My friend introduced this quiz to me. It measures your political leaning.
http://www.politicalcompass.org/test
My score: economic left (-6.75), social neutral (-0.10). I am quite close to Ghandhi and Nelson Mandela, but slightly less socially liberal compared to them.
Monday, February 8, 2010
Investing in an equity linked note
Dear Sir,
My bank give me an overdraft to invest in an Equity link note tied to a certain share with a 12% return based on a strike price and date. Now the share is trading at 0.82. Can I terminate the order to purchase. I was not given and risk disclosure or details about the product.
REPLY
I am not familiar with the terms of the contract. But, I believe that you can terminate the contract. Before you take this decision, ask the bank to give you a statement of your posItion showing:
- your loss, if you terminate the contract now
- chance of recovering the loss or the risk of making a further loss, if you continue the contract
The bank has the duty to advice you, as they recommended the product to you in the first place.
Get the facts before you make a decision.
My bank give me an overdraft to invest in an Equity link note tied to a certain share with a 12% return based on a strike price and date. Now the share is trading at 0.82. Can I terminate the order to purchase. I was not given and risk disclosure or details about the product.
REPLY
I am not familiar with the terms of the contract. But, I believe that you can terminate the contract. Before you take this decision, ask the bank to give you a statement of your posItion showing:
- your loss, if you terminate the contract now
- chance of recovering the loss or the risk of making a further loss, if you continue the contract
The bank has the duty to advice you, as they recommended the product to you in the first place.
Get the facts before you make a decision.
Shape Quiz - for children, adults, seniors
100 challenging shapes
Many hours of fun (for children and adults)
Train your mind to be flexible
For seniors, keep dementia away
Price $6 (with plastic pieces)
Enjoy 15% discount (net $5.10) under Promotion code - BLOG.
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Many hours of fun (for children and adults)
Train your mind to be flexible
For seniors, keep dementia away
Price $6 (with plastic pieces)
Enjoy 15% discount (net $5.10) under Promotion code - BLOG.
Order here.
Get the Benefit Illustration
Someone asked my views about the SAIL policy that is capital guaranteed. I do not know the features of this policy. I ask her to send the benefit illustration to me. I recall reading some negative comments about this policy but I do not know why.
Existing Life Insurance Policies
A few people have asked for my views on whether they should continue their existing life insurance policies, as the return is rather poor. I asked them to read this FAQ and get the relevant figures to make a decision.
Generally, it is better to continue with the existing policy. You have already incurred a high upfront cost during the first few years of the policy, which gave you a bad start. But, excluding the upfront loss (which you have to write off), the going-forward return should be better, maybe 3% to 4% per annum, compared to alternative investments.
Never give up an existing policy to buy a new life insurance policy. You will incur the upfront cost again. My insurance agent will tell you that a new policy is better. This is bad advice. It is also unethical, as they are earning a large commission again, at the expense of the client. This is called "twisting" and is illegal in some countries.
Tan Kin Lian
Generally, it is better to continue with the existing policy. You have already incurred a high upfront cost during the first few years of the policy, which gave you a bad start. But, excluding the upfront loss (which you have to write off), the going-forward return should be better, maybe 3% to 4% per annum, compared to alternative investments.
Never give up an existing policy to buy a new life insurance policy. You will incur the upfront cost again. My insurance agent will tell you that a new policy is better. This is bad advice. It is also unethical, as they are earning a large commission again, at the expense of the client. This is called "twisting" and is illegal in some countries.
Tan Kin Lian
Practical Guide on Buying A Property
Someone has asked me to write a book to give practical tips on purchasing a property for investment or own occupation. As this is a major commitment, they like to know how to find and decide if the property is at the right price. This is similar to my book on financial planning. A lawyer, who has many years of experience in dealing with property will co-author this book.
Here are some possible topics for this book:
1. Trend of property prices in Singapore - by various types
2. Analysing a property purchase
3. How to identify and find some suitable properties
4. Steps and costs involved in a property purchase
5. Renting a property
6. Comparison of property with other types of investments
7. Personal experiences (from contributors)
8. Tips to watch out for
9. Legal aspects of property
10. Sample legal agreements
11. Access to property websites
12. Appointing a property agent
What are your views on the topics to be included?
Do you have any story to share about your personal experience (positive or negative) in buying or investing in a property? Send your story to kinlian@gmail.com
Here are some possible topics for this book:
1. Trend of property prices in Singapore - by various types
2. Analysing a property purchase
3. How to identify and find some suitable properties
4. Steps and costs involved in a property purchase
5. Renting a property
6. Comparison of property with other types of investments
7. Personal experiences (from contributors)
8. Tips to watch out for
9. Legal aspects of property
10. Sample legal agreements
11. Access to property websites
12. Appointing a property agent
What are your views on the topics to be included?
Do you have any story to share about your personal experience (positive or negative) in buying or investing in a property? Send your story to kinlian@gmail.com
Peer pressure on long working hours
A friend told me this story. A Malaysian applied for a job in a bank in Singapore. He asked the HR manager, "If I finish my work, can I go home on time". The HR manager replied "yes".
It was a different situation after he started work. Many colleagues stayed in the office till late at night, even if they do not have work to do. It was peer pressure. When he leave work earlier, he heard negative comments from the colleagues.
This seemed to be the work pattern in Singapore. It is fashionable to work long hours. I wonder if this is true in other workplaces, or just in banks?
It was a different situation after he started work. Many colleagues stayed in the office till late at night, even if they do not have work to do. It was peer pressure. When he leave work earlier, he heard negative comments from the colleagues.
This seemed to be the work pattern in Singapore. It is fashionable to work long hours. I wonder if this is true in other workplaces, or just in banks?
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