it is true.
The journey to our apartment in Taipei was 6 km. It cost NT 180 (about SGD 9). Most of the journey was on the expressway, which was fast flowing (unlike the congested expressways in Singapore).
The traffic system in Taipei is definitely much better than Singapore. It is time for us to learn from Taipei.
The journey to our apartment in Taipei was 6 km. It cost NT 180 (about SGD 9). Most of the journey was on the expressway, which was fast flowing (unlike the congested expressways in Singapore).
The traffic system in Taipei is definitely much better than Singapore. It is time for us to learn from Taipei.
Train from Taipeh to Hualien
I took the train from Taipei to Hualien. It was an interesting experience.
My train ticket showed the train number and time of departure from Taipei Main Station. I asked the station staff for the platform and was given clear direction.
At the platorm, a passenger advised me to look at the coach and seat number printed on the ticket and to locate the right section of the platform to board the coach. There is a number in the platorm to indicate the coach number.
There is a digital sign to indicate the departure time of the train that is currently on the platform.
In case the previous train is late, the sign will indicate that the train is the previous train and the passenger can be alerted to avoid boarding the wrong train.
On the return journey from Hualien to Taipei, I have no dificulty in getting the right platform, train and coach. I enjoyed the journey.
My train ticket showed the train number and time of departure from Taipei Main Station. I asked the station staff for the platform and was given clear direction.
At the platorm, a passenger advised me to look at the coach and seat number printed on the ticket and to locate the right section of the platform to board the coach. There is a number in the platorm to indicate the coach number.
There is a digital sign to indicate the departure time of the train that is currently on the platform.
In case the previous train is late, the sign will indicate that the train is the previous train and the passenger can be alerted to avoid boarding the wrong train.
On the return journey from Hualien to Taipei, I have no dificulty in getting the right platform, train and coach. I enjoyed the journey.
Wednesday, December 26, 2007
Taxi fares in Singapore
Fares and surcharges
Applicable to CityCab, Comfort, Yellow-Top Cab, SMRT Taxis. Different fares apply to other operators
Flagdown fare: S$2.80 (≤ 1 km)
Meter fare
S$0.20 (every 385 m thereafter or less > 1 km and ≤ 10 km)
S$0.20 (every 330 m thereafter or less > 10 km)
Waiting: S$0.20 (every 45 seconds or less)
Booking
S$3.50 (0730 - 0930 and 1700 - 2300 hours Monday - Friday)
S$2.50 (all other times including public holidays)
S$5.20 (advance)
Peak hours
35% of metered fare (0700 - 0930 and 1700 - 2000)
Late night
50% of meter fare (0000 - 0559 hours)
Public holidays
S$1.00 (1800 hours eve to 2400 hours of New Year's Day, Hari Raya Puasa, Deepavali, Christmas Day, first and second day of Chinese New Year.
Should public holiday fall on a Sunday, the surchage will be imposed till 2400 hrs on Monday)
CBD
S$3.00 (1700 - 0000 hours, Monday - Saturday, except public holidays)
Locations
S$5.00 (Singapore Changi Airport: Friday - Sunday from 1700 to 0000 hours)
S$3.00 (Singapore Changi Airport: all other times)
S$3.00 (Seletar Airport)
S$2.00 (Singapore Expo)
Higher flag-down rates for certain models.
All Electronic Road Pricing charges incurred on the trip are to be borne by the customer. An additional 10% administrative charge on the total fare is also incurred when payment is made on credit or charge cards. Higher fares apply for premium taxi services that employ premium vehicles, such as CityCab's Presido and MaxiCab, Yellow-Top Cab's Sovereign limousines, SMRT's Prestige and London Taxi and Airport Transfer service, and so on.
Observation: Singapore must win the award for the most complicated taxi fare structure in the world.
Applicable to CityCab, Comfort, Yellow-Top Cab, SMRT Taxis. Different fares apply to other operators
Flagdown fare: S$2.80 (≤ 1 km)
Meter fare
S$0.20 (every 385 m thereafter or less > 1 km and ≤ 10 km)
S$0.20 (every 330 m thereafter or less > 10 km)
Waiting: S$0.20 (every 45 seconds or less)
Booking
S$3.50 (0730 - 0930 and 1700 - 2300 hours Monday - Friday)
S$2.50 (all other times including public holidays)
S$5.20 (advance)
Peak hours
35% of metered fare (0700 - 0930 and 1700 - 2000)
Late night
50% of meter fare (0000 - 0559 hours)
Public holidays
S$1.00 (1800 hours eve to 2400 hours of New Year's Day, Hari Raya Puasa, Deepavali, Christmas Day, first and second day of Chinese New Year.
Should public holiday fall on a Sunday, the surchage will be imposed till 2400 hrs on Monday)
CBD
S$3.00 (1700 - 0000 hours, Monday - Saturday, except public holidays)
Locations
S$5.00 (Singapore Changi Airport: Friday - Sunday from 1700 to 0000 hours)
S$3.00 (Singapore Changi Airport: all other times)
S$3.00 (Seletar Airport)
S$2.00 (Singapore Expo)
Higher flag-down rates for certain models.
All Electronic Road Pricing charges incurred on the trip are to be borne by the customer. An additional 10% administrative charge on the total fare is also incurred when payment is made on credit or charge cards. Higher fares apply for premium taxi services that employ premium vehicles, such as CityCab's Presido and MaxiCab, Yellow-Top Cab's Sovereign limousines, SMRT's Prestige and London Taxi and Airport Transfer service, and so on.
Observation: Singapore must win the award for the most complicated taxi fare structure in the world.
Taxi fares in Hong Kong
Here are the taxi fares in Hong Kong (red taxi)
1. First 2 km, HK 15 (SGD $3)
2. Every 0.2 km or 1 min of idling, HK $1.4 ($0.30)
3. Call a taxi HK 4 ($0.80)
Lower taxi fares apply for travel within New Territories (green taxi) or Launtau (blue taxi).
Average fare for 5 km including telephone calling, HK 40 ($8)
Observation: The fares are simpler and cheaper compared to Singapore. There are cheaper form of public transport.
1. First 2 km, HK 15 (SGD $3)
2. Every 0.2 km or 1 min of idling, HK $1.4 ($0.30)
3. Call a taxi HK 4 ($0.80)
Lower taxi fares apply for travel within New Territories (green taxi) or Launtau (blue taxi).
Average fare for 5 km including telephone calling, HK 40 ($8)
Observation: The fares are simpler and cheaper compared to Singapore. There are cheaper form of public transport.
Taxi fares in Taipei
Taxi fares are charged as follows:
1. Starting fare for first 1250 m, NT 70 (SGD $3.50)
2. Surcharge after midnight, NT20 ($1)
3. Calling a taxi - no charge
4. Distance fare for 250 m or 84 secs of idling, NT5 ($0.25)
Fare for 5.11 km daytime, NT157 ($8)
The new fares, which took effect recently, was decided by the Taipei City Government based on three proposals submitted by interested parties. The decision was accepted by the taxi operators. The revised fare was necessary based to cover higher operating cost, due to higher oil prices.
Observation: The taxi fares in Taipei are much simpler than Singapore. The fares are regulated and produce a satisfactory outcome for commuters and taxi drivers.
1. Starting fare for first 1250 m, NT 70 (SGD $3.50)
2. Surcharge after midnight, NT20 ($1)
3. Calling a taxi - no charge
4. Distance fare for 250 m or 84 secs of idling, NT5 ($0.25)
Fare for 5.11 km daytime, NT157 ($8)
The new fares, which took effect recently, was decided by the Taipei City Government based on three proposals submitted by interested parties. The decision was accepted by the taxi operators. The revised fare was necessary based to cover higher operating cost, due to higher oil prices.
Observation: The taxi fares in Taipei are much simpler than Singapore. The fares are regulated and produce a satisfactory outcome for commuters and taxi drivers.
Tuesday, December 25, 2007
CPF Dependent Protection Scheme
Dear Mr. Tan,
May I know what is the difference between DPS (Dependent Protection Scheme) and ordinary term insurance? Why does CPF board limit the coverage to a maximum of $46,000? It seems that I cannot opt for higher sum assured.
REPLY
DPS is a yearly renewable Term. The premium rate depends on the age in each year. It is lower when you are young and increases when you grow older.
An ordinary Term fixes the premium rate for the selected term, say 10 or 20 years.
As DPS is a developed as a national scheme, the Government decided to fix the coverage at a certain level that is applicable to everyone.
If you wish to have a higher coverage, you have to buy a Term insurance to supplement it.
May I know what is the difference between DPS (Dependent Protection Scheme) and ordinary term insurance? Why does CPF board limit the coverage to a maximum of $46,000? It seems that I cannot opt for higher sum assured.
REPLY
DPS is a yearly renewable Term. The premium rate depends on the age in each year. It is lower when you are young and increases when you grow older.
An ordinary Term fixes the premium rate for the selected term, say 10 or 20 years.
As DPS is a developed as a national scheme, the Government decided to fix the coverage at a certain level that is applicable to everyone.
If you wish to have a higher coverage, you have to buy a Term insurance to supplement it.
Walkway connecting buildings
There is a second level walkway connecting many buildings in the district around the Taipei City Hall. It takes the pedestrians off the street level and brings them to many large stores and offices.
The walkway is broad and can take many people. It is almost like walking on the street, but without cars. As the climate is cool during winter in Taipei, it is quite pleasant to walk along the walkways.
Some people said that it is expensive to build the elevated workway. In my view, it is relative. I believe that the cost is only a small fraction of the money that is spent to build the expensive buildings.
I hope, one day, that many cities and towns will have elevated walkways like this. It encourages people to walk a long distance to the train station or bus terminal.
The walkway is broad and can take many people. It is almost like walking on the street, but without cars. As the climate is cool during winter in Taipei, it is quite pleasant to walk along the walkways.
Some people said that it is expensive to build the elevated workway. In my view, it is relative. I believe that the cost is only a small fraction of the money that is spent to build the expensive buildings.
I hope, one day, that many cities and towns will have elevated walkways like this. It encourages people to walk a long distance to the train station or bus terminal.
Property Agent's Commission on Extending a Lease
Hi Mr. Tan,
I like to seek your advice on the commission payable to the property agent for extending a lease.
Two years ago, I leased out my apartment through an agent. The agent charged me 1 month of rental, which was a lot of money.
I am now negotiating with my tenant to extend the lease. I was shocked to find that the property agent had included in the lease agreement (without my knowledge) a clause that requires me to pay commission for extending the lease.
I have never agreed to this condition. Am I required to pay this commission? In my case, the agent provided bad service to me and the tenant during the past two years. Why should I continue to pay commission again?
I hope that you can advise me.
REPLY
I understand that the standard tenancy agreement does not have this clause. It seems that some property agent inserted the clause to give them additional income, but it is unfair to the owner.
I suggest that you negotiate a new agreement with the tenant. You can agree with the tenant on whether any commission is to be paid to the agent, and which party is required to pay the commission. Quite likely, the tenant will prefer to deal directly with you, and avoid this additional cost.
As you do not have any agreement with the agent on this matter, you are not bound by the terms of the old tenancy agreement, as it has been superceded.
I hope that you find this to be helpful. As this is a legal matter, you may wish to get the opinion of a lawyer as well.
I like to seek your advice on the commission payable to the property agent for extending a lease.
Two years ago, I leased out my apartment through an agent. The agent charged me 1 month of rental, which was a lot of money.
I am now negotiating with my tenant to extend the lease. I was shocked to find that the property agent had included in the lease agreement (without my knowledge) a clause that requires me to pay commission for extending the lease.
I have never agreed to this condition. Am I required to pay this commission? In my case, the agent provided bad service to me and the tenant during the past two years. Why should I continue to pay commission again?
I hope that you can advise me.
REPLY
I understand that the standard tenancy agreement does not have this clause. It seems that some property agent inserted the clause to give them additional income, but it is unfair to the owner.
I suggest that you negotiate a new agreement with the tenant. You can agree with the tenant on whether any commission is to be paid to the agent, and which party is required to pay the commission. Quite likely, the tenant will prefer to deal directly with you, and avoid this additional cost.
As you do not have any agreement with the agent on this matter, you are not bound by the terms of the old tenancy agreement, as it has been superceded.
I hope that you find this to be helpful. As this is a legal matter, you may wish to get the opinion of a lawyer as well.
Feeder Bus
There is high demand for taxis in Singapore due to the difficulty of taking public transport in places that are not served by the MRT trains.
There are many bus services in Singapore. Commuters who wish to take a bus for a short journey find the services to be confusing and overwhelming. There are too many buses travelling in different directions.
In my view, we need to introduce feeder bus. These are services that travel within a a town, such as Toa Payoh, Ang Mo Kio or Bedok and take commuters to the town center, MRT station or bus terminal.
It is easy for the commutter to understand this system. Each town needs only two or three feeder services.
I understand that the light buses in Hong Kong acts like a feeder service to take people to the train station. Many people consider the public transport in Hong Kong to be very convenient.
There are many bus services in Singapore. Commuters who wish to take a bus for a short journey find the services to be confusing and overwhelming. There are too many buses travelling in different directions.
In my view, we need to introduce feeder bus. These are services that travel within a a town, such as Toa Payoh, Ang Mo Kio or Bedok and take commuters to the town center, MRT station or bus terminal.
It is easy for the commutter to understand this system. Each town needs only two or three feeder services.
I understand that the light buses in Hong Kong acts like a feeder service to take people to the train station. Many people consider the public transport in Hong Kong to be very convenient.
A good time to invest in equities
Hi Mr. Tan,
You advised people to invest in an diversified, low cost equity fund for the long term. What is the best time to make this investment? Is it safe to invest now? Will there be a recession in the USA next year? Will it affect the Asian countries and Singapore?
REPLY
If you are investing for the long term, i.e. 10 years or longer, it does not matter if there is a recession next year.
At the current level, Singapore equities are about 15% lower than the peak. I think that this is a good level to start investing a lump sum. There is still a risk that it may go down, but it does not matter for a long term investor.
If you are investing a monthly sum, you can start at any time as you will be "averaging" the cost of your investments.
You advised people to invest in an diversified, low cost equity fund for the long term. What is the best time to make this investment? Is it safe to invest now? Will there be a recession in the USA next year? Will it affect the Asian countries and Singapore?
REPLY
If you are investing for the long term, i.e. 10 years or longer, it does not matter if there is a recession next year.
At the current level, Singapore equities are about 15% lower than the peak. I think that this is a good level to start investing a lump sum. There is still a risk that it may go down, but it does not matter for a long term investor.
If you are investing a monthly sum, you can start at any time as you will be "averaging" the cost of your investments.
MRT in Taipei
The mass rapid transit system(MRT) in Taipei, together with the metropolitan area's dedicated bus route network, forms a convenient transportation system.
The MRT currently has five lines in operation:
Brown Line (Mucha)
Red Line (Tamshui)
Orange Line (Chungho)
Green Line (Hsintien)
Blue Line (Kunyung to Hsinpu).
The five lines are dotted with a variety of attractions and scenic spots. As a result, visitors can take a leisurely journey through the northern part of Taiwan employing the MRT services.
The MRT currently has five lines in operation:
Brown Line (Mucha)
Red Line (Tamshui)
Orange Line (Chungho)
Green Line (Hsintien)
Blue Line (Kunyung to Hsinpu).
The five lines are dotted with a variety of attractions and scenic spots. As a result, visitors can take a leisurely journey through the northern part of Taiwan employing the MRT services.
Helpful cashier
My daughter went to a drug store in Taipei to look for a specific medication. She could not find it on ths shelf. She approached the cashier.
The cashier said that the medication is not sold in the store. Without being asked, she immediately told he customer where she can buy it from another nearby store. That is helpfulness.
Why is it possible for the cashier to be helpful?
1. She is a local person, who knows the customers and their lifestyle
2. She has worked there for a few years and acquired good knowledge of the product.
I shall do some research to find out if the cashier earns an adequate salary. This will encourage her to stay in the same job for a long time.
There are lessons to be applied in Singapore, if we still aim to be a gracious society.
The cashier said that the medication is not sold in the store. Without being asked, she immediately told he customer where she can buy it from another nearby store. That is helpfulness.
Why is it possible for the cashier to be helpful?
1. She is a local person, who knows the customers and their lifestyle
2. She has worked there for a few years and acquired good knowledge of the product.
I shall do some research to find out if the cashier earns an adequate salary. This will encourage her to stay in the same job for a long time.
There are lessons to be applied in Singapore, if we still aim to be a gracious society.
Beware of bad products
Hi Mr. Tan,
Someone described in your blog, that life insurance as "legalised rip-off". Is this a fair statement?
REPLY:
There are many insurance products that give good value to consumers. They serve a need and are priced fairly. Read this FAQ:
http://www.tankinlian.com/faq/choice.html
There are other products that are bad for consumers, as follows:
1. They are designed to maximise profit for the insurance company
2. They pay high commission to the agent to sell the product
3. The agent are trained to use emotion to sell the product
4. The product has many complicated features that have doubtful value
5. The agent worked hard to push the product
6. The agent and the insurance executive will not buy the product for themselves
You should identify and avoid the bad products (including bad products sold by banks).
Someone described in your blog, that life insurance as "legalised rip-off". Is this a fair statement?
REPLY:
There are many insurance products that give good value to consumers. They serve a need and are priced fairly. Read this FAQ:
http://www.tankinlian.com/faq/choice.html
There are other products that are bad for consumers, as follows:
1. They are designed to maximise profit for the insurance company
2. They pay high commission to the agent to sell the product
3. The agent are trained to use emotion to sell the product
4. The product has many complicated features that have doubtful value
5. The agent worked hard to push the product
6. The agent and the insurance executive will not buy the product for themselves
You should identify and avoid the bad products (including bad products sold by banks).
Monday, December 24, 2007
Taipei 101
I visited Taipei 101 after dinner in a nearby building. Here is the description of this building from Wikipedia.
Taipei 101 (台北101) is a 101-floor landmark skyscraper located in Taipei, Taiwan. The building, designed by C.Y. Lee & Partners and constructed by KTRT Joint Venture, is the world's tallest completed skyscraper.
Taipei 101 received the Emporis Skyscraper Award in 2004. It has been hailed as one of the Seven New Wonders of the World (Newsweek magazine, 2006) and Seven Wonders of Engineering (Discovery Channel, 2005).
The building serves as an icon of Taipei and Taiwan as a whole. Fireworks launched from the tower feature prominently in international New Year's Eve broadcasts, and the landmark appears frequently in films, television shows, print publications, anime media, games, and other elements of popular culture.
Taipei 101 is managed by the International division of Urban Retail Properties Corporation based in Chicago USA.[1]
The name of the building reflects its location in Taipei's 101 business district along with its floor count. The number is pronounced in English simply as One Oh One.
On 2007-07-21 Taipei 101 was overtaken in height by the Burj Dubai in Dubai, UAE, upon the completion of that building's 141st floor.[2] Taipei 101 retains its title until the Burj Dubai is completed, though, as international architectural standards define a "building" as a structure that can be occupied.
Taipei 101 (台北101) is a 101-floor landmark skyscraper located in Taipei, Taiwan. The building, designed by C.Y. Lee & Partners and constructed by KTRT Joint Venture, is the world's tallest completed skyscraper.
Taipei 101 received the Emporis Skyscraper Award in 2004. It has been hailed as one of the Seven New Wonders of the World (Newsweek magazine, 2006) and Seven Wonders of Engineering (Discovery Channel, 2005).
The building serves as an icon of Taipei and Taiwan as a whole. Fireworks launched from the tower feature prominently in international New Year's Eve broadcasts, and the landmark appears frequently in films, television shows, print publications, anime media, games, and other elements of popular culture.
Taipei 101 is managed by the International division of Urban Retail Properties Corporation based in Chicago USA.[1]
The name of the building reflects its location in Taipei's 101 business district along with its floor count. The number is pronounced in English simply as One Oh One.
On 2007-07-21 Taipei 101 was overtaken in height by the Burj Dubai in Dubai, UAE, upon the completion of that building's 141st floor.[2] Taipei 101 retains its title until the Burj Dubai is completed, though, as international architectural standards define a "building" as a structure that can be occupied.
Set limit on commission
Dear Mr. Tan,
I am quite shocked to learn from your blog that up to 21 months of savings can be taken away to pay the agent to sell an investment-linked policy. If the monthly saving is $500, the total deduction is $10,500. Why should the agent earn so much money to sell a policy?
I am sure that the consumer is not aware about the total cost. Which consumer is willing to give away so much of the hard earned savings to pay commission to the agent?
I understand that the consumer is provided with a lot of information about the insurance product, including the charges. Many consumers are overwhelmed by the information, so they blindly trust the agent. When they find out the truth, it is too late.
Surely, the Government should set some reasonable limit to protect the consumer?
REPLY
I agree that there is a need for consumers to be better protected in Singapore. The commission rates for life insurance policies are too high.
In many countries, the regulators imposed certain limits on the commission rates, to protect the interest of the consumers. I hope that a similar practice can be adopted in Singapore.
I am quite shocked to learn from your blog that up to 21 months of savings can be taken away to pay the agent to sell an investment-linked policy. If the monthly saving is $500, the total deduction is $10,500. Why should the agent earn so much money to sell a policy?
I am sure that the consumer is not aware about the total cost. Which consumer is willing to give away so much of the hard earned savings to pay commission to the agent?
I understand that the consumer is provided with a lot of information about the insurance product, including the charges. Many consumers are overwhelmed by the information, so they blindly trust the agent. When they find out the truth, it is too late.
Surely, the Government should set some reasonable limit to protect the consumer?
REPLY
I agree that there is a need for consumers to be better protected in Singapore. The commission rates for life insurance policies are too high.
In many countries, the regulators imposed certain limits on the commission rates, to protect the interest of the consumers. I hope that a similar practice can be adopted in Singapore.
Sufficient funds for retirement
According to a recent survey, 80% of Singaporeans want to retire at age 60. Do they have suffiicient funds to retire? How much money do they need to retire?
I carried out a survey with the participants in a class on financial planning. Most of them come from the lower income group. The results surprised me.
To cover food, utilities and other essentials, a couple needs about $1,000 a month. This assumes that they have a home that is fully paid for. It may be possible to get by with $800 a month, but this does not leave any margin for unexpected expenses.
To provide a monthly sum of $1000, with adjustment for inflation, a person retiring at age 65 needs accumulated savings of $200,000 to last an average remaining lifespan of 20 years. If the person wishes to retire at 60, he will need $230,000.
If you wish to have a more comfortable lifestyle, you will need $2,000 a month. Your accumulated savings has to be $400,000 when you retire at 65, or $460,000 when you retire at 60.
If you do not have this sum of accumulated savings (that is needed for the bare minimum or a comfortable lifestyle), you have the following options:
a) Extend your retirement age to 65 to 70 years.
b) Retire from full time work at 60 to 65, and continue to work part time to earn a supplementary income.
To ensure that you have sufficient savings to last a lifetime, in case you live a very long life, you need to buy a life annuity (which provides pooling of longevity risk).
When you are working, it is important for you to make adequate savings for retirement. You must save 10% to 15% of your earnings, and invest in a low cost investment fund that can earn you a good rate of return.
Do not spend too much money on unnecessary insurance that depletes your savings for retirement. Do not buy financial products that give a poor return, due to high expenses.
Read this FAQ:
http://www.tankinlian.com/faq/fptips.html
http://www.tankinlian.com/faq/life.html
I carried out a survey with the participants in a class on financial planning. Most of them come from the lower income group. The results surprised me.
To cover food, utilities and other essentials, a couple needs about $1,000 a month. This assumes that they have a home that is fully paid for. It may be possible to get by with $800 a month, but this does not leave any margin for unexpected expenses.
To provide a monthly sum of $1000, with adjustment for inflation, a person retiring at age 65 needs accumulated savings of $200,000 to last an average remaining lifespan of 20 years. If the person wishes to retire at 60, he will need $230,000.
If you wish to have a more comfortable lifestyle, you will need $2,000 a month. Your accumulated savings has to be $400,000 when you retire at 65, or $460,000 when you retire at 60.
If you do not have this sum of accumulated savings (that is needed for the bare minimum or a comfortable lifestyle), you have the following options:
a) Extend your retirement age to 65 to 70 years.
b) Retire from full time work at 60 to 65, and continue to work part time to earn a supplementary income.
To ensure that you have sufficient savings to last a lifetime, in case you live a very long life, you need to buy a life annuity (which provides pooling of longevity risk).
When you are working, it is important for you to make adequate savings for retirement. You must save 10% to 15% of your earnings, and invest in a low cost investment fund that can earn you a good rate of return.
Do not spend too much money on unnecessary insurance that depletes your savings for retirement. Do not buy financial products that give a poor return, due to high expenses.
Read this FAQ:
http://www.tankinlian.com/faq/fptips.html
http://www.tankinlian.com/faq/life.html
Christmas is not a public holiday
I arrived in Taipei on December 24. It is a working day. Tomorrow, 25 December is also a working day. Christmas is not a public holiday in Taiwan.
People working in American companies take one or two days of annual leave to celebrate Christmas.
People working in American companies take one or two days of annual leave to celebrate Christmas.
Politeness in Taipei
During her previous visit to Taipeh, my wife observed that the people in Taipei are polite and helpful. Their culture has improved considerably in recent years.
I am now in Taipei. My experience over a few encounters with the local people has been positive.
I am now in Taipei. My experience over a few encounters with the local people has been positive.
Save for child's education
Dear Mr. Tan,
I have read comments from many people in your blog. Some people recommended that parents should save for their child's tertiary education. An education is the best gift for your child. Other people said that the priority is for one's own retirement needs. What are your views?
REPLY
The first priority is to have adequate savings for your own retirement needs. You need $200,000 to $400,000 at age 65 to retire comfortably. Do you have this sum?
If you have more than adequate savings, you can set aside the excess savings for your child's tertiary education. The saving can be made in your own account. You can decide on the amount to be set aside for your child's education when the time comes..
You should do a cost benefit analysis for the education expenses. How much are you spending? What additional income can your child earn from the overseas education? What is the payback period? Are there other options to get a more affordable education?
I usually recommend students to study in university in Singapore, as it is highly subsidised. A student can study in an overseas university, if you are on scholarship. Do not spend half of your retirement savings on your child's education. It is not wise.
I have read comments from many people in your blog. Some people recommended that parents should save for their child's tertiary education. An education is the best gift for your child. Other people said that the priority is for one's own retirement needs. What are your views?
REPLY
The first priority is to have adequate savings for your own retirement needs. You need $200,000 to $400,000 at age 65 to retire comfortably. Do you have this sum?
If you have more than adequate savings, you can set aside the excess savings for your child's tertiary education. The saving can be made in your own account. You can decide on the amount to be set aside for your child's education when the time comes..
You should do a cost benefit analysis for the education expenses. How much are you spending? What additional income can your child earn from the overseas education? What is the payback period? Are there other options to get a more affordable education?
I usually recommend students to study in university in Singapore, as it is highly subsidised. A student can study in an overseas university, if you are on scholarship. Do not spend half of your retirement savings on your child's education. It is not wise.
High speed train in Taiwan
The distance from Taipeh to Kaoshiung is 340 kilometers. It takes 5 hours by ordinary train and 1.5 hours by fast train. The speed of the fast train is 300 km per hour.
The distance from Singapore to Kuala Lumpur is 300 km and now takes 7 hours. I hope that there will, in the near future, be a fast train from Singapore to Kuala Lumpur that can cut down the travel time to 1.5 hour.
We are supposed to be good neighbours. Yet, it is so difficult to have a project that will benefit the people of both countries.
The distance from Singapore to Kuala Lumpur is 300 km and now takes 7 hours. I hope that there will, in the near future, be a fast train from Singapore to Kuala Lumpur that can cut down the travel time to 1.5 hour.
We are supposed to be good neighbours. Yet, it is so difficult to have a project that will benefit the people of both countries.
Sunday, December 23, 2007
Excellent signage at Vivocity
I visited Vivocity for the first time today. On leaving the train, I could see the signage leading all the way to Vivocity. This is the best signage that I have seen, among all the MRT stations.
I have travelled to other MRT stations and found that the signage to the nearby buildings and shopping malls to be inadequate. This applies to Bishan, Bugis, Tiong Bahru and Raffles Place stations. I got the impression that there was a reluctance at these stations to show the commercial buildings. Why?
Generally, I find the signages at MRT stations and buildings in Singapore to be inadequate and not friendly to commuters. I was quite refreshing to see a change at Vivocity.
I have travelled to other MRT stations and found that the signage to the nearby buildings and shopping malls to be inadequate. This applies to Bishan, Bugis, Tiong Bahru and Raffles Place stations. I got the impression that there was a reluctance at these stations to show the commercial buildings. Why?
Generally, I find the signages at MRT stations and buildings in Singapore to be inadequate and not friendly to commuters. I was quite refreshing to see a change at Vivocity.
Avoid traffic congestion
I attended an community event at Vivocity today. I decided to drive to the MRT station near my home and take the MRT to Vivocity.
The guest of honour came a little late, due to traffic congestion. I told her that I did not have any problem, as I took the train. I was able to read a book on the journey.
The organiser told me that he just returned from Hong Kong. The public transport system there is much better than Singapore. I have received similar comments from other people who are familiar with the system there.
The guest of honour came a little late, due to traffic congestion. I told her that I did not have any problem, as I took the train. I was able to read a book on the journey.
The organiser told me that he just returned from Hong Kong. The public transport system there is much better than Singapore. I have received similar comments from other people who are familiar with the system there.
Like a swan
Look at the posture of the ballet dancer in this picture.
http://www.singaporedancetheatre.com/performance/swanlake.asp
She looks like a graceful swan.
This is the magic of dance. The dancer's movements follow the movement of a particular character. This is the art of the chereographer.
http://www.singaporedancetheatre.com/performance/swanlake.asp
She looks like a graceful swan.
This is the magic of dance. The dancer's movements follow the movement of a particular character. This is the art of the chereographer.
Holiday in Taiwan
I will be travelling to Taiwan tomorrow for 12 days. I am staying with my daughter who works there, but may be travelling to various cities in Taiwan. This will be the first time that I am spending Christmas and the New Year outside of Singapore
I shall continue to update my blog, but it will not be as regular as when I am in Singapore. I wish all my visitors, season's greetings all the best for 2008.
I shall continue to update my blog, but it will not be as regular as when I am in Singapore. I wish all my visitors, season's greetings all the best for 2008.
Last minute ticket sales for Swan Lake
Ticket sales for Swan Lake picked up considering for the last three nights. Many people buy tickets at the last minute. Tonight is the last chance for you to watch this ballet at the Esplanade.
http://www.singaporedancetheatre.com/performance/swanlake.asp
http://www.singaporedancetheatre.com/performance/swanlake.asp
Lower price for your motor insurance
What is an easy way to get a lower price for your motor insurance, without having to go through a lot of trouble?
Read the tip in this FAQ:
http://www.tankinlian.com/faq/motor.html
And this FAQ:
http://www.tankinlian.com/faq/motord.html
Read the tip in this FAQ:
http://www.tankinlian.com/faq/motor.html
And this FAQ:
http://www.tankinlian.com/faq/motord.html
Charges of an Investment Linked Policy (ILP)
Are you aware about the various charges that you have to pay under an Investment Linked policy?
Are they big or small? Will they eat into your savings and investments? Which ILP have the lowest charges?
Read about the charges in:
http://www.tankinlian.com/faq/ilp.html
Are they big or small? Will they eat into your savings and investments? Which ILP have the lowest charges?
Read about the charges in:
http://www.tankinlian.com/faq/ilp.html
Improve the taxi situation
I wanted to write my thoughts on how to improve the taxi service in Singapore.
I decided to start with some research. Other people have written about the subject before. I found the following article in the internet.
Yawning Bread: Taxi problem is not a taxi problem
http://www.yawningbread.org/arch_2006/yax-638.htm
I find the analysis of the problem to be useful. I agree with most of the points.
And here are som exchange of views
http://ybsampler1.blogspot.com/2006/08/taxi-problem-is-not-taxi-problem.html
I shall be writing more on this topic.
I decided to start with some research. Other people have written about the subject before. I found the following article in the internet.
Yawning Bread: Taxi problem is not a taxi problem
http://www.yawningbread.org/arch_2006/yax-638.htm
I find the analysis of the problem to be useful. I agree with most of the points.
And here are som exchange of views
http://ybsampler1.blogspot.com/2006/08/taxi-problem-is-not-taxi-problem.html
I shall be writing more on this topic.
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