ETFs have evolved over the years, becoming more complex. Investors considering ETFs should evaluate each investment closely and not assume all ETFs are alike. In the last few years, a number of leveraged and inverse ETFs have been introduced to the market that are very different from the traditional variety of ETFs.
www.tankinlian.com/ask.aspx
Monday, November 08, 2010
Is life insurance good or bad?
Life insurance can be good and can be bad. It is good if it is priced fairly and the consumer pays a premium rate that reflects the risk and a reasonable margin for the insurance company to pay its expenses and make a fair profit. It provides a mechanism to pool the risk and pay a compensation to those who suffer the insured event.
It is bad if the insurance is priced in a predatory manner, over-charges the consumer and is sold with inaccurate and misleading statements - so as to allow the insurance agent to earn a fat commission and the insurance company to make a fat profit.
Read this article.
It is bad if the insurance is priced in a predatory manner, over-charges the consumer and is sold with inaccurate and misleading statements - so as to allow the insurance agent to earn a fat commission and the insurance company to make a fat profit.
Read this article.
General Election in Singapore - latest news from the Internet
Visit the General Election Portal to read about the latest views in the Internet on the coming general election in Singapore..
How to say "No" to an insurance agent
t is important for a consumer to be able to say "No" to a life insurance agent. Here are some tips on how to say "No". They are especially important for young people who are starting work for the first time. The ability to say "No" in a nice way can save you a lot of money and protect your financial well being.
Consumer finance portal launches here
A NEW consumer banking website goes live today, that will allow users to compare personal finance products across banks here. Its Singapore-based founder, Giora Kanner, said that MoneyLine.sg is aimed at helping people sift through the array of bank products here, such as credit cards and insurance policies. The site's search engine will compare products based on user criteria, and allows users to filter the results for finer results, he said. He hopes the site will fill a gap in the market for a centralised portal listing the different bank products here. MoneyLine.sg is open to users for free, |
REad the BT article for free after 6 pm:
Tangram and Shape Quiz
Here are some interesting shapes that can be formed from tangram (7 pieces) and shape quiz (4 pieces). They are interesting and challenges the mind. The book, with 100 shapes, can be bought from www.tankinlian.com/ishop. Suitable for children, adults and seniors and as a Gift! You enjoy a discount of 40% as part of the 5 book bundle.
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Creating employment
Many countries faced the challenge of creating employment for the large number of unemployed, under-employed and new entrants to the work force. This challenges will continue to be difficult under the current economic system. In this article, I have some suggestions of the changes that can be made to create more job opportunities and build a better and more sustainable environment for the future.
Tan Kin Lian
Bank interest rate - discriminatory practices
Some banks offer higher interest rate to attract new deposits and give a lower interest for existing deposit. A customer can earn the higher interest rate by taking the trouble to withdraw the deposit and re-deposit it with the same bank. If the customer expresses the intention to take this trouble, the bank will usually relent and offer the higher interest rate.
The bank is willing to pay a higher interest rate (compared to the miserably low interest rate that is offered to their existing customers). But they hope that some customers are not aware about the difference, or that they do not wish to take the trouble, or do not know how to take the action. The bank hope to extract the maximum profit from these customers.
I consider this practice to be discriminatory and unfair, and goes against the ethos of fair treatment of customers. Some people say that this type of practice is predatory and dishonest. I believe that it has some of these negative elements. Even if it is not illegal, it is quite wasteful to get customers to go through a lot of hassle to enjoy a more adequate interest rate and cause unproductive work for their own staff.
I hope that the Monetary Authority of Singapore will tell the banks that they (the regulators) frown on type of unproductive and discriminatory practices. I am sure that the banks will heed the message from the regulators.
Tan Kin Lian
The bank is willing to pay a higher interest rate (compared to the miserably low interest rate that is offered to their existing customers). But they hope that some customers are not aware about the difference, or that they do not wish to take the trouble, or do not know how to take the action. The bank hope to extract the maximum profit from these customers.
I consider this practice to be discriminatory and unfair, and goes against the ethos of fair treatment of customers. Some people say that this type of practice is predatory and dishonest. I believe that it has some of these negative elements. Even if it is not illegal, it is quite wasteful to get customers to go through a lot of hassle to enjoy a more adequate interest rate and cause unproductive work for their own staff.
I hope that the Monetary Authority of Singapore will tell the banks that they (the regulators) frown on type of unproductive and discriminatory practices. I am sure that the banks will heed the message from the regulators.
Tan Kin Lian
Sunday, November 07, 2010
Managing personal risk - importance of savings
I wish to recommend this article to the lay person. It is about managing personal risk and the importance of having savings and getting an adequate yield on the savings. Many life insurance agents will give bad advice to consumers and get them to buy a life insurance policy that gives a poor yield or charges too much for the insurance cover. The agent has a conflict of interest. They can earn a higher commission by selling an expensive policy to the consumer.
Read the relevant FAQs in my website, www.tankinlian.com/ask.aspx. Read my book, Practical Guide on Financial Planning (click on iShop at the right panel).
Read the relevant FAQs in my website, www.tankinlian.com/ask.aspx. Read my book, Practical Guide on Financial Planning (click on iShop at the right panel).
Cost of term insurance
Dear Mr. Tan,
I just talk to 4 different insurance companies asking for their term insurance. One company try to sell me life insurance when I asked for term and I have to pay 4.5K per year. Even for term insurance, the price quoted is not that cheap comparable to life insurance.
Is it true that Critical illness only can be bought with a Life Insurance with Death Coverage and not as a stand alone policy? This is what an agent told me. Xan I really get a term policy valued at 500K at around 1K plus per annum as reported in the papers?
REPLY
You can buy a stand alone term and a stand alone critical illness cover under the SAF group insurance policy, if you are a reservists. Read this FAQ: http://tankinlian.com/admin/file.aspx?id=116
A term insurance for $500,000 cost about $768 a year. You can buy critical illness separately. But you do not need to insure a large sum. An insurance of $50,000 or $100,000 for critical illness is sufficient, as it is supplemented by term insurance.
Read my book, Practical Guide on Financial Planning and attend the educational talk conducted by FISCA. They are meant to educate consumers to make a better choice.
Read the FAQs in www.tankinlian.com/ask.aspx to find out why many agents are not giving the proper advice to consumers, due to their conflict of interest.
I just talk to 4 different insurance companies asking for their term insurance. One company try to sell me life insurance when I asked for term and I have to pay 4.5K per year. Even for term insurance, the price quoted is not that cheap comparable to life insurance.
Is it true that Critical illness only can be bought with a Life Insurance with Death Coverage and not as a stand alone policy? This is what an agent told me. Xan I really get a term policy valued at 500K at around 1K plus per annum as reported in the papers?
REPLY
You can buy a stand alone term and a stand alone critical illness cover under the SAF group insurance policy, if you are a reservists. Read this FAQ: http://tankinlian.com/admin/file.aspx?id=116
A term insurance for $500,000 cost about $768 a year. You can buy critical illness separately. But you do not need to insure a large sum. An insurance of $50,000 or $100,000 for critical illness is sufficient, as it is supplemented by term insurance.
Read my book, Practical Guide on Financial Planning and attend the educational talk conducted by FISCA. They are meant to educate consumers to make a better choice.
Read the FAQs in www.tankinlian.com/ask.aspx to find out why many agents are not giving the proper advice to consumers, due to their conflict of interest.
Online courses
Learning in Dorm, Because Class Is on the Web
Online education is finding its way into more colleges,
many of them public institutions facing tight budgets.
many of them public institutions facing tight budgets.
Guiding a child to financial independence
Parents of adult children face all types of challenges, even in the best of times, but the tough labor market for young people can make it even more difficult.
Here are some tips:
http://www.nytimes.com/2010/11/05/business/businessspecial5/05LAUNCH.html
Here are some tips:
http://www.nytimes.com/2010/11/05/business/businessspecial5/05LAUNCH.html
Measure of economic progress
U.S., China and eating soup with a fork
Are economists the world over using an outdated tool to measure economic progress?
They are widely used to compare standards of living in one country with those in another
but critics say GDP is too narrow to be a realistic indicator.
Joseph Stiglitz, the Nobel-prize winning American economist, has complained that
world leaders make a fetish out of it and suffer from GDP-obsession.
http://blogs.reuters.com/great-debate/2010/10/29/u-s-china-and-eating-soup-with-a-fork/
Are economists the world over using an outdated tool to measure economic progress?
They are widely used to compare standards of living in one country with those in another
but critics say GDP is too narrow to be a realistic indicator.
Joseph Stiglitz, the Nobel-prize winning American economist, has complained that
world leaders make a fetish out of it and suffer from GDP-obsession.
http://blogs.reuters.com/great-debate/2010/10/29/u-s-china-and-eating-soup-with-a-fork/
Reply to Jeffrey Tan, President of IFPAS
I am looking for some consumers to come forward and send a reply to the letter from the President of the association representing the life insurance agents. http://www.straitstimes.com/STForum/Story/STIStory_599561.html
Jeffrey Tan said consumers to get the advice of the insurance agent who will help them to select the most suitable products to meet their needs. From the questions sent to me, it seemed that many consumers were confused about the product that has been sold to them, and when they learned at a later date about the poor yield on the life insurance policy, they regretted having made a bad decision.
If you have suffered this unfortunate situation, I ask you to come forward and write a letter in reply to Jeffrey Tan. This will help to clean up the bad practices where many insurance agents continue to take advantage of the ignorance of the consumers.
If you are willing to share your experience, you can write a draft to me at kinlian@gmail.com. I will help you to polish up the letter.
Tan Kin Lian
Jeffrey Tan said consumers to get the advice of the insurance agent who will help them to select the most suitable products to meet their needs. From the questions sent to me, it seemed that many consumers were confused about the product that has been sold to them, and when they learned at a later date about the poor yield on the life insurance policy, they regretted having made a bad decision.
If you have suffered this unfortunate situation, I ask you to come forward and write a letter in reply to Jeffrey Tan. This will help to clean up the bad practices where many insurance agents continue to take advantage of the ignorance of the consumers.
If you are willing to share your experience, you can write a draft to me at kinlian@gmail.com. I will help you to polish up the letter.
Tan Kin Lian
Bread Talk and Bread Life
I saw two shops in a mall in Jakarta that have similar name. Bread Talk was probably the original company. Bread Life follows the same concept. The Bread Life shop has many customers, and the Bread Talk shop was almost empty.
Cheated on inferior products
A consumer bought a few boxes of local sweets in a store at 8 yuan. Later, she saw the same product sold at another store for 3 yuan. She bought a few boxes at the lower price to average down. She was told later that the cheaper product could have expired. Her immediate remark was - I have been cheated. She felt that it the product had passed the expiry date, the store should not have sold the product to her without telling her.
Cheating is to sell a product without disclosing relevant information or providing misleading information about the product to the consumer.
If a consumer can felt cheated of a few dollars in a consumable product that has expired, how would the consumer feel if he or she has been sold a financial product that locks out the savings for 30 years and takes away 50% of the savings, amounting to more than $200,000, without being told? Is this cheating or not cheating?
It is important also to look at the degree. There is no much harm of being cheated of a few dollars. But if one is being cheated of a large sum, one should pursue the matter rigorously.
Tan Kin Lian
Cheating is to sell a product without disclosing relevant information or providing misleading information about the product to the consumer.
If a consumer can felt cheated of a few dollars in a consumable product that has expired, how would the consumer feel if he or she has been sold a financial product that locks out the savings for 30 years and takes away 50% of the savings, amounting to more than $200,000, without being told? Is this cheating or not cheating?
It is important also to look at the degree. There is no much harm of being cheated of a few dollars. But if one is being cheated of a large sum, one should pursue the matter rigorously.
Tan Kin Lian
Global Economic Turmoil
I expect a global economic turmoil within the next few years. My views are expressed here. I will be happy if I am wrong, but it is better to be prepared in case it materialises.
Family3
A consumer asked for my views about the Family3 policy. He was approached by an agent and was not sure if this is a good policy to buy.
I advised the consumer to read my FAQ on Family3 in my website, www.tankinlian.com/ask.aspx. (Search for Family3). There are a few FAQs written on this policy.
I also advised the consumer to read my book, Practical Guide on Financial Planning, available at www.tankinlian.com/ishop and to attend the educational talk on financial planning organised by FISCA (www.fisca.sg).
I hope that consumers will spend some time and money to be educated, so that they do not buy the wrong insurance product from an insurance agent who is unable to explain the product to the consumer and cannot be trusted to give the right advice to the consumer, due to the conflict of interest.
Tan Kin Lian
I advised the consumer to read my FAQ on Family3 in my website, www.tankinlian.com/ask.aspx. (Search for Family3). There are a few FAQs written on this policy.
I also advised the consumer to read my book, Practical Guide on Financial Planning, available at www.tankinlian.com/ishop and to attend the educational talk on financial planning organised by FISCA (www.fisca.sg).
I hope that consumers will spend some time and money to be educated, so that they do not buy the wrong insurance product from an insurance agent who is unable to explain the product to the consumer and cannot be trusted to give the right advice to the consumer, due to the conflict of interest.
Tan Kin Lian
How people vote
Contributed by DareToAct
In "Why empathy matters?", the author J D Trout pointed out that it is dangerous to think that people know what they want and can choose what they want. "When we choose poorly, these failures do not have a pure pedigree. They are part individual irrationalism, part unconscious influence, and part lousy choices."
When we are unhappy with the behavior of our first choice, or that the logical "right" choice disappoints, we might behave irrationally, especially under influence, and choose one of the lousy choices available.
Underestimating the potential of irrational voting can be detriment to any incumbent.
DareToAct
In "Why empathy matters?", the author J D Trout pointed out that it is dangerous to think that people know what they want and can choose what they want. "When we choose poorly, these failures do not have a pure pedigree. They are part individual irrationalism, part unconscious influence, and part lousy choices."
When we are unhappy with the behavior of our first choice, or that the logical "right" choice disappoints, we might behave irrationally, especially under influence, and choose one of the lousy choices available.
Underestimating the potential of irrational voting can be detriment to any incumbent.
DareToAct
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