Take a test of your financial knowledge by answering the questions below. You can find the answer from www.tankinlian.com/information.aspx - type in the keyword to search for the relevant FAQ
1. How can I get Medishield insurance for my parent who is not insured now? Keyword: not insured
2. Is there any potential danger to join an insurance company as an agent? Keyword: potential danger
Thursday, April 07, 2011
Better Business Practices
I have written about the poor customer service of DBS Bank, UOB Bank and Singapore Airlines. The poor service is a result of a focus by business corporations to cut cost and increase profits. In doing so, they overlook the need to serve their customers well and treat them fairly.
The representatives of DBS Bank and UOB Bank have since called me to rectify the issues that I have raised. I hope that they will look at the underlying causes, and change some of their existing practices. It should not be fire fighting, but a cultural change in their attitude and approach.
I have come across many cases of bad practices by business corporations and government agencies in Singapore. I shall be writing about these practices. My aim is to get these corporations and agencies to recognize that these practices are bad from the customer's point of view. They should act to make changes to improve their customer service, without increasing their cost of operations.
I know that this will be a long journey to change mindsets and practices that are now cast in stone. But, I shall try.
Tan Kin Lian
The representatives of DBS Bank and UOB Bank have since called me to rectify the issues that I have raised. I hope that they will look at the underlying causes, and change some of their existing practices. It should not be fire fighting, but a cultural change in their attitude and approach.
I have come across many cases of bad practices by business corporations and government agencies in Singapore. I shall be writing about these practices. My aim is to get these corporations and agencies to recognize that these practices are bad from the customer's point of view. They should act to make changes to improve their customer service, without increasing their cost of operations.
I know that this will be a long journey to change mindsets and practices that are now cast in stone. But, I shall try.
Tan Kin Lian
Open letter to SM Goh
Wing Lee Cheong sent this open letter to SM Goh about his remarks on the poor quality of life as a farmer. He also sent his photos to show his quality of life in Canada as a retiree, living in nature and at a low living expense.
Read his letter in SGEP.
Read his letter in SGEP.
Wednesday, April 06, 2011
David Marshall - the joy of public service
David Marshall was a former chief minister of Singapore. In this interview, he spoke about the joy and excitement of public service, not necessary to have a high salary.
PAP
I received this suggestion from a reader of my blog
The way to get your voice in is to follow the PAP -- people's ACTION please!
Everyone of you please try to get 10 people you know to pledge that they will vote for opposition in the next GE. And that each of them must also get 10. No duplication please. Once a person has pledged with someone, he/she is not allowed to pledge again.
People -- ACTION -- please!
Dare To Act
The way to get your voice in is to follow the PAP -- people's ACTION please!
Everyone of you please try to get 10 people you know to pledge that they will vote for opposition in the next GE. And that each of them must also get 10. No duplication please. Once a person has pledged with someone, he/she is not allowed to pledge again.
People -- ACTION -- please!
Dare To Act
$150 to process a refund
I wanted to cancel a ticket booked with Singapore Airlines. I was told that the fee to process the refund is $150. I consider this fee to be grossly excessive. There is no need to impose such a high fee, other than the desire to increase the profit (by holding the customer to ransom).
Expensive credit card
Someone asked me why I decided to give advance notice to cancel the UOB Infinite Visa credit card on its expiry, as the bank is likely to waive the annual fee on request of the customer. The answer is - I don't want to rely on the goodwill of the bank. The contract said that the card will be automatically renewed and the annual fee is $1,500. It did not give the legal right to the customer to get a refund if the customer cancel the card after renewal. If they refuse to waive the fee or give a proportionate refund, there is nothing that the customer can do.
This is an example of an unfair contract term, i.e. levy a heavy annual fee on the customer without getting the prior consent. I am aware that other credit cards have similar conditions, but I am prepared to take the risk if the annual fee is less than $100 (but not for $1,500). Anyway, I do not need an expensive credit card, as I do not make use of the privileges.
A representative of UOB Bank called me this evening to apologise for the mistake in cancelling my card and to inform me that the card has now been reinstated. I had raised this issue during the weekend and did not get any reply from the bank for the past three days. It does not matter to me whether the card is reinstated or not - as I do not intend to use it.
I have nothing personal against UOB Bank which has served me well during the past years. I only wish to give this example for business corporations to change their business practice and act fair to their customers. They should not have unfair contract terms and levy heavy charges to boos their profits.
Tan Kin Lian
This is an example of an unfair contract term, i.e. levy a heavy annual fee on the customer without getting the prior consent. I am aware that other credit cards have similar conditions, but I am prepared to take the risk if the annual fee is less than $100 (but not for $1,500). Anyway, I do not need an expensive credit card, as I do not make use of the privileges.
A representative of UOB Bank called me this evening to apologise for the mistake in cancelling my card and to inform me that the card has now been reinstated. I had raised this issue during the weekend and did not get any reply from the bank for the past three days. It does not matter to me whether the card is reinstated or not - as I do not intend to use it.
I have nothing personal against UOB Bank which has served me well during the past years. I only wish to give this example for business corporations to change their business practice and act fair to their customers. They should not have unfair contract terms and levy heavy charges to boos their profits.
Tan Kin Lian
Logic Box
Here is an interesting logic game available on Windows Phone. It will be transferred to Apple, Android and other mobile platforms later. http://www.youtube.com/watch?v=ZIV-_vPiV-Q&feature=related
Rebuttal to points made at Kent Ridge Ministerial Forum
Views sent by a reader of my blog
A number of points made by PM Lee at the recent Kent Ridge Ministerial Forum can easily be rebutted. Below are rebuttals in no particular order:
PM pointed out that The Economist had recently praised S’pore’s system. However, he conveniently forgotten that the same publication has previously criticized S’pore in numerous articles. Several other reputable magazines and newspapers have also criticised S’pore’s system, but they have been routinely slapped with multi-million-dollar defamation lawsuits filed solely in S’pore where the outcomes are certain (of course!!). Therefore, is the PM practising selective reading here?
In justifying the stratopheric pay for cabinet ministers, the PM said that past US presidents usually earn millions from speaking engagements and book publications. I wish to remind the PM that these monies don’t come from taxpayers. They come from willing buyers/payors in a competitive private setting. By contrast, the monstrous ministerial salaries are totally funded by taxpayers money. Furthermore, the oft repeated claims that our ministers are highly talented and thus, highly sought after in the private sector should mean that they can also easily earn the same millions by writing books and from speaking engagements?? No? What about the highly lucrative board positions at numerous GLCs and statutory boards given to our ministers after they step down? What about their special pension that starts paying them $179,000/year from age 55 till death? What about the huge benefits both pecuniary and in-kind our minister’s family members derive from him being in office? One just needs to check out the positions held by spouses and children of our senior civil servants and ministers.
PM claims that only PAP has an “A Team”, but the people have witnessed that their performances have been far from “A” grade. PAP is becoming like the ill-fated Titantic ship whose captain has become complacent and aloft.
In defending the GRC concept, PM said that some of the current ministers would not be in office had they started off contesting in SMCs. The same argument should apply to opposition party candidates. How do the people know whether these candidates are as “lousy” as PM made them out to be if they are not eve given a chance to hold office? All opposition party candidates face a baptism of fire at election. Nowhere else in the world do we have a political party candidate cruising to officer without having to fight an election!!
The NUS forum wasn’t aired on national TV, so the public won’t know what questions the students raised and whether they disagreed with the PM. It would be very very sad for S”pore as a nation if our varsity students are just a bunch of unthinking yes-men.
TY
A number of points made by PM Lee at the recent Kent Ridge Ministerial Forum can easily be rebutted. Below are rebuttals in no particular order:
PM pointed out that The Economist had recently praised S’pore’s system. However, he conveniently forgotten that the same publication has previously criticized S’pore in numerous articles. Several other reputable magazines and newspapers have also criticised S’pore’s system, but they have been routinely slapped with multi-million-dollar defamation lawsuits filed solely in S’pore where the outcomes are certain (of course!!). Therefore, is the PM practising selective reading here?
In justifying the stratopheric pay for cabinet ministers, the PM said that past US presidents usually earn millions from speaking engagements and book publications. I wish to remind the PM that these monies don’t come from taxpayers. They come from willing buyers/payors in a competitive private setting. By contrast, the monstrous ministerial salaries are totally funded by taxpayers money. Furthermore, the oft repeated claims that our ministers are highly talented and thus, highly sought after in the private sector should mean that they can also easily earn the same millions by writing books and from speaking engagements?? No? What about the highly lucrative board positions at numerous GLCs and statutory boards given to our ministers after they step down? What about their special pension that starts paying them $179,000/year from age 55 till death? What about the huge benefits both pecuniary and in-kind our minister’s family members derive from him being in office? One just needs to check out the positions held by spouses and children of our senior civil servants and ministers.
PM claims that only PAP has an “A Team”, but the people have witnessed that their performances have been far from “A” grade. PAP is becoming like the ill-fated Titantic ship whose captain has become complacent and aloft.
In defending the GRC concept, PM said that some of the current ministers would not be in office had they started off contesting in SMCs. The same argument should apply to opposition party candidates. How do the people know whether these candidates are as “lousy” as PM made them out to be if they are not eve given a chance to hold office? All opposition party candidates face a baptism of fire at election. Nowhere else in the world do we have a political party candidate cruising to officer without having to fight an election!!
The NUS forum wasn’t aired on national TV, so the public won’t know what questions the students raised and whether they disagreed with the PM. It would be very very sad for S”pore as a nation if our varsity students are just a bunch of unthinking yes-men.
TY
Bad experience with UOB Bank
I was given a UOB Bank Infinite Visa card in 2006. There was waiver of the annual fee for the initial years. In November 2009, UOB deducted $1,500 in annual fee on the card, without telling me. I did not notice the deduction in the bill and only found out one month later. I called their hotline. They volunteered to refund the $1,500 to me (before I ask about it). I wanted to cancel the card on the next renewal date, but they volunteered to renew it for another year with fee waiver.
This year, I gave written instruction that they are not to renew my card without my approval of the annual fee. UOB replied that they are not able to accede to my request. It is a condition of the credit card that it will be automatically renewed and the annual fee is $1,500. I gave instruction to cancel the card on its expiry at the end of October.
UOB Bank cancelled the card immediately, without telling me. I only knew about it when my payment of an airline ticket was rejected. This give me a bad impression of the service provided by UOB Bank.
Tan Kin Lian
This year, I gave written instruction that they are not to renew my card without my approval of the annual fee. UOB replied that they are not able to accede to my request. It is a condition of the credit card that it will be automatically renewed and the annual fee is $1,500. I gave instruction to cancel the card on its expiry at the end of October.
UOB Bank cancelled the card immediately, without telling me. I only knew about it when my payment of an airline ticket was rejected. This give me a bad impression of the service provided by UOB Bank.
Tan Kin Lian
Service recovery by DBS Bank
I posted a blog about the poor service provided by DBS Bank leading to the cancellation of my GIRO arrangements. My relationship manager contacted me and helped me to restore the GIRO with the billing organisations. It was quite a bit of work on his part (but would have taken much more work for me, if I have to do it on my own). I appreciate his assistance and want to post this blog about their service recovery.
I made my earlier posting not for my personal convenience, but to send a message to business organisations. Do not just think about profits. Please improve the standard of your customer service. Get your employees to spend some time to see how you can help your customers and make life convenient for them. Even if they overlook to top up their account, alert them early, so that it does not cause too much damage.
I also have a message for government agencies. Do not think only about cutting down the time spent by your staff when your cost saving result in additional work and burden for the citizen. Do not save 10 minutes of your staff time by adding 1 hour of additional time on the public. Think about the hassle that your cumbersome process is causing the citizens. Listen to their feedback.
Do not over-focus on security, beyond what is necessary and practical. Apply common sense and sound judgement. Get the right balance, so that your process is more convenient and less cumbersome.
Tan Kin Lian
I made my earlier posting not for my personal convenience, but to send a message to business organisations. Do not just think about profits. Please improve the standard of your customer service. Get your employees to spend some time to see how you can help your customers and make life convenient for them. Even if they overlook to top up their account, alert them early, so that it does not cause too much damage.
I also have a message for government agencies. Do not think only about cutting down the time spent by your staff when your cost saving result in additional work and burden for the citizen. Do not save 10 minutes of your staff time by adding 1 hour of additional time on the public. Think about the hassle that your cumbersome process is causing the citizens. Listen to their feedback.
Do not over-focus on security, beyond what is necessary and practical. Apply common sense and sound judgement. Get the right balance, so that your process is more convenient and less cumbersome.
Tan Kin Lian
Zeitgeist movie and Tommy Wong’s book
Watch the movie “Zeitgeist: Moving Forward” and read Tommy Wong’s book “Wisdom on How to Live Life” on how to build a “better” society.
Tommy Wong’s books can be ordered here.
Funding the US Government
The US Federal Government runs the risk of being shut down, if Congress does not approve the budget within this week. Although a solution will be found, this episode shows the unsatisfactory situation faced by the US government. The government is not collecting sufficient tax to pay for its operations and to provide welfare and public services to its citizens. Some legislators want the government to cut down its spending, especially on the welfare spending and other entitlements, but this will cause hardship to many poor or elderly people.
In the past, the US Government has funded its budget deficit by increased borrowings, i.e. issue of government bonds. But there is a limit to this type of funding. Already, the US Government is the largest debtor in the world. Many people are now wary about continuing to buy these debts.
There has been continuing debate in the Congress on how to balance the budget. Some legislators wish to see more taxes being collected, especially from the rich. Other legislators prefer to cut the government spending. There has been no solution to this dilemma. This debate has been going on for years.
My view is that the Government needs to collect sufficient tax to meet its obligations. The tax has to be collected from people with higher incomes. The idea of reducing income tax is not sustainable.
Financial Savvy Test #16
Take a test of your financial knowledge by answering the questions below. You can find the answer from www.tankinlian.com/information.aspx - type in the keyword to search for the relevant FAQ
1. Is it good to buy CPF Life? Keyword: CPF Life
2. What is social insurance? Keyword: social insurance
1. Is it good to buy CPF Life? Keyword: CPF Life
2. What is social insurance? Keyword: social insurance
New candidates
Someone sent this view to me:
New candidates from the PAP should either stand alone in SMCs or as groups (only newbies) in GRCs.
New candidates from the PAP should either stand alone in SMCs or as groups (only newbies) in GRCs.
Countries with the most debts
Someone sent me this link and asked for my views:
http://www.businessinsider.com/debt-gdp-world-rankings-2011-04#9-singapore-7
It list the 15 countries with the most debt as a percentage of GDP. Singapore is listed as #7. The worst is #1 - Japan. Debt is only one side of the picture. The other side is the assets. The Singapore Government has assets that cover the debts a few times over.
For example, a large part of the debt of $300 billion (100% of GDP) represents the Government bonds issued to the CPF for the savings of Singaporeans. But these bonds are used to build HDB flats that are sold to the owners at many times of the cost price. The assets of the government includes the amounts owing by the HDB flat owners.We also have to add the assets held by Temasek, GIC and other government agencies.
Tan Kin Lian
http://www.businessinsider.com/debt-gdp-world-rankings-2011-04#9-singapore-7
It list the 15 countries with the most debt as a percentage of GDP. Singapore is listed as #7. The worst is #1 - Japan. Debt is only one side of the picture. The other side is the assets. The Singapore Government has assets that cover the debts a few times over.
For example, a large part of the debt of $300 billion (100% of GDP) represents the Government bonds issued to the CPF for the savings of Singaporeans. But these bonds are used to build HDB flats that are sold to the owners at many times of the cost price. The assets of the government includes the amounts owing by the HDB flat owners.We also have to add the assets held by Temasek, GIC and other government agencies.
Tan Kin Lian
Tuesday, April 05, 2011
Unfair transactions
Consumers have to be careful about unfair terms placed in contracts
http://thestar.com.my/columnists/story.asp?file=/2011/4/5/columnists/articlesoflaw/8389000&sec=articlesoflaw
http://thestar.com.my/columnists/story.asp?file=/2011/4/5/columnists/articlesoflaw/8389000&sec=articlesoflaw
Customer service at call center
I call the call center of an airline in Singapore. I was put on hold for more than 15 minutes. I gave up waiting - as I do not know how long more I have to wait.
When I was in Cambodia, I call the hotline of a mobile operator. The automated message said, "You are now the 6th caller on the queue. As this message gets repeated, the number keeps dropping. I was answered within a few minutes. We have to learn from Cambodia about the use of technology and customer service.
When I was in Cambodia, I call the hotline of a mobile operator. The automated message said, "You are now the 6th caller on the queue. As this message gets repeated, the number keeps dropping. I was answered within a few minutes. We have to learn from Cambodia about the use of technology and customer service.
Extremely high salaries and brain drain
In my article on "extremely high earnings", I described the damage caused to working class families by the extremely high fees charged by medical specialists and lawyers. The level of fees are so high as to be unconscionable, and they do not even assure the clients of success.
There are two ways to controlled these high fees - by imposing control over the fees or by levying a high rate of tax on these incomes. I prefer a high rate of tax, as it is easier to handle rather than levying price controls over all types of professional services.
Some people said that there is a risk of brain drain, i.e. the talented people will go to other countries. This is the argument given by proponents of the low tax and the free market. There is a flaw in this argument - as the high tax is intended to be levied on income derived within the country. How is the brain drain going to occur?
There could be a brain drain in respect of medical specialists treating rich foreigners in Singapore, as the experts can practice in other countries. We have to weigh the economic benefits of treating foreign patients in Singapore with the high fees that are being paid by our locals for these medical services. Looking at the high cost of living and services in Singapore, I prefer that to avoid earning the money from foreigners and to keep the cost of health care at an affordable level.
If we can collect more tax on high incomes, we can do away with GST (goods and services tax) entirely, and not just on essential necessities. Besides being a burden on low income people the GST is a wasteful tax, as it imposes a heavy burden and administrative expenses on businesses to collect the tax, and adds to the overall cost.of doing business.
Tan Kin Lian
There are two ways to controlled these high fees - by imposing control over the fees or by levying a high rate of tax on these incomes. I prefer a high rate of tax, as it is easier to handle rather than levying price controls over all types of professional services.
Some people said that there is a risk of brain drain, i.e. the talented people will go to other countries. This is the argument given by proponents of the low tax and the free market. There is a flaw in this argument - as the high tax is intended to be levied on income derived within the country. How is the brain drain going to occur?
There could be a brain drain in respect of medical specialists treating rich foreigners in Singapore, as the experts can practice in other countries. We have to weigh the economic benefits of treating foreign patients in Singapore with the high fees that are being paid by our locals for these medical services. Looking at the high cost of living and services in Singapore, I prefer that to avoid earning the money from foreigners and to keep the cost of health care at an affordable level.
If we can collect more tax on high incomes, we can do away with GST (goods and services tax) entirely, and not just on essential necessities. Besides being a burden on low income people the GST is a wasteful tax, as it imposes a heavy burden and administrative expenses on businesses to collect the tax, and adds to the overall cost.of doing business.
Tan Kin Lian
Financial Savvy Test #15
Take a test of your financial knowledge by answering the questions below. You can find the answer from www.tankinlian.com/information.aspx - type in the keyword to search for the relevant FAQ
1. How can I watch the videos of Suzy Orman on life insurance? Keyword: Suzy
2. What is the indisputability clause in life insurance? Keyword: indisputability
1. How can I watch the videos of Suzy Orman on life insurance? Keyword: Suzy
2. What is the indisputability clause in life insurance? Keyword: indisputability
Street Wise
I wanted to use the word "street wise" to describe a person who is alert and knows what is happening around him. I searched Google images, and found many images that shows "street wise" to reflect a person who is alert and able to avoid crimes around bad neighborhood. It seems that "street wise" means to know which streets are safe and which are dangerous.
Apply for Visa to Australia
I am visiting Australia and was told that I had to apply for a visa.
I searched online for "Apply Visa to Australia" and found a link to a website. I was surprised that it was so easy to apply online for this visa. This website was easy to use - unlike many websites of large government agencies and corporations.
I decided to search for "Apply Visa to Singapore" and found a link to this website. It was complicated to use - reflecting the convoluted process that is quite common in Singapore. I am reviewing it from the perspective of a foreigner wishing to check if a visa is needed to visit Singapore.
We need to adopt a simple approach and handle the complexity internally, instead of pushing the complexity to the public.
Tan Kin Lian
I searched online for "Apply Visa to Australia" and found a link to a website. I was surprised that it was so easy to apply online for this visa. This website was easy to use - unlike many websites of large government agencies and corporations.
I decided to search for "Apply Visa to Singapore" and found a link to this website. It was complicated to use - reflecting the convoluted process that is quite common in Singapore. I am reviewing it from the perspective of a foreigner wishing to check if a visa is needed to visit Singapore.
We need to adopt a simple approach and handle the complexity internally, instead of pushing the complexity to the public.
Tan Kin Lian
Post office and financial product
The post office is not the right place to sell a complex financial product.
Read here.
Read here.
Monday, April 04, 2011
Financial Planning Test
Do this test on your understanding of Financial Planning. Go to Ask Mr. Tan or click here.
Do you find this test useful? Give your comment here.
Do you find this test useful? Give your comment here.
Register for a job
Hi
I am unfortunate to be retrenched due to a failed business. I am at a loss on where to seek help, apart from applying to be a taxi driver. Can you tell me where I can go to to register and put my name in for some employment opportunities.
REPLY
Try here: www.easyapps.sg/ads
I am unfortunate to be retrenched due to a failed business. I am at a loss on where to seek help, apart from applying to be a taxi driver. Can you tell me where I can go to to register and put my name in for some employment opportunities.
REPLY
Try here: www.easyapps.sg/ads
It is a website created by me. At this stage, there is no much traffic, but it cost you nothing to be listed here. A prospective employer may search for you based on proximity to the workplace.
New iShop - orders received
The new iShop received 5 orders yesterday - which was quite good. Most of the orders are for the financial planning book (which is quite popular) and the life insurance book. This is a 25% discount on these books, i.e. $9 instead of $12.
I am waiting for payment to come in - before the books can be delivered. To order, go to www.tankinlian.com/ishop.
http://easyapps.sg/iShop2/Quantity.aspx?id=4
I am waiting for payment to come in - before the books can be delivered. To order, go to www.tankinlian.com/ishop.
http://easyapps.sg/iShop2/Quantity.aspx?id=4
Extremely high earnings
Financial Savvy Test #14
Take a test of your financial knowledge by answering the questions below. You can find the answer from www.tankinlian.com/information.aspx - type in the keyword to search for the relevant FAQ
1. How can I use Excel to calculate the yield? Keyword: Excel formulas
2. What are some examples of blatant cheating by insurance agents? Keyword: blatant cheating
1. How can I use Excel to calculate the yield? Keyword: Excel formulas
2. What are some examples of blatant cheating by insurance agents? Keyword: blatant cheating
Create agency to help retirees find jobs
Tan Teck Kim wrote to the St Times Forum to ask the government to create an agency to help retirees find jobs. I suggest that retirees should register with Easy Ads and post their resume. The prospective employer is likely to search for an available candidate who lives near the workplace (to reduce the time and cost of travel).This feature is available in Easy Ads. There is a special category called "Looking for Jobs".
http://easyapps.sg/ads/
http://easyapps.sg/ads/
Why I can't be a good MP
Note: My friend (called DareToSay) sent this e-mail to me, explaining why he can't be a good MP and expressing doubt about new candidates who are confident that they can be a good MP and to hold a full time job at the same time.
Why I can't be a good MP:
1. My social circle is too homogenous - middle high income only
2. While I grew up in humble home (both dad and mom had little education and were blue collar laborers), I cannot remember the last time I have problem putting food on table
3. I have to admit I do not have what some living (and dead) Saints have, which is the ability to emphathise without themselves experience something
4. My focus is on my wife and kids (emotion part) and making sure we have enough to see kids thru University (the financial part). Being not good at multi-tasking (or I call it anyhow do everything), I don't think I can manage the important job as an MP and still do my day job properly.
To conclude, I do not think I know enough how our poorer people is suffering to be useful to assist them and that I do not think I have enough capacity to do a good job as an MP and at the same time take care of my family's emotional and financial needs. I wonder how our MPs do it. I wonder further why the new candidates are so confident they can do it.
DareToSay
Why I can't be a good MP:
1. My social circle is too homogenous - middle high income only
2. While I grew up in humble home (both dad and mom had little education and were blue collar laborers), I cannot remember the last time I have problem putting food on table
3. I have to admit I do not have what some living (and dead) Saints have, which is the ability to emphathise without themselves experience something
4. My focus is on my wife and kids (emotion part) and making sure we have enough to see kids thru University (the financial part). Being not good at multi-tasking (or I call it anyhow do everything), I don't think I can manage the important job as an MP and still do my day job properly.
To conclude, I do not think I know enough how our poorer people is suffering to be useful to assist them and that I do not think I have enough capacity to do a good job as an MP and at the same time take care of my family's emotional and financial needs. I wonder how our MPs do it. I wonder further why the new candidates are so confident they can do it.
DareToSay
Limit of $800 on Shield insurance
Hi Mr Tan
Recently my father (who is now 78 year old) received a letter from income to pay a sum of $400 plus in cash due to medisave can deduct up to maximum of $800 only. That meant the premium of this policy is $1200 plus per year for Medishield Plan B.
Usually I will help to pay for my father, but from the past years only need to pay $200 plus but this time might be due to age group different need to pay higher( $400 plus ).
Why does Medisave set a limit of $800, as senior citizens sure have problem paying in cash. How Do you think about this kind of policy?
REPLY
Your father can move to Medishield and pay a lower premium (compared to private Shield) up to age 80.
Beyond age 80, there is no point in going for expensive health care, as it is not likely to do much for an elderly patient - as it can be very costly, whether as insurance or paid out of Medisave.
Elderly patients (and their family members) should decide on what can or cannot be done, rather than spend the money unnecessarily in medical fees. Insurance may encourage people to spend unnecessarily. There is no point in treating certain illness at an advanced age.
Recently my father (who is now 78 year old) received a letter from income to pay a sum of $400 plus in cash due to medisave can deduct up to maximum of $800 only. That meant the premium of this policy is $1200 plus per year for Medishield Plan B.
Usually I will help to pay for my father, but from the past years only need to pay $200 plus but this time might be due to age group different need to pay higher( $400 plus ).
Why does Medisave set a limit of $800, as senior citizens sure have problem paying in cash. How Do you think about this kind of policy?
REPLY
Your father can move to Medishield and pay a lower premium (compared to private Shield) up to age 80.
Beyond age 80, there is no point in going for expensive health care, as it is not likely to do much for an elderly patient - as it can be very costly, whether as insurance or paid out of Medisave.
Elderly patients (and their family members) should decide on what can or cannot be done, rather than spend the money unnecessarily in medical fees. Insurance may encourage people to spend unnecessarily. There is no point in treating certain illness at an advanced age.
Sunday, April 03, 2011
Loss of identity for Sg
Dear Mr Tan,
A friend from Sg just visited my wife in HK and below is a brief summary of her experience in Sg for the past few years:
1. Felt like a minority in a university where she is teaching. Majority of her students are foreigners.
2. A junior colleage are recruiting up to 33% students outside of Sg, mainly from vietnam in an aim to boost the college results.
It saddens me that schools funded by public are no longer meant for citizens but to create opportunities for others. I have nothing against foreigner (I myself came from HK) but my existence do not create an opportunity cost for the citizens of HK, however Sgreans who could have gotten a proper education in Sg may now be deprived of a place.
Sg is a country with such a short history and i have concerns that true blue Sgreans may soon be history. I felt like I have served my NS in vain and I know of others who feel the same and unfortunately they do not have options elsewhere.
A friend from Sg just visited my wife in HK and below is a brief summary of her experience in Sg for the past few years:
1. Felt like a minority in a university where she is teaching. Majority of her students are foreigners.
2. A junior colleage are recruiting up to 33% students outside of Sg, mainly from vietnam in an aim to boost the college results.
It saddens me that schools funded by public are no longer meant for citizens but to create opportunities for others. I have nothing against foreigner (I myself came from HK) but my existence do not create an opportunity cost for the citizens of HK, however Sgreans who could have gotten a proper education in Sg may now be deprived of a place.
Sg is a country with such a short history and i have concerns that true blue Sgreans may soon be history. I felt like I have served my NS in vain and I know of others who feel the same and unfortunately they do not have options elsewhere.
Worker's Party
hi mr tan please join workers party in the coming general election 2011. This will be the last chance for all native singaporeans to vote before we all singaporeans become minority. Presently only 57% of our population are true singaporeans by then in the next generation 2016 the margin would be below 50%. For the sake of the development of singapore opposition politics progress please consider to join opposition. i hope you will consider. thankyou so much
You true supporter
MY REPLY
You can vote for the opposition, even if I do not stand for election. But it is quite sad that many people now consider the PAP to be bad for local Singaporeans.
You true supporter
MY REPLY
You can vote for the opposition, even if I do not stand for election. But it is quite sad that many people now consider the PAP to be bad for local Singaporeans.
HDB Flat - Price and quality
Here are three views about the price of HDB flats. Which view do you support? Give your views in this survey.
Poor service from DBS Bank
I have been a customer of DBS Bank for 30 over years. They even classified me as a Treasures customer and assigned a Relationship Manager to look after me. The RM seemed to be more interested to sell their financial products to me, such as the famous High Notes - which I avoided. After that, I never heard from the RM - who do not reply to my e-mail.
I have all along arranged for my GIRO transactions to be deducted through my POSB account. When the money runs down, I top up the account from my main account. Recently, due to an oversight, I forgot to top up my POSB account - and the money run out. Nobody from DBS called me - not the RM nor anybody else. They also did not send an e-mail to me.
When I realised the problem, several of my GIRO transactions had been rejected. Even IRAS cancelled my GIRO and asked me to pay property tax in advance, threatening to levy a fine for late payment of tax.
But I do receive phone calls from all types of people wanting to market their products to me. This is the practice in Singapore - businesses are interested only to market their products, but failed to provide customer service.
When will Singapore leaders wake up to this sad state of affairs - a country where most people are greedy to chase profits, higher salaries and commission!. They forget their responsibility to their customers or to the citizens! Sigh!
I have all along arranged for my GIRO transactions to be deducted through my POSB account. When the money runs down, I top up the account from my main account. Recently, due to an oversight, I forgot to top up my POSB account - and the money run out. Nobody from DBS called me - not the RM nor anybody else. They also did not send an e-mail to me.
When I realised the problem, several of my GIRO transactions had been rejected. Even IRAS cancelled my GIRO and asked me to pay property tax in advance, threatening to levy a fine for late payment of tax.
But I do receive phone calls from all types of people wanting to market their products to me. This is the practice in Singapore - businesses are interested only to market their products, but failed to provide customer service.
When will Singapore leaders wake up to this sad state of affairs - a country where most people are greedy to chase profits, higher salaries and commission!. They forget their responsibility to their customers or to the citizens! Sigh!
New ishop is easier to order books
Hi Mr.Tan
I visited you new ishop and find it easy to use, much better than the old ishop (which was quite confusing and buggy - pardon my saying so). I like the attractive discount that you are giving on your books, including the new books that are now selling at the book stores.
However, I like to make an observation. The handling charge has now been increased to $3 (compared to $1 in the past - if I remember correctly). So, the discount of $3 on your new book is offset by the high handling charge).
REPLY
You pay one handling charge for each order, regardless of the number of books that you buy. So, you will enjoy a bigger discount when you buy a few books in one order. You should consider buying books on behalf of your friends - to enjoy the discount.
The handling charge is inclusive of postage. If you have bought books from Amazon or other online book stores in America, you will find the handling charge to be $20 or more - so the handling charge of $3 is still quite small. Even if you drive to the bookstores, the parking fee will be more than $3.
It is better to buy online. It is more convenient and cheaper.
www.tankinlian.com/ishop
http://easyapps.sg/ishop2/Quantity.aspx?id=4
I visited you new ishop and find it easy to use, much better than the old ishop (which was quite confusing and buggy - pardon my saying so). I like the attractive discount that you are giving on your books, including the new books that are now selling at the book stores.
However, I like to make an observation. The handling charge has now been increased to $3 (compared to $1 in the past - if I remember correctly). So, the discount of $3 on your new book is offset by the high handling charge).
REPLY
You pay one handling charge for each order, regardless of the number of books that you buy. So, you will enjoy a bigger discount when you buy a few books in one order. You should consider buying books on behalf of your friends - to enjoy the discount.
The handling charge is inclusive of postage. If you have bought books from Amazon or other online book stores in America, you will find the handling charge to be $20 or more - so the handling charge of $3 is still quite small. Even if you drive to the bookstores, the parking fee will be more than $3.
It is better to buy online. It is more convenient and cheaper.
www.tankinlian.com/ishop
http://easyapps.sg/ishop2/Quantity.aspx?id=4
How old is grandpa?
The world has changed a lot during a short time. You may be surprised to find out how much has changed!
Read TKL website or click here.
Quote
Our lives were governed by the Ten Commandments, good judgment, and common sense.
We were taught to know the difference between right and wrong and to stand up and take responsibility for our actions.
Serving your country was a privilege; living in this country was a bigger privilege.
Having a meaningful relationship meant getting along with your cousins.
Time-sharing meant time the family spent together in the evenings and weekends-not purchasing condominiums.
Unquote
Read TKL website or click here.
Quote
Our lives were governed by the Ten Commandments, good judgment, and common sense.
We were taught to know the difference between right and wrong and to stand up and take responsibility for our actions.
Serving your country was a privilege; living in this country was a bigger privilege.
Having a meaningful relationship meant getting along with your cousins.
Time-sharing meant time the family spent together in the evenings and weekends-not purchasing condominiums.
Unquote
Financial Savvy Test #13
Take a test of your financial knowledge by answering the questions below. You can find the answer from www.tankinlian.com/information.aspx - type in the keyword to search for the relevant FAQ
1. How can I learn about insurance without going through an agent? Keyword: educated about insurance
2. How can a young person approach financial planning? Keyword: for the young
1. How can I learn about insurance without going through an agent? Keyword: educated about insurance
2. How can a young person approach financial planning? Keyword: for the young
Financial planning and life insurance books
These book are now available at an attractive discount through iShop. Click here:
http://easyapps.sg/ishop2/Quantity.aspx?id=4
http://easyapps.sg/ishop2/Quantity.aspx?id=4
Tongue in cheek posting
Dear Mr. Tan
Singaporeans have a poor sense of humor. SM Goh Chok Tong posted a frivolous comment about Tin Pei Ling in his Marine Parade post book.
But, many people thought that he was serious. I can excuse the ordinary Singaporeans from lacking sense of humor and attribute it to our serious but flawed education system. But, for the journalists of the SPH to fall into this trap and ask for his comments - this reflects the poor quality of our journalists! Why can't SPH recruit journalists who are more streetwise, rather than be so naive? Ha ha!
Singaporeans have a poor sense of humor. SM Goh Chok Tong posted a frivolous comment about Tin Pei Ling in his Marine Parade post book.
But, many people thought that he was serious. I can excuse the ordinary Singaporeans from lacking sense of humor and attribute it to our serious but flawed education system. But, for the journalists of the SPH to fall into this trap and ask for his comments - this reflects the poor quality of our journalists! Why can't SPH recruit journalists who are more streetwise, rather than be so naive? Ha ha!
Saturday, April 02, 2011
Relaunch of iShop
iShop is now relaunch. It can be accessed at www.tankinlian.com/ishop.
The books are offered at an attractive discount (up to 50%), compared to the normal price in the book stores. You can enjoy a reduction of up to $3 for the financial planing and life insurance books. You do not have to pay GST as it is included in the price. The handling charge (which also covers postage) is $3 - so it is better for you to buy several books in one order (including buying for your friend).
The order process has been simplified. You indicate the copies of the books that you want and provide your mailing address. An e-mail will be sent to you indicate how you can pay (internet banking, Pay Pal or cheque). The books will be mailed after payment is received.
Direct link to Order Page
Tan Kin Lian
The books are offered at an attractive discount (up to 50%), compared to the normal price in the book stores. You can enjoy a reduction of up to $3 for the financial planing and life insurance books. You do not have to pay GST as it is included in the price. The handling charge (which also covers postage) is $3 - so it is better for you to buy several books in one order (including buying for your friend).
The order process has been simplified. You indicate the copies of the books that you want and provide your mailing address. An e-mail will be sent to you indicate how you can pay (internet banking, Pay Pal or cheque). The books will be mailed after payment is received.
Direct link to Order Page
Tan Kin Lian
General election and toxic products
Financial Savvy Test #12
Take a test of your financial knowledge by answering the questions below. You can find the answer from www.tankinlian.com/information.aspx - type in the keyword to search for the relevant FAQ
1. Should a retiree continue the life policy? Keyword: retirement
2. Should I unsure the co-payment on my Shield plan? Keyword: co-payment
1. Should a retiree continue the life policy? Keyword: retirement
2. Should I unsure the co-payment on my Shield plan? Keyword: co-payment
Friday, April 01, 2011
PDF Form
Do you know how to get an web application to send data to a PDF form and writing out the PDF? Please send an email to kinlian@gmail.com.
Fly over Europe
Beautiful pictures from the air. Contributed by Mike Hansford. See TKL website or click here.
Cheng San GRC to be contested!
http://theonlinecitizen.com/2011/04/breaking-news-toc-to-contest-cheng-san-grc/
Remember, its 1 April 2011.
Remember, its 1 April 2011.
Planning for the future
The writer talks about the bad advice given by financial planners to consumers:
http://thestar.com.my/news/story.asp?file=/2011/4/1/columnists/nottoday/8372262&sec=nottoday
http://thestar.com.my/news/story.asp?file=/2011/4/1/columnists/nottoday/8372262&sec=nottoday
Hassle to own a car
It is a hassle to won a car in Singapore - due to the regulations on vehicle inspection, insurance and payment of road tax. I found a way to minimise the hassle. Read TKL website or click here.
Handbook on Flexi Life
You can download the handbook here. This policy is planned to be available in 2012.
Financial Savvy Test #11
Take a test of your financial knowledge by answering the questions below. You can find the answer from www.tankinlian.com/information.aspx - type in the keyword to search for the relevant FAQ
1. How can I survive the bursting of the bubble? Keyword: bursting of bubble
2. What are the risk of my Shield claim being rejected? Keyword: Shield claim
1. How can I survive the bursting of the bubble? Keyword: bursting of bubble
2. What are the risk of my Shield claim being rejected? Keyword: Shield claim
Thursday, March 31, 2011
Flexi Life policy may be available in 2012
Hi,
Thank you for your Handbook on Financial Planning. I am interested in the Flexi-Life policy mentioned in the handbook. Where can I get it? A Yahoo search have some companies selling product by this name too. Could you give some advice where I can buy this policy?
REPLY
You have to wait for a year for this policy to be introduced. The existing policies in the market (including those that have the same or similar names) have high upfront charge and are not suitable for consumers.
In the meantime, you can follow the suggestions in this FAQ.
Thank you for your Handbook on Financial Planning. I am interested in the Flexi-Life policy mentioned in the handbook. Where can I get it? A Yahoo search have some companies selling product by this name too. Could you give some advice where I can buy this policy?
REPLY
You have to wait for a year for this policy to be introduced. The existing policies in the market (including those that have the same or similar names) have high upfront charge and are not suitable for consumers.
In the meantime, you can follow the suggestions in this FAQ.
Hawker Stall Rentals
Large employment of foreign workers
Handbook on Financial Planning
Here is a draft of this handbook on Financial Planning. It will be provided free. You can download and read it. Give your comments here.
Financial Savvy Test #10
Take a test of your financial knowledge by answering the questions below. You can find the answer from www.tankinlian.com/information.aspx - type in the keyword to search for the relevant FAQ
1. How do I make a financial plan on my own? Keyword: financial plan
2. How do I calculate the yield on my life insurance policy? Keyword: yield of life insurance
Wednesday, March 30, 2011
Japan Earthquake
This website allows you to move the slider and see the affected areas in Japan before and after the tsunami. It is really impressive.
http://www.nytimes.com/interactive/2011/03/13/world/asia/satellite-photos-japan-before-and-after-tsunami.html
http://www.nytimes.com/interactive/2011/03/13/world/asia/satellite-photos-japan-before-and-after-tsunami.html
Financial Savvy Test #9
Take a test of your financial knowledge by answering the questions below. You can find the answer from www.tankinlian.com/information.aspx - type in the keyword to search for the relevant FAQ
1. How do I calculate the reduction in yield for a life insurance policy? Keyword: reduction in yield
2. Is it good to invest in the DBS preference share? Keyword: DBS preference
1. How do I calculate the reduction in yield for a life insurance policy? Keyword: reduction in yield
2. Is it good to invest in the DBS preference share? Keyword: DBS preference
Tuesday, March 29, 2011
Rebuilding a home
Dear Mr Tan,
I am considering taking up a 40 year term loan of 500000K from a bank for rebuilding my house at interest of about 1.5% p.a. Do you have suggestions on where I can invest this 500000k so as to offset the interest charged by the bank while waiting for the completion of my home in 1 year? I will need something relatively safe and hopefully allows me to make partial withdrawals as needed to pay the contractor . I stay in a single storey terrace house. Do you think it is a good time to rebuild my home?
REPLY
Please see the FAQs
http://tankinlian.com/admin/file.aspx?id=451
You can contact one of the following persons:
http://tankinlian.com/admin/file.aspx?id=435
I am considering taking up a 40 year term loan of 500000K from a bank for rebuilding my house at interest of about 1.5% p.a. Do you have suggestions on where I can invest this 500000k so as to offset the interest charged by the bank while waiting for the completion of my home in 1 year? I will need something relatively safe and hopefully allows me to make partial withdrawals as needed to pay the contractor . I stay in a single storey terrace house. Do you think it is a good time to rebuild my home?
REPLY
Please see the FAQs
http://tankinlian.com/admin/file.aspx?id=451
You can contact one of the following persons:
http://tankinlian.com/admin/file.aspx?id=435
Advice on insurance needs
Dear Mr Tan
I am a home maker with 2 teenage sons. The younger son recently bought a NS insurance plan of 150k but my elder son has no insurance plans at all. My husband has a public office group insurance scheme of 200K. We have no other insurance policies. I seek your advice on whether it is good to buy a vivolife plan for my 2 sons.
REPLY
Please read these FAQs:
http://tankinlian.com/admin/file.aspx?id=398
http://tankinlian.com/admin/file.aspx?id=444
http://tankinlian.com/admin/file.aspx?id=435
I am a home maker with 2 teenage sons. The younger son recently bought a NS insurance plan of 150k but my elder son has no insurance plans at all. My husband has a public office group insurance scheme of 200K. We have no other insurance policies. I seek your advice on whether it is good to buy a vivolife plan for my 2 sons.
REPLY
Please read these FAQs:
http://tankinlian.com/admin/file.aspx?id=398
http://tankinlian.com/admin/file.aspx?id=444
http://tankinlian.com/admin/file.aspx?id=435
Financial Savvy Test #8
Take a test of your financial knowledge by answering the questions below. You can find the answer from www.tankinlian.com/information.aspx - type in the keyword to search for the relevant FAQ
1. How much of your monthly income should go for payment of your mortgage? Keyword: property price
2. Is a single premium endowment suitable for a risk averse investor? Keyword: single premium
Monday, March 28, 2011
How about 'Richer, Kinder, Slower'?
Stephanie Chok wrote this article about elderly people having to work long hours for a low pay.
HK investors reject settlement offer
Hong Kong Lehman investors reject settlement offer - Yahoo! News
http://news.yahoo.com/s/afp/
http://news.yahoo.com/s/afp/
PM Lee - Think of the future
A worried citizen reply to PM Lee about his call to think of the future, in voting at the next general election.
Read here.
Read here.
FISCA - Guide to new website
Here is the guide on how to use the new website. Some of the information can be found in the webpages that can be seen by the public. Members can login and view the webpages that are reserved for members only - especially the evaluation of financial products.
FISCA and financial literacy talks
Here is a message sent by a FISCA member to his friends. I like to ask you to send this message to our friends also, and encourage them to join FISCA and attend the educational talks.
Dear
On the 26 March, I just attend a talk by Mr. Tan Kin Lian (a qualified actuary and was the CEO of a large life & general insurance company) entitled "Insuring Your Financial Security (Consumer Guide to Insurance) "
Mr. Tan is a sincere and knowledgeable gentleman who is well versed in insurance products and also overall financial planning due to his previous work. I have benefited so much from his talk and reading his books. His workshops (and books) are developed such that it is easily understood by the lay-person,
I have both his books
(1) Practical guide on financial planning
(2) Get Value from your life insurance
Please also consider joining http://www.fisca.sg/ as a member for $36 per annum. FISCA is a non-profit org. and its objective is to improve financial literacy among Singaporeans. (unlike many "free" seminar where one is expected to buy a stock trading software at the end of the talk) As a FISCA member, one get to attend useful talks at a discounted rate of $20 compared to non-members $30.
This is taken from FISCA website:
"FiSCA is committed to being an unbiased, up-to-date financial site with quality articles and advice to help improve financial literacy among Singapore consumers. Being a non-profit driven organization, FiSCA does not solicit sponsorship from commercial companies such as banks, nor do we get revenue through online advertising. We aim to be considered an objective and knowledgeable third party in financial-related issues, in order to provide quality, un-biased information on financial education to the general public. "
Dear
On the 26 March, I just attend a talk by Mr. Tan Kin Lian (a qualified actuary and was the CEO of a large life & general insurance company) entitled "Insuring Your Financial Security (Consumer Guide to Insurance) "
Mr. Tan is a sincere and knowledgeable gentleman who is well versed in insurance products and also overall financial planning due to his previous work. I have benefited so much from his talk and reading his books. His workshops (and books) are developed such that it is easily understood by the lay-person,
I have both his books
(1) Practical guide on financial planning
(2) Get Value from your life insurance
Please also consider joining http://www.fisca.sg/ as a member for $36 per annum. FISCA is a non-profit org. and its objective is to improve financial literacy among Singaporeans. (unlike many "free" seminar where one is expected to buy a stock trading software at the end of the talk) As a FISCA member, one get to attend useful talks at a discounted rate of $20 compared to non-members $30.
This is taken from FISCA website:
"FiSCA is committed to being an unbiased, up-to-date financial site with quality articles and advice to help improve financial literacy among Singapore consumers. Being a non-profit driven organization, FiSCA does not solicit sponsorship from commercial companies such as banks, nor do we get revenue through online advertising. We aim to be considered an objective and knowledgeable third party in financial-related issues, in order to provide quality, un-biased information on financial education to the general public. "
Sunday, March 27, 2011
Hong Kong banks buy back Lehman Minibonds
Investors are likely to get back up to 96.5% of the initial investments. This settlement is much more generous than the payout to investors by Singapore banks.
HK banks unveil final resolution on Lehman minibonds
Hong Kong's Association of Banks announced Sunday
the 16 Hong Kong distributing banks of the so-called "minibonds" issued by Lehman Brothers
agreed on a final resolution to buy back the products.
HK banks agree on resolution for Lehman minibonds
Sixteen Hong Kong banks have agreed on a deal
to enable investors in structured products of the now bankrupt Lehman Brothers
recover a majority of their investments.
Damage to Singapore's reputation
A foreign professional came to work in Singapore She worked hard and saved a large part of her salary to be used by her husband in building his business later on. In the meantime, she wanted to invest the savings.
An independent financial adviser sold her an investment-linked policy designed for high net worth individuals. The adviser deliberately removed certain information about the charges in this policy and lied to her about the charges. After saving for 18 months, the policy started to take away a high monthly charge. She learned for the first time about this high charge, which would be taken away from her savings for the rest of the future years. If she terminate the saving plan now, she would lose more than 70% of the savings. It was quite heart-breaking.
She told me, "Mr. Tan, when I first came to Singapore, I was impressed with the Singapore system - honest government, a good standard of living. I never thought that I could be cheated by a respectable insurance company and by the financial adviser. After this experience, I have now changed my views about Singapore".
Tan Kin Lian
An independent financial adviser sold her an investment-linked policy designed for high net worth individuals. The adviser deliberately removed certain information about the charges in this policy and lied to her about the charges. After saving for 18 months, the policy started to take away a high monthly charge. She learned for the first time about this high charge, which would be taken away from her savings for the rest of the future years. If she terminate the saving plan now, she would lose more than 70% of the savings. It was quite heart-breaking.
She told me, "Mr. Tan, when I first came to Singapore, I was impressed with the Singapore system - honest government, a good standard of living. I never thought that I could be cheated by a respectable insurance company and by the financial adviser. After this experience, I have now changed my views about Singapore".
Tan Kin Lian
The honest way for marketing
It is better to use the educational approach to market a product. You can explain the pros and cons of the product and let the customer judge the product. If you are marketing a good product at a fair price, the customer is likely to buy the product. There is no need pay a high sales commission to market the product.
Many businesses have inferior products that can only be sold by high pressure sales techniques. The product is already inferior and higher priced than comparable products. The sales commission adds to the cost. This makes the product so bad that any sensible customer will avoid it. The product is then sold using misleading statements and outright lies.
In some countries, the authority will take action on deceptive practices. But in other countries, there is no action taken against deceptive practices. The marketing people become bolder and goes out to tell more blatant lies to market their product.
If you are in an environment of low protection of consumer rights, you have to avoid all types of marketing people who use high pressure techniques to sell their products. Just tell them, "I am not interested" and put down the phone (if it is a phone call) or walk away (if you meet someone at a mall). If they are honest, they can give you an educational material to allow you time to make your judgement.
Tan Kin Lian
Many businesses have inferior products that can only be sold by high pressure sales techniques. The product is already inferior and higher priced than comparable products. The sales commission adds to the cost. This makes the product so bad that any sensible customer will avoid it. The product is then sold using misleading statements and outright lies.
In some countries, the authority will take action on deceptive practices. But in other countries, there is no action taken against deceptive practices. The marketing people become bolder and goes out to tell more blatant lies to market their product.
If you are in an environment of low protection of consumer rights, you have to avoid all types of marketing people who use high pressure techniques to sell their products. Just tell them, "I am not interested" and put down the phone (if it is a phone call) or walk away (if you meet someone at a mall). If they are honest, they can give you an educational material to allow you time to make your judgement.
Tan Kin Lian
Property prices and affordability
Here is a gauge on the amount that you should pay for a property and to find out if the current property price is too high or acceptable. See Ask Mr. Tan or click here.
A presentation on cholesterol
This is a good presentation about cholesterol for the layman
http://cholesterol.emedtv.com/FISCA New website
The new website for FISCA is now launched. Here are the articles available under the Information tab for the public. Members of FISCA can see additional information, reserved for members, after Login. They include evaluation of financial products. The website will be updated weekly with new materials.
Stuck with a wine investment
This investor shares a story of how he was badly advised to invest in wine. If you know of any other investors in a similar situation, you can ask the investor to register at this website to get into contact with other investors and decide on collective action to recover their loss. Click here for the article.
Saturday, March 26, 2011
Financial Savvy Test #7
Take a test of your financial knowledge by answering the questions below. You can find the answer from www.tankinlian.com/information.aspx - type in the keyword to search for the relevant FAQ
1. How can you turn risk to your advantage? Keyword: advantage
2. How to avoid being cheated by an insurance agent? Keyword: cheat
Take risk and get a better yield
It is better to take risk and invest in an investment fund, rather than to take the guaranteed, low yield of a single premium endowment. See Ask Mr. Tan or click here.
Homeowner's insurance
This article explains the 10 things that are not covered by home insurance in the USA. The practice in other countries may be different. It is good for consumers to explore if they are covered in their policies in Singapore.
Friday, March 25, 2011
Financial Savvy Test #6
Take a test of your financial knowledge by answering the questions below. You can find the answer from www.tankinlian.com/information.aspx - type in the keyword to search for the relevant FAQ
1. Should a family spend $100,000 to treat an elderly parent for cancer? Keyword: elderly
2. Should you sign a consent form before being treated by a specialist? Keyword: consent
Thursday, March 24, 2011
Financial Savvy Test #5
Take a test of your financial knowledge by answering the questions below. You can find the answer from www.tankinlian.com/information.aspx - type in the keyword to search for the relevant FAQ
1. Does Vivolife provide a good yield? Keyword: Vivolife
2. How can a disabled person buy insurance? Keyword: disabled
Sugar coating
Dear Mr Tan
I had contributed this new posting in my Blog about the new PAP election candidates to the SGEP.
Sugar Coating of New PAP Candidates Part I - What questions would you like to ask them most?
Link :- http://de-leviathan.blogspot.com/2011/03/sugar-coating-of-new-pap-candidates.html
I hope readers will also send in their own questions for these new candidates?
Link to SGEP : http://www.easyapps.sg/SGEP/
I had contributed this new posting in my Blog about the new PAP election candidates to the SGEP.
Sugar Coating of New PAP Candidates Part I - What questions would you like to ask them most?
Link :- http://de-leviathan.blogspot.com/2011/03/sugar-coating-of-new-pap-candidates.html
I hope readers will also send in their own questions for these new candidates?
Link to SGEP : http://www.easyapps.sg/SGEP/
Another land banking project
Hi Mr Tan,
Can I have your advise regarding the land banking company - X. Should I trust this company to invest land in US - Texas? When I visit their website, it shows nothing, just simple background information. The investor consultant, talking about the advantage, made it look attractive. I I have paid 10% deposit for the investment, now I worry about being cheated. Can you give me some advise about this company?
REPLY
Go to my website, www.tankinlian.com and type "land banking". You can see my views there. You can also click here
You should consider taking legal action against the consultant for giving incomplete or misleading information about the company.
Can I have your advise regarding the land banking company - X. Should I trust this company to invest land in US - Texas? When I visit their website, it shows nothing, just simple background information. The investor consultant, talking about the advantage, made it look attractive. I I have paid 10% deposit for the investment, now I worry about being cheated. Can you give me some advise about this company?
REPLY
Go to my website, www.tankinlian.com and type "land banking". You can see my views there. You can also click here
You should consider taking legal action against the consultant for giving incomplete or misleading information about the company.
A Tale of Two Seas
The Sea of Galilee and the Dead Sea receive their water from the Jordan River. But they are quite different in their hosting of marine life. A lesson in life. See TKL Website or click here.
Take risk to your advantage
Someone commented that the stock market is risky and that a single premium endowment can give an attractive yield for the risk averse investor.
Here are some facts to consider:
Here are some facts to consider:
- The guaranteed yield for a single premium endowment is around 2% for 10 years or longer. The non-guaranteed yield may be higher, but is still less than 4% per annum.
- The yield on a low cost investment fund, such as the STI ETF, is likely to be around 5% over the long term. By accepting a higher risk, you can get a higher return.
- If the market is weak and your actual yield is lower than 5%, you have the choice (as a long term investor) to wait for a few years for the market to recover. Time is on your side. Wait for an appropriate time to achieve your long term yield.
When you buy a single premium endowment, the insurance company also invest your money in shares and other investments that are subject to the same risks that you have in a low cost investment fund. After deducting the expenses and profit margin, you get a lower yield on the single premium endowment. If the reduction in yield on the single premium endowment is less than 1% per annum, it is all right to invest in it. If the reduction is more than 1%, you should avoid it.
Tan Kin Lian
Tan Kin Lian
The public sector
The public sector plays an important role in providing basic services at affordable cost to the general public and to set the benchmark for employment terms and practices. Read TKL Website or click here.
New tech not always the best medicine
Read this excellent commentary by Craig Turner, who is a surgeon.
http://www.todayonline.com/Print/Commentary/EDC110324-0000011/New-tech-not-always-the-best-medicine
Quotes:
The decision to opt for medical care that relies on the most costly technology is often based on blind faith that newer, elaborate and expensive must be better.
We seem to be promoting new technology even in the absence of data. Exciting cutting-edge treatments are marketed with the singular effect of peddling hope to patients when they are at their most vulnerable.
If a surgeon recommends an older, less expensive technology, many patients will shop for a surgeon willing to use the newest and costliest devices - even if the added benefits are unproven and the risks may be greater.
http://www.todayonline.com/Print/Commentary/EDC110324-0000011/New-tech-not-always-the-best-medicine
Quotes:
The decision to opt for medical care that relies on the most costly technology is often based on blind faith that newer, elaborate and expensive must be better.
We seem to be promoting new technology even in the absence of data. Exciting cutting-edge treatments are marketed with the singular effect of peddling hope to patients when they are at their most vulnerable.
If a surgeon recommends an older, less expensive technology, many patients will shop for a surgeon willing to use the newest and costliest devices - even if the added benefits are unproven and the risks may be greater.
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