Hi Mr Tan,
Central Bank of Malaysia (i.e. Bank Negara Malaysia) recently probes an illegal deposit company - "The Gold Label Sdn Bhd" - as stated in this report, 8-May-2010.
There are just too many fraudalent & illegal get-rich-schemes (with empty promises and empty 'guarantees') designed to cheat consumers nowaday. As long as those being cheated stands out and notify the Central Bank or other authorised regulatory agencies, these regulators could conduct checks and investigations protecting the general public.
I believe there is similar authorities in Singapore too.
Philip
My comment
There is a law against illegal deposit taking in Malaysia. I believe that a similar law applies in Singapore. The financial products sold in Singapore that offer a buyback option option with interest at a high rate is a form of deposit taking. It should be regulated by the authority in Singapore.
Saturday, May 8, 2010
Fragile global financial system
Read this excellent article by Lucky Tan.
My comment
I agree with the reference to high property prices in Singapore that is propped up by debt. Investors who believe that property prices in Singapore will continue to move up due to limited land should reconsider their views.
My comment
I agree with the reference to high property prices in Singapore that is propped up by debt. Investors who believe that property prices in Singapore will continue to move up due to limited land should reconsider their views.
Fair remuneration of agent
At the FISCA talk, I asked the participants what is a fair amount for an agent to earn on selling a life insurance policy with a monthly premium of $500. Should it be $2,000? Most participants felt that this was too high.
The actual amount that is earned by the agent (and the managers) is shown as "distribution cost" in the benefit illustration. It varies from $6,000 to $10,000. The participants were shocked. They did not realise it.
If you wish to buy a life insurance policy, look for the distribution cost and the effect of deduction. These two important points are explained in my book, Practical Guide on Financial Planning. The effect of deduction can amount to $200,000 for a policy of the above size. It is a lot of money that is deducted from your accumulated savings.
Spend $12 and 12 hours to learn about the basics of financial planning by reading the book. Attend the FISCA talk to get a better understading.
The actual amount that is earned by the agent (and the managers) is shown as "distribution cost" in the benefit illustration. It varies from $6,000 to $10,000. The participants were shocked. They did not realise it.
If you wish to buy a life insurance policy, look for the distribution cost and the effect of deduction. These two important points are explained in my book, Practical Guide on Financial Planning. The effect of deduction can amount to $200,000 for a policy of the above size. It is a lot of money that is deducted from your accumulated savings.
Spend $12 and 12 hours to learn about the basics of financial planning by reading the book. Attend the FISCA talk to get a better understading.
FISCA talk on Financial Planning - 8 May 2010
The FISCA talk on financial planning was attended by 60 participants on 8 May. The interaction was excellent.
FISCA will be holding a monthly talk on Financial Planning at the School of Business in SMU. Go to FISCA website to register.
FISCA will be holding a monthly talk on Financial Planning at the School of Business in SMU. Go to FISCA website to register.
Legal agreement
Read this letter about the role of lawyers in drafting unfair legal agreements.
My comment
We need a process to ensure that legal agreements that are imposed on the public for regulat transactions are checked to be fair. I hope that CASE or FISCA can play this role.
My comment
We need a process to ensure that legal agreements that are imposed on the public for regulat transactions are checked to be fair. I hope that CASE or FISCA can play this role.
Save for children (2)
hi Mr Tan Kin Lian,
I have 2 children, 13 and 15 years old. I intend to buy them a insurance policy. I have read your FAQ. Can you tell me if I will buy endowment policy (saving insurance) from NTUC for my kids, is it good? I intend to spent $100 each for my children. Is there any other policy that you think is suitable to buy, can recommend me. I know very little about insurance.
REPLY
It is better to invest in a low cost investment fund. this is explained in my book, practical guide on financial planning. You can also read the relevant articles in my blog.
I have 2 children, 13 and 15 years old. I intend to buy them a insurance policy. I have read your FAQ. Can you tell me if I will buy endowment policy (saving insurance) from NTUC for my kids, is it good? I intend to spent $100 each for my children. Is there any other policy that you think is suitable to buy, can recommend me. I know very little about insurance.
REPLY
It is better to invest in a low cost investment fund. this is explained in my book, practical guide on financial planning. You can also read the relevant articles in my blog.
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