Visitors to Malaysia are not required to complete an immigration card. Entry into Malaysia is hassle free. Congratulations to the Malaysian Government for taking this simple and practical step.
I hope that Singapore will adopt this new practice. Do away with the immigration card. There is no need for this card, as the particulars in the passport are scanned into the computer system.
There is also no need to collect tourist statistics. So many people travel today, that the statistics have become meaningless.
I hope that Indonesia will also adopt this new method. Get rid of the immigration card and customs forms. They are a big waste of time, and hassle to the visitors.
Friday, March 21, 2008
When is a good time to enter the market?
Dear Mr. Tan,
I am thinking of investing in the STI ETF. As a beginner to investment, how would I gauge when is a good time to enter the market?
REPLY
Nobody knows when is a good time.
My guess is that this is now a good time, as the market has corrected and the financial crisis is likely to stablise now. If you are a long term investor, it should be quite safe to invest now.
Wish you all the best.
I am thinking of investing in the STI ETF. As a beginner to investment, how would I gauge when is a good time to enter the market?
REPLY
Nobody knows when is a good time.
My guess is that this is now a good time, as the market has corrected and the financial crisis is likely to stablise now. If you are a long term investor, it should be quite safe to invest now.
Wish you all the best.
Bernanke's plan is working
Here is a brief description of the current problem in the US financial system.
a. It started with the subprime mortgages, which saw high default rates
b. The value of the "asset backed securites" and the "collaterialised debt obligations" linked to these mortgages dropped significantly
c. The problem spread to the other sectors. Many "special investment vehicles" and hedge funds had been set up to use borrowed money, i.e. "leveraging", to invest in higher risk assets to earn a margin. These SIV and hedge funds could not refinance their borrowings, as the lenders got scared.
d. Investors starting to withdraw their money from hedge funds, SIV and the investment banks.
This led to the collapse of Bear Stearns. There was fear that they have to sell their illiquid assets at depressed prices, causing a collapse of the entire global financial system.
The US Fed, under the chairman Bernanke, came out with a plan to provide up a 6 months facility for investment banks to allow them to borrow from its "discount window" i.e. at the Fed discount rate, by pledging their illiquid assets.
Some experts believe that this plan is working and that the markets will stabilise and recover from now. This is expected to solve the "liquidity crunch". Let us hope that they are right!
a. It started with the subprime mortgages, which saw high default rates
b. The value of the "asset backed securites" and the "collaterialised debt obligations" linked to these mortgages dropped significantly
c. The problem spread to the other sectors. Many "special investment vehicles" and hedge funds had been set up to use borrowed money, i.e. "leveraging", to invest in higher risk assets to earn a margin. These SIV and hedge funds could not refinance their borrowings, as the lenders got scared.
d. Investors starting to withdraw their money from hedge funds, SIV and the investment banks.
This led to the collapse of Bear Stearns. There was fear that they have to sell their illiquid assets at depressed prices, causing a collapse of the entire global financial system.
The US Fed, under the chairman Bernanke, came out with a plan to provide up a 6 months facility for investment banks to allow them to borrow from its "discount window" i.e. at the Fed discount rate, by pledging their illiquid assets.
Some experts believe that this plan is working and that the markets will stabilise and recover from now. This is expected to solve the "liquidity crunch". Let us hope that they are right!
Estate planning
Hi Mr.Tan,
Can you share with me your views on Estate Planning and its implications with the removal of Death Taxes? Is Estate Planning still relevant in Singapore?
I'm just trying to understand how much is left in Estate Planning after the removal of Death Taxes. The text books talk about Estate Preservation, Estate Distribution and Estate Creation in view of succession planning.
While this is all academic, I was hoping you could share some insights into some percularities or blind-sided areas on a more practical front.
REPLY
The important components of estate planning are:
a. Identify the assets in your estate
b. Buy insurance to provide funds to pay the estate duty (not required now)
c. Decide how the estate is to be distributed on your death (this is done through a will)
d. Appoint the people to manage the estate.
If you estate is substantial, it is better to transfer your assets into a separate trust now, and appoint trustees to manage the trust. You can be one of the trustees. This trust becomes part of the estate on your death.
I will invite my blog readers to share other perspective of estate planning.
Can you share with me your views on Estate Planning and its implications with the removal of Death Taxes? Is Estate Planning still relevant in Singapore?
I'm just trying to understand how much is left in Estate Planning after the removal of Death Taxes. The text books talk about Estate Preservation, Estate Distribution and Estate Creation in view of succession planning.
While this is all academic, I was hoping you could share some insights into some percularities or blind-sided areas on a more practical front.
REPLY
The important components of estate planning are:
a. Identify the assets in your estate
b. Buy insurance to provide funds to pay the estate duty (not required now)
c. Decide how the estate is to be distributed on your death (this is done through a will)
d. Appoint the people to manage the estate.
If you estate is substantial, it is better to transfer your assets into a separate trust now, and appoint trustees to manage the trust. You can be one of the trustees. This trust becomes part of the estate on your death.
I will invite my blog readers to share other perspective of estate planning.
Projected return of 4.16%
Hi Mr. Tan,
Recently, I am looking to invest a small sum of money in a low risk product for my children's education. After discussing with my agents, I am thinking of investing the money in a 15 year NTUC's Growth plan policy which provides a projected return of about 4.16% with a guaranteed return of about 2%. I am not looking to invest in a mutual fund because I would like to keep the risk to an acceptable level.
1) What is your view of this product?
2) Do you think my decision is wise?
3) Is there any other product that I should be looking at?
REPLY
This product is fairly satisfactory. I have also invested my SRS funds in the Growth policy to get the same modest return in the past.
My preference today is to invest in a mutual fund to get a higher return over the future years. Read this FAQ:http://www.tankinlian.com/faq/savings.html
Perhaps you can invest in 5,000 shares of the STI ETF. I believe that it should give a better return over the next 15 years.
Recently, I am looking to invest a small sum of money in a low risk product for my children's education. After discussing with my agents, I am thinking of investing the money in a 15 year NTUC's Growth plan policy which provides a projected return of about 4.16% with a guaranteed return of about 2%. I am not looking to invest in a mutual fund because I would like to keep the risk to an acceptable level.
1) What is your view of this product?
2) Do you think my decision is wise?
3) Is there any other product that I should be looking at?
REPLY
This product is fairly satisfactory. I have also invested my SRS funds in the Growth policy to get the same modest return in the past.
My preference today is to invest in a mutual fund to get a higher return over the future years. Read this FAQ:http://www.tankinlian.com/faq/savings.html
Perhaps you can invest in 5,000 shares of the STI ETF. I believe that it should give a better return over the next 15 years.
Blue chip stocks
Dear Mr. Tan,
I read from your blog there we can invest some blue-chips shares for long term. What are the blue chips shares can you lists some? Is F&N consider blue-chip? I think of investing for my children as they are around 13-15 years. Do you think is good? Please kindly give me opinions of what to do. Now the fixed deposit very is very low.
REPLY
I consider the 30 components stocks of the STI index as blue chips. These component stocks are listed in:
http://www.straitstimes.com//STI/STIMEDIA/sp/ftse08/Constituents1.pdf
F&N is a component of the index.
I read from your blog there we can invest some blue-chips shares for long term. What are the blue chips shares can you lists some? Is F&N consider blue-chip? I think of investing for my children as they are around 13-15 years. Do you think is good? Please kindly give me opinions of what to do. Now the fixed deposit very is very low.
REPLY
I consider the 30 components stocks of the STI index as blue chips. These component stocks are listed in:
http://www.straitstimes.com//STI/STIMEDIA/sp/ftse08/Constituents1.pdf
F&N is a component of the index.
Confidence in US financial firms
FROM BLOOMBERG.COM
Commodities Drop, Rally in Dollar, Stocks Vindicate Bernanke
By Pham-Duy Nguyen
March 21 (Bloomberg) -- The biggest commodity collapse in at least five decades may signal Federal Reserve Chairman Ben S. Bernanke has revived confidence in U.S. financial firms.
The Standard & Poor's 500 Index posted its first weekly gain in a month, and the dollar leapt from its lowest level since 1973 after the Fed stepped in March 16 to rescue Bear Stearns Cos., the fifth-largest U.S. securities firm, and expanded its role as lender of last resort to embrace the biggest dealers in Treasury notes.
Investors who had poured money into gold, oil and corn, seeking a hedge against inflation and a weak dollar, sold commodities to raise cash or buy stocks. The Reuters/Jefferies CRB Index of 19 commodities tumbled 8.3 percent this week, the most since at least 1956, after touching a record on Feb. 29.
"Bernanke took care of the commodity bubble,'' said Ron Goodis, the retail trading director at Equidex Brokerage Group Inc. in Closter, New Jersey. ``Commodities are coming back to earth. The stock market looks OK, and Bernanke is starting to look a little better.''
Concern that the central bank would let inflation get out of control eased after the Fed cut its key interest rate by 0.75 percentage point on March 18, less than the reduction of at least 1 point that investors had expected.
"Clearly they've gotten some stability,'' said Keith Hembre, a former Fed researcher and chief economist at FAF Advisors Inc. in Minneapolis, which oversees more than $107 billion in assets.
"You have to stand back and say, for the time being, it looks to be a pretty successful combination of moves that have worked.''
Commodities Drop, Rally in Dollar, Stocks Vindicate Bernanke
By Pham-Duy Nguyen
March 21 (Bloomberg) -- The biggest commodity collapse in at least five decades may signal Federal Reserve Chairman Ben S. Bernanke has revived confidence in U.S. financial firms.
The Standard & Poor's 500 Index posted its first weekly gain in a month, and the dollar leapt from its lowest level since 1973 after the Fed stepped in March 16 to rescue Bear Stearns Cos., the fifth-largest U.S. securities firm, and expanded its role as lender of last resort to embrace the biggest dealers in Treasury notes.
Investors who had poured money into gold, oil and corn, seeking a hedge against inflation and a weak dollar, sold commodities to raise cash or buy stocks. The Reuters/Jefferies CRB Index of 19 commodities tumbled 8.3 percent this week, the most since at least 1956, after touching a record on Feb. 29.
"Bernanke took care of the commodity bubble,'' said Ron Goodis, the retail trading director at Equidex Brokerage Group Inc. in Closter, New Jersey. ``Commodities are coming back to earth. The stock market looks OK, and Bernanke is starting to look a little better.''
Concern that the central bank would let inflation get out of control eased after the Fed cut its key interest rate by 0.75 percentage point on March 18, less than the reduction of at least 1 point that investors had expected.
"Clearly they've gotten some stability,'' said Keith Hembre, a former Fed researcher and chief economist at FAF Advisors Inc. in Minneapolis, which oversees more than $107 billion in assets.
"You have to stand back and say, for the time being, it looks to be a pretty successful combination of moves that have worked.''
Investing the CPF ordinary account
Hi Mr. Tan
Due to some personal reasons, my friend would like to divert all her CPF money to other investment, instead of leaving it in her ordinary account. She is not a person good at managing her finances. What are the options available to her?
She just want to make sure the sum of around 30k will be relatively safe and generate a moderate amount of interest or at least same as what CPF board is offering. When the minimum sum kicks in on 1st April 08, is it true that she can't invest all the 30k?
REPLY
Read this FAQ:
http://www.tankinlian.com/faq/savings.html
Due to some personal reasons, my friend would like to divert all her CPF money to other investment, instead of leaving it in her ordinary account. She is not a person good at managing her finances. What are the options available to her?
She just want to make sure the sum of around 30k will be relatively safe and generate a moderate amount of interest or at least same as what CPF board is offering. When the minimum sum kicks in on 1st April 08, is it true that she can't invest all the 30k?
REPLY
Read this FAQ:
http://www.tankinlian.com/faq/savings.html
Risk of forex trading
Hi Mr. Tan,
Thank You for your valuable info in your blog. It enriched my financial knowledge.
Now, economy is under unstable condition. My friend recommended me to invest in forex trading. Kindly advise on the risk involved and other factors. I am still quite clueless on it.
REPLY
Do not engage in forex trading. It is risky. You are likely to lose a lot of money.
It is better to invest for the long term in a low cost, diversified investment fund. Read this FAQ:
http://www.tankinlian.com/faq/savings.html
Thank You for your valuable info in your blog. It enriched my financial knowledge.
Now, economy is under unstable condition. My friend recommended me to invest in forex trading. Kindly advise on the risk involved and other factors. I am still quite clueless on it.
REPLY
Do not engage in forex trading. It is risky. You are likely to lose a lot of money.
It is better to invest for the long term in a low cost, diversified investment fund. Read this FAQ:
http://www.tankinlian.com/faq/savings.html
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