Read this letter.
My view
Singapore is giving a lot of emphasis on job training. It creates jobs for the trainers, but does not find employment for the trainees, who remain unemployed. It is better to provide job subsidy for recruitment of the unemployed (similar to the Job Credit scheme, which is now being phased out). The subsidy can be for the older people, who now find it difficult to get employment.
Thursday, July 29, 2010
Promotion on TKL books
The promotion will end tomorrow midnight (31 July 2010). To enjoy the lower price, order now.
Investing in gold
Mr. Tan,
My friend approached me to invest in gold. I pay a price for the gold bar and am allowed to keep the gold. I can sell back the goal at a guaranteed price and earn an attractive rate of return. Is this a good investment?
Bob
REPLY
You are probably required to pay for the gold at a much higher price than the market price. When the time comes for you to sell back the gold bar, you will probably not find the seller. At that time, you have to hold the gold bar at an inflated price, i.e. the actual price is lower than the amount that you have invested.
Remember this message: whenever someone comes to market an investment product to you, you have to be careful. It is likely to be a scam, even though the seller may be your friend and your friend may not be aware of the scam. Read my article on "Marketed Financial Products" which can be found in www.tankinlian.com (click on Information and enter the search word "Marketed".
www.tankinlian.com
My friend approached me to invest in gold. I pay a price for the gold bar and am allowed to keep the gold. I can sell back the goal at a guaranteed price and earn an attractive rate of return. Is this a good investment?
Bob
REPLY
You are probably required to pay for the gold at a much higher price than the market price. When the time comes for you to sell back the gold bar, you will probably not find the seller. At that time, you have to hold the gold bar at an inflated price, i.e. the actual price is lower than the amount that you have invested.
Remember this message: whenever someone comes to market an investment product to you, you have to be careful. It is likely to be a scam, even though the seller may be your friend and your friend may not be aware of the scam. Read my article on "Marketed Financial Products" which can be found in www.tankinlian.com (click on Information and enter the search word "Marketed".
www.tankinlian.com
TKL Website - change name of document
Dear Mr. Tan
I like the design of your website, especially as it allows me to download a document to read later. I can also send it by e-mail to a friend. However, I saw that the saved file does not have a descriptive title, and will only show a number. Can you use the title of the document as the file name?
REPLY
A few people have made the same request. I checked with my developer, but he explained that it would take a lot of work and the database has to be restructured. I already have a lot of documents stored in the database and wish to avoid this tedious work.
I suggest that you can rename the file before it is actually saved. Your browser will ask you for the name, so you can type in the title. You can even change it to suit your own naming style. I hope that this works for you. It will be quite convenient after you get used to it.
www.tankinlian.com
I like the design of your website, especially as it allows me to download a document to read later. I can also send it by e-mail to a friend. However, I saw that the saved file does not have a descriptive title, and will only show a number. Can you use the title of the document as the file name?
REPLY
A few people have made the same request. I checked with my developer, but he explained that it would take a lot of work and the database has to be restructured. I already have a lot of documents stored in the database and wish to avoid this tedious work.
I suggest that you can rename the file before it is actually saved. Your browser will ask you for the name, so you can type in the title. You can even change it to suit your own naming style. I hope that this works for you. It will be quite convenient after you get used to it.
www.tankinlian.com
FAQ Investment Linked Policy
Many consumers are confused with an investment-linked policy (ILP). I have explained the key features of this policy in a FAQ in my website, www.tankinlian.com. Search for "Investment-linked Policy".
Act of God
Hi Mr Tan
MM Lee attributed the recent floods in Singapore to "an act of God" and said that no amount of engineering can prevent flooding....
While Chairman Mao pledged that the Chinese would be able to bend nature to their will, our MM thinks that no amount of engineering can prevent flooding in Singapore as they are "acts of God"....
Lu Xun, one of the great thinkers of the democratic May 4th Movement in the first decades of the 20th century, made a famous attack on the then ruling elite for issuing telegrams that blamed God for the woes befalling China. Lu quipped, "God replied in dismay: 'But I wasn't even there!'”
Read http://de-leviathan.blogspot.com/
C H Yak
MM Lee attributed the recent floods in Singapore to "an act of God" and said that no amount of engineering can prevent flooding....
While Chairman Mao pledged that the Chinese would be able to bend nature to their will, our MM thinks that no amount of engineering can prevent flooding in Singapore as they are "acts of God"....
Lu Xun, one of the great thinkers of the democratic May 4th Movement in the first decades of the 20th century, made a famous attack on the then ruling elite for issuing telegrams that blamed God for the woes befalling China. Lu quipped, "God replied in dismay: 'But I wasn't even there!'”
Read http://de-leviathan.blogspot.com/
C H Yak
Excessive deduction on investment-linked policy
Hi Mr Tan
I read about your explanation about Benefit Illustration and Effect of Deduction. I did a calculation on my investment-linked policy and found that the effect at the end of 40 years is 67%!
I am not sure my calculation is correct, would you help me out here? There was no mention of guaranteed cash value in the policy.
REPLY
I usually look at the effect of deduction for 25 years (rather than 40 years). Here are the figures taken from your benefit illustration.
At the assumed yield of 9%, the effect of deduction of $65,000 represents 55% of the value of accumulated premium of $118,000. At the assumed yield of 5%, the effect of deduction represents 52% of the accumulated premiums.
The effect of deduction of 52% to 55% is extremely high for a 25 year duration. In most other benefit illustrations , they are around 35% (which is already too high). In my book on financial planning, I advised that the effect of deduction for 25 years should NOT exceed 20%.
The cash value is NOT guaranteed as this is an investment linked policy. There is no guarantee on the maturity benefit or cash value.
I do not understand why this policy should take away so much from the policyholders. Clearly this is excessive, amounting to a rip-off of the trusting consumer.
There is additional premium payable for the riders. I do not know if the premium rates for these covers are too high. But they have to be paid for separately.
Please consider this suggestion: write a strong letter to complain to MAS for this type of excessive deduction. It does not seem right for consumers to be given such a poor deal.
Practical Guide on Financial Planning
I read about your explanation about Benefit Illustration and Effect of Deduction. I did a calculation on my investment-linked policy and found that the effect at the end of 40 years is 67%!
I am not sure my calculation is correct, would you help me out here? There was no mention of guaranteed cash value in the policy.
REPLY
I usually look at the effect of deduction for 25 years (rather than 40 years). Here are the figures taken from your benefit illustration.
At the assumed yield of 9%, the effect of deduction of $65,000 represents 55% of the value of accumulated premium of $118,000. At the assumed yield of 5%, the effect of deduction represents 52% of the accumulated premiums.
The effect of deduction of 52% to 55% is extremely high for a 25 year duration. In most other benefit illustrations , they are around 35% (which is already too high). In my book on financial planning, I advised that the effect of deduction for 25 years should NOT exceed 20%.
The cash value is NOT guaranteed as this is an investment linked policy. There is no guarantee on the maturity benefit or cash value.
I do not understand why this policy should take away so much from the policyholders. Clearly this is excessive, amounting to a rip-off of the trusting consumer.
There is additional premium payable for the riders. I do not know if the premium rates for these covers are too high. But they have to be paid for separately.
Please consider this suggestion: write a strong letter to complain to MAS for this type of excessive deduction. It does not seem right for consumers to be given such a poor deal.
Practical Guide on Financial Planning
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