I get requests from the public for my views on whether a certain insurance product is suitable for them. I advise them on the following:
a) Ask the agent to provide the benefit illustration to you
b) Ask the agent to explain the full contents of the benefit illustration
c) Insist on a clear explanation on every item in the benefit illustration
d) No not buy the policy until you are convinced that it clearly meets your needs and provide good value for money.
e) Look at the distribution cost and effect of deduction (as explained in my book on financial planning)
I find that most life insurance policies provide poor value as an investment product and should be avoided. I have looked at many benefit illustrations and they tend to confirm my general impression that these products are:
a) high cost
b) give poor value to consumers
c) have a lot of vague and unreliable projections
The only ife insurance policy that you should buy are term insurance for a duration of up to 25 years. These points are explained in my book. I urge you to read my book, rather than ask me to give my views peculiar to the products that is being sold to you.
You can buy my books online at http://www.easysearch.sg/
Tan Kin Lian
Tuesday, April 27, 2010
Valuation of a property
This writer said that the bank officer indicated that the valuer will value the property at a higher price to get a bigger loan.
http://www.straitstimes.com/STForum/OnlineStory/STIStory_519799.html
My comment
The buyer should avoid paying a high price for the property as this means a higher monthly repayment over many years. Pay a price that is within your earning capacity (i.e. not more than 5 years of your family income). This is explained in my book, Practical Guide on Financial Planning.
http://www.straitstimes.com/STForum/OnlineStory/STIStory_519799.html
My comment
The buyer should avoid paying a high price for the property as this means a higher monthly repayment over many years. Pay a price that is within your earning capacity (i.e. not more than 5 years of your family income). This is explained in my book, Practical Guide on Financial Planning.
Experience with Property Agent
Dear Mr Tan,
The property market here is so sh.... lately. I relate to you of my latest experience with one of the agents from a well known real estate company.
I called one of their agents to ask for a particular new condo in a hot area which my son is interested in.This agent called me and lied to me that he has a unit and quoted me a unit price which I feel was quite attractive. We then arrange for an appointment to meet at the site, but this is all bxxxx, as he does not have the unit but want to test the demand for this place. They want to escalate the market.
Very nicely, he fixed an appointment with me, but when the day comes he called me to say that the demand is overwhelming, the price he quoted earlier is no longer valid and he cannot deliver, his colleagues have sold the units in this locality at a much higher price. Please help everybody not to fall into this kind of trap by the housing estate agents.
ET
The property market here is so sh.... lately. I relate to you of my latest experience with one of the agents from a well known real estate company.
I called one of their agents to ask for a particular new condo in a hot area which my son is interested in.This agent called me and lied to me that he has a unit and quoted me a unit price which I feel was quite attractive. We then arrange for an appointment to meet at the site, but this is all bxxxx, as he does not have the unit but want to test the demand for this place. They want to escalate the market.
Very nicely, he fixed an appointment with me, but when the day comes he called me to say that the demand is overwhelming, the price he quoted earlier is no longer valid and he cannot deliver, his colleagues have sold the units in this locality at a much higher price. Please help everybody not to fall into this kind of trap by the housing estate agents.
ET
US Congress - Goldman Sachs
Mr. Tan Kin Lian,
There is another more interesting news on the Goldman investigation. The e-mail record of Fabrice Tourre is quite telling. He is the 31-year old nicknamed "Fabulous Fab" who brokered the deal. You may read the link (http://money.cnn.com/2010/04/26/news/companies/Tourre_Goldman/index.htm)
Quote
In an even more blunt description, Tourre calls the CDOs he produced "intellectual masturbation" and likens himself to Dr. Frankenstein. "When I think that I had some input into the creation of this product (which by the way is a product of pure intellectual masturbation, the type of thing which you invent telling yourself: 'well, what if we created a 'thing', which has no purpose, which is absolutely conceptual and highly theoretical and which nobody knows how to price?") it sickens the heart to see it shot down in mid-flight...It's a little like Frankenstein turning against his own inventor ;)"
Unquote
From CASHEW NUT
There is another more interesting news on the Goldman investigation. The e-mail record of Fabrice Tourre is quite telling. He is the 31-year old nicknamed "Fabulous Fab" who brokered the deal. You may read the link (http://money.cnn.com/2010/04/26/news/companies/Tourre_Goldman/index.htm)
Quote
In an even more blunt description, Tourre calls the CDOs he produced "intellectual masturbation" and likens himself to Dr. Frankenstein. "When I think that I had some input into the creation of this product (which by the way is a product of pure intellectual masturbation, the type of thing which you invent telling yourself: 'well, what if we created a 'thing', which has no purpose, which is absolutely conceptual and highly theoretical and which nobody knows how to price?") it sickens the heart to see it shot down in mid-flight...It's a little like Frankenstein turning against his own inventor ;)"
Unquote
From CASHEW NUT
A social democracy
Some commenters in my blog described Mr. Lee Kuan Yew as a "communist". This description is not appropriate. Mr. Lee has fought against the communist after becoming prime minister of Singapore. His policy has always been anti-communist. He has put many alleged communists under detention without trial for as up to three decades.
One of the detainee is Dr. Lim Hock Siew. I first recognised this name on the signboard of a clinic in Balestier Road, near where I lived. At that time, I knew that Dr. Lim was detained because he was a member of the Barisan Socialis. I did not know of his background then.
Recently, I read an article about Dr. Lim after he was released from detention. He explained that his philosophy was for social justice. He advocated giving the people better wages, living conditions and a better life. They are the same type of values that I am advocating now. If this is what the communists advocate, it is not that bad after all.
http://www.youtube.com/watch?v=dqhr4wxUFws
Many people associate communism with oppressive regimes that are found in some countries around the world. But oppressive regimes can also be found in so-called democratic countries where the leaders abuse the state and military powers to retain their political dominance. The types of abuse vary in degree - in some cases they are subtle and in other cases, they are blatant.
We can also see countries that allow democracy adn free expression to get out of hand, leading to a breakdown of law, order and authority. This is also to be avoided.
My preference is a "social democracy". It is a truly democratic society where the will of the people is respected and the government is elected freely. The government promotes social justice through the regulation of the economy to promote a fairer distribution of wealth and opportunity and to prevent excessive accumulation of wealth by a small segment of the people, often by immoral means.
There are many examples of social democracies that have succeeded to give a good life to the people and have a high ranking in the quality of life indicators. They include several countries in Scandanivia and Europe, Canada and Australia. They become the top choice for migrants.
Tan Kin Lian
Quote from Lim Hock Siew's video
The future of socialism
After 50 years when the club was formed, the socialist movement all over the world has suffered a lot of setbacks and even defeats and some wonder whether we are still relevant. The recent economic crisis, the recent financial crisis, has once again exploded the corruption and immorality of the capitalist system and feel that human beings should deserve something better than a aystem that is generated by greed and by corruption,.
One of the detainee is Dr. Lim Hock Siew. I first recognised this name on the signboard of a clinic in Balestier Road, near where I lived. At that time, I knew that Dr. Lim was detained because he was a member of the Barisan Socialis. I did not know of his background then.
Recently, I read an article about Dr. Lim after he was released from detention. He explained that his philosophy was for social justice. He advocated giving the people better wages, living conditions and a better life. They are the same type of values that I am advocating now. If this is what the communists advocate, it is not that bad after all.
http://www.youtube.com/watch?v=dqhr4wxUFws
Many people associate communism with oppressive regimes that are found in some countries around the world. But oppressive regimes can also be found in so-called democratic countries where the leaders abuse the state and military powers to retain their political dominance. The types of abuse vary in degree - in some cases they are subtle and in other cases, they are blatant.
We can also see countries that allow democracy adn free expression to get out of hand, leading to a breakdown of law, order and authority. This is also to be avoided.
My preference is a "social democracy". It is a truly democratic society where the will of the people is respected and the government is elected freely. The government promotes social justice through the regulation of the economy to promote a fairer distribution of wealth and opportunity and to prevent excessive accumulation of wealth by a small segment of the people, often by immoral means.
There are many examples of social democracies that have succeeded to give a good life to the people and have a high ranking in the quality of life indicators. They include several countries in Scandanivia and Europe, Canada and Australia. They become the top choice for migrants.
Tan Kin Lian
Quote from Lim Hock Siew's video
The future of socialism
After 50 years when the club was formed, the socialist movement all over the world has suffered a lot of setbacks and even defeats and some wonder whether we are still relevant. The recent economic crisis, the recent financial crisis, has once again exploded the corruption and immorality of the capitalist system and feel that human beings should deserve something better than a aystem that is generated by greed and by corruption,.
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