Sunday, May 9, 2010

Bank charges

I have to pay USD100 to Hong Kong. The bank charge $20 for cable charge and $10 for handling fee. Western Union (through the Post Office) also charge $30. This amounts to 20% of the amount to be paid. I asked the supplier to collect by credit card or Paypal. I hope that they agree.

Survey: Puzzles to train your mind

If you have practiced on the shape quiz or tangram, please take part in this survey.

Feedback on my book

If you have bought my financial planning book, please give your feedback here.

Pricing of HDB flats

Read this article in The Online Citizen.

My comments
I prefer to give an option to the public to buy the HDB flats at cost plus or at market price (less subsidy). Both types are subject to their conditions. This is similar to executive condo (EC) flats that are subject to conditions which are different from private condos.

The option to buy HDB flat at cost plus may suit some young people who looks at the flat as a home, rather than as an investment. They want to pay a lower price to keep down the cost of living.

Visitors' ICs should not be retained

Publised in Straits Times Forum, 10 May 2010
MANY building owners in Singapore require a visitor to exchange his identity card (IC) for a visitor's pass.
The intent is to ensure that he returns the pass. It also serves as a security measure.
However, there is a risk of loss or mis-use of the IC when it is retained in this manner.
As a visitor, I have to take care of many other matters relating to my visit. Standing in a long queue to get back my IC adds to the hassle.
I hope building owners respect the right of people to visit their premises to conduct business. They should not be allowed to retain a visitor's IC.
Tan Kin Lian

Amount of Life Insurnace

This article explains the amount of life insruance that you need. In my book on financial planning, I suggest that the amount should be 5 to 10 years of your current income. You can buy a large amount of cover at a low cost by choosing term insurance for 25 years (not longer). If you can get decreasing term insurance, it is even cheaper.

Most people in Singapore can buy cheap term insurance through the SAF, SAFRA, NTUC or Public Officer's scheme.

Tan Kin Lian

Commission for life insurance agents

A life insurance agent argued that the agent has to incur high expenses and deserve the commission that is paid. This is only one part of the story, as seen from the perspective of the agent.

The agent should also see this issue from the perspective of their client. The agent has a duty to take care of the interest of the client. This includes recommending a suitable life insurance product that is good for the client. In the case of an investment plan, there is a duty to advice a plan that offers a fair return for the long term savings. In the case of a term insurance policy, the agent has to recommend a policy that charges a fair rate of premium (but does not need to be the lowest).

The problem arises when there is a conflict of interest. Many agents recommend a policy that pays a high  commission but this is at the expense of the client (who trusted the agent). The agent is trained to give the marketing  reasons to sell the policy, but they are not honest advice.

Some insurance agents behave worse. They approach the client every few years to get the client to stop an existing policy and take up a new "better" product. The agent earns the high commission once again, and the unsuspecting client is being taken "for a ride" and to incur a high cost again. This is how the financial future of many consumers are destroyed by the bad advice given by some unscrupulous agents.

There are some agents that behave ethically and recommend honest products that are good for consumers. The difficulty is for the consumer to tell one agent from another. This is why consumers have to be educated about insurance. My book on financial planning is aimed at achieving this goal. There is a chapter about dealing with financial advisers or insurance agents.

Several countries are now implementing legislation to ban the payment of commission on life insurance products. The agent has to earn a fee to provide financial advice to the consumer. Singapore should follow the same step, to safeguard the financial future of the ordinary people.

Tan Kin Lian

Doing things in Singapore

Comment posted in this blog. I invite readers to contribute to this topic.
We should compile a list of difficult and complicated ways to do simple things in Singapore. Here is my initial attempt to get the ball rolling:
1. Taxi fares
2. Buying a car
3. Buying an HDB lease
(legally, your HDB flat belongs to the government. What? You think the government is actually upgrading your flat/estate for free? It's you who is subsiding the estate upgrading since the estate and flat does not belong to you)
4. Our primary school textbooks and exams
5. getting a meaningful job when you are retrenched in your 40's
6. calculating the cost of constructing an HDB flat
7. listing and calculating the value of Singapore assets and reserves so that the Singapore President will know how to protect them

Life today compared to four years ago

This article by Lucky Tan compares life in Singapore now and four years ago.

Free lance "sales manager"

I searched for a GPS tracker from the Alibaba website and found many suppliers in China. I sent an e-mail to a few suppliers. I received two replies on Sunday from the same person, replying on behalf of two different companies in Shenzhen.

I suspect that this person is a freelance "sales manager" whose role is to reply to inquiries.  It seems to be an entrepreneurial approach and also excellent customer service. I hope that companies in Singapore adopt the same approach and employ such "sales managers". It will create job for unemployed people.

Taxi surcharges

A taxi driver told me that Marina Bay Sands is outside the CBD and does not attract the surcharge. Taxi drivers are not interested to pick up the passengers there. There is a long queue of people waiting for taxis. To solve this problem, the taxi companies have applied to Land Transport Authority to designate this location as subject to surcharge. The public is not happy, as the surcharge is now being extended to more areas.

We have a confusing system of taxi fares in Singapore. It may be better to follow the practice in other countries where there is a flat fare (which may be higher than the existing fares) and no surcharge for peak hours or certain locations.

A friend from Malaysia told me that he had difficulty in getting a taxi in Singapore. He had visited Singapore before, and it was easier to get a taxi many years ago. I told him that he probably tried to get a taxi during the time before the peak hour surcharge applies. It seems that many taxi drivers will disappear during this period and will reappear at the peak hour.