It is important for the next Parliament to have elected leaders who can reflect the wishes of the people. The key priorities, as expressed through various channels, are:
1. Job opportunity for young and mature workers
2. Lower cost of living
3. Affordable housing
4. Better wages and job security
5. Higher interest rate on savings
6. Better work-life balance
7. Lower transport cost, more comfort and convenience
8. Affordable health care
9. A less crowded environment
I hope that the candidates will campaign hard to provide solutions to these key priorities.
Tan Kin Lian
Sunday, April 25, 2010
Buyback of Yield 15 Policy
A policyholder was sold the Yield 15 which provided a payout of 3% per annum. During a volatile period a few months ago, the insurance company offered a 100% payback of the investment, less all the interest coupons that were paid. The policyholder, on the advice of her children, decided to accept the payback offer and to lose the interest. At that time, the market price of the investment was around 90. She was afraid that the investment could drop further and in the worst case, be worth nothing.
In the subsequent months, she found that the price of the investment had improved and there is a good chance that it would safely reach the maturity period with a 100% payback. She regretted her decision to accept the payback offer and losing the 15% interest (i.e. 3% for 5 years).
I told her that she made the right decision at that time. Some investors of certain series of Pinnacle Notes had lost the entire investment due to the failure of a certain number of entities. This could have happened to her Yield 15. It is better to be safe than sorry.
She should not think about the 15% that she had lost. Her actual loss is only 5% (i.e the fixed deposit rate of interest for 5 years). She should not count the higher rate of 3% which is for a more risky product.
My same comment will apply to policyholders who accepted the payback offer from Great Easter Life on the GreatLink Choice (which is a similar product).
Tan Kin Lian
In the subsequent months, she found that the price of the investment had improved and there is a good chance that it would safely reach the maturity period with a 100% payback. She regretted her decision to accept the payback offer and losing the 15% interest (i.e. 3% for 5 years).
I told her that she made the right decision at that time. Some investors of certain series of Pinnacle Notes had lost the entire investment due to the failure of a certain number of entities. This could have happened to her Yield 15. It is better to be safe than sorry.
She should not think about the 15% that she had lost. Her actual loss is only 5% (i.e the fixed deposit rate of interest for 5 years). She should not count the higher rate of 3% which is for a more risky product.
My same comment will apply to policyholders who accepted the payback offer from Great Easter Life on the GreatLink Choice (which is a similar product).
Tan Kin Lian
For the benefit of the future generation
A retired couple told me that they invested more than $500,000 in mini-bonds, yield 15 and equity-linked notes. There financial products were recommended to them by their bank relationship manager as being better than fixed deposits and paying a yield of 3% or 5%. The risks were not explained to them at that time.
The money came from a lifetime of hard work and prudent savings. They lost more than 30% of the total invested amount. Their complaint to FIDREC was dismissed, although they felt that they had a strong case of mis-selling. The wife felt the sense of injustice to be so strong that she wanted her family to emigrate from Singapore.
I told them that the chance of being accepted into another coutnry is small, as they are already in their 60s. Most countries accept immigrants who are younger, as they do not want retirees to benefit from their health care and pension systems. I also advised them to think about the 70% that they had recovered, rather than the 30% that they lost.
Furthermore, it is better to stay in Singpaore and speak against injustice, so that the system can be changed for the benefit of the future generation.
Tan Kin Lian
The money came from a lifetime of hard work and prudent savings. They lost more than 30% of the total invested amount. Their complaint to FIDREC was dismissed, although they felt that they had a strong case of mis-selling. The wife felt the sense of injustice to be so strong that she wanted her family to emigrate from Singapore.
I told them that the chance of being accepted into another coutnry is small, as they are already in their 60s. Most countries accept immigrants who are younger, as they do not want retirees to benefit from their health care and pension systems. I also advised them to think about the 70% that they had recovered, rather than the 30% that they lost.
Furthermore, it is better to stay in Singpaore and speak against injustice, so that the system can be changed for the benefit of the future generation.
Tan Kin Lian
General election
Read this article by Lucky Tan.
My comments
This is an excellent article. It is written in a style that is far superior to what I am able to write.
My comments
This is an excellent article. It is written in a style that is far superior to what I am able to write.
Circle Line (MRT)
I took my first ride on the extended Circle Line yesterday from Dhoby Ghaut to Bras Basah. It was an enjoyable ride. The walking distance between the platforms from the NE Line and Circle Line was quite acceptable.
On my return journey, I took the Circle Line from Bras Basah to Bishan to change to the NE Line. Although the distance and travelling time is longer, I could get a seat, as the train is not crowded.
This new line has expanded the capacity of the train system and should be able to give the commuters a more comfortable ride.
The Circle Line allows commuters from the North to get to Tampines or Changi by changing at Bishan to Paya Lebar. It took 6 stops, compared to 13 stops from Bishan to Raffles City and to Paya Lebar on the NE Line and the EW Line.
If I travel light, I will go to airport from my home by train and return by train.
Tan Kin Lian
On my return journey, I took the Circle Line from Bras Basah to Bishan to change to the NE Line. Although the distance and travelling time is longer, I could get a seat, as the train is not crowded.
This new line has expanded the capacity of the train system and should be able to give the commuters a more comfortable ride.
The Circle Line allows commuters from the North to get to Tampines or Changi by changing at Bishan to Paya Lebar. It took 6 stops, compared to 13 stops from Bishan to Raffles City and to Paya Lebar on the NE Line and the EW Line.
If I travel light, I will go to airport from my home by train and return by train.
Tan Kin Lian
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