I asked a knowledgeable person about flooding in Singapore. Could it be due to the replacement of older, experienced persons by young scholars, without the experience, in the government agency? He said that this was an important factor.
Another factor is the outsourcing of the work, especially to foreign contractors. Many government agencies prefer to outsource to foreign experts, rather than use local experts. The foreign contractors did not know the local conditions and may not give the optimal solution. We are now seeing the possible consequence of this practice. Singapore had been free of flood for man years; why should we get the flooding now?
The practice of outsourcing will deplete the in-house expertise in the government agency. In a crisis, the agency does not have in-house expertise to solve the problem. They have to rely on the outsourcing contractor to solve the problem. The agency has to negotiate the price for this service, and will has no choice but to pay the high price that is demanded by the contractor.
I searched Google for articles about outsourcing. Here is an interesting article about the benefits and pitfalls of outsourcing. It seemed that the benefits are short term, and the pitfalls are long term.
Tan Kin Lian
Thursday, July 22, 2010
String of bad luck
There is an article in Today from Conrad Raj about the poor responses to the Singapore Pavilion at Shanghai Expo. The pavilion received 1 million visitors so far, compared to 3 million visitors to the Indonesian pavilion, which was built with a smaller budget.
There is an article in the Straits Times that the organisers have a Plan B to cope with disruption during the Youth Olympic Games in the event of flood.
Singapore seems to be having a string of bad luck and bad planning. Perhaps this has some connection with the practice of replacing old, experienced people by young, inexperienced scholars.
There is an article in the Straits Times that the organisers have a Plan B to cope with disruption during the Youth Olympic Games in the event of flood.
Singapore seems to be having a string of bad luck and bad planning. Perhaps this has some connection with the practice of replacing old, experienced people by young, inexperienced scholars.
Jobs for older PMETs
The Government had been trying for a long time to create the environment for older PMETs (i.e. professionals, managers, executives and technical people) to get jobs. But the results have been small. What are the measures that went wrong? What can be done to improve the situation? Share your views in this survey.
Coverage for medical expenses
Hi Mr Tan,
I have a private shield plan with rider under NTUC . At the same time I also have H&S plan - GE's Premier Helath Plan. I realize that there are areas that are overlap. However, both my agents from GE and NTUC cannot tell me what are the differences of these 2 plans, except that one is paid throught CPF and the other by cash. I would like to discontinue the GE plan but am afraid to do so. Can you kindly advise?
REPLY
If you are covered with Shield and rider, there is no need for you to have the GE plan. You can stop it. It is wasteful to pay premium for a H&S plan which duplicates most of the coverage, so a large part of the premium is wasted.
Read the FAQ in my webiste, www.tankinlian.com (Ask Mr .Tan) or get my book, Practical Guide on Financial planning, available from www.tankinlian.com/ishop.
I have a private shield plan with rider under NTUC . At the same time I also have H&S plan - GE's Premier Helath Plan. I realize that there are areas that are overlap. However, both my agents from GE and NTUC cannot tell me what are the differences of these 2 plans, except that one is paid throught CPF and the other by cash. I would like to discontinue the GE plan but am afraid to do so. Can you kindly advise?
REPLY
If you are covered with Shield and rider, there is no need for you to have the GE plan. You can stop it. It is wasteful to pay premium for a H&S plan which duplicates most of the coverage, so a large part of the premium is wasted.
Read the FAQ in my webiste, www.tankinlian.com (Ask Mr .Tan) or get my book, Practical Guide on Financial planning, available from www.tankinlian.com/ishop.
Challenges for the Young
How do young people perceive the future in Singapore? This report, based on a survey of young people, presents a worrisome picture.
Wednesday, July 21, 2010
Latest in TKL website
I will be adding articles and FAQs to my website quite regularly. You can go to www.tankinlian.com, click on Latest tab, and view these latest additions. If you wish to look for a FAQ for a certain topic, e.g. "critical illness", you can go to Information tab and use the Search tab.
Here is the direct link to the Latest tab: http://www.tankinlian.com/Latest.aspx
Here is the direct link to the Latest tab: http://www.tankinlian.com/Latest.aspx
Exclusion of critical illness
Mr Tan
I intend to purchase a level term insurance for S$400,000. I am 40 years old and have diabetes type II but well under controlled till now.
My agent informed me that due to my medical condition, he can propose a term insurance but without critical illness coverage. I would like to know whether this is fair for them to exclude Critical illness out of term insurance.
REPLY
You should ask them to explain what is the "exclusion of critical illness coverage". Does it mean that the term insurance does not pay for death by heart attack, cancer? It does not make sense to have a term insurance policy with these exclusions. Due to your medical condition, it may be necessary for you to pay a loading, i.e. a higher premium rate, but you should get the full cover in the event of death during the term.
Read the FAQs in www.tankinlian.com (Ask Mr. Tan)
I intend to purchase a level term insurance for S$400,000. I am 40 years old and have diabetes type II but well under controlled till now.
My agent informed me that due to my medical condition, he can propose a term insurance but without critical illness coverage. I would like to know whether this is fair for them to exclude Critical illness out of term insurance.
REPLY
You should ask them to explain what is the "exclusion of critical illness coverage". Does it mean that the term insurance does not pay for death by heart attack, cancer? It does not make sense to have a term insurance policy with these exclusions. Due to your medical condition, it may be necessary for you to pay a loading, i.e. a higher premium rate, but you should get the full cover in the event of death during the term.
Read the FAQs in www.tankinlian.com (Ask Mr. Tan)
Investment linked policy (ILP)
Hi Mr Tan,
I bought a ILP for my son 7 years ago and have been paying $100 a month for this policy. I received a semi-annual statement recently and was surprised to see a loss on my investment (total invested $6,777, current cash value was $6,380).
I went to their website to see the performance of their other funds but to my dismay, it only showed the last 20 pricing records for the individual funds, and no information for earlier years. Please advise if I should just terminate this ILP, as I don't have much confidence in this anymore.
REPLY
Most ILPs do take about 10 years to break even. They give poor value for money, due to the high distribution cost and effect of deduction. I would advise people to avoid buying these high cost products.
For a policyholder who has already invested in the product, it is usually better to keep the policy, provided that the investment can yield a reasonable return over the next few years. This would depends on the charges.
I suggest that you write to the insurance company and ask them to show you the following for of the past years:
I bought a ILP for my son 7 years ago and have been paying $100 a month for this policy. I received a semi-annual statement recently and was surprised to see a loss on my investment (total invested $6,777, current cash value was $6,380).
I went to their website to see the performance of their other funds but to my dismay, it only showed the last 20 pricing records for the individual funds, and no information for earlier years. Please advise if I should just terminate this ILP, as I don't have much confidence in this anymore.
REPLY
Most ILPs do take about 10 years to break even. They give poor value for money, due to the high distribution cost and effect of deduction. I would advise people to avoid buying these high cost products.
For a policyholder who has already invested in the product, it is usually better to keep the policy, provided that the investment can yield a reasonable return over the next few years. This would depends on the charges.
I suggest that you write to the insurance company and ask them to show you the following for of the past years:
- what was the yield of the fund for each year
- what was the reduction in the yield due to the charges taken from your savings
- what are the projected charges for each of the next 5 years. If the charges are less than 2% a year, it should be all right to keep the policy.
Generally, a ILP is quite difficult for the policyholder to understand the charges. It is best to avoid investing in this type of policy.
Chrome browser
I like to use the Chrome browser to handle my G Mail and Blogger as they are all provided by Google. However, I find one feature of Chrome to be quite irritating. Whenever I download a document, Chrome insist on saving a copy in the Download folder before opening it. If I wish to view the same copy again, Chrome will save another copy of the document. Sometimes, I find several copies of the same document in the Download folder. Is there a way to stop the saving of the copies in the Download folder?
Flood prone Singapore
I made regular trips to Jakarta over the past three years. Whenever it rained, there would be floods in several parts of Jakarta, causing traffic congestion and extensive property damage. I was happy at that time that Singapore had been free of floods for many years.
The situation has now changed. We had three serious, embarrassing floods over the past few months. Whatever might be the cause, e.g. Marina Barrage or overbuilding, we now have to live with the prospect of a flood-prone or, to coin a new word, a "floody" Singapore.
It would make our life somewhat more complicated. Owners of some buildings in flood-prone areas will find that their home or car insurance policies will come with higher premium rates or "flood exclusion", i.e. damage caused by flood will not be covered. Insurance premiums will increase further for everyone, even those who live "high and dry".
On the bright side, I am confident that the people in charge can solve the problem. We do have quite bright people who can find with good solutions which are planned and executed properly. We only need the problem to be recognized and give authority to the people in charge (i.e. no pushing the buck around from one agency to another).
Tan Kin Lian
The situation has now changed. We had three serious, embarrassing floods over the past few months. Whatever might be the cause, e.g. Marina Barrage or overbuilding, we now have to live with the prospect of a flood-prone or, to coin a new word, a "floody" Singapore.
It would make our life somewhat more complicated. Owners of some buildings in flood-prone areas will find that their home or car insurance policies will come with higher premium rates or "flood exclusion", i.e. damage caused by flood will not be covered. Insurance premiums will increase further for everyone, even those who live "high and dry".
On the bright side, I am confident that the people in charge can solve the problem. We do have quite bright people who can find with good solutions which are planned and executed properly. We only need the problem to be recognized and give authority to the people in charge (i.e. no pushing the buck around from one agency to another).
Tan Kin Lian
Coping with downpour
Read this article.
My view
Big cities face the problem of coping with downpour and drainage. Many people do not have the expertise and experience on such matters. These matters are usually left unattended, until a big disaster occurs.
My view
Big cities face the problem of coping with downpour and drainage. Many people do not have the expertise and experience on such matters. These matters are usually left unattended, until a big disaster occurs.
Financial planning - preparing for redundancy
First posted in January 2010. Re-posted in July 2010
Redundancy is defined as retrenchment and premature termination of contract. It represent loss of employment that is initiated by the employer. There were 16,000 redundancies in 2008 and has already reached this fugure for the first 9 months of 2009, representing 0.8% of the employed population.
This figure does not represent involuntary loss due to "difficulty of working with management" or "asked to leave". If the other reasons are included, the redundancy rate is likely to be much higher, maybe 2% a year or higher. The risk of being terminated during a working life could be more than 50%.
Many workers who are lost their jobs involuntarily will face difficulty in getting another job that pays equally well. There are many mature workers who have been unemployed for several years.
It is important to be financially prepared for involuntary loss of job. Here are the necessary steps:
a) Have liquid savings representing 6 months of earnings
b) Reduce your fixed commitments, especially on life insurance savings
c) Buy a property that represents not more than 4 or 5 years of the family income (after deducting cost of employing a maid)
You should avoid savings in a life insurance policy, as the regular premiums will be a financial burden when you are unemployed, and you will suffer a large loss, or penalty, if the policy is terminated early. If it is terminated within the first five years, you may lose up to 50% of your savings. You can only break even if you pay the premium for more than 15 years, in most cases.
It is better to save in a savings account or save-as-you-earn account (which pays slightly higher interest) and invest in an exchange traded fund, money market fund or a unit trust that has low initial and annual charges. If you have to withdraw your savings, you do not suffer a penalty, but you do have to take the market risk.
These concepts are explained in my book "Practical Guide on Financial Planning", which will be available in the bookstores in March 2010. It is important for young people to be educated about these principles before they start work, and to avoid locking up their savings in an inflexible, high cost, life insurance policy.
You only need to worry about medical insurance (e.g. Medishield) at the start. You do not have to worry about life insurance until you are married. After marriage, you can have Term Insurance or Family Income benefit at a low premium (say, 1% of your annual income). You can check this website for an indication of the premium for Term Insurance.
Tan Kin Lian
Redundancy is defined as retrenchment and premature termination of contract. It represent loss of employment that is initiated by the employer. There were 16,000 redundancies in 2008 and has already reached this fugure for the first 9 months of 2009, representing 0.8% of the employed population.
This figure does not represent involuntary loss due to "difficulty of working with management" or "asked to leave". If the other reasons are included, the redundancy rate is likely to be much higher, maybe 2% a year or higher. The risk of being terminated during a working life could be more than 50%.
Many workers who are lost their jobs involuntarily will face difficulty in getting another job that pays equally well. There are many mature workers who have been unemployed for several years.
It is important to be financially prepared for involuntary loss of job. Here are the necessary steps:
a) Have liquid savings representing 6 months of earnings
b) Reduce your fixed commitments, especially on life insurance savings
c) Buy a property that represents not more than 4 or 5 years of the family income (after deducting cost of employing a maid)
You should avoid savings in a life insurance policy, as the regular premiums will be a financial burden when you are unemployed, and you will suffer a large loss, or penalty, if the policy is terminated early. If it is terminated within the first five years, you may lose up to 50% of your savings. You can only break even if you pay the premium for more than 15 years, in most cases.
It is better to save in a savings account or save-as-you-earn account (which pays slightly higher interest) and invest in an exchange traded fund, money market fund or a unit trust that has low initial and annual charges. If you have to withdraw your savings, you do not suffer a penalty, but you do have to take the market risk.
These concepts are explained in my book "Practical Guide on Financial Planning", which will be available in the bookstores in March 2010. It is important for young people to be educated about these principles before they start work, and to avoid locking up their savings in an inflexible, high cost, life insurance policy.
You only need to worry about medical insurance (e.g. Medishield) at the start. You do not have to worry about life insurance until you are married. After marriage, you can have Term Insurance or Family Income benefit at a low premium (say, 1% of your annual income). You can check this website for an indication of the premium for Term Insurance.
Tan Kin Lian
Financial planning - tips for young people
First posted in December 2009. Re-posted in July 2010
The most important advice in financial planning is to save 15% to 25% of your earnings, in addition to CPF. This personal savings can be used for emergencies and for your retirement. If you draw down on your savings, you pay 0% interest. If you have to borrow from a bank for your urgent cash needs, you have to pay up to 24% interest.
Keep your savings in liquid form. It is all right to keep in a bank to earn 1% interest. When you have accumulated sufficient savings, you can invest in the an exchange traded fund, e.g. STI ETF, to enjoy diversification and professional management, or in a low cost unit trust (look for one with annual charge of less than 1%).
When you have started a family, you can buy term insurance for 5 to 10 years of your income. Do not pay more than 1% of your income in this insurance premium. If you are not able to get term insurance at a low cost or it is too troublesome to get it, you can buy personal accident insurance for this amount. At a young age, the biggest risk is due to accident which can be covered under this policy. You can change to a term insurance when it is readily available.
Do not worry about the other types of insurance. An insurance agent may tell you that they are necessary, but for most young people, you can live without them. It is more important that you have savings that can be withdrawn easily to meet unexpected cash needs. Even if you have invested in an ETF, you can withdraw it by paying only a small charge (i.e without paying the high penalty in a life insurance policy).
Join FISCA and attend the educational classes on financial planning. You can also read my financial planning book, which will be given to all FISCA members. This will be available in January.
Tan Kin Lian
The most important advice in financial planning is to save 15% to 25% of your earnings, in addition to CPF. This personal savings can be used for emergencies and for your retirement. If you draw down on your savings, you pay 0% interest. If you have to borrow from a bank for your urgent cash needs, you have to pay up to 24% interest.
Keep your savings in liquid form. It is all right to keep in a bank to earn 1% interest. When you have accumulated sufficient savings, you can invest in the an exchange traded fund, e.g. STI ETF, to enjoy diversification and professional management, or in a low cost unit trust (look for one with annual charge of less than 1%).
When you have started a family, you can buy term insurance for 5 to 10 years of your income. Do not pay more than 1% of your income in this insurance premium. If you are not able to get term insurance at a low cost or it is too troublesome to get it, you can buy personal accident insurance for this amount. At a young age, the biggest risk is due to accident which can be covered under this policy. You can change to a term insurance when it is readily available.
Do not worry about the other types of insurance. An insurance agent may tell you that they are necessary, but for most young people, you can live without them. It is more important that you have savings that can be withdrawn easily to meet unexpected cash needs. Even if you have invested in an ETF, you can withdraw it by paying only a small charge (i.e without paying the high penalty in a life insurance policy).
Join FISCA and attend the educational classes on financial planning. You can also read my financial planning book, which will be given to all FISCA members. This will be available in January.
Tan Kin Lian
A remarkable man
Read this article and learn about a remarkable man who could have made a big difference in the history of Singapore.
New website for Tan Kin Lian.com [2]
Here are two comments about the new website, www.tankinlian.com
What are your views? Take part in this survey and win three book prizes
Note: some changes have been made to improve the home page and create some links.
What are your views? Take part in this survey and win three book prizes
The website is excellent. It's not only user friendly but doesnt have unnecessary graphics and flashing ads. You can give a try to use http://www.websiteoptimization.com/services/analyze/ to see the sample report on some optimization. This is only to make the website much better and may not be necessary. Thanks for providing valuable insights on financial matters and yes, I strongly recommend to purchase and read your book on Practical Guide on Financial Planning. |
Website is not intuitive. Design is amateurish looking. Design is not consistent across pages. Links found on different pages bring you to the same page. (e.g. Information > Ask Mr Tan, Ask Mr Tan). Dead link - Guide > Ask Mr Tan So much text on the first page and what are those on the left? Intuitively, I thought they are links but they are not. In addition, the text on the left should have prominent heading for each section. Contact, Enquiry, Ask Mr Tan - They all seem to suggest the same thing. Poor choice of words. Overall, a rather poor effort and does not seem to be created by a person well-versed with user interface design. Use one of the established CMS to better managed your website. What is a traditional website anyway? Any example? I remember in one of your articles you mentioned some particular gov website? I don't know why you seem to think that gov websites are considered traditional websites. I do find gov websites rather confusing with many links but they are more professionally done and comes with user site search. |
Tuesday, July 20, 2010
The law and justice
Read this article.
My view
It is important that the law should be administered impartially and fairly, and be seen to be so by ordinary, right thinking citizens.
My view
It is important that the law should be administered impartially and fairly, and be seen to be so by ordinary, right thinking citizens.
Risk profiling
The so-called investment profiling test offered by banks to customers appears to be nothing more than a marketing tool that allows people to feel good about investing in some products.
The tests are supposed to establish whether a certain investor has the experience, ability and knowledge to invest in riskier products such as the infamous Lehman minibonds.
But from White Collar's experience such profiling is next to useless. When I visited one bank a few years ago to organise a time deposit, I was asked to consider an alternative that could give me a higher return - I was being pushed down the road of riskier investments.
I was also asked to do a profiling test. White Collar did the test - which asked you how many times you have traded stocks, as well as where you go for holidays. On the basis of that I was labelled as a medium risk taker - and they attempted to sell me a type of structured product that just happened to be the bank's promotional sale of the month.
New design of website
LATEST UPDATE: More than 300 people visit the website each day. This is much better than expected. They probably went to search the FAQs, which have been updated and are easily located under "Ask Mr. Tan".
The new website for www.tankinlian.com has been created using a new template. Please go through the various tabs in this website and give your views about its features in this survey. I am giving three tangram book prizes for contributors, to be drawn at random. In addition, I will be giving prizes to contributors who make good suggestions to improve my website.
The new website for www.tankinlian.com has been created using a new template. Please go through the various tabs in this website and give your views about its features in this survey. I am giving three tangram book prizes for contributors, to be drawn at random. In addition, I will be giving prizes to contributors who make good suggestions to improve my website.
FAQ - Land Banking
This article explains why you should avoid investing in land banking. You should also click on the label "Land Banking" to read other articles in this blog on this topic.
Economic growth and happiness
Internet banking
It was quite a big hassle to make an internet banking transfer for a one-off payment of $100 for the purchase of a book.
I have to register the payee and authenticate it with my mobile phone. The DBS web application did not show the correct verification page (due to a bug in their system), so the first attempt failed. I have to recreate the payee details a second time (including entering 5 error-prone items of information), and this time the verification went through. I proceeded to make the transfer and have to enter the 2FA again.
This transfer took 20 minutes to make this transfer, event though I am an experienced user. I have received 3 SMS messages, enter my 2FA 2 times, receive 2 verification code by SMS (one was due to a mistake) and enter the correct one into the DBS system. It is really a lot of hassle for an one-off payment of $100.
I have raised this issue many times with DBS but nothing was done to simplify or improve the system. I believe that their hands are tied, due to MAS requirements, all in the name of security. With so much hassle, it is easy for me to make a mistake, such as entering the wrong account number or amount. Instead of improving security, it is likely to cause mistakes. When will MAS wake up and come to the real world?
Tan Kin Lian
I have to register the payee and authenticate it with my mobile phone. The DBS web application did not show the correct verification page (due to a bug in their system), so the first attempt failed. I have to recreate the payee details a second time (including entering 5 error-prone items of information), and this time the verification went through. I proceeded to make the transfer and have to enter the 2FA again.
This transfer took 20 minutes to make this transfer, event though I am an experienced user. I have received 3 SMS messages, enter my 2FA 2 times, receive 2 verification code by SMS (one was due to a mistake) and enter the correct one into the DBS system. It is really a lot of hassle for an one-off payment of $100.
I have raised this issue many times with DBS but nothing was done to simplify or improve the system. I believe that their hands are tied, due to MAS requirements, all in the name of security. With so much hassle, it is easy for me to make a mistake, such as entering the wrong account number or amount. Instead of improving security, it is likely to cause mistakes. When will MAS wake up and come to the real world?
Tan Kin Lian
Police state
Read this article.
My view
It is important for the authority to act impartially in the exercise of its duty.
My view
It is important for the authority to act impartially in the exercise of its duty.
Freedom of expression
Read this article.
My view
People should be encouraged to express their views honestly and positively, without fearing how their views will be perceived by other people.
My view
People should be encouraged to express their views honestly and positively, without fearing how their views will be perceived by other people.
Monday, July 19, 2010
Marina Barrage
Some people think that the Marina Barrage could be the cause of the flood. Read here.
www.tankinlian.com/ishop
Puchase of books has now been transferred from www.easysearch.sg/ishop to www.tankinlian.com/ishop. You can also go to www.tankinlian.com and click on the iShop tab. There is a promotion of the books, which will end on 31 July 2010. Order now.
Survey - Flood in Singapore
Here is the survey report based on 82 responses.
My observation
The majority (86%) like to see an independent commission of inquiry. A small minority felt that it is not necessary and a waste of time and money. Some are skeptical about the independence of the commission. Generally, there is much unhappiness over the handling of the floods.
My observation
The majority (86%) like to see an independent commission of inquiry. A small minority felt that it is not necessary and a waste of time and money. Some are skeptical about the independence of the commission. Generally, there is much unhappiness over the handling of the floods.
Survey - Youth Olympic Games
The survey is popular. Here are the survey results based on the first 100 replies.
My view
The survey show a low level of enthusiasm for the Youth Olympic Games. Many respondents are unhappy about the high budget and the over-run.
My view
The survey show a low level of enthusiasm for the Youth Olympic Games. Many respondents are unhappy about the high budget and the over-run.
World Expo Shanghai
The World Expo in Shanghai is being held from 1 May to 30 October 2010. Details are here:
http://www.worldexpochina.net/
Is it worth visiting? Can those who have visited the Expo share your experience? What is a good time to go?
The temperature in Shanghai is now 32 deg Centrigrade, just like Singapore
Flashback:
I first visited Shanghai in1990. It was quite backward and under-developed. The transformation of Shanghai during the past 20 years was amazing, beyond imagination.
http://www.worldexpochina.net/
Is it worth visiting? Can those who have visited the Expo share your experience? What is a good time to go?
The temperature in Shanghai is now 32 deg Centrigrade, just like Singapore
Flashback:
I first visited Shanghai in1990. It was quite backward and under-developed. The transformation of Shanghai during the past 20 years was amazing, beyond imagination.
Advice to a retiree
Dear Mr Tan,
I am asking on my behalf of my dad who is going to retire soon. I need your advice on the investment for a retiree.
My dad is 64 years old and he will be retiring next year. He has paid off his house loans and he has dilemamn on whether should he invest his money in good blue chips for dividends or keep his money and spend wisely.
REPLY
Your dad can do the following:
I am asking on my behalf of my dad who is going to retire soon. I need your advice on the investment for a retiree.
My dad is 64 years old and he will be retiring next year. He has paid off his house loans and he has dilemamn on whether should he invest his money in good blue chips for dividends or keep his money and spend wisely.
REPLY
Your dad can do the following:
a) read my book, practical guide on financial planning $12, available at www.tankinlian.com/ishop
b) join fisca and attend the educational talk on financial planning - www.fisca.sg
b) join fisca and attend the educational talk on financial planning - www.fisca.sg
c) read the FAQs in my website, www.tankinlian.com (click on ASk Mr. Tan)
Educate the public
Dear Mr Tan Kin Lian,
I would like to write a letter of appreciation to express my respect and admiration for your efforts in imparting financial literacy to Singaporeans and defending the victims who were bullied by the financial sharks.
I have been following your blog from time to time since the Lehman Brothers Minibonds collapse put you in the public eye. Although I am not a victim, this financial fiasco fascinates me as managing my own money has been a hobby of mine for the past 7 years.
I respect you for standing up and using your financial expertise to speak up for the victims. It is not merely an extension of help to needy people as you have to take on the risk of antagonizing powerful people with links to the mighty banks. I also thought it was extraordinary of you to educate the public and expose the tricks of the insurance industry given that you are likely to make enemies and lose old friends in an industry which you have worked all your life.
As an investor in Singapore stocks, one can easily observe that someone of your background should be sitting on the directorships of several public-listed companies. By taking on the path that you took, I am not surprised that these high-paying cushy part-time jobs are closed to you. Hence, I think you have made tremendous sacrifices in sticking out your neck for your principles.
In general, people would speak out for themselves if they were wronged, but very few would speak out for strangers when one has much to lose and little to gain. My calculative mind tells me it is not wise to do what you have done. However, I cannot help but admire and respect your actions. You certainly put the self-serving yes-men to shame. To be honest, you put me to shame as well because being a selfish person, I would not have done the same thing as you did.
Yours truly
REPLY
I also have to bear the brunt of continuous personal attacks, posted anonymously by two persons.
I would like to write a letter of appreciation to express my respect and admiration for your efforts in imparting financial literacy to Singaporeans and defending the victims who were bullied by the financial sharks.
I have been following your blog from time to time since the Lehman Brothers Minibonds collapse put you in the public eye. Although I am not a victim, this financial fiasco fascinates me as managing my own money has been a hobby of mine for the past 7 years.
I respect you for standing up and using your financial expertise to speak up for the victims. It is not merely an extension of help to needy people as you have to take on the risk of antagonizing powerful people with links to the mighty banks. I also thought it was extraordinary of you to educate the public and expose the tricks of the insurance industry given that you are likely to make enemies and lose old friends in an industry which you have worked all your life.
As an investor in Singapore stocks, one can easily observe that someone of your background should be sitting on the directorships of several public-listed companies. By taking on the path that you took, I am not surprised that these high-paying cushy part-time jobs are closed to you. Hence, I think you have made tremendous sacrifices in sticking out your neck for your principles.
In general, people would speak out for themselves if they were wronged, but very few would speak out for strangers when one has much to lose and little to gain. My calculative mind tells me it is not wise to do what you have done. However, I cannot help but admire and respect your actions. You certainly put the self-serving yes-men to shame. To be honest, you put me to shame as well because being a selfish person, I would not have done the same thing as you did.
Yours truly
REPLY
I also have to bear the brunt of continuous personal attacks, posted anonymously by two persons.
It never rains, but it pours
Read this article.
My view
Many bad events are occurring one after another. A few people said that the economy is growing too fast and is causing many problems that cannot be coped. I share this view.
My view
Many bad events are occurring one after another. A few people said that the economy is growing too fast and is causing many problems that cannot be coped. I share this view.
Dual Currency Investment - Small Gain and Big Loss
Someone sent me an e-mail sharing his positive experience in dual currency investments. He found that it gave him a better yield than fixed deposit.
This is true. Many investors had similar positive experience. But, when it comes to a loss, they can lose big. And the odds are against the investor.
Take this hypothetical example. In stable times, you are likely to make a small gain, say 0.1% in 1 week. This amounts to 5.2% in 1 year, which is more attractive in fixed deposit. However, when the market gets volatile, you can lose 10% within a week, before you close the deal. At that time, you take over the foreign currency and wait for its recovery. But, it can get worse.
If you gain 0.1% on a bet and lose 10%, you need to have 100 winning bets to cover 1 big loss. You are likely to find the losing event occur earlier than 100 weeks. But that time, you would have learnt your lesson, and would not come back.
The dual currency investment is bad for the small investor, due to the high charges and marketing expenses. This is similar to any structured product. If you wish to speculate on foreign currency, it is better to buy the foreign currency directly and take your chance. At least, you have a more even chance of winning and losing.
Read the FAQ in www.tankinlian.com (Ask Mr. Tan). My book, Practical Guide on Financial Planning, has a few examples of investors who lost big sums on money on dual currency investments. www.easysearch.sg/ishop.
This is true. Many investors had similar positive experience. But, when it comes to a loss, they can lose big. And the odds are against the investor.
Take this hypothetical example. In stable times, you are likely to make a small gain, say 0.1% in 1 week. This amounts to 5.2% in 1 year, which is more attractive in fixed deposit. However, when the market gets volatile, you can lose 10% within a week, before you close the deal. At that time, you take over the foreign currency and wait for its recovery. But, it can get worse.
If you gain 0.1% on a bet and lose 10%, you need to have 100 winning bets to cover 1 big loss. You are likely to find the losing event occur earlier than 100 weeks. But that time, you would have learnt your lesson, and would not come back.
The dual currency investment is bad for the small investor, due to the high charges and marketing expenses. This is similar to any structured product. If you wish to speculate on foreign currency, it is better to buy the foreign currency directly and take your chance. At least, you have a more even chance of winning and losing.
Read the FAQ in www.tankinlian.com (Ask Mr. Tan). My book, Practical Guide on Financial Planning, has a few examples of investors who lost big sums on money on dual currency investments. www.easysearch.sg/ishop.
FAQ - Life Insurance, Past & Present
Have life insurance policies changed from the past to the present? Read here.
Sunday, July 18, 2010
Youth Olympic Games
As a Signaporean, how do you feel about the Youth Olympic Games? Take part in this survey.
Floods in Singapore
Read this article. Should the Government set up a commission of Enquiry? Give your views in this survey.
Here is another article:
http://sg.yfittopostblog.com/2010/07/18/newspaper-photographer-detained-for-taking-flood-photos/
Here is another article:
http://sg.yfittopostblog.com/2010/07/18/newspaper-photographer-detained-for-taking-flood-photos/
Minimum wage
Education system
Scrap all primary school exams?
PSLE - the unfactored elephant in the room...
Wee Hien Seng
http://www.straitstimes.com/STForum/Story/STIStory_554516.html
Future requires a bolder strategy
Samuel Ng
http://www.straitstimes.com/STForum/Story/STIStory_554514.html
My views
I have written on past occasions that the focus should be to educate the students to be literate, numerate, learn social skills and have values and characters. The examination can be conducted to ensure that the students achieve these basic skills, and should not aim to identify the top scholars. We aim to get at least 90% of students to pass. This will not put pressure on students and parents. We should learn our children enjoy their childhood. They should not have to compete for top positions in class.
I believe that educated people with good values and character can make a living in our modern society. All jobs should pay reasonably well, although the more difficult jobs can pay better than others (but the difference should not be excesssive).
See item 6 in this paper.
PSLE - the unfactored elephant in the room...
Wee Hien Seng
http://www.straitstimes.com/STForum/Story/STIStory_554516.html
Future requires a bolder strategy
Samuel Ng
http://www.straitstimes.com/STForum/Story/STIStory_554514.html
My views
I have written on past occasions that the focus should be to educate the students to be literate, numerate, learn social skills and have values and characters. The examination can be conducted to ensure that the students achieve these basic skills, and should not aim to identify the top scholars. We aim to get at least 90% of students to pass. This will not put pressure on students and parents. We should learn our children enjoy their childhood. They should not have to compete for top positions in class.
I believe that educated people with good values and character can make a living in our modern society. All jobs should pay reasonably well, although the more difficult jobs can pay better than others (but the difference should not be excesssive).
See item 6 in this paper.
Car insurance and flood
Mr. Tan,
Can you write a short note on whether damaged caused by flood will be claimable loss? I think this could be at the back of people’s mind as the flood occurrence become more frequent.
Cashew Nut
REPLY
Here are the wordings in NTUC Income's policy:
1. We will indemnify you against loss of or damage to the Insured Vehicle and its accessories and parts whilst thereon caused by
(e) flood, typhoon, hurricane, volcanic eruption, earthquake or other convulsion of nature.
Here is an extract from the website of India International Insurance:
Our Comprehensive Cover protects you against loss or damage to the vehicle caused by an accident, natural disasters, windscreen damage and your legal liabilities for accidents involving your vehicle.
I believe that all car insurance in Singapore follow the same wording. But it is better for you to check the wordings in your policy.
Saturday, July 17, 2010
Unfair bank charges
Do you feel that banks are imposing unfair and excessive charges for basic banking services, such as:
- $40 to $50 for a bounced cheque or for a rejected cheque due to a minor mistake?
- $200 or more for the annual fee on credit card?
- $40 or more to make a small remittance overseas?
- $50 to receive a foreign currency cheque?
Although the bank is willing to waive the annual fee for the credit card when the customer calls in to cancel the card, it is quite dishonest for the bank to try to earn the fee from unsuspecting customers, who may not be aware that they were being charged the hefty fee.
If you have been the victim of excessive bank charges, please share your experience in this survey. I will need actual case studies. If there are sufficient cases, I will ask FISCA to organize an appropriate response on behalf of consumers. I take this opportunity to encourage more consumers to join FISCA.
Tan Kin Lian
Extract from Tommy Wong's book, "Wisdom on How to Live Life"
Tom: Are there other benefits by living as souls?
Guru: Plenty.
Tom: What are they?
Guru: If we believe we are souls, we can then leave one body and subsequently take up another. We may consider bodies are like clothes which we wear one for one day, and then change to another on another day.
Tom: Reincarnation.
Guru: Correct and there is a huge benefit in this belief.
Tom: What’s that?
Guru: We’re not attached to our bodies.
Tom: We are souls and not bodies.
Guru: By being detached from the body, we gain enormous power.
Tom: What power?
Guru: By living as the soul and having a body, we always have the option of leaving the body.
Tom: So?
Guru: Since we’ve the power to leave the body, it also means that if we decide to stay with the body, it’s our own choice.
Tom: We’re empowered to leave or to stay.
Guru: It means that whatever situation we’re in, we choose to be there.
Tom: Right on.
Guru: It means that nobody in the entire universe can make us do what we don’t want.
Tom: We don’t have to do what we don’t want.
Guru: Since everything we do is our own choosing, we become masters of life.
Tommy Wong
This book is available here.
Unsolicited listing
Read this letter.
My view
Many people have been inconvenienced by this unsolicited listing. As it affect large numbers of people, the Police should tell the company that they are creating a nuisance and tell them to stop this activity. It is rather sad that Singapore is becoming a messy place, with all kinds of undesirable activities.
My view
Many people have been inconvenienced by this unsolicited listing. As it affect large numbers of people, the Police should tell the company that they are creating a nuisance and tell them to stop this activity. It is rather sad that Singapore is becoming a messy place, with all kinds of undesirable activities.
Credit card promotion
Here is a case of a mess-up on the credit card promotion with a restaurant.
My view
Businesses are spending too much money on promotions and are not planning them well. It is a waste of time and money. I receive many promotions through the mail, which I throw away without looking. What a waste of paper and money.
My view
Businesses are spending too much money on promotions and are not planning them well. It is a waste of time and money. I receive many promotions through the mail, which I throw away without looking. What a waste of paper and money.
Law and order
Singapore had built a good reputation for law and order in the past. However, the situation has deteriorated in recent years. A senior police officer told me that the recruitment of policemen had not kept pace with the increase in population. Many Singaporeans prefer not to join the Police Force. A SAF officer told me that it is also difficult to get Singaporeans to join the SAF as full time soldiers.
I know that the Police and the SAF pay well and provides a good career for their officers. But, the problem is that the finance sector in Singapore pays so well that it attracts too many people, including the top talents.
The finance sector is able to pay well because they are allowed to make a lot of profits in trading (i.e. actually speculating on stocks, futures and derivatives) and in selling structured products that are bad for the public. Another sector that draws away too many people is the property sector. Too many people are taking a lot of money by being property agents.
Many people can earn a lot of money by selling financial products and properties, and they are taking away people from the productive sectors of the economy. This trend will be bad for the future of Singapore - we will be a less safe and less productive nation.
Tan Kin Lian
I know that the Police and the SAF pay well and provides a good career for their officers. But, the problem is that the finance sector in Singapore pays so well that it attracts too many people, including the top talents.
The finance sector is able to pay well because they are allowed to make a lot of profits in trading (i.e. actually speculating on stocks, futures and derivatives) and in selling structured products that are bad for the public. Another sector that draws away too many people is the property sector. Too many people are taking a lot of money by being property agents.
Many people can earn a lot of money by selling financial products and properties, and they are taking away people from the productive sectors of the economy. This trend will be bad for the future of Singapore - we will be a less safe and less productive nation.
Tan Kin Lian
Compulsive history
Read this article.
My view
I saw the video of Dr. Lim Hock Siew's speech a few months ago. It seemed to be quite fair. If he had made any outrageous statements, he would have been arrested.
My view
I saw the video of Dr. Lim Hock Siew's speech a few months ago. It seemed to be quite fair. If he had made any outrageous statements, he would have been arrested.
Notebook Mall
Dear Mr. Tan
Since my retrenchment from a MNC in 2004, I tried many ideas but many went up in smoke. Entrepreneurship in SG is tough with such high business operating cost. As you already know about my recent online venture - www.thenotebookmall.com
Apart from offering same product at much lower price than my competitors, I also came up with the idea such as SOHO Bundle targeting Small & Home Business. I think my mall may be the only online mall in Singapore currently that introduce product bundles to cater to different category of customers such as SOHO business owners.
Please help to publicise my mall in your blog.
YP
Since my retrenchment from a MNC in 2004, I tried many ideas but many went up in smoke. Entrepreneurship in SG is tough with such high business operating cost. As you already know about my recent online venture - www.thenotebookmall.com
Apart from offering same product at much lower price than my competitors, I also came up with the idea such as SOHO Bundle targeting Small & Home Business. I think my mall may be the only online mall in Singapore currently that introduce product bundles to cater to different category of customers such as SOHO business owners.
Please help to publicise my mall in your blog.
YP
Customer Service
The Star
Courteous service workers are a dying breed, and the cause lies in Singaporean characteristics,
be it the worker, the boss or overdemanding customer. As its new generation becomes more cosmopolitan, self-centred and seemingly always in a hurry, Singapore is finding it harder to develop a good service culture on its own.
http://thestar.com.my/
http://thestar.com.my/
Dam and flood control
Hi Mr. Tan
I was very surprised to see a news clip from CNA a few hours ago today (16 Jul 2010). It said that to prevent floods, the Chinese government used explosives to blast open a dam. I saw the video footage and it was
awesome!! The dam must have been incorrectly constructed, i thought in my naive mind!!
I went to internet to try to research on flood control, it seems to be a very technical and academic subject, i have difficulty understanding what is a dam, what is a levee, what is a barrage, and especially why blast open a dam, and how floods can happen. (i didn't see anything to say that massive floods occur because of blocked culverts)
I wonder if there are any experts reading your blog who could lend some help to interprete the reasons for the floods in singapore recently, and also how come a dam in china has need to be destroyed if floods are meant
for flood control? CNA news clip didnt elaborate on the issue, from the layman point of view, it seems like the dam is blocking flow of water out to sea, so blast it up. Isn't our Marina Barrage a dam too? What's the difference? Are there independent experts willing to share some knowledge?
rex
Any knowledgeable person can contact rex at rex@humbleideas.com
I was very surprised to see a news clip from CNA a few hours ago today (16 Jul 2010). It said that to prevent floods, the Chinese government used explosives to blast open a dam. I saw the video footage and it was
awesome!! The dam must have been incorrectly constructed, i thought in my naive mind!!
I went to internet to try to research on flood control, it seems to be a very technical and academic subject, i have difficulty understanding what is a dam, what is a levee, what is a barrage, and especially why blast open a dam, and how floods can happen. (i didn't see anything to say that massive floods occur because of blocked culverts)
I wonder if there are any experts reading your blog who could lend some help to interprete the reasons for the floods in singapore recently, and also how come a dam in china has need to be destroyed if floods are meant
for flood control? CNA news clip didnt elaborate on the issue, from the layman point of view, it seems like the dam is blocking flow of water out to sea, so blast it up. Isn't our Marina Barrage a dam too? What's the difference? Are there independent experts willing to share some knowledge?
rex
Any knowledgeable person can contact rex at rex@humbleideas.com
FAQ - Invest in Foreign Currency Deposit
Before you invest in foreign currency deposits to earn a higher interest rate, you should consider the points expressed in this article.
Friday, July 16, 2010
Leviathan@SG
This blog is written by C H Yak, a regular visitor to my blog:
http://de-leviathan.blogspot.com/
Read more about LEVIATHAN and how a civil society can correct the damages of excessive government.
http://de-leviathan.blogspot.com/
Read more about LEVIATHAN and how a civil society can correct the damages of excessive government.
Churning of Life Insurance
Letter published in Straits Times
WITH reference to last Saturday's report ('Windfall for jumping ship'), there are many factors in the scrum by insurers to lure agents away from rival firms.
One is the client list of the agents, a consequence of which will lead to a churning of insurance policies. In such scenarios, clients are persuaded to cash in their existing policies to buy a new one.
To lessen the risk of such negative effects, the Life Insurance Association should consider organising seminars to educate the public.
The association should have rules to ensure that agents fully inform their clients on the implications of surrendering their policies for another one. These measures seek to ensure that the public know the effects of churning and that their decisions are informed ones.
In the report, the association remarked that it took a serious view of churning or any activity that hurts a policyholder's interest.
The association should inform the public about its penalties against errant agents who actively resort to churning. Such transparency may also deter agents who are thinking of resorting to this practice.
Such measures will not only help safeguard public interest against errant agents, but also maintain the high standards and reputation enjoyed by the profession.
Javern Sim
One is the client list of the agents, a consequence of which will lead to a churning of insurance policies. In such scenarios, clients are persuaded to cash in their existing policies to buy a new one.
To lessen the risk of such negative effects, the Life Insurance Association should consider organising seminars to educate the public.
The association should have rules to ensure that agents fully inform their clients on the implications of surrendering their policies for another one. These measures seek to ensure that the public know the effects of churning and that their decisions are informed ones.
In the report, the association remarked that it took a serious view of churning or any activity that hurts a policyholder's interest.
The association should inform the public about its penalties against errant agents who actively resort to churning. Such transparency may also deter agents who are thinking of resorting to this practice.
Such measures will not only help safeguard public interest against errant agents, but also maintain the high standards and reputation enjoyed by the profession.
Javern Sim
http://www.straitstimes.com/
My view
The churning of insurance policies has been a serious problem over the past decades. Many consumers had been the victims of this unethical practice and have lost large amount of their savings.
The insurance companies are partly to blame, as they introduce new products, supposedly with better features, and give the chance for their agents to get unsuspecting customers to replace their policies.
To overcome this unethical practice, it is necessary for the regulator to place limits on the amount of commission that can be paid on life insurance policies. This problem has been recognized in many countries and the appropriate action has been taken by the regulator.
My view
The churning of insurance policies has been a serious problem over the past decades. Many consumers had been the victims of this unethical practice and have lost large amount of their savings.
The insurance companies are partly to blame, as they introduce new products, supposedly with better features, and give the chance for their agents to get unsuspecting customers to replace their policies.
To overcome this unethical practice, it is necessary for the regulator to place limits on the amount of commission that can be paid on life insurance policies. This problem has been recognized in many countries and the appropriate action has been taken by the regulator.
Non-renewal of credit card
Last year, my bank charged me $700 as annual fee for the renewal of the credit card. This was the first time that the annual fee was imposed, as I was given the free use of the credit card for the previous years. They bank did not notify me in advance of this fee. I could have easily overlooked it in my statement.
I telephoned the hotline of the bank. Before I could ask about the annual fee, the bank officer offered to waive the fee and to restore the forfeited points, as he noted that I had used the credit card extensively for my payments (for which the bank did earn a commission). I thanked him for the kindness.
As the year is ending, I have just faxed this letter to the bank:
"I wish to inform you that I do not wish to renew my credit card on its expiry. Please acknowledge this instruction by reply to me at kinlian@gmail.com. I thank you for the wonderful service that you had rendered to me for the past years."
I feel that it is dishonest for the bank to try to levy a hefty annual fee, without getting the prior agreement of the customer.
Tan Kin Lian
I telephoned the hotline of the bank. Before I could ask about the annual fee, the bank officer offered to waive the fee and to restore the forfeited points, as he noted that I had used the credit card extensively for my payments (for which the bank did earn a commission). I thanked him for the kindness.
As the year is ending, I have just faxed this letter to the bank:
"I wish to inform you that I do not wish to renew my credit card on its expiry. Please acknowledge this instruction by reply to me at kinlian@gmail.com. I thank you for the wonderful service that you had rendered to me for the past years."
I feel that it is dishonest for the bank to try to levy a hefty annual fee, without getting the prior agreement of the customer.
Tan Kin Lian
Motor Insurance
Read this article. It explains the different types of motor insurance policies (apart from the comprehensive cover) and how you can get a lower premium by getting online quotes from websites.
Goldman Sachs settles securities claim
Read this report about the Goldman Sachs settlement.
Goldman Sachs has agreed to pay $550 million to the Securities and Exchange Commission to settle charges of securities fraud linked to mortgage investments sold to investors, a person briefed on the matter told The New York Times's Edward Wyatt.
Under the terms of the deal, Goldman will pay $300 million in fines to the S.E.C., with the rest serving as restitution, this person said. Goldman will not admit wrongdoing.
The S.E.C.'s director of enforcement, Robert Khuzami, is scheduled to hold a press conference late Thursday afternoon.
My view
The regulator in USA is willing to take action on behalf of investors and make a settlement with a financial institution on the charges of fraud. The settlement is made without admission of liability. It would be impossible for the public to take legal action on their own.
I hope that this approach can also be taken by our regulator in Singapore. After all, we are following the same "free market" practice as in USA. Being "pro-business" does not mean that they are allowed to take advantage of the public.
Goldman Sachs has agreed to pay $550 million to the Securities and Exchange Commission to settle charges of securities fraud linked to mortgage investments sold to investors, a person briefed on the matter told The New York Times's Edward Wyatt.
Under the terms of the deal, Goldman will pay $300 million in fines to the S.E.C., with the rest serving as restitution, this person said. Goldman will not admit wrongdoing.
The S.E.C.'s director of enforcement, Robert Khuzami, is scheduled to hold a press conference late Thursday afternoon.
My view
The regulator in USA is willing to take action on behalf of investors and make a settlement with a financial institution on the charges of fraud. The settlement is made without admission of liability. It would be impossible for the public to take legal action on their own.
I hope that this approach can also be taken by our regulator in Singapore. After all, we are following the same "free market" practice as in USA. Being "pro-business" does not mean that they are allowed to take advantage of the public.
Expensive outsourcing project
Read this report.
My view
Many government agencies and commercial organizations spent millions of dollars on consultants and outsourcing projects and get poor results. This allows the management and the board to point fingers at the external parties, in case of any shortcoming.
I hope that leaders should take responsibility for decisions that are outsourced, and that if the mistake is serious, they should be held responsible and accountable, together with the outsourced parties.
My view
Many government agencies and commercial organizations spent millions of dollars on consultants and outsourcing projects and get poor results. This allows the management and the board to point fingers at the external parties, in case of any shortcoming.
I hope that leaders should take responsibility for decisions that are outsourced, and that if the mistake is serious, they should be held responsible and accountable, together with the outsourced parties.
World Cup and Youth Olympic Games
In my opinion, the biggest winner of World Cup 2010 is South Africa. I read about the pride of the people of South Africa in hosting the World Cup and the warm hospitality that they extend to their million of visitors.
I watched the opening ceremony over television and was amazed by the pride and joy of ordinary people, the speech given by Bishop Desmond Tutu and the respect given to the former President Nelson Mandela, popularly called Madiba (i.e. Grandfather). We may have read media reports about the high crime rate and lawlessness in that country, but the people were able to project a different image to the world during this historic event.
Singapore is now hosting the Youth Olympic Games. I am worried that, in spite of the the hundred of millions of dollars that are being spent on the games (which is three times over the original budget), there is so little excitement among the people of Singapore. There was even a media report that the ticket sales is poor, and that the schools have to be asked to buy the tickets.
I hope that our leaders and the organisers of the Youth Olymic Games realize that this is not just their show, and that it belongs to the people of Singapore. Time is running out. Let us use the remaining time to engage the people.
Tan Kin Lian
I watched the opening ceremony over television and was amazed by the pride and joy of ordinary people, the speech given by Bishop Desmond Tutu and the respect given to the former President Nelson Mandela, popularly called Madiba (i.e. Grandfather). We may have read media reports about the high crime rate and lawlessness in that country, but the people were able to project a different image to the world during this historic event.
Singapore is now hosting the Youth Olympic Games. I am worried that, in spite of the the hundred of millions of dollars that are being spent on the games (which is three times over the original budget), there is so little excitement among the people of Singapore. There was even a media report that the ticket sales is poor, and that the schools have to be asked to buy the tickets.
I hope that our leaders and the organisers of the Youth Olymic Games realize that this is not just their show, and that it belongs to the people of Singapore. Time is running out. Let us use the remaining time to engage the people.
Tan Kin Lian
Thursday, July 15, 2010
Pinnacle Notes
If you have invested in Pinnacle Notes that have turned bad and you wish to join the legal action to be filed in US courts, please send an e-mail to tkla.km@gmail.com, giving your name and contact number. We will send you a Q&A and a form to provide further particulars.
Comments in this Blog
Two vile persons continue to post personal attacks against me in this blog. They made more than 10 attacks on some days. Their purpose is only to attack, rather than to post their opinion. I have posted some of their vile comments that are relatively tame, but have blocked those that are outright vicious and vulgar.
I believe that they have been paid to harrass me, and stop me from posting my views on financial products that rip off the public. I have decided, for the time being, to allow posting of comments only from Google accounts. This will allow me to trace the identity of these vile persons, if they continue their activity.
If you wish to post a comment and do not have a Google account, you can send an e-mail to kinlian@gmail.com.
Tan Kin Lian
I believe that they have been paid to harrass me, and stop me from posting my views on financial products that rip off the public. I have decided, for the time being, to allow posting of comments only from Google accounts. This will allow me to trace the identity of these vile persons, if they continue their activity.
If you wish to post a comment and do not have a Google account, you can send an e-mail to kinlian@gmail.com.
Tan Kin Lian
Show of Support
I received this "Thank You" card.
Dear Mr. Tan
Thank you very much for your kind gestures and continuing efforts to help those caught in these toxic financila products. Being a nobody, I will and can only continue to show my support by being a FISCA member.
CSC
Dear CSC
Thank you for your touching words and wonderful gesture.
Dear Mr. Tan
Thank you very much for your kind gestures and continuing efforts to help those caught in these toxic financila products. Being a nobody, I will and can only continue to show my support by being a FISCA member.
CSC
Dear CSC
Thank you for your touching words and wonderful gesture.
Invest in ETF
Hi Mr Tan,
Thank you for giving us precious advice via your blog and book and my sister and I are greatly enriched by your knowledge and expertise in giving us a transparent picture of how various investment instruments work.
From your experience, if we wish to diversify our ETF portfolio and invest beyond just STI ETF, which other ETF would you advice? We were informed by a financial advisor that we should invest in CAF, the Morgan Stanley China A share on NYSE but we hesitated as the trading hours are different and there are tax implications.
Do you think its good advice us to trade under Foreign Stock Exchange? Which China ETF is illiquid and comparable to CAF in the SGX? How do we know if the ETF is liquid? Thank you for your advice.
REPLY
STI ETF is already well diverisfied. I suggest that you do not invest in overseas ETF as it may have high charges or other problems. Some ETFs are based on deriviatives and should be avoided.
Thank you for giving us precious advice via your blog and book and my sister and I are greatly enriched by your knowledge and expertise in giving us a transparent picture of how various investment instruments work.
From your experience, if we wish to diversify our ETF portfolio and invest beyond just STI ETF, which other ETF would you advice? We were informed by a financial advisor that we should invest in CAF, the Morgan Stanley China A share on NYSE but we hesitated as the trading hours are different and there are tax implications.
Do you think its good advice us to trade under Foreign Stock Exchange? Which China ETF is illiquid and comparable to CAF in the SGX? How do we know if the ETF is liquid? Thank you for your advice.
REPLY
STI ETF is already well diverisfied. I suggest that you do not invest in overseas ETF as it may have high charges or other problems. Some ETFs are based on deriviatives and should be avoided.
Marketing through the Internet
Mr. Tan,
How do you market through the internet? Give some examples.
REPLY
Try the following websites:
http://projects.easyapps.sg/tklw
http://projects.easyapps.sg/egov
For the TKL website, look for the categories called Books and Training under the Information tab.
For the Prototype Website, you can add a tab called Marketing. You can introduce the producst of your company. You can also have a category called "Our Products" under the Information tab.
I have already received an enquiry from a visitor asking about the training programs. This enquiry is submitted using the Enquiry form. It is easy for the visitor.
If you offer good value products, the punlic will get to know about them and will buy them from you through the internet.
How do you market through the internet? Give some examples.
REPLY
Try the following websites:
http://projects.easyapps.sg/tklw
http://projects.easyapps.sg/egov
For the TKL website, look for the categories called Books and Training under the Information tab.
For the Prototype Website, you can add a tab called Marketing. You can introduce the producst of your company. You can also have a category called "Our Products" under the Information tab.
I have already received an enquiry from a visitor asking about the training programs. This enquiry is submitted using the Enquiry form. It is easy for the visitor.
If you offer good value products, the punlic will get to know about them and will buy them from you through the internet.
eGIRO
eGIRO has been implemented for nearly 10 years and is quite successful. Here is an article about it.
My view
MAS can ride on the eGIRO infrastructure to allow customers to make one-off payments to business and individual payees, to replace the writing of cheques. They should also allow e-submission of GIRO authorisation using Sing Pass.
My view
MAS can ride on the eGIRO infrastructure to allow customers to make one-off payments to business and individual payees, to replace the writing of cheques. They should also allow e-submission of GIRO authorisation using Sing Pass.
Door to door selling
Read this article.
My view
It is time to have some control over door to door selling and telemarketing. I find it rude for people to call me over the telephone to market their product. It is intrusion of privacy.
It is time for them to market their products through the internet, rather than keep intruding on the private time of the public.
My view
It is time to have some control over door to door selling and telemarketing. I find it rude for people to call me over the telephone to market their product. It is intrusion of privacy.
It is time for them to market their products through the internet, rather than keep intruding on the private time of the public.
A fair settlement
The investors in Singapore cannot protest against the injustice suffered by them, due to the following reasons:
- all protests are disallowed under the law and are dealt with sternly
- the regulator and legislators in Singapore are not prepared to protect the rights of consumers and prefer to follow the "open eyes" ruling given by our top leader
To be fair, the regulator did work out some settlement for the mini-bond investors, but they left the other investors without any recourse - pinnacle notes, high notes, jubilee notes.
Taunting
One vile person continues to be taunting the investors of the credit linked notes. He has posted the same mesage several dozen times. He said that the investors are not prepared to fight for their rights and use the term "talk only".
This shameless person can taunt people anonymously. Yet he is not showing his real name and is not prepared to step forward to organize action. I know who this person is, from his style of writing and his knowledge of the background.
This shameless person can taunt people anonymously. Yet he is not showing his real name and is not prepared to step forward to organize action. I know who this person is, from his style of writing and his knowledge of the background.
Promotion of Books
Several titles of my books are available on promotion up to 31 July 2010. Please order now. They are suitable as gifts for your relatives and friends.
Medishield and private Shield
Read this article. It gives some tips on selecting the appropriate Shield plan. You should avoid paying premium for an expensive cover that is not likely to be used.
More information on buying a Shield plan can be found in
Practical Guide on Financial Planning.
More information on buying a Shield plan can be found in
Practical Guide on Financial Planning.
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