http://www.gurufocus.com/news.
Saturday, October 23, 2010
Gold - view from Warren Buffett
I paraphrased here : "if you take all the gold that has been mined and sell them at current price, you can buy all the farmland in US, plus 10 Exxon Mobil, and still have $1 trillion change. Which one has better long term value?"
http://www.gurufocus.com/news.
http://www.gurufocus.com/news.
Transparency in insurance
SM Goh calls on insurance industry
to keep insurance protection affordable...Mr Goh said studies have suggested that Singaporeans are under-insured.
He added that the MAS would help consumers make informed decisions when buying insurance.
It will do so by working with the industry
It will do so by working with the industry
to enhance transparency in disclosing what insurance products like a Whole Life Plan contain.
Regulation of Real Estate Agents
Only 6,600 applications in
as CEA comes into effect
The new statutory board set up to regulate real estate agents,
the Council for Estate Agencies (CEA), came into effect Friday.
Real estate agencies have until midnight on Friday to submit a list of their agents.
... there are about 30,000 agents in Singapore.
Real estate agencies have until midnight on Friday to submit a list of their agents.
... there are about 30,000 agents in Singapore.
Large telephone bills
There are two letters from consumers about the large telephone bills that they received for services that they did not subscribe to, or for services that young children may incur without being aware about it. It shows the bad state of affairs in Singapore when businesses increase their profits without regard to the interest and fair treatment of consumers.
General Election Portal
General Election Portal
Saving and inflation
A consumer that invest the savings in a life insurance policy should take account of future inflation and aim for a yield that is higher than inflation. They should not just aim for a return of the premium, as the inflation would have reduced the value of the savings by up to 75%.
Ask Mr. Tan
Ask Mr. Tan
Crowded in Bali
I spent 3 days in Bali. It was hot, humid and uncomfortable.
I visited Ubud on a tour yesterday. The roads were congested. I spent 6 hours on the bus travelling a short distance to Ubud and back, in slow moving traffic. It was a huge traffic jam.
My first visit to Bali was 25 years ago. It was enchanting. There were virtually no cars on the road. It was easy and fun to move around.
Bali is now too crowded.
I visited Ubud on a tour yesterday. The roads were congested. I spent 6 hours on the bus travelling a short distance to Ubud and back, in slow moving traffic. It was a huge traffic jam.
My first visit to Bali was 25 years ago. It was enchanting. There were virtually no cars on the road. It was easy and fun to move around.
Bali is now too crowded.
Election buzz is in the air
Elder statesman Lee Kuan Yew may not, for the first time in 51 years,
take part in a general election - if one is called in the next six months as widely expected.
General Election Portal
take part in a general election - if one is called in the next six months as widely expected.
General Election Portal
Thursday, October 21, 2010
Vivolife
Hi Mr Tan
My husband and I were recently approached by an agent to buy this policy - we are in our mid 30s and the agent suggested that we get covered for $160,000 and pay the premium of $350 monthly for the next 28 years. (She wanted us to pay the premium annually but we didn't see the sense of that, except that she gets to enjoy her commission quicker.)
She had initially also wanted us to sign up for $350,000 coverage with premiums paid till we are 84 but the premiums are far too high for us to afford for such a long period of time.
We hope you can help shed some light on whether this policy is worth buying. Reason why I'm asking is because my husband recently gave me your book on financial planning and you warned against buying whole life insurance. Before I ring the agent to stop the policy, I just wanted to make sure that we are making the right decision.
In the product summary, it states that Vivolife is a participating regular premium whole life plan that covers death, total and permanent disability, and dread policies. Vivolife combines the best of insurance coverage and long term financial planning. Vivolife is ideal for those seeking high insurance coverage and the benefit of regular savings.
We would really appreciate if you could help us, and we will pass this information onto our friends who are also planning for their retirement and children's education.
REPLY
Get the benefit illustration and calculate the two indicators show in in this FAQ:
http://tankinlian.com/admin/file.aspx?id=234
I have seen a previous benefit illustration which showed that the policy provides a poor yield. But it is better that you compute it from the benefit illustration. You can send th benefit illustration for me to confirm your calculation.
My husband and I were recently approached by an agent to buy this policy - we are in our mid 30s and the agent suggested that we get covered for $160,000 and pay the premium of $350 monthly for the next 28 years. (She wanted us to pay the premium annually but we didn't see the sense of that, except that she gets to enjoy her commission quicker.)
She had initially also wanted us to sign up for $350,000 coverage with premiums paid till we are 84 but the premiums are far too high for us to afford for such a long period of time.
We hope you can help shed some light on whether this policy is worth buying. Reason why I'm asking is because my husband recently gave me your book on financial planning and you warned against buying whole life insurance. Before I ring the agent to stop the policy, I just wanted to make sure that we are making the right decision.
In the product summary, it states that Vivolife is a participating regular premium whole life plan that covers death, total and permanent disability, and dread policies. Vivolife combines the best of insurance coverage and long term financial planning. Vivolife is ideal for those seeking high insurance coverage and the benefit of regular savings.
We would really appreciate if you could help us, and we will pass this information onto our friends who are also planning for their retirement and children's education.
REPLY
Get the benefit illustration and calculate the two indicators show in in this FAQ:
http://tankinlian.com/admin/file.aspx?id=234
I have seen a previous benefit illustration which showed that the policy provides a poor yield. But it is better that you compute it from the benefit illustration. You can send th benefit illustration for me to confirm your calculation.
Investing in REITS
What is REITS
and how to get monthly dividend payments from it
http://biz.thestar.com.my/news/story.asp?file=/2010/10/21/business/7257528&sec=business
and how to get monthly dividend payments from it
http://biz.thestar.com.my/news/story.asp?file=/2010/10/21/business/7257528&sec=business
Need for a multi-party system
Singapore citizens should ask a few questions about their role in Singapore. Read
General Election Portal
General Election Portal
More disclosure to come on finance advisers
Bank customers will soon be able to find out professional details about their respective relationship managers or sales representatives on a Monetary Authority of Singapore (MAS) register as part of a move to improve disclosure.
According to MAS, 'This will provide consumers with more info on their reps, and enhance market discipline.' Serial job-hoppers, for instance, will be exposed as customers will be able to see the number of times that the manager of representative has changed employers in the past three years.
Under the new Representative Notification Framework (RNF), all financial representatives who provide financial advisory or capital market services will be listed on a public register. The RNF, which will be launched on Nov 26, replaces the existing licensing system for financial institutions that exempts banks and insurers.
Currently, only representatives of holders of capital market service licences and licensed financial advisers are issued hardcopy licences.
Read the full report in this website after 6 pm:
http://www.businesstimes.com.sg/sub/news/story/0,4574,409300,00.html?
According to MAS, 'This will provide consumers with more info on their reps, and enhance market discipline.' Serial job-hoppers, for instance, will be exposed as customers will be able to see the number of times that the manager of representative has changed employers in the past three years.
Under the new Representative Notification Framework (RNF), all financial representatives who provide financial advisory or capital market services will be listed on a public register. The RNF, which will be launched on Nov 26, replaces the existing licensing system for financial institutions that exempts banks and insurers.
Currently, only representatives of holders of capital market service licences and licensed financial advisers are issued hardcopy licences.
Read the full report in this website after 6 pm:
http://www.businesstimes.com.sg/sub/news/story/0,4574,409300,00.html?
Avoid insurance agents that tell lies or misleads
Some insurance agents tell lies to sell their life insurance policies. They tell the clients that they can earn 9% per annum when they invest in an investment linked policy. The 9% is not an expected yield but is just used for illustration. It is too optimistic under the current economic environment. Even if it is achieved, the real return, after deduction of the charges, is below 4% per annum. This is explained here:
http://tankinlian.com/admin/file.aspx?id=250.
Consumers should be careful about the misleading or untruthful statements made by some insurance agents. Other agents, while not deliberately lying, will avoid telling the real facts to the consumers, i.e. that a large proportion of their accumulated savings is taken away to make excessive profits for insurance companies and large commission for the agents. The consumer could have bought the protection under a 5 years term insurance policy or critical illness policy (expiring before age 55) at a much lower cost.
http://tankinlian.com/admin/file.aspx?id=250.
Consumers should be careful about the misleading or untruthful statements made by some insurance agents. Other agents, while not deliberately lying, will avoid telling the real facts to the consumers, i.e. that a large proportion of their accumulated savings is taken away to make excessive profits for insurance companies and large commission for the agents. The consumer could have bought the protection under a 5 years term insurance policy or critical illness policy (expiring before age 55) at a much lower cost.
FISCA Talks - Nov & Dec 2010
Register early for these two talks organised by FISCA
a) Invest for the Long Term ($10 only - after sponsorship by SGX)
b) Financial Planning - A Practical Guide
http://www.fisca.sg/events
a) Invest for the Long Term ($10 only - after sponsorship by SGX)
b) Financial Planning - A Practical Guide
http://www.fisca.sg/events
Wednesday, October 20, 2010
Property bubble and Japan
Read what happened to Japan when the property bubble burst. Singapore should avoid the same risk.
“The U.S., the U.K., Spain, Ireland, they all are going through what Japan went through a decade or so ago,” said Richard Koo, chief economist at Nomura Securities who recently wrote a book about Japan’s lessons for the world. “Millions of individuals and companies see their balance sheets going underwater, so they are using their cash to pay down debt instead of borrowing and spending.”
Will Singapore be next?
http://www.nytimes.com/2010/10/17/world/asia/17japan.html?_r=1
“The U.S., the U.K., Spain, Ireland, they all are going through what Japan went through a decade or so ago,” said Richard Koo, chief economist at Nomura Securities who recently wrote a book about Japan’s lessons for the world. “Millions of individuals and companies see their balance sheets going underwater, so they are using their cash to pay down debt instead of borrowing and spending.”
Will Singapore be next?
http://www.nytimes.com/2010/10/17/world/asia/17japan.html?_r=1
Conversation with a Financial Planner
I have the following conversion with someone who is considering to be a financial planner. Here are the issues involved in this decision.
Tuesday, October 19, 2010
Rechargeable Torchlight (with Locator Lamp)
An innovative product - get ready for a power failure!
Read this brochure.
Promotion now available at iShop at $20 for 4 pieces or $5 per piece. .
A similar torchlight, under a good brand name, sell for $27.50 at the airport shop.
Read this brochure.
Promotion now available at iShop at $20 for 4 pieces or $5 per piece. .
A similar torchlight, under a good brand name, sell for $27.50 at the airport shop.
Football Fund
Hello Mr Tan
There is a company called London Nominees which is offering something called the Football Fund. If you look at the website it mentions famus footabllers and famous clubs and infers that you will be investing in very high margin transactions such as football merchandising and player transfers. However it is very unspecific and there is no clear indication of what the investment is in.
London Nominees is based in the virgin islands and is completely unregulated. They seem to be picking up some press and TV coverage in Singapore. I would like to warn against this investment but really have no proof.
Steve
London Nominees is based in the virgin islands and is completely unregulated. They seem to be picking up some press and TV coverage in Singapore. I would like to warn against this investment but really have no proof.
Steve
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