Tuesday, March 30, 2010

Stop running around; insurance is just a click away

In various aspects of one’s life, insurance is more of a legal necessity rather than an option. And in today’s day and age, very few have the time and patience to go through various options available in the market. Even if one is aware of these options, there might be a shortage of time to get involved in loads of paperwork required to get oneself a good deal. Enter Campbell Solberg Associates (CSA).

This independent insurance agency has been in business since 1940s. Being in this business, one can easily term it as a seasoned veteran of the insurance business. Insurance options for individuals and business houses are available at Campbell Solberg Associates. And the variety of insurance options available at Campbell Solberg Associates is amazing. Right from more traditional insurance options like home insurance and jewelry insurance to new options catering to latest demands like flood insurance coverage, umbrella insurance policies and car theft insurance.

At Campbell Solberg Associates one does not need to go through the offers of various insurance companies. Campbell Solberg Associates does all the running around for its customers and gets them quotes and offers which specifically cater to their needs and requirements. For example, if one is interested in disability insurance, one just needs to fill a fairly simple online form at www.campbellsolberg.com. All the options pertaining to disability insurance offers within your state will be in front of you in no time. Needless to say, Campbell Solberg will be with you in every step of the way to assist you choosing the right option for you. This saves you a lot of time and still helps you get the best from the insurance market.

Campbell Solberg Associates is well aware that while choosing an independent insurance agency, one does look for a compassionate partner who can be trusted and deals with absolute transparency. The whole process at Campbell Solberg is based on the same sentiment where finding best solutions for problems faced by customers and clients is paramount importance.

To facilitate better understanding of insurance processes, Campbell Solberg website contains loads of information on car theft insurance, various umbrella insurance policies and new insurance options such as flood insurance coverage.

All thanks to Campbellsolberg, now opting for the best insurance in any sphere is just a click away. One can be assured to find the best insurance solutions without running around town.

For more information independent insurance agency, flood insurance coverage and car theft insurance visit http://campbellsolberg.com/

Old fashion investment advice

Jack Bogle has been giving the same advice for 50 years. Read this article.

His advice, in short: Invest consistently and for the long haul in a widely diversified portfolio of stocks and bonds. Pay attention to taxes and costs. But leave your investments alone.

Day trading is a bad idea

Read this article. This includes day trading in the stock broker's office.

15 money rules for children

Read this article.

UK - Bank staff mis-selling to be scrutinized under government plans

By Victoria Bischoff  25 March 2010


Financial services firms that force staff to promote and sell products to consumers in order to meet sales targets will be reformed, under plans revealed in the budget this week.


The government has said it will set up a ‘working group’ to consider how staff targets and incentives might lead to poor outcomes for consumers and employees.


This is building on the Retail Financial Services Forum’s remit to make financial services work better for consumers.


The group will meet with a number of banks, consumer groups and trade unions, to discuss the need for reform, before reporting to the Chancellor in time for the Pre-Budget Report.


Unite Union has welcomed this investigation into bank sales culture, describing it as a ‘victory’ for staff in banks across the UK.


Rob MacGregor, Unite national officer said: ‘There is now an opportunity to eradicate the murky practices which put pressure on staff and customers. This new examination by the Government is a win for consumers and a win for those workers on the front line of the banking sector.’


‘Unite members feel uncomfortable with having to pressure customers to invest in products which they often don’t feel they need, simply because the staff have to meet unreasonable sales targets,’ he added.


Consumer champion Which? recently sent out mystery consumers to 37 branches of banks and building societies, and found just four gave consumers good advice to consumers investing a lump sum. Meanwhile, the remaining 33 banks often recommended inappropriate products, failed to properly explain the risks or simply couldn’t get the basics of good advice right.


Which? chief executive, Peter Vicary-Smith, said: ‘Banks and building societies need to buck up their ideas and make sure that their sales practices don’t exploit consumers by encouraging their staff to recommend inappropriate products’.


A spokesperson for the British Banker’s Association said they are not currently aware of any invitation to the new group on remuneration and incentives, but they will be pleased to participate if asked.

Estate duty in US on non-residents

Dear Mr Tan
I'm a keen follower of your blog and appreciate your efforts in educating the public on financial planning.

I attended a will writing talk recently and was informed that the US estate tax on assets such as stocks bought in the NYSE can be as high as 55%!  I have invested quite a bit in the ETFs listed on the NYSE and needless to say, I was quite stunned to hear about that.  I did some research about this and it seems there is an exemption provided the total value of assets owned is less than US$60,000 based on fair market value.

I have asked my broker about this, but they claimed that there won't be any estate duties on US stocks.  But this doesn't seem to be the case based on what is stated on these 2 sites:


http://www.ifa-sg.com/abolishment-estate-duty/ (opinion from a local Independent Financial Advisor)

If this estate tax does apply to Singaporeans owning US stocks, you might want to blog about this to inform the public as I believe there are quite a number of people who own them but are not aware of the tax.

REPLY
 I am not familiar with estate duty in US on non-resident. I shall post your email in my blog and see if there is some response from the experts.

Practical Guide on Financial Planning

Nearly 1,000 copies of the book has been sold during the past few weeks. All my stock in the office has run out. I have to retrieve some stock from FISCA, while waiting for the re-print. They are still available at most bookstores.

The response to this book has been better than expected. Most people sent me their feedback that they find the book to be easy to read and useful.

Order here.

Customer service at call center

Here is a simple way for any call center to improve its customer service.

If the call center staff meets with a problem that they cannot answer (which represents about 10% of incoming calls), they should record the nature of the problem and the contact of the customer. This call should be passed to a specialist to call back the customer.

This method will improve customer service significantly. It will also improve life for the staff handling the incoming calls.

Tan Kin Lian

Educate the public and decision makers

The postings in my blog are intended to educate the public and the decision makers on various issues involving financial, social and economic matters affecting the future of our country, including productivity, quality of service and treatment of the public.

I believe that the decision makers are monitoring this blog and that my postings, together with the comments, will be read by them. (For example, where I have made factual errors, these have been politely corrected in my blog from knowledgeable people - posting anonymously). I have also forwarded some of these postings to the relevant decision makers. The mainstream media also took up some of these points and contacted me for more information.

Some cynical people asked, "what is the point of making complaints in this blog?" Their cynical attitude is  wrong - this is not a place for complaints, but is a place for positive contribution to educate the public and decision makers and improve the quality of life in Singapore.

There are many things that are not moving in the right direction in Singapore, as the decision makers are out of touch with the reality. I hope that this blog will help to bring these points to their attention.

For example, I have posted articles about how other countries approach their issues, especially where their approach is different from Singapore. I hope that this will allow the public and decision makers to consider the merits of the different approaches.

Tan Kin Lian

Australian Associated Press Financial News Wire: Lehman's victims seek damages following High Court decision

LEHMAN MELBOURNE, March 30 AAP - Local councils and other investors who suffered losses of over $600 million from Lehman Brothers Australia Ltd's liquidation can still seek damages following a decision by the High Court of Australia.

The High Court on Tuesday dismissed two appeals against a judgment of the Federal Court of Australia which found that a deed of company arrangement approved by Lehman Australia's creditors on June 12, 2009, was void and of no effect.

Reasons for the decision will be delivered at a later date, the Court said in a statement.

The decision against Lehman Brothers Asia Holdings and Lehman Brothers Holdings Inc means investors in Lehman Australia and other companies in the Lehman Group can commence litigation to recover hundreds of millions of dollars in losses.

The investors, including about 90 local councils, are owed over $600 million in investments that went bad following Lehman Brothers' collapse in New York in September 2008 under debts of $613 billion.

Lehman's collapse was the the biggest US bankruptcy in history, and subsidiaries around the world followed suit as their source of funding disappeared during the credit crisis of September 2008.

Listed litigation funder IMF (Australia) Ltd on Tuesday said claims made by 70 of its clients against Lehman Australia now would proceed following the High Court's decision.

The decision confirms that the deed is ineffective and Lehman Australia will remain in liquidation, IMF said in a statement.

The deed was proposed in early 2009 by Lehman Brothers Asia Holdings, Lehman Australia's single biggest creditor, which itself went into liquidation. The deed was recommended by Lehman's administrators, Stephen Parbery and Neil Singleton of liquidation firm PPB.

Wingecarribee council and others had begun legal action against the investment bank, arguing Lehman Australia engaged in misleading and deceptive conduct.

Wingecarribee council crystallised its losses of $4 million by selling its soured investment products.

At the time, Mr Singleton told AAP that the deed should bring litigation to an end.

"The benefit of that is it enables us to pay the employees and general creditors in full, early, and it provides a very reasonable return to the contingent creditors (the former investors including councils and charities)," he said on May 28, 2009.

But several creditors of Lehman Australia later later brought proceedings before the Federal Court claiming they were not bound by the deed and that it would extinguish their rights to sue other companies in the Lehman Group.

On September 25, 2009, the Federal Court found that the deed was void and of no effect, before ordering that Lehman Australia be wound up by the Court.

Lehman Asia and Lehman Brothers Holdings Inc then appealed the decision in the High Court.

Western Australia Business News: Councils win Lehman court case

Councils and charities involved in the collapse of Lehman Brothers Australia have had a win in the High Court today.

Litigation funder IMF (Australia) said the High Court dismissed an appeal against a Federal Court judgement that found the deed of company arrangement approved by creditors of Lehman Bros Australia was void and of no effect.

"It was argued by the Councils seeking to have the DOCA set aside that the DOCA was unfair and particularly prejudicial to the interests of those creditors with damages claims against Lehman Australia, principally being the local councils, charities and other investors in collateralised debt obligations marketed by Lehman Australia," IMF said.

"In particular, the councils argued that the DOCA could not contain terms which required creditors to release claims against other Lehman Group companies."

The High Court win now paves the way for the councils and charities, as clients of IMF to proceed action against Lehman Australia and other companies within the group.

The City of Melville was one council which used to be advised by Lehman and had paid more than $20 million for a portfolio of CDOs.

Stability and choice

This political situation in Tunisia is described to me by my host in Tunisia. The current government in Tunisia has been in power for many years and has produced stability and economic progress. The government has strong links to most of the organisations in the country, that it is difficult for other political parties to compete with the ruling party. The people are not unhappy with the current situation but they would prefer to have more freedom and choice. There is much similarity with the situation in Singapore.

Tan Kin Lian