Do you like a new type of transport that operates like a taxi, at low cost and does not need a driver? Read about it in:
www.singaporepublictransport.blogspot.com
Monday, July 28, 2008
Difference between two statements
What is the difference between these two statements:
statement 1
sum of liability in respect of each policy of the participating fund - $X
statement 2
total liability in respect of all the policies in the participating fund - $X
statement 1
sum of liability in respect of each policy of the participating fund - $X
statement 2
total liability in respect of all the policies in the participating fund - $X
Definition of integrity
Source: Wikipedia
In discussions on behavior and morality, one view of the property of integrity sees it as the virtue of basing actions on an internally-consistent framework of principles. This scenario may emphasize depth of principles and adherence of each level to the next. One can describe a person as having integrity to the extent that everything that that person does derives from the same core set of values. While those values may change, their consistency with each other and with the person's actions determine the person's degree of integrity.
Some commentators stress the idea of integrity as personal honesty: acting according to one's beliefs and values at all times. Speaking about integrity can emphasize the "wholeness" or "intactness" of a moral stance or attitude (harking back wittingly or unwittingly to the etymological parallels of the word in the Latin intactus, meaning "untouched"). Relevant views of wholeness may also emphasize commitment and authenticity. Structural integrity in engineering derives from this concept.
Some regard integrity as a virtue in that they see accountability and moral responsibility as necessary tools for maintaining consistency between one's actions and one's principles, methods and measures, especially when an expected result appears incongruent with observed outcome.
In discussions on behavior and morality, one view of the property of integrity sees it as the virtue of basing actions on an internally-consistent framework of principles. This scenario may emphasize depth of principles and adherence of each level to the next. One can describe a person as having integrity to the extent that everything that that person does derives from the same core set of values. While those values may change, their consistency with each other and with the person's actions determine the person's degree of integrity.
Some commentators stress the idea of integrity as personal honesty: acting according to one's beliefs and values at all times. Speaking about integrity can emphasize the "wholeness" or "intactness" of a moral stance or attitude (harking back wittingly or unwittingly to the etymological parallels of the word in the Latin intactus, meaning "untouched"). Relevant views of wholeness may also emphasize commitment and authenticity. Structural integrity in engineering derives from this concept.
Some regard integrity as a virtue in that they see accountability and moral responsibility as necessary tools for maintaining consistency between one's actions and one's principles, methods and measures, especially when an expected result appears incongruent with observed outcome.
Investment charges
An anonymous reader wrote:
"I received this letter my company's 401K provider, It was supposed to convince me to sign up with AdviceTrack, and give them another half-percent of my retirement funds so that they could manage my investments for me.
The chart, however, isn't very convincing. If I continue to manage my funds myself, I end up with $76,564 a year. If I let their experts manage my funds for me, I get a whopping $67,619 - or, $9,000 less. Glad I'm not an expert."
http://thedailywtf.com/Articles/The-Investment-Experts.aspx
Lesson: This anonymous reader did read and understand the brochure, which gave honest information. He decided to invest on his own. Many people may not be aware about the charges and sign up to use the advertised service.
The same situation applies to many people who buy high cost life insurance and structured financial products.
"I received this letter my company's 401K provider, It was supposed to convince me to sign up with AdviceTrack, and give them another half-percent of my retirement funds so that they could manage my investments for me.
The chart, however, isn't very convincing. If I continue to manage my funds myself, I end up with $76,564 a year. If I let their experts manage my funds for me, I get a whopping $67,619 - or, $9,000 less. Glad I'm not an expert."
http://thedailywtf.com/Articles/The-Investment-Experts.aspx
Lesson: This anonymous reader did read and understand the brochure, which gave honest information. He decided to invest on his own. Many people may not be aware about the charges and sign up to use the advertised service.
The same situation applies to many people who buy high cost life insurance and structured financial products.
Liability and cash value
The MAS website contains the annual return submitted by insurance companies. Row 5 of Annex 1 K – Policy Liability of Participating Fund reported a figure as “sum of liability in respect of each policy of the participating fund”.
From the description, I presume that this total figure is obtained by adding up the individual figures applicable to each participating policy. I hope that this statement means what it says.
You can write to your insurance company to ask for:
1. the individual liability for each of your participating policies
2. the cash value for the same policy
3. the difference between these two figures
For example, if the liability for the policy is $30,000 and the cash value is $25,000, is it fair for the insurance company to keep $5,000 as additional profit, when they have already deducted their expenses, mortality charges and profit over the years, in arriving at the liability of $30,000. Are policyholders being cheated?
If a customer has $30,000 in the bank and the bank report it as the liabilty to the company, the bank is required to pay out the full amount to the customer on withdrawal. I believe that the same principle should apply to an insurance company.
Probably the most accepted accounting definition of liability is the one used by the International Accounting Standards Board(IASB). The following is a quotation from IFRS Framework:
> A liability is a present obligation of the enterprise arising from past events, the settlement of which is expected to result in an outflow from the enterprise of resources embodying economic benefits/
Regulations as to the recognition of liabilities are different all over the world, but are roughly similar to those of the IASB. Examples of types of liabilities include: money owing on a loan, money owing on a mortgage, or an IOU.
From the description, I presume that this total figure is obtained by adding up the individual figures applicable to each participating policy. I hope that this statement means what it says.
You can write to your insurance company to ask for:
1. the individual liability for each of your participating policies
2. the cash value for the same policy
3. the difference between these two figures
For example, if the liability for the policy is $30,000 and the cash value is $25,000, is it fair for the insurance company to keep $5,000 as additional profit, when they have already deducted their expenses, mortality charges and profit over the years, in arriving at the liability of $30,000. Are policyholders being cheated?
If a customer has $30,000 in the bank and the bank report it as the liabilty to the company, the bank is required to pay out the full amount to the customer on withdrawal. I believe that the same principle should apply to an insurance company.
Probably the most accepted accounting definition of liability is the one used by the International Accounting Standards Board(IASB). The following is a quotation from IFRS Framework:
> A liability is a present obligation of the enterprise arising from past events, the settlement of which is expected to result in an outflow from the enterprise of resources embodying economic benefits/
Regulations as to the recognition of liabilities are different all over the world, but are roughly similar to those of the IASB. Examples of types of liabilities include: money owing on a loan, money owing on a mortgage, or an IOU.
Joke: a committee
The last time I sat on a committee, we were presented with a plan which had two alternatives. We therefore narrowed it down to eighteen possibilities for further discusison.
Land banking
A friend told this story to me.
Singaporeans love land. They have seen the price of land increase from $3 psf to $300 psf over the past 50 years. As they missed this wonderful investment, they are ready to jump at similar opportunities beyond Singapore.
Some entrepreneurs found a way to meet this demand. They choose a familiar city in Canada or USA. They are able to buy a big plot of land far away from the city, at a very low price. They divide the land into plots of marketable size and mark up the price by 10 times or more.
They employ a marketing company to sell these plots to Singaporeans. The marketing company can a large commission, maybe 30% or more, from the sale price. Many consultants love to sell this product and earn big commissions.
There is no way that the investor will know that the land is in the wilderness, with no road access, or facilities like power or water. They do not know the real value of the land, except the promise of the marketer that no investor had sold the land at a loss. (Actually, there is no transaction at all, as there is no investor willing to buy the plot from the original investor).
What is this investment called? It is called "land banking".
Singaporeans love land. They have seen the price of land increase from $3 psf to $300 psf over the past 50 years. As they missed this wonderful investment, they are ready to jump at similar opportunities beyond Singapore.
Some entrepreneurs found a way to meet this demand. They choose a familiar city in Canada or USA. They are able to buy a big plot of land far away from the city, at a very low price. They divide the land into plots of marketable size and mark up the price by 10 times or more.
They employ a marketing company to sell these plots to Singaporeans. The marketing company can a large commission, maybe 30% or more, from the sale price. Many consultants love to sell this product and earn big commissions.
There is no way that the investor will know that the land is in the wilderness, with no road access, or facilities like power or water. They do not know the real value of the land, except the promise of the marketer that no investor had sold the land at a loss. (Actually, there is no transaction at all, as there is no investor willing to buy the plot from the original investor).
What is this investment called? It is called "land banking".
National Day 2008
National Day is approaching. We celebrate National Day on 9 August. I will be joining my friend for a visit to an orphanage.
What does the 5 stars of our national flag mean to Singaporeans? You can read their views in:
www.theonlinecitizen.com. You can also give your views.
What does the 5 stars of our national flag mean to Singaporeans? You can read their views in:
www.theonlinecitizen.com. You can also give your views.
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