Hello
I note this part from the Income's Chairman's speech:"Should the special bonus in future reduce due to adverse financial conditions, we are committed to restoring it when conditions improve."
That is good to know. But if that is the policy, why not do it for the annual bonus? It was cut in 2003 because of adverse financial circumstances. Since then, the company has done well, with returns averaging 7.8 per cent over the last 10 years.
So, why not put those words into practice: "...we are committed to restoring it when conditions improve."Conditions have improved. Where is the restored bonus?
Sincerely,
Larry Haverkamp
Thursday, June 5, 2008
Wednesday, June 4, 2008
Extract from speech by Income's chairman
Extract from the speech by chairman of Income, made at the annual general meeting on 30 June 2008:
Some policyholders have raised specific concerns on the special bonus in blogs. Allow me to address them.
> While special bonuses are not guaranteed, they are designed to ensure that the reduction in annual bonus is compensated. As I have indicated earlier, the new bonus structure is aimed at improving, the total payout to policyholders.
> Should the special bonus in future reduce due to adverse financial conditions, we are committed to restoring it when conditions improve.
> I have stated that this Board will look after the policyholders’ interests. Towards this end, the Board will ensure that the bonus allocated to policyholders result in payouts is fair and consistent with the experience of the Life Fund.
Some policyholders have raised specific concerns on the special bonus in blogs. Allow me to address them.
> While special bonuses are not guaranteed, they are designed to ensure that the reduction in annual bonus is compensated. As I have indicated earlier, the new bonus structure is aimed at improving, the total payout to policyholders.
> Should the special bonus in future reduce due to adverse financial conditions, we are committed to restoring it when conditions improve.
> I have stated that this Board will look after the policyholders’ interests. Towards this end, the Board will ensure that the bonus allocated to policyholders result in payouts is fair and consistent with the experience of the Life Fund.
Avoid switching to another high cost policy
Dear Mr. Tan,
I would like to seek your help and advice on the policies which i purchased from X a few years back. I am 25 years old and started work 2 years ago. I bought my first Protection policy in 2002. Later, I bought a Living policy in 2006.
Recently a few insurance agents advised me to terminate my policies with X. They said that I am paying a very high premium for my policies. Especially for the Living policy. Two agents from Y and Z offered an alternative policy at a lower premium.
I have been reading your blog and am curious if I am really paying a costly price for my policies under X? Due to the high living standard in Singapore, i would like to spend my money wisely and purchase the most competitive policy in the insurance market.
Should I terminate my policies with X and buy the policy recommended by Z? Is there any other alternatives which i can look into?
G
REPLY
As a general guide, you should not terminate a policy and buy a new policy from another agent. Each time that you buy a policy, the agent earns big commission that takes away two years of your savings. I suggest that you approach the insurance agent from X, and ask for his or her advice, on whether the agents from Y and Z are giving you proper advice.
If you wish to make a change, you should buy a low cost term insurance and invest your money in a low cost investment fund. Low cost means that there is no adviser who earns a lot of money from giving you the advice.
Read this FAQ:
http://www.tankinlian.com/faq/savings.html
I would like to seek your help and advice on the policies which i purchased from X a few years back. I am 25 years old and started work 2 years ago. I bought my first Protection policy in 2002. Later, I bought a Living policy in 2006.
Recently a few insurance agents advised me to terminate my policies with X. They said that I am paying a very high premium for my policies. Especially for the Living policy. Two agents from Y and Z offered an alternative policy at a lower premium.
I have been reading your blog and am curious if I am really paying a costly price for my policies under X? Due to the high living standard in Singapore, i would like to spend my money wisely and purchase the most competitive policy in the insurance market.
Should I terminate my policies with X and buy the policy recommended by Z? Is there any other alternatives which i can look into?
G
REPLY
As a general guide, you should not terminate a policy and buy a new policy from another agent. Each time that you buy a policy, the agent earns big commission that takes away two years of your savings. I suggest that you approach the insurance agent from X, and ask for his or her advice, on whether the agents from Y and Z are giving you proper advice.
If you wish to make a change, you should buy a low cost term insurance and invest your money in a low cost investment fund. Low cost means that there is no adviser who earns a lot of money from giving you the advice.
Read this FAQ:
http://www.tankinlian.com/faq/savings.html
Online Trading Platforms
Sir,
I refer to your blog entry on your subscribing to Fundsupermart: http://tankinlian.blogspot.com/2008/03/fundsupermart.html
I recommend that you check out the service provided by Phillips Capital (at http://www.poems.com.sg) as well. I have accounts on both, and I have noticed that POEMS sometimes has lower sale charges for their unit trusts. (I do not have vested interests in either companies and am speaking as an individual investor.)
As an example, Fundsupermart has a 2% sales charge for the DBS Shenton Global Opportunities fund. For POEMS, it is 1.5% (I think you need to have an account before you can see these details). Also, there are ways to get even lower charges on POEMS.
POEMS provides avenues to invest in ETFs in global markets and S'pore govt treasury bills, while Fundsupermart does not. Fundsupermart provides an avenue for investing in S'pore govt bonds, while POEMS does not.
One key downside about using POEMS is its (very) badly designed user interface, but I can live with that!
JT
I refer to your blog entry on your subscribing to Fundsupermart: http://tankinlian.blogspot.com/2008/03/fundsupermart.html
I recommend that you check out the service provided by Phillips Capital (at http://www.poems.com.sg) as well. I have accounts on both, and I have noticed that POEMS sometimes has lower sale charges for their unit trusts. (I do not have vested interests in either companies and am speaking as an individual investor.)
As an example, Fundsupermart has a 2% sales charge for the DBS Shenton Global Opportunities fund. For POEMS, it is 1.5% (I think you need to have an account before you can see these details). Also, there are ways to get even lower charges on POEMS.
POEMS provides avenues to invest in ETFs in global markets and S'pore govt treasury bills, while Fundsupermart does not. Fundsupermart provides an avenue for investing in S'pore govt bonds, while POEMS does not.
One key downside about using POEMS is its (very) badly designed user interface, but I can live with that!
JT
Tuesday, June 3, 2008
Give a better currency rate
I used to convert my Singapore dollars into foreign currency with my bank. I learned recently that the spread (i.e. difference between the buy and sell rate) is about 1.3% compared to 0.3% charged by an online stockbroker. The difference of 1% is for a two way trade. For one way, the difference is 0.5%.
If the amount is $100,000, the difference in charges of 0.5% is $500. I have to pay a TT fee of $10, so I can save $490 by going through the online stockbroker. I hope that my bank can give a better currency rate, so that I do not need to go through another source (which is quite troublesome).
If the amount is $100,000, the difference in charges of 0.5% is $500. I have to pay a TT fee of $10, so I can save $490 by going through the online stockbroker. I hope that my bank can give a better currency rate, so that I do not need to go through another source (which is quite troublesome).
Renewal of Motor Insurance
A few people found their motor insurance premium increased by 20% or more, on the renewal of the insurance this year. They did not make any claim during the past year. The increase was due to the escalating claim cost faced by the industry and the poor management of these claims.
They asked my advice on how to get a lower premium rate. I asked them to get a quote from the hotlines of the insurance companies shown in this FAQ:
http://www.tankinlian.com/faq/motord.html
A few consumers have found that India International (Tel: 6347 6100 Fax: 6225 7743) to offer the most attractive quote.
A few months ago, I visited their office to renew the motor insurance for my wife's car. I found their service to be satisfactory. The office environment is friendly. I asked about their claim procedure and was satisfied with it. The premium rate is almost 20% lower than the rate quoted by my existing insurer.
If you like to try, you can send a fax to India International for a quote. If the quote is competitive, you can visit their office and talk to the employee, before you decide to make a switch. You can send your feedback to me.
They asked my advice on how to get a lower premium rate. I asked them to get a quote from the hotlines of the insurance companies shown in this FAQ:
http://www.tankinlian.com/faq/motord.html
A few consumers have found that India International (Tel: 6347 6100 Fax: 6225 7743) to offer the most attractive quote.
A few months ago, I visited their office to renew the motor insurance for my wife's car. I found their service to be satisfactory. The office environment is friendly. I asked about their claim procedure and was satisfied with it. The premium rate is almost 20% lower than the rate quoted by my existing insurer.
If you like to try, you can send a fax to India International for a quote. If the quote is competitive, you can visit their office and talk to the employee, before you decide to make a switch. You can send your feedback to me.
Foreign currency conversion rate
Are you getting a good conversion rate when you buy and sell foreign currency, such as Australian dollar or British pound?
Look at the buy and sell rate. The difference is called the spread. This is the charge imposed by the bank to cover their expenses and profit. It is the cost incurred by the customer to convert from Signapore dollar into the foreign currency and to convert it back at a later date.
If the spread is less than 0.5%, it is a good rate. If it is more than 1%, it is too expensive.
I found the spread charged by a local bank to be as follows:
TT - telegraphic transfer
OD - on demand, i.e. currency notes
The spread is slightly lower for sums above $50,000
LOWER SPREAD AT POEMS.COM.SG
I found the spread on foreign currency at POEMS (Philips Securities) to be 0.3%. In the future, I will convert my money at POEMS and ask them to transfer it to a bank to place on fixed deposit.
Look at the buy and sell rate. The difference is called the spread. This is the charge imposed by the bank to cover their expenses and profit. It is the cost incurred by the customer to convert from Signapore dollar into the foreign currency and to convert it back at a later date.
If the spread is less than 0.5%, it is a good rate. If it is more than 1%, it is too expensive.
I found the spread charged by a local bank to be as follows:
TT OD
USD 1.1% 1.6%
Euro 1.1% 1.3%
GBP 1.3% 1.7%
AUD 1.6% 2.1%
NZD 1.7% 2.2%
Other 2.6% 3.4%
TT - telegraphic transfer
OD - on demand, i.e. currency notes
The spread is slightly lower for sums above $50,000
LOWER SPREAD AT POEMS.COM.SG
I found the spread on foreign currency at POEMS (Philips Securities) to be 0.3%. In the future, I will convert my money at POEMS and ask them to transfer it to a bank to place on fixed deposit.
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