I helped my three children to open an account with an online portal to invest in unit trust and a stockbroker to invest in shares. I will transfer some of my shares, REITS and unit trusts to them.
I want them to learn how to manage their own investments. This will encourage them to invest their own savings from their monthly salaries in shares and low cost unit trusts. These products, have low cost and are transparent.
During the visit to the online portal and stockbroker, they are given a hands-on guidance on how to manage their investments through the website. This is their first personal experience on investments.
They will learn how to take care of their investments, instead of relying on advisers who charges high fees that are not properly disclosed to the investor. I want them to avoid investing in high cost investment-linked plans that takes away two years of their savings.
I wish to encourage young people to visit an online portal (i.e. Fundsupermart, DollarDex, POEMS, DBS Vickers) to open an account and learn how to manage your investments through the portal.
I hope that parents with adequate savings, can can transfer some cash or shares to your children to start their personal investment accounts.
Tuesday, May 27, 2008
Compassionate Fines
Someone once said that Singapore is a “fine” city. We have a fine for littering, a fine for jay-walking, a fine for late payment of taxes, a fine for traffic offences and a fine for paying a fine late.
It is all right to have fines to impose discipline on the people. This is how Singapore gets the reputation of being a clean, orderly and safe city. It has its advantages.
However, in their zeal, the authorities may forget that their manner of imposing the fine can cause additional unintended hardship.
Read more about my article in the Online Citizen.
http://www.theonlinecitizen.com/
It is all right to have fines to impose discipline on the people. This is how Singapore gets the reputation of being a clean, orderly and safe city. It has its advantages.
However, in their zeal, the authorities may forget that their manner of imposing the fine can cause additional unintended hardship.
Read more about my article in the Online Citizen.
http://www.theonlinecitizen.com/
Collective Protect - Action
If you wish to send more signature, you can continue to do so. You can mail to me, or send it to kinlian@gmail.com.
You can get the Collective Protest from from: http://www.tankinlian.com/faq/collectiveprotest.html
You can get the Collective Protest from from: http://www.tankinlian.com/faq/collectiveprotest.html
Duplicative coverage
COMMENT POSTED IN MY BLOG
I have a friend who gave up Medishield because she has company medical benefit.At age 50, she contracted breast cancer, the company medical paid for her treatment. She left her job at 55, and because of her breast cancer, though in remission, she is not able to get a Shield Plan. Now she contracted liver cancer and is not covered by any medical insurance. So whether to insure the Shield Plan when employed with medical benefit or not, is really something to think much harder.
.said
REPLY
The coverage for medical expenses is already provided by the company. The insurance adviser is advising these employees to buy an Enhanced plan (costing $200 or more a year) just to cover the small risk of not getting continuing insurance after leaving a job. This cost is too high for the risk.
Soon, there will be a cheaper way to get this type of protection. For example, the company medical plan can be taken with an insurance company that offers the continuity of cover.
The employees do not have to buy their personal Shield coverage. They can cancel their existing coverage. This will save $200 or more yearly for the employee. The saving can be invested to get additional money for retirement (instead of being wasted on a cover that is mostly unnecessary).
I have a friend who gave up Medishield because she has company medical benefit.At age 50, she contracted breast cancer, the company medical paid for her treatment. She left her job at 55, and because of her breast cancer, though in remission, she is not able to get a Shield Plan. Now she contracted liver cancer and is not covered by any medical insurance. So whether to insure the Shield Plan when employed with medical benefit or not, is really something to think much harder.
.said
REPLY
The coverage for medical expenses is already provided by the company. The insurance adviser is advising these employees to buy an Enhanced plan (costing $200 or more a year) just to cover the small risk of not getting continuing insurance after leaving a job. This cost is too high for the risk.
Soon, there will be a cheaper way to get this type of protection. For example, the company medical plan can be taken with an insurance company that offers the continuity of cover.
The employees do not have to buy their personal Shield coverage. They can cancel their existing coverage. This will save $200 or more yearly for the employee. The saving can be invested to get additional money for retirement (instead of being wasted on a cover that is mostly unnecessary).
Logic9 (Sudoku)
Sudoku is a popular game. It appears daily in Today paper and in MyPaper. It appears in the Sunday Times.
You can learn the tips of how to solve the Sudoku puzzle at all levels, including the difficult ones, from:
http://www.tankinlian.com/logic9/
Look for Tips to Play Logic9. You can also practice these tips by Play.
This link is also available from the right panel under the heading Logic9 (Sudoku).
You can learn the tips of how to solve the Sudoku puzzle at all levels, including the difficult ones, from:
http://www.tankinlian.com/logic9/
Look for Tips to Play Logic9. You can also practice these tips by Play.
This link is also available from the right panel under the heading Logic9 (Sudoku).
Bad experience with insurance advisers
Dear Mr Tan,
I had a bad experience with my previous financial adviser who asked me to buy a expensive policy. I have lapse my policy as I find it too expensive and not practical.
I am a 28 years old, single. I do not want to spend too much in paying for higher premium. I know that Term Insurance is the most ideal. Which is better - Level or Decreasing Term?
My financial adviser recommended me a Term Insurance cover up to age of 65. I will be covered after 65 without paying premium. The premium is about $108.00 per month. The sum assured is $60,000. Is it good?
I have a NTUC M Incomeshield (previous known as MediShield) policy. My current financial adviser has advised me to top up $120 per year to enhance the coverage. I am also covered under my company insurance.
REPLY
It is best for you to ask a few insurance companies to quote to you the premium for term insurance. Read this FAQ:
http://www.tankinlian.com/faq/termd.html
Here are some benchmark rates for your reference:
http://www.tankinlian.com/faq/benchmark.html
The adviser is dishonest. He or she is selling a high cost whole life policy with premium payable up to age 65, and telling you that it is a low cost term insurance. If you buy a decreasing term insurance, you need to pay a much smaller premium.
As you are covered under your company scheme, there is no need for you to buy the enhanced plan.
You can lodge a complaint against these two advisers for giving you bad advice.
I had a bad experience with my previous financial adviser who asked me to buy a expensive policy. I have lapse my policy as I find it too expensive and not practical.
I am a 28 years old, single. I do not want to spend too much in paying for higher premium. I know that Term Insurance is the most ideal. Which is better - Level or Decreasing Term?
My financial adviser recommended me a Term Insurance cover up to age of 65. I will be covered after 65 without paying premium. The premium is about $108.00 per month. The sum assured is $60,000. Is it good?
I have a NTUC M Incomeshield (previous known as MediShield) policy. My current financial adviser has advised me to top up $120 per year to enhance the coverage. I am also covered under my company insurance.
REPLY
It is best for you to ask a few insurance companies to quote to you the premium for term insurance. Read this FAQ:
http://www.tankinlian.com/faq/termd.html
Here are some benchmark rates for your reference:
http://www.tankinlian.com/faq/benchmark.html
The adviser is dishonest. He or she is selling a high cost whole life policy with premium payable up to age 65, and telling you that it is a low cost term insurance. If you buy a decreasing term insurance, you need to pay a much smaller premium.
As you are covered under your company scheme, there is no need for you to buy the enhanced plan.
You can lodge a complaint against these two advisers for giving you bad advice.
Questions on Life Annuity
Dear Sir,
After reading through your website, I have some doubts about the benefits of annuities.
1. Are the monthly payouts inflation proofed? If not S$1 is not worth so much in 20+ years.
2. Are there any tax benefits?
3. Are there any early cancellation costs?
4. How does the return compare with say STI ETF's over 20years?
5. Funds are locked in?
6. What are the exact costs as compared to say holding Equities for the same period?
It seems not to be so easy for the average person to gauge the exact returns over the life of the annuity. In such case only the sweet parts are mentioned to attract allay peoples fears. I would appreciate your view on my comments.
REPLY
My views are expressed in this FAQ:
http://www.tankinlian.com/faq/life.html
After reading through your website, I have some doubts about the benefits of annuities.
1. Are the monthly payouts inflation proofed? If not S$1 is not worth so much in 20+ years.
2. Are there any tax benefits?
3. Are there any early cancellation costs?
4. How does the return compare with say STI ETF's over 20years?
5. Funds are locked in?
6. What are the exact costs as compared to say holding Equities for the same period?
It seems not to be so easy for the average person to gauge the exact returns over the life of the annuity. In such case only the sweet parts are mentioned to attract allay peoples fears. I would appreciate your view on my comments.
REPLY
My views are expressed in this FAQ:
http://www.tankinlian.com/faq/life.html
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