Thursday, June 3, 2010
RED Map
I wanted to look for GSM building in Middle Road. I went to the RED map, type in "GSM" and found the map immediately. It is easy to use and fast to search. I found that the nearest MRT stations were Bras Basah and Bugis. RED map is available at: http://projects.easyapps.sg/propinfo/Map.aspx
Practical Guide on Financial Planning
I wrote this book to contain tips that are important to every person, from the time that a young person starts work to the later stages of life of raising a family and approaching retirement.
The tips cover:
- need to set aside savings
- investing the savings in a low cost fund
- avoiding structured and unregulated investments
- managing risks of volatile markets
- withdrawing savings during retirement
The book cost only $12 but you will need to spend 12 hours to read and understand the concepts. This can save you a lot of money later on, by avoiding the investments that are bad for you.
The book can be ordered online here. It is an excellent gift for young people who are starting work.
I also give a monthly talk on the key principles contained in this book. The talks are organised by FISCA. Many people attend the talk to ask questions that has been worrying them, especially on advice that were given to them by financial advisers.
Tan Kin Lian
The tips cover:
- need to set aside savings
- investing the savings in a low cost fund
- avoiding structured and unregulated investments
- managing risks of volatile markets
- withdrawing savings during retirement
The book cost only $12 but you will need to spend 12 hours to read and understand the concepts. This can save you a lot of money later on, by avoiding the investments that are bad for you.
The book can be ordered online here. It is an excellent gift for young people who are starting work.
I also give a monthly talk on the key principles contained in this book. The talks are organised by FISCA. Many people attend the talk to ask questions that has been worrying them, especially on advice that were given to them by financial advisers.
Tan Kin Lian
Lawyer to handle a complaint
Dear Mr. Tan,
I wish to engage a lawyer to handle my complaint on the Vista investment plan. I have not been properly adviced about the penalty charges on the early termination of this plan. This has caused me to lose a large part of the amount that I have invested. Can you recommend this lawyer?
REPLY
I am not able to give you a name right now. If I come across a lawyer that is interested to take this case, I will inform you.
I wish to engage a lawyer to handle my complaint on the Vista investment plan. I have not been properly adviced about the penalty charges on the early termination of this plan. This has caused me to lose a large part of the amount that I have invested. Can you recommend this lawyer?
REPLY
I am not able to give you a name right now. If I come across a lawyer that is interested to take this case, I will inform you.
Discounted value of bonus on life policy
Dear Kin Lian
I have a GE policy with bonus @ $14,000. Recently I applied to withdraw the bonus instead of cancelling the policy or take a loan. Apparently I am granted only @ $8,000.
I was informed that my sum assured still remain the same. What I am disturb about is what happen to the balance $6,000. Will I loose it totally just because I draw out $8,000.
REPLY
A bonus of $14,000 is the amount that is payable on the maturity date of the policy or on death. So, this is an amount payable many years into the future. If you wish to withdraw the bonus now, you will get the present value of the bonus, i.e. the discounted value. In your case, the discounted value is $8,000. This is probably a fair amount depending on the rate of discount used to compute it.
I have a GE policy with bonus @ $14,000. Recently I applied to withdraw the bonus instead of cancelling the policy or take a loan. Apparently I am granted only @ $8,000.
I was informed that my sum assured still remain the same. What I am disturb about is what happen to the balance $6,000. Will I loose it totally just because I draw out $8,000.
REPLY
A bonus of $14,000 is the amount that is payable on the maturity date of the policy or on death. So, this is an amount payable many years into the future. If you wish to withdraw the bonus now, you will get the present value of the bonus, i.e. the discounted value. In your case, the discounted value is $8,000. This is probably a fair amount depending on the rate of discount used to compute it.
General election - 2010 or 2011
A reader asked me to conduct a poll on the current government. I have already done the poll on a few occasions in the past year. I believe that the results would probably be the same. You can view the results here:
http://tankinlian.blogspot.com/search?q=general+election
http://tankinlian.blogspot.com/search?q=general+election
US Debt of USD 13 trillion
The debt of the US Federal government has readed USD 13 trillion, is 13 followed by 12 zeroes.
Many governments faced large debts amounting to a high proportion of the GDP. They include many countries in Europe, the UK and Japan. We have seen what happened with the Euro when Greece, Spain and now Hungary gets into trouble. It will be a matter of time, before the loss of confidence affects the US dollar. When that happens, there will be a bigger financial crisis.
I do not have an answer about what can be done to protect our savings from this impending disaster. Perhaps, the best form of investments is in productive assets, i.e. the shares of companies that run an operation and earns a profit. While the values of the shares may drop in a crisis, the company should continue to earn a profit and pay a dividend. If business is bad, the company can cut cost by reducing their workforce.
It is important to reduce debts. When a crisis hits, the banks will pull back the loans. Those who have borrowed money will have to sell assets at highly depressed prices to repay the loans. This will include borrowings to buy investment properties.
The prognosis for the global economy is discouraging. It reflects the failure of the capitalist and free market system. We do not need to revert to full socialism. A better model is a regulated market, fairer distribution of income and higher taxes for those that earn extreme incomes.
Tan Kin Lian
Many governments faced large debts amounting to a high proportion of the GDP. They include many countries in Europe, the UK and Japan. We have seen what happened with the Euro when Greece, Spain and now Hungary gets into trouble. It will be a matter of time, before the loss of confidence affects the US dollar. When that happens, there will be a bigger financial crisis.
I do not have an answer about what can be done to protect our savings from this impending disaster. Perhaps, the best form of investments is in productive assets, i.e. the shares of companies that run an operation and earns a profit. While the values of the shares may drop in a crisis, the company should continue to earn a profit and pay a dividend. If business is bad, the company can cut cost by reducing their workforce.
It is important to reduce debts. When a crisis hits, the banks will pull back the loans. Those who have borrowed money will have to sell assets at highly depressed prices to repay the loans. This will include borrowings to buy investment properties.
The prognosis for the global economy is discouraging. It reflects the failure of the capitalist and free market system. We do not need to revert to full socialism. A better model is a regulated market, fairer distribution of income and higher taxes for those that earn extreme incomes.
Tan Kin Lian
Car park wardens
I visited the National Skin Center two weeks ago. On driving into the car park, I was guided by a uniformed warden to a vacant space. I talked to him and learned that he was 66 years old.
It is a good idea to provide this type of employment for our older workers who need a job to get by. It keeps the elderly worker physically fit and active, and improves service to visitors of the car park. The warden can also provide directions.
If these decisions are left to individual businesss, most of them would prefer to save cost and not create this type of employment. However, if they are mandated to be necessary for car paks of certain sizes, there will be more jobs that are created for our older workers.
Tan Kin Lian
It is a good idea to provide this type of employment for our older workers who need a job to get by. It keeps the elderly worker physically fit and active, and improves service to visitors of the car park. The warden can also provide directions.
If these decisions are left to individual businesss, most of them would prefer to save cost and not create this type of employment. However, if they are mandated to be necessary for car paks of certain sizes, there will be more jobs that are created for our older workers.
Tan Kin Lian
Public transport fares, service and profits
A vandal broke in to a MRT depot and painted graffiti on a train. The vandalism was not noticed by the employees for some time, until a video was posted on Youtube by a passenger. What does this tell us?
SMRT has cut down its employees to be bare minimum to reduce cost and improve profits. It would have been better if SMRT had employed more people and show a smaller (but still healthy profit). This will create jobs for more people to provide better security and improve customer service. They should also run more trains to reduce the congestion and waiting time.
These actions can be taken without increasing the fares, as SMRT is showing a healthy profit. The Public Transport Council has to be more vigilent in moniting the fares, level of service and profits of our bus and train operators.
This is an example of the failure of the unregulated market in getting the right outcome for the country.
Tan Kin Lian
SMRT has cut down its employees to be bare minimum to reduce cost and improve profits. It would have been better if SMRT had employed more people and show a smaller (but still healthy profit). This will create jobs for more people to provide better security and improve customer service. They should also run more trains to reduce the congestion and waiting time.
These actions can be taken without increasing the fares, as SMRT is showing a healthy profit. The Public Transport Council has to be more vigilent in moniting the fares, level of service and profits of our bus and train operators.
This is an example of the failure of the unregulated market in getting the right outcome for the country.
Tan Kin Lian
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