A friend told me this story.
A direct marketing company carried out a pilot to test the impact of different types of messages sent by mail, and followed up by a telephone call.
Their finding: The message that confuses the customer gives the best response. They decided to adopt that message.
This is why you get a thick prospectus, when you buy a structured product. It is very confusing to the public, but they still decided to buy the product (even though they do not understand how it works).
Lesson: Do not buy any product that you do not understand. Go for the simple products. It is safer.
Wednesday, July 18, 2007
Branding
Many companies spend millions of dollars on "branding". They want consumers to associate their products or company with certain "qualities".
For a financial service company, the most important qualities are:
* trust
* efficiency
* good value products
These qualities are not created by "branding". They are real qualities that have to be built over time. Branding can only tell people what "you really are".
If you try to tell people "what you are not", the truth will prevail. The consumers will ignore your advertising, as it is not true.
For a financial service company, the most important qualities are:
* trust
* efficiency
* good value products
These qualities are not created by "branding". They are real qualities that have to be built over time. Branding can only tell people what "you really are".
If you try to tell people "what you are not", the truth will prevail. The consumers will ignore your advertising, as it is not true.
Owned by the people
The CEO of a small listed company asked me, "Why was NTUC Income not a listed company? "
I gave this reply, "When I was the CEO, I resisted the listing of NTUC Income. I wanted it to remain a cooperative, so that it can work for the interest of its policyholders".
He gave this insightful reply, "I agree with you. In fact, some of our businesses should be owned by the people, for example, trains, buses and utilities. Right now, these businesses are owned by the shareholders. If the company makes too much profit, 5,000 shareholders are happy, but 2 million people are unhappy".
I gave this reply, "When I was the CEO, I resisted the listing of NTUC Income. I wanted it to remain a cooperative, so that it can work for the interest of its policyholders".
He gave this insightful reply, "I agree with you. In fact, some of our businesses should be owned by the people, for example, trains, buses and utilities. Right now, these businesses are owned by the shareholders. If the company makes too much profit, 5,000 shareholders are happy, but 2 million people are unhappy".
Tuesday, July 17, 2007
CPF or life annuity
Dear Mr Tan
I am approaching age 55. Should I leave my minimum sum in the CPF to earn 4% per annum, or take it out to buy a life annuity? I am confident that you can give your impartial advice. Thank you.
-----------------------------------
REPLY:
You should take to an insurance adviser from NTUC Income or visit the business center to talk to a salaried adviser. You can compare the difference and make the best decision for yourself.
In my frank view, the life annuity with NTUC Income is likely to earn a long term rate of return of about 4-5% per annum. This should be as good as CPF or slightly better.
However, the life annuity has an element of risk pooling. It guarantees payment of the annuity for as long as you live. You do not have to worry that your money will run out earlier. (In the case of the CPF, the money is expected to run out after 20 years (ie when you reach age 82).
However, if the annuitant dies younger, a part of the principal or interest is left behind in the pool to pay the benefit to those who live longer.
There are also difference in the amount of payment. The life annuity from NTUC Income pays out less during the initial years and increases with bonus. The rate of bonus vary yearly according to the investment yield.
If you are not sure, it is all right to leave the money in the CPF to earn 4% per annum. This is an attractive rate of return.
Do take your time, before you make a decision. Either way, you should be happy with the decision. In both cases, the products give good value to the customer.
I am approaching age 55. Should I leave my minimum sum in the CPF to earn 4% per annum, or take it out to buy a life annuity? I am confident that you can give your impartial advice. Thank you.
-----------------------------------
REPLY:
You should take to an insurance adviser from NTUC Income or visit the business center to talk to a salaried adviser. You can compare the difference and make the best decision for yourself.
In my frank view, the life annuity with NTUC Income is likely to earn a long term rate of return of about 4-5% per annum. This should be as good as CPF or slightly better.
However, the life annuity has an element of risk pooling. It guarantees payment of the annuity for as long as you live. You do not have to worry that your money will run out earlier. (In the case of the CPF, the money is expected to run out after 20 years (ie when you reach age 82).
However, if the annuitant dies younger, a part of the principal or interest is left behind in the pool to pay the benefit to those who live longer.
There are also difference in the amount of payment. The life annuity from NTUC Income pays out less during the initial years and increases with bonus. The rate of bonus vary yearly according to the investment yield.
If you are not sure, it is all right to leave the money in the CPF to earn 4% per annum. This is an attractive rate of return.
Do take your time, before you make a decision. Either way, you should be happy with the decision. In both cases, the products give good value to the customer.
Did you invest in these structured products?
This webpage contains an insightful analysis of the structured products sold in Singapore in recent years, including the MiniBond.
It is quite easy to read.
If you have invested in some of the structured products previously, can you tell me about your actual experience. Did you get a good return from the product?
If the product has still not matured, call the product issuer, and ask what is the current price today, if you redeem it now.
It is quite easy to read.
If you have invested in some of the structured products previously, can you tell me about your actual experience. Did you get a good return from the product?
If the product has still not matured, call the product issuer, and ask what is the current price today, if you redeem it now.
Risks of investing in Structured Products
COMMENT POSTED IN MY BLOG:
The credit default swap is to insure its credit exposure. Therefore in the event of a default, the loss is mitigated. It is like buying future or option to hedge against a downside risk. The fund managers use plenty of these derivatives. If you look at Income's funds quite a substantial amount is spent annually on theses derivatives. Therefore it is no surprise that synthetic fixed income like Minibond uses too.
------------------------------------
REPLY:
Some structured products invest in credit default swaps to enhance their yields. They sell the swaps (i.e. to assume the risk of the credit event, by offering the insurance protection).
In the event of a credit event, the sellers of the swap (i.e. the investors of the structured product) can suffer a big loss. This is why the investors are warned that you may lose part or all of your investments.
Is the risk small? I do not know. I do not have the data to calculate it.
Lesson: Do not invest in any product that you do not fully understand. You may be exposing your investment to large risk. Stay away from complicated structured products!
SIDE NOTE:
NTUC Income invests in swaps to minimise the risk of loss. They have to pay a small cost for this protection.
The structured products invest in credit default swaps to earn an increased yield, but are exposed to the potental of a large loss, when a credit event happens. Is this frightening?
The credit default swap is to insure its credit exposure. Therefore in the event of a default, the loss is mitigated. It is like buying future or option to hedge against a downside risk. The fund managers use plenty of these derivatives. If you look at Income's funds quite a substantial amount is spent annually on theses derivatives. Therefore it is no surprise that synthetic fixed income like Minibond uses too.
------------------------------------
REPLY:
Some structured products invest in credit default swaps to enhance their yields. They sell the swaps (i.e. to assume the risk of the credit event, by offering the insurance protection).
In the event of a credit event, the sellers of the swap (i.e. the investors of the structured product) can suffer a big loss. This is why the investors are warned that you may lose part or all of your investments.
Is the risk small? I do not know. I do not have the data to calculate it.
Lesson: Do not invest in any product that you do not fully understand. You may be exposing your investment to large risk. Stay away from complicated structured products!
SIDE NOTE:
NTUC Income invests in swaps to minimise the risk of loss. They have to pay a small cost for this protection.
The structured products invest in credit default swaps to earn an increased yield, but are exposed to the potental of a large loss, when a credit event happens. Is this frightening?
Monday, July 16, 2007
Credit Default Swaps
The Pinnacle Notes has a "credit event". If any of 5 entities default, the investor has the chance to lose up to 40% of the invested amount.
What is the likelihood of this happening? I checked the internet for "credit defaults".
I found a link to "credit default swaps" or CDS. It appears to me that the Pinnacle Notes have CDS built into the product.
I find it quite complex to understand the CDS, especially to calculate the chance of a "credit event" occuring.
You should read the section on "Criticism". It quotes Warren Buffet.
Lesson: If you are not able to understand a product, do not invest in it. You do not know if you are getting a fair deal.
What is the likelihood of this happening? I checked the internet for "credit defaults".
I found a link to "credit default swaps" or CDS. It appears to me that the Pinnacle Notes have CDS built into the product.
I find it quite complex to understand the CDS, especially to calculate the chance of a "credit event" occuring.
You should read the section on "Criticism". It quotes Warren Buffet.
Lesson: If you are not able to understand a product, do not invest in it. You do not know if you are getting a fair deal.
Pinnacle Notes - 2 views
COMMENT POSTED IN MY BLOG:
The risk of the (Pinnacle Notes) is pegged to the credit worthiness of some 5 credit references of double A rating. Eg. UOB bank, Standchart and other financial entities of similar rating.
A credit event occurs should any one of the entities default. The recovery rate is about 40%, ie you get back 40% of your capital.
The risk to consider is or ask yourself can anyone of the entities default.? Eg. can UOB default? It would be terrible and it is not impossible. Consider the probability of that event happening. Almost near zero ......
The callablle feature kicks in after 1.5 years depending on the interest rate prevailing at that point in time. If it is called , capital plus some premium will be returned.
-----------------------
REPLY:
The risk of 1 entity defaulting is small. But, when you have any 1 of 5 entitles failing, the risk increases by 5 times. It is still small, but it is not that small.
When it fails, you have to lose up to 40%. What do you get for this risk? Just 1% or 2% more a year? Is it worth the risk?
Most investors will be willing to give up 1% for the chance of gaining 40% (instead of earning an extra 1% for the risk of losing 40%!)
As you do not know the change of the credit event, it is not worth taking the gamble. I am sure that the product issuer knows how to calculate the risk better than the small investor!
The callable feature has a cost to the investor that is not clearly understood. It gives the product issuer an opportunity to make an additional profit (at the expense of the small investor).
When interest rate falls, the value of the underlying investments increased. The product issuer can redeem the structured notes at a fixed price, and keep the additional gains as their profit. The small investor has to re-invest the money at a lower rate of interest.
Tip: It is better to invest in a straight forward government bond or corporate bond, and earn an interest rate according to the level of risk.
The risk of the (Pinnacle Notes) is pegged to the credit worthiness of some 5 credit references of double A rating. Eg. UOB bank, Standchart and other financial entities of similar rating.
A credit event occurs should any one of the entities default. The recovery rate is about 40%, ie you get back 40% of your capital.
The risk to consider is or ask yourself can anyone of the entities default.? Eg. can UOB default? It would be terrible and it is not impossible. Consider the probability of that event happening. Almost near zero ......
The callablle feature kicks in after 1.5 years depending on the interest rate prevailing at that point in time. If it is called , capital plus some premium will be returned.
-----------------------
REPLY:
The risk of 1 entity defaulting is small. But, when you have any 1 of 5 entitles failing, the risk increases by 5 times. It is still small, but it is not that small.
When it fails, you have to lose up to 40%. What do you get for this risk? Just 1% or 2% more a year? Is it worth the risk?
Most investors will be willing to give up 1% for the chance of gaining 40% (instead of earning an extra 1% for the risk of losing 40%!)
As you do not know the change of the credit event, it is not worth taking the gamble. I am sure that the product issuer knows how to calculate the risk better than the small investor!
The callable feature has a cost to the investor that is not clearly understood. It gives the product issuer an opportunity to make an additional profit (at the expense of the small investor).
When interest rate falls, the value of the underlying investments increased. The product issuer can redeem the structured notes at a fixed price, and keep the additional gains as their profit. The small investor has to re-invest the money at a lower rate of interest.
Tip: It is better to invest in a straight forward government bond or corporate bond, and earn an interest rate according to the level of risk.
Pinnacle Notes - do you know the risks?
The Pinnacle Notes offers an interset rate of 5.25% per annum, with the following disclaimer:
The notes are not principal protected. Payment of interest and repalyment of 100% of the principal amount at maturity is dependent upon, amongst other things, the occurence of a Credit Event, a Mandatory Redemption Event or if the issuer exercises its Issuer Call Option.
In such circumstances, you will lose all or substantially all of your investment in the Notes.
Please refer to the Prospectus for more details.
With these types of unclear risks, it is really worth while to invest in the Pinnacle notes? Will you be stuck for the next 6 years with a low return? How much will you lose, if any of the events happen? What is the chance of it happening?
How much commission is earned by the distributing banks? How much does the Arranger earn on the product? Are the small investors getting a fair return for the risk that they are shouldering?
These types of products are too complicated for me. I do not invest in them. I discourage my family members from investing in these products.
The notes are not principal protected. Payment of interest and repalyment of 100% of the principal amount at maturity is dependent upon, amongst other things, the occurence of a Credit Event, a Mandatory Redemption Event or if the issuer exercises its Issuer Call Option.
In such circumstances, you will lose all or substantially all of your investment in the Notes.
Please refer to the Prospectus for more details.
With these types of unclear risks, it is really worth while to invest in the Pinnacle notes? Will you be stuck for the next 6 years with a low return? How much will you lose, if any of the events happen? What is the chance of it happening?
How much commission is earned by the distributing banks? How much does the Arranger earn on the product? Are the small investors getting a fair return for the risk that they are shouldering?
These types of products are too complicated for me. I do not invest in them. I discourage my family members from investing in these products.
Good experience with structured products
THERE WAS NO RESPONSE TO MY PREVIOUS POSTING OF THIS BLOG. I AM RE-POSTING IT TO INVITE CONTRIBUTIONS, ESPECIALLY FROM THE FINANCIAL INSTITUTIONS THAT HAVE MARKETED THIS PRODUCT.
------------------------------------------------------------------
Do you have any good experience with structured products, e.g. promise capital protection and give you a good return?
Send the following details to kinlian@gmail.com:
* amount that you invested
* period of investment
* your total return
* fully capital protected (ie no risk)?
Note: This request is also open to the financial institutions that promoted or marketed the structured products. You can send good experiences to me (if any), so that my blog will be more balanced.
------------------------------------------------------------------
Do you have any good experience with structured products, e.g. promise capital protection and give you a good return?
Send the following details to kinlian@gmail.com:
* amount that you invested
* period of investment
* your total return
* fully capital protected (ie no risk)?
Note: This request is also open to the financial institutions that promoted or marketed the structured products. You can send good experiences to me (if any), so that my blog will be more balanced.
Return from various types of investments
Hi Mr Tan,
The stockmarket is now at a high level. Is it risky to invest in the stockmarket now? Should I reduce my investments? What other types of investment can I make now? I find the interest rate on fixed deposit to be too low.
---------------------------
REPLY:
If you are not familiar with speculating on the stockmarket, it is better to invest with a long term perspective.
You can read this FAQ on the return from various types of investments. This is measured on a long term perspective.
Generally, it is good to invest in equities, but I prefer to enter at a lower price level. There is no point to invest at the peak of the market (but we are not sure when the peak will be reached! )
The stockmarket is now at a high level. Is it risky to invest in the stockmarket now? Should I reduce my investments? What other types of investment can I make now? I find the interest rate on fixed deposit to be too low.
---------------------------
REPLY:
If you are not familiar with speculating on the stockmarket, it is better to invest with a long term perspective.
You can read this FAQ on the return from various types of investments. This is measured on a long term perspective.
Generally, it is good to invest in equities, but I prefer to enter at a lower price level. There is no point to invest at the peak of the market (but we are not sure when the peak will be reached! )
A customer focused organisation
A customer focused organisation has the following characteristics:
* identify the customer before dealing with the issue
* design processes to be convenient for the customer
Here are some common mistakes made by organisations:
* several accounts for the same customer
* have different processes for each type of account
* have different people to deal with each product type
* ask the customer to key in the account number (which is usually not available)
* design process for the convenience of the organisation (eg to save on manpower)
* identify the customer before dealing with the issue
* design processes to be convenient for the customer
Here are some common mistakes made by organisations:
* several accounts for the same customer
* have different processes for each type of account
* have different people to deal with each product type
* ask the customer to key in the account number (which is usually not available)
* design process for the convenience of the organisation (eg to save on manpower)
CASE Website
You can get a lot of useful information from the CASE website.
I find the sample agreements to be useful, eg on home renovation, tenancy. I hope that more sample agreements can be added, eg will, employment, etc.
I find the sample agreements to be useful, eg on home renovation, tenancy. I hope that more sample agreements can be added, eg will, employment, etc.
Use of ATM in other countries
I was told that in Europe, it is easy to withdraw cash in other countries using an ATM card. This is good for travellers.
I hope that, one day, it is possible to use a Singapore-issued ATM card to withdraw cash in Malaysia, Indonesia and other countries.
I believe that it is possible to withdraw cash with a credit card (if you know the PIN number), but the charges are quite high.
I hope that, one day, it is possible to use a Singapore-issued ATM card to withdraw cash in Malaysia, Indonesia and other countries.
I believe that it is possible to withdraw cash with a credit card (if you know the PIN number), but the charges are quite high.
Surgical Schedule
Some medical insurance plans has a surgical schedule that sets out the limit that can be claimed for each type of surgical procedure.
The surgeon may follow this limit and bill the patient for up to this sum. If the surgeon bills a higher sum, the difference has to be borne by the patient. The insurance company pays up to the limit.
This schedule helps to place a cap on the charges. The patient should ask the surgeon for an estimate of the cost, and if possible, to keep within the limit.
The surgeon may follow this limit and bill the patient for up to this sum. If the surgeon bills a higher sum, the difference has to be borne by the patient. The insurance company pays up to the limit.
This schedule helps to place a cap on the charges. The patient should ask the surgeon for an estimate of the cost, and if possible, to keep within the limit.
Sunday, July 15, 2007
A simple medical insurance product
Hi Mr Tan,
I find the calculation of the medical insurance claim to be difficult. Why should there be so many deductions from the hospital bill? Most people pay a premium, and want the insurance company to take care of the entire bill. Is there a simpler insurance plan?
------------------------------------------
REPLY
The simpler plan (which I prefer) is a plan that pays a fixed sum (say $200) for each day of stay in a hospital. This is simple for the customer, and for the insurance company. It is call a "hospital cash" plan.
This plan will pay a substantial part of the hospital bill. It also gives the incentive for the patient to find out the most cost effective treatment (rather than incur a large bill). The patient can consult the insurance company for advice on where to get the cost effective treatment.
This approach is best for all parties - the consumer, the insurance company and the medical provider.
I find the calculation of the medical insurance claim to be difficult. Why should there be so many deductions from the hospital bill? Most people pay a premium, and want the insurance company to take care of the entire bill. Is there a simpler insurance plan?
------------------------------------------
REPLY
The simpler plan (which I prefer) is a plan that pays a fixed sum (say $200) for each day of stay in a hospital. This is simple for the customer, and for the insurance company. It is call a "hospital cash" plan.
This plan will pay a substantial part of the hospital bill. It also gives the incentive for the patient to find out the most cost effective treatment (rather than incur a large bill). The patient can consult the insurance company for advice on where to get the cost effective treatment.
This approach is best for all parties - the consumer, the insurance company and the medical provider.
What product is suitable for my age group?
FIRST POSTED IN FEBUARY, 2007 (EDITED)
Dear Mr Tan,
Read with interest on buying insurance products from the NTUC income portal.
I don't believe that there is an ideal insurance package solution for all.
It really depends on the age, size of family, living standards, of the individual.
What I would like to know is an ideal case of persons aged:
20-30: Just started work, planning on getting married
30-40: Married, steady career, with 1 or 2 kids
40-50: Achieved good mid-income (say $5K-7K/mth), higher educational needs (JC, university, worst case medical school)
50-60: Approaching retirement age, or continue working because of financial commits
60+: ???
What then are the range of insurance products/ investment funds would you recommend for these age groups.
----------------------
REPLY
The best plan is to buy a decreasing term insurance to provide the insurance coverage and to invest your savings (say 10% to 20% of your regular earnings) in a mutual fund or an invesment fund. You can read this FAQ for the young, and for seniors.
You should choose a flexible savings plan, as it gives you the flexibility to change your savings and the investment fund. Normally, you should choose a large, well diversified fund.
Dear Mr Tan,
Read with interest on buying insurance products from the NTUC income portal.
I don't believe that there is an ideal insurance package solution for all.
It really depends on the age, size of family, living standards, of the individual.
What I would like to know is an ideal case of persons aged:
20-30: Just started work, planning on getting married
30-40: Married, steady career, with 1 or 2 kids
40-50: Achieved good mid-income (say $5K-7K/mth), higher educational needs (JC, university, worst case medical school)
50-60: Approaching retirement age, or continue working because of financial commits
60+: ???
What then are the range of insurance products/ investment funds would you recommend for these age groups.
----------------------
REPLY
The best plan is to buy a decreasing term insurance to provide the insurance coverage and to invest your savings (say 10% to 20% of your regular earnings) in a mutual fund or an invesment fund. You can read this FAQ for the young, and for seniors.
You should choose a flexible savings plan, as it gives you the flexibility to change your savings and the investment fund. Normally, you should choose a large, well diversified fund.
How can CPF be improved to give a better return?
FIRST POSTED IN MARCH 2007.
My views about investing CPF savings
1. A Member of Parliament said the Government should aim to help CPF members grow their money by 8 to 10 per cent a year. Do you agree with this target?
Reply: I believe that a reasonable long term target is 5% to 6% per annum. This is higher than the rate of inflation and represents an attractive real rate of return.
2. Should the CPF improve its rate of return?
Reply: The CPF should make it easy for its members to invest in a large, well diversified, low cost fund of global equities and bonds. Although the return may fluctuate from one year to another, the fluctuation should average out over a period of 10 years or longer. The average return can meet the target that I have indicated. I believe that the CPF is actively considering this option, as reported in the newspapers. I agree with this approach.
3. What are the obstacles to raising the rate of returns? How to overcome them?
Reply: They key obstacle is the need to provide a guaranteed rate of return. This forces the CPF to adopt a safe investment strategy which produces a low rate of return. If the member is willing to take the risk and fluctuation in an investment fund, they will be able to get a higher average return over the long term. The risk can be reduced by investing in a large, well diversified, low cost fund.
4. Are Singaporeans ready to bear higher risks that comes with higher returns?
Reply: I believe that Singaporeans will prefer to invest in a large, well diversified, low cost fund. It will actually reduce the risk (through diversification in many investments and over man years) and give a higher return over the long term. A low cost fund charges can charge as low as 0.5% to 1% per annum, giving most of the return back to the investor.
5. Are there any lessons from pension plans in other countries that Singapore can study and learn from?
Reply: We should study the success of the indexed funds and the exchange traded funds in the United States. They are large, well diversified, low cost funds. They offer an attractive return to their investors over a period of 10 years or longer.
6. The Manpower Minister said that CPF now provides risk-free return and safeguards members' savings against interest rate changes and stock market volatility. Its returns are above market rates, when compared against products of similar risk and tenure. Do you agree?
Reply: The guaranteed rate of 4% per annum on the special account is attractive, as it is risk free. CPF members should be given the option of investing in large, well diversified, low cost funds, to get a better return for their ordinary account. Many of the approved funds under the CPF Investment Scheme are too small and their charges are too high. The CPF has recognised this deficiency and have taken steps to get the funds to reduce their charges. It is a good time to introduce the PPP type of funds.
To read more about investing in large, well diversified, low cost funds:
FAQ
My views about investing CPF savings
1. A Member of Parliament said the Government should aim to help CPF members grow their money by 8 to 10 per cent a year. Do you agree with this target?
Reply: I believe that a reasonable long term target is 5% to 6% per annum. This is higher than the rate of inflation and represents an attractive real rate of return.
2. Should the CPF improve its rate of return?
Reply: The CPF should make it easy for its members to invest in a large, well diversified, low cost fund of global equities and bonds. Although the return may fluctuate from one year to another, the fluctuation should average out over a period of 10 years or longer. The average return can meet the target that I have indicated. I believe that the CPF is actively considering this option, as reported in the newspapers. I agree with this approach.
3. What are the obstacles to raising the rate of returns? How to overcome them?
Reply: They key obstacle is the need to provide a guaranteed rate of return. This forces the CPF to adopt a safe investment strategy which produces a low rate of return. If the member is willing to take the risk and fluctuation in an investment fund, they will be able to get a higher average return over the long term. The risk can be reduced by investing in a large, well diversified, low cost fund.
4. Are Singaporeans ready to bear higher risks that comes with higher returns?
Reply: I believe that Singaporeans will prefer to invest in a large, well diversified, low cost fund. It will actually reduce the risk (through diversification in many investments and over man years) and give a higher return over the long term. A low cost fund charges can charge as low as 0.5% to 1% per annum, giving most of the return back to the investor.
5. Are there any lessons from pension plans in other countries that Singapore can study and learn from?
Reply: We should study the success of the indexed funds and the exchange traded funds in the United States. They are large, well diversified, low cost funds. They offer an attractive return to their investors over a period of 10 years or longer.
6. The Manpower Minister said that CPF now provides risk-free return and safeguards members' savings against interest rate changes and stock market volatility. Its returns are above market rates, when compared against products of similar risk and tenure. Do you agree?
Reply: The guaranteed rate of 4% per annum on the special account is attractive, as it is risk free. CPF members should be given the option of investing in large, well diversified, low cost funds, to get a better return for their ordinary account. Many of the approved funds under the CPF Investment Scheme are too small and their charges are too high. The CPF has recognised this deficiency and have taken steps to get the funds to reduce their charges. It is a good time to introduce the PPP type of funds.
To read more about investing in large, well diversified, low cost funds:
FAQ
What's good about Singapore
Here are my views about what is good with the Singapore system:
* low corruption
* meritocracy
* economic development
* efficiency
* stable and good government.
Let me elaborate on these points.
Low corruption: Easy to get things done. Criteria and procedures are clear. If we follow the rules, we know that our requests will be approved. We do not have to worry about making "additional payments".
Meritocracy: Everyone can move up the career ladder. The best rewards go to the most able.
Economic development: Our economy has developed well. Many good paying jobs are produced. Asset and property prices have gone up.
Efficiency: Things work. We can rely on efficient transport, utilities and services. We save on time to do many things.
Stable and good government: We have a safe envifonment. We do not have to worry about strikes, crime, financial crisis and other uncertainties.
Now, what's bad about Singapore? I shall discuss them in a few days time.
* low corruption
* meritocracy
* economic development
* efficiency
* stable and good government.
Let me elaborate on these points.
Low corruption: Easy to get things done. Criteria and procedures are clear. If we follow the rules, we know that our requests will be approved. We do not have to worry about making "additional payments".
Meritocracy: Everyone can move up the career ladder. The best rewards go to the most able.
Economic development: Our economy has developed well. Many good paying jobs are produced. Asset and property prices have gone up.
Efficiency: Things work. We can rely on efficient transport, utilities and services. We save on time to do many things.
Stable and good government: We have a safe envifonment. We do not have to worry about strikes, crime, financial crisis and other uncertainties.
Now, what's bad about Singapore? I shall discuss them in a few days time.
National Day - Sudoku (Logic9)
National Day is coming soon.
How about trying to solve a Sudoku puzzle (Logic9) with the letters S,I,N,G,A,P,O,R,E instead of the usual numbers 1 to 9.
Go to this website. Click PLAY. Select the symbols - CHARACTERS. Choose the level (from very easy to complex). Enjoy.
How about trying to solve a Sudoku puzzle (Logic9) with the letters S,I,N,G,A,P,O,R,E instead of the usual numbers 1 to 9.
Go to this website. Click PLAY. Select the symbols - CHARACTERS. Choose the level (from very easy to complex). Enjoy.
Subscribe to:
Posts (Atom)