Financial planning at retirement

Most people think that the young people should have a financial plan, as they have a lifetime ahead of them. They may overlook the importance of a financial plan for a person who is approaching retirement. Having accumulated their savings, they now need to know how to invest the savings to get a good return. Is a life annuity the answer?

Here is a sample financial plan prepared for a retiree at age 60. It shows the amount that the retiree can get assuming yields at various rates of interest. You should take the yield at 4% and compare the amount, before adjusting for inflation, with the amount payable by a life annuity. If the life annuity pays an amount that is better than the payout under 4% yield, it should be all right to buy the life annuity. This assumes that the life expectancy of a person at age 65 is about 20 years, which should be quite correct.

You can also use the financial planning tool to calculate the amount that is relevant to your own personal situation.

Tan Kin Lian

SGEP Editorial

A new editorial will be posted in SGEP later today. It is written by my co-editor, who had put in a lot of work and time to write this excellent summary. It is blunt and direct and focus on the important issues that citizens should consider at the forthcoming general election.

Avoid all types of unregulated investments

Hi, I was approached by a marketing person from X offering the purchase of a plot of 100 sq m land at Romford, London. In your opinion is this a scam and is this X a reliable company?


REPLY
My advice is to avoid all types of unregulated investments, including land banking plots. ALL TYPES!

A broad mind - look for what is right

In the musical "Fiddler on the Roof" two Jews in a village were arguing over a matter and they approached the rabbi to solve the dispute.

The rabbi heard the first Jew and said, "you are right". He then heard the second Jew and said, "you are right". A third Jew, who was observing the event asked the rabbi, "How was it possible for the first Jew to be right and the second Jew to be also right?". The rabbi replied to the third Jew, "you are also right".

The rabbi looked for what is right and not what is wrong. This is called "a positive mindset". Many Singaporeans are not aware that of this approach and only know how to look for "what is wrong".

Tan Kin Lian

A narrow mind and judgmental

Many Singaporeans have a peculiar mindset that is probably produced by our environment  - narrow minded and judgmental. Let me illustrate it with this example.

I wrote a blog about the unrest in Tunisia. I had visited Tunisia on two occasions and found a great deal of similarity in the political structure of Tunisia and Singapore, which I described in my blog. I was aware that there must also be many differences, but I did not cover them because of my ignorance and my intent to focus on the similarity.

Someone criticized me personally in another blog, arguing that I was "wrong" in judging the situation between Tunisia and Singapore. This person followed a certain mindset:

• Interpret what was not there, i.e. that I had implied that the situation was exactly the same in both countries, and attacked the interpretation
• Pass judgement, that I was "wrong"

I like to ask my readers to be broad minded in reading my views. If you have a different perspective, you can express your own views. You do not have to pass judgment on my views, especially when you have not clarified what my views are. Who are you to judge?

Tan Kin Lian

Make tax system simpler for rented-out property

My letter on tax for rented out property is published in the Straits Times
http://www.straitstimes.com/STForum/Story/STIStory_625248.html

Financial plan

Prepare a financial plan for your own personal situation. It is suitable for a young person who has recently started work and also a person who is approaching retirement. Learn the difference to your retirement income if you are able to earn a higher yield on your investment and also the impact of inflation. The application is available here, www.easysearch.sg/life21

DUI Consequences | Drink Driving Penalties

Consequences of a dui

If you’re fortunate enough not to injure yourself or others, the consequences of a DUI will impact your life and prove to be a very costly venture in many ways. To start, you will likely find your vehicle impounded and you’ll be booked into a jail to await someone to post a substantial bail for you.

See also drinking and driving facts
Each state has minimum set amounts in fines and court costs that are increased with each offense. When they occur within certain time frames, repeat offenders will likely have to face minimum jail time and very large fines. Even then, the judge will have a say in any DUI penalties levied against you.

via drinkdrivingpenalties.org

Drinking And Driving Facts | Drink Driving Penalties

This is why so much time, money and attention is being directed towards prevention of drunk driving, especially for teens. Because driving demands that the driver be alert and able to adapt to continuously changing situations, it is easy to see the dangers presented by those under the influence of alcohol.

There is a slowing of reflexes, loss of coordination, and vision distortions that take place when one drinks. If a drug might be involved, the combined effects, of course, can become even more deadly.

It is also a good time to note these drinking and driving facts do not presume those that were killed or injured suffered from alcoholism. In fact, many teens are killed at specific times from alcohol-related accidents, showing sharp increases on the weekends and from 3 PM to 12 AM.

The overall lack of driving experience, combined with the effects of drinking, seem to be the more prevalent causal relationship. If you’re concerned about the possibility of being involved in habitual, or binge drinking, please seek out some professional help and the possibility of rehab.

Drink driving penalties

via drinkdrivingpenalties.org