Saturday, April 5, 2008
Dollar Averaging
Hi Mr Tan,
I have an investment link policy. My advisor has advised me to invest on a yearly basis to enjoy better allocation rates (i.e. at the moment, I am doing regularly investment on a yearly basis).
My question is for dollar cost averaging to work best (i.e. for long term investment), it is advisable to invest on yearly or monthly basis? You advice is appreciated.
REPLY
Both methods should produce neutral results. The effect of dollar averaging depends on the level of the market at the time of each investment
It is more important for you to buy an ILP that invest 100% of your annual or monthly premium. Do not buy an ILP that takes away two years of your savings.
Read this FAQ:
http://www.tankinlian.com/faq/ilp.html
I have posted two cases in my blog of policyholders who were shocked to discover that after investing over $2000 for 2 years, they cash value is less than $400 today. You should not fall into the same trap.
I have an investment link policy. My advisor has advised me to invest on a yearly basis to enjoy better allocation rates (i.e. at the moment, I am doing regularly investment on a yearly basis).
My question is for dollar cost averaging to work best (i.e. for long term investment), it is advisable to invest on yearly or monthly basis? You advice is appreciated.
REPLY
Both methods should produce neutral results. The effect of dollar averaging depends on the level of the market at the time of each investment
It is more important for you to buy an ILP that invest 100% of your annual or monthly premium. Do not buy an ILP that takes away two years of your savings.
Read this FAQ:
http://www.tankinlian.com/faq/ilp.html
I have posted two cases in my blog of policyholders who were shocked to discover that after investing over $2000 for 2 years, they cash value is less than $400 today. You should not fall into the same trap.
ILP policy takes away most of the premiums
Dear Mr. Tan,
I've bought an ILP policy. My premiums are $1200 per year and have paid it for two years. I has cash value of about $310 now. The sum insured is 100k. It is a yearly premium and the third one is going to be due soon.
After reading about the charges and feasibility of ILPs, I'm sceptical that I should keep this policy. Would you advise me to give it up or continue with it?
REPLY
I suggest that you ask the insurance company about the charges for the next three years, i.e. what percentage of your premium will be invested. If the charges are small, it is probably better for you to continue the policy, as you have already incurred most of the front end charges.
It is quite sad that an insurance company can take away so much of a person's savings. You should tell your family and friends to avoid this type of policy in the future.
I intend to get a new life insurance company to introduce an ILP that has no front end charge. 100% of the premium will be invested. Tentativelyly, this is called the Wealth Accumulator.
Read this FAQ:
http://www.tankinlian.com/faq/low.html
I've bought an ILP policy. My premiums are $1200 per year and have paid it for two years. I has cash value of about $310 now. The sum insured is 100k. It is a yearly premium and the third one is going to be due soon.
After reading about the charges and feasibility of ILPs, I'm sceptical that I should keep this policy. Would you advise me to give it up or continue with it?
REPLY
I suggest that you ask the insurance company about the charges for the next three years, i.e. what percentage of your premium will be invested. If the charges are small, it is probably better for you to continue the policy, as you have already incurred most of the front end charges.
It is quite sad that an insurance company can take away so much of a person's savings. You should tell your family and friends to avoid this type of policy in the future.
I intend to get a new life insurance company to introduce an ILP that has no front end charge. 100% of the premium will be invested. Tentativelyly, this is called the Wealth Accumulator.
Read this FAQ:
http://www.tankinlian.com/faq/low.html
Friday, April 4, 2008
Makeover of Orchard Road
I read about the $40 million makeover of Orchard Road.
Here are my wishes for this project:
a) Have a second level covered walkway to allow people to connect the whole stretch of Orchard Road. This can be linked to all the buildings.
b) Build a light monorail to run down Orchard Road connected to the walkway.
c) Have large multi-storey carparks on the fringe of Orchard Roads, connected to the monorail.
This will reduce the traffic congestion on Orchard Road. It will make shopping in Orchard Road more pleasant.
Here are my wishes for this project:
a) Have a second level covered walkway to allow people to connect the whole stretch of Orchard Road. This can be linked to all the buildings.
b) Build a light monorail to run down Orchard Road connected to the walkway.
c) Have large multi-storey carparks on the fringe of Orchard Roads, connected to the monorail.
This will reduce the traffic congestion on Orchard Road. It will make shopping in Orchard Road more pleasant.
Change of address
The authority now requires a resident to provide documentary proof for a change of address in the NRIC records. The documents could be a bill sent to the resident in the new address. This can caused timing problem.
I wish to suggest a practical solution. The new resident can ask two neighbours to be witnesses to the residency. The neighbours particulars can be provided for the authority to make the verification.
This is simple and effective. It also encourges the new resident to knock on the doors of the neighbours.
I wish to suggest a practical solution. The new resident can ask two neighbours to be witnesses to the residency. The neighbours particulars can be provided for the authority to make the verification.
This is simple and effective. It also encourges the new resident to knock on the doors of the neighbours.
Local Bus Services
I wish to introduce the concept of local bus services. I propose that it operates as follows:
a) Use light buses
b) Runs a specific route in a town
c) Uses the existing bus stops
d) Actively publicised through maps at bus stops
e) Operated by small operators
f) Licences to be given based on service level and commuter demand
g) Can be exempted from road tax and ERP, so as to bring down the cost for commuter
h) Fares to be controlled
Some taxi drivers may be interested to be operators of these light buses. This will reduce cost and create a more efficient public transport system.
a) Use light buses
b) Runs a specific route in a town
c) Uses the existing bus stops
d) Actively publicised through maps at bus stops
e) Operated by small operators
f) Licences to be given based on service level and commuter demand
g) Can be exempted from road tax and ERP, so as to bring down the cost for commuter
h) Fares to be controlled
Some taxi drivers may be interested to be operators of these light buses. This will reduce cost and create a more efficient public transport system.
Premium Bus Services
Is there a website that shows all the premium bus services that are available in Singapore?
It should show the pickup areas, drop off points, and the fares. Commuters can have an easy acces to the information instead of searching the many websites of the operators.
I hope that Land Transport Authority can be the central source of this information.
It should show the pickup areas, drop off points, and the fares. Commuters can have an easy acces to the information instead of searching the many websites of the operators.
I hope that Land Transport Authority can be the central source of this information.
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