POSB Money Smart Kids

Hi Mr  Tan
I need your advice.  What are your views on POSB MoneySmart Kids?  The financial advisor told me that the interest rate is 4% better than the interest on savings account.  I need to grow money for my kids' education.  

Pls refer to attached link.  http://www.dbs.com/posb/insurance/edusmart/moneysmartkids.aspx  Thanks for your help.

REPLY

As this is a life insurance policy, you should ask for a benefit illustration and look for the two key factors (i.e. distribution cost and effect of deduction) as explained in my FAQ and my financial planning book.

HDB prices

Read this article.

My view
Although the prices keep going up, I want to encourage Singaporeans to be patient. Do not panic and pay high prices for HDB flats. It has to come down to a level that is supportable by the average wage in Singapore. It is now far too high. In the meantime, stay with your parents or rent a room or flat.

Google account

It is easy to create a Google account.

• Go to www.google.com
• Click on Sign In.
• Click on Create a New Account
• Provide your e-mail address and password for the Google account

With the Google account, you can use G Mail and use many other services - including comments in my blog. 

Ponzi scheme [2]

Read this excellent article by Lucky Tan.

My view
I agree with Lucky Tan in his observation - the authority has time to catch people for illegal hawking,  e.g. selling the newspaper of a registered political party, but they have no time to investigate ponzi schemes.  Surely, they know that they have a duty to protect the public from being cheated?

Flood in Singapore [2]

Oh, for a dip in Orchard Road
Read this article by Seah Cheang Nee.

Has train tunneling played a part?
http://www.straitstimes.com/STForum/Story/STIStory_557162.html

Act faster to solve drainage problem
http://www.straitstimes.com/STForum/OnlineStory/STIStory_557068.html

My view
Seah Cheang Nee was an editor of a daily newspaper in Singapore in the past. He still lives in Singapore and writes regularly for The Star Online in Malaysia. I like his articles as they are written from a Singapore perspective from a person who has an understanding of the history and background of many issues in Singapore.

FAQ on insurance and investment

I receive a few e-mails daily from the public asking my views about specific insurance and investment products. I usually reply to ask them to read the FAQs in my website, www.tankinlian.com (Ask Mr. Tan). You can see a list of FAQs. You should be able to find a FAQ that answer your question. You may also be interested in some of the other FAQs.

The FAQs provide general principles that you should know in making your decision. You have learn these principles and get the facts to make the actual decision. Do not rely on someone else, including me, to decide for you - after all, it is your money and your choice.

You should also buy the book, Practical Guide on Financial Planning. It cost only $12 (now on promotion at $10) and can save you a few thousand dollars by avoiding a bad decision.

Tan Kin Lian

Intelligence Quiz - online

If you are a fan of my intelligence quiz, you can try the online version here: www.easysearch.sg.
Enjoy.
You can buy the book at www.easysearch.sg/ishop.

Tale of Two Cities

Mr. Tan,
Last Sunday was the first annual Nelson Mandela International Day and was celebrated across the world. Mandela is symbolic with "human rights". For the occasion, ordinary people in South Africa and abroad committed themselves to devoting 67 minutes of their time to community service, to mark the number of years Mr Mandela spent in politics, an initiative backed by global figures like former US president Jimmy Carter and Martti Ahtisaari of Finland.

Mr Alan Shadrake's arrest in Singapore on the same day was most unfortunate. The Minister in-charge of MICA, who was just caught in a flash flood the day before, was busy instead speaking privately with the Environment Ministry and PUB about conducting on-the-ground dialogues to explain the floods.

Read more about LEVIATHAN and how a civil society can correct the damages of excessive government under the following link:

http://de-leviathan.blogspot.com/

C H Yak

Choose the right insurance policy

How do you choose the right insurance company to buy insurance from? Read this FAQ

New Fare Structure

Read this letter:
Why a fairer fare policy is facing undue criticism
http://www.straitstimes.com/STForum/Story/STIStory_556366.html


My view
When the Ministry for Transport announced the new fare structure that is based on distance, I wrote to the papers and in my blog that this exercise is unnecessary and will cost a lot of money. I suggested that it is better to increase the transfer rebate (i.e. for connecting trips and feeder services). Nobody cared to reply to my suggestion. After so much money is spend on the new system, we now have so much unhappiness. Is this the new symbol  of Singapore - spend a lot of money and still fail?

Why physical attachments bring us pain?

Extract from Tommy Wong's book, "Wisdom on How to Live Life"

Tom: Okay, why physical attachments bring us pain?

Guru: You see after we take up a body, everyday of our life, we walk with the body, we sit with the body, we talk with the body, we eat with the body and we sleep with the body.

Tom: Yes.

Guru: So we spend every minute of our life with the body.

Tom: Yes.

Guru: So we are very close to the body. In fact, there’s no other physical object that can be closer, right?

Tom: Right.

Guru: Yet on the day we die, can we bring the body with us?

Tom: No, actually that’s the definition of death.

Guru: Then can we bring other objects that are external to the body?

Tom: Since we can’t bring the body, how can we bring objects that are external to the body?

Guru: That’s the cause of pain. We’re attached to objects and yet we can’t keep them. In fact, we’re bound to lose them - sooner or later, and the latest time is the moment of death.

Tommy Wong's book is available here.

1st shipment completely sold out. 2nd shipment arriving soon.