It is easy to produce billionaires. Singapore has shown how it can be done easily. Read this secret!
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Wednesday, October 13, 2010
Client sues private banker
For years, two relationship managers assured a client that his investment portfolio was doing well and that he had a balance of around $8 million in his account. In fact, the net value of the investment account stood at only $252,652 on Aug 12 this year.
The rest had been frittered away by the relationship managers at Societe Generale Bank & Trust in Singapore because of alleged unauthorised forex trades, according to a lawsuit filed at the Singapore High Court yesterday. To cover up the losses, they fed the client with bogus statements, the lawsuit claimed.
Read this article after 6 pm at the website:
http://www.businesstimes.com.sg/sub/news/story/0,4574,408394,00.html?
The rest had been frittered away by the relationship managers at Societe Generale Bank & Trust in Singapore because of alleged unauthorised forex trades, according to a lawsuit filed at the Singapore High Court yesterday. To cover up the losses, they fed the client with bogus statements, the lawsuit claimed.
Read this article after 6 pm at the website:
http://www.businesstimes.com.sg/sub/news/story/0,4574,408394,00.html?
General Election Issues
There will be many issues to be raised at the general election that is expected to be held within the next few months. You can read about these issues from the Singapore General Election portal. It contains a selection of blogs and articles taken from the Internet that are relevant to the political environment in Singapore. Do visit this portal regularly and bookmark it for easy access.
Is insurance good or bad?
A lady asked me this question. It seems to be a naive question, but it does reflect the level of knowledge of many consumers in Singapore who are not able to get information to form their own opinion and have to rely on advice of other people. Read my answer here.
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www.tankinlian.com/latest.aspx
FISCA Talk on Financial Planning
I gave a talk to some students on financial planning. I showed them examples of benefit illustrations of life insurance policies that took away 40% or more of the accumulated premiums. They were shocked. They never thought that it was possible for so much of their savings to be taken away. They also assumed that the life insurance company had to offer the best terms through market competition. In reality, some life insurance companies were not ashamed to take away a lot of the savings because the consumer was not aware about it.
Usually, the insurance policies are sold by newly appointed agents who approached their classmates. These new agents were not even aware that they were causing a big financial loss to their friend by selling them a bad product. When they know about it a year later, the agents are likely to give up this job.
As I get to know more of these cases, I intensify my effort to educate the consumers. I urge you to attend my talk on financial planning organised by FISCA. You should also encourage your children (if they are about to start work) to attend the talk, so that they do not make a big mistake by buying the wrong product.
Tan Kin Lian
Usually, the insurance policies are sold by newly appointed agents who approached their classmates. These new agents were not even aware that they were causing a big financial loss to their friend by selling them a bad product. When they know about it a year later, the agents are likely to give up this job.
As I get to know more of these cases, I intensify my effort to educate the consumers. I urge you to attend my talk on financial planning organised by FISCA. You should also encourage your children (if they are about to start work) to attend the talk, so that they do not make a big mistake by buying the wrong product.
Tan Kin Lian
Increase in premium for Private Shield
The premium for private Shield plan has increased for the past few years. I am not aware about the actual increase. To hide the increase, some insurance changed the benefits provided, so that the policyholders cannot make any comparison.
I thought that the increase is due to higher claims. But, someone from the inside told me that the premiums are being increased to give a higher profit margin to the insurance company. I was surprised! I thought that any increase would have to be approved by the Ministry of Health, and they will check to make sure that the increase are justified (as Medisave money is being used).
For consumers who find the increase to be unjustified, it is better to switch back to basic Medishield. This advice is specially important for older people You can save more than 50% of the premium and also pay a lower deductible when you are treated in hospital. Read this article. http://tankinlian.com/admin/file.aspx?id=229
You also avoid the stress of having your claims rejected. Read about "rejected claims" in www.tankinlian.com/ask.aspx. Do not pay more in premium and still suffer from uncertainty and stress!
I thought that the increase is due to higher claims. But, someone from the inside told me that the premiums are being increased to give a higher profit margin to the insurance company. I was surprised! I thought that any increase would have to be approved by the Ministry of Health, and they will check to make sure that the increase are justified (as Medisave money is being used).
For consumers who find the increase to be unjustified, it is better to switch back to basic Medishield. This advice is specially important for older people You can save more than 50% of the premium and also pay a lower deductible when you are treated in hospital. Read this article. http://tankinlian.com/admin/file.aspx?id=229
You also avoid the stress of having your claims rejected. Read about "rejected claims" in www.tankinlian.com/ask.aspx. Do not pay more in premium and still suffer from uncertainty and stress!
Branding and Trust (2)
An agency manager who has worked for two decades in a large international life insurance company told me:
"I know that the products of my company give a poorer yield to my customers compared to other products available in the market. In many cases, the difference can be up to 20% of the projected maturity amount.
However, I am able to sell my products because I can find customers who are not aware about the difference, which happens most of the time. The customers buy my life insurance products because they trust the international brand name of my company.
If the customer knows about the difference, I can still convince some of them to buy from me, because they trust an international name better.
I do lose a small number of cases from customers who know, but there are so many customers who are ignorant or will pay more for the brand name. I ask them - can you be sure that the competitor company will still be around in 30 years time?
It is easy for me to convince the young people, because they can be easily swayed by the big international brand name".
My view
Two years ago, when AIG went bankrupt and had to be bailed out by the US government, several AIA policyholders panicked and asked for my advice. Are their life time savings with AIA safe? I told them that AIA has a separate fund in Singapore and their money is safe.
Lesson: It is important for consumers to avoid paying a high cost for an international brand name because they can also get into trouble. Why are paying more and still not get the peace of mind?
Read this letter sent by a parent to the son:
http://tankinlian.com/admin/file.aspx?id=205
Read my book on financial planning (www.tankinlian.com/ishop) and learn a better way to save for your own future.
"I know that the products of my company give a poorer yield to my customers compared to other products available in the market. In many cases, the difference can be up to 20% of the projected maturity amount.
However, I am able to sell my products because I can find customers who are not aware about the difference, which happens most of the time. The customers buy my life insurance products because they trust the international brand name of my company.
If the customer knows about the difference, I can still convince some of them to buy from me, because they trust an international name better.
I do lose a small number of cases from customers who know, but there are so many customers who are ignorant or will pay more for the brand name. I ask them - can you be sure that the competitor company will still be around in 30 years time?
It is easy for me to convince the young people, because they can be easily swayed by the big international brand name".
My view
Two years ago, when AIG went bankrupt and had to be bailed out by the US government, several AIA policyholders panicked and asked for my advice. Are their life time savings with AIA safe? I told them that AIA has a separate fund in Singapore and their money is safe.
Lesson: It is important for consumers to avoid paying a high cost for an international brand name because they can also get into trouble. Why are paying more and still not get the peace of mind?
Read this letter sent by a parent to the son:
http://tankinlian.com/admin/file.aspx?id=205
Read my book on financial planning (www.tankinlian.com/ishop) and learn a better way to save for your own future.
Hong Kong Suspends Property From Residency Plan
Bloomberg News
Oct. 13 (Bloomberg) -- Hong Kong’s government will suspend investment property as a criteria to gain residency in the city and will introduce a rent-to-buy housing plan as it tries to cool the property market. Shares in developers tumbled.
The government will temporarily remove real estate from its Capital Investment Entrant Scheme, which was set up to encourage foreigners to invest in the city to gain residency, Chief Executive Donald Tsang said in his annual policy address today.
The government has in the past year announced a series of measures to rein in home prices that have surged almost 50 percent since the beginning of 2009 on the back of record-low mortgage rates and an influx of mainland Chinese buyers. The last round of measures, unveiled on Aug. 13, included raising down-payment requirements on mortgages for luxury and investment properties, and a pledge to increase land supply.
The Hong Kong Property Index, which tracks the city’s seven biggest developers, fell as much as 3.4 percent and was down 2.5 percent at 12:09 p.m., reversing an earlier gain.
The government will also continue to boost land supply and expects 61,000 new units to come onto the market in the next three to four years, Tsang said.
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