Read this article.
When interest rate goes up in the future, the value of the bonds will fall. The fall will be highest for the long dated bonds, i.e. those that mature many years down the road.
For example, if you buy a bond that gives a yield of 3% for 10 years, and the interest rate increases to 4%, the bonds will fall in value by about 8%. However, you do not need to realize this loss. You can keep the bond until maturity, receive your yield of 3% and the par value at that time. If you bought the bond at higher than the par value,you will suffer a small loss as only the par value is returned.
Tuesday, August 24, 2010
Abuse by credit card companies
Read this article.
My view
Some of the practices of the credit card companies are unconscionable. I respect the right of a business to make a profit, but I do not tolerate practices that border on "cheating the consumers". Two years ago, I received a letter from a credit card company that stated the penalty for a late payment is $50 and that is on top of the 2% interest rate charge per month. I called the credit card company and cancelled the card.
The customer service manager was surprised. This is also practiced by other credit card companies. Furthermore, they will waive the charge if the customer complaints.
What type of nonsense is this? Trying to cheat the customer if the customer overlooks the charge, or is helpless? Why impose an unconscionable charge in the first place?
I hope that consumers will come forward and express their views strongly on these unconscionable and predatory practices. I hope that the Parliament of Singapore will pass similar legislation to stop the credit card companies from fleecing the consumers of Singapore.
My view
Some of the practices of the credit card companies are unconscionable. I respect the right of a business to make a profit, but I do not tolerate practices that border on "cheating the consumers". Two years ago, I received a letter from a credit card company that stated the penalty for a late payment is $50 and that is on top of the 2% interest rate charge per month. I called the credit card company and cancelled the card.
The customer service manager was surprised. This is also practiced by other credit card companies. Furthermore, they will waive the charge if the customer complaints.
What type of nonsense is this? Trying to cheat the customer if the customer overlooks the charge, or is helpless? Why impose an unconscionable charge in the first place?
I hope that consumers will come forward and express their views strongly on these unconscionable and predatory practices. I hope that the Parliament of Singapore will pass similar legislation to stop the credit card companies from fleecing the consumers of Singapore.
Google Search now finds PDF
Dear Mr. Tan
Looks like some of your earlier critics were not quite accurate about PDF search. I ran a search for ‘soho bundle’ and your link surfaced in the results. When I click on the link, the window containing the PDF document appear. Congrats.
PDF]
SOHO Bundle.pub
File Format: PDF/Adobe Acrobat - View as HTML
12 Aug 2010 ... Do you have an example of an office using the SOHO bundle? ... The SOHO Bundle that consists of 1 File Server, 5 notebooks and 1 multi- ...
tankinlian.com/admin/file.aspx?id=144
My comment
The PDF format has a big advantage compared to HTML. It allows the document to be downloaded and sent by e-mail to another person. The perceived disadvantage - not searched by Google, is now removed.
I am promoting a new concept of the PDF centric website. My website, www.tankinlian.com has been developed on this technology. It receives 400 visitors daily. I encourage organisations to move to this new style of website and use the Internet to develop your business. Read here.
12 Aug 2010 ... Do you have an example of an office using the SOHO bundle? ... The SOHO Bundle that consists of 1 File Server, 5 notebooks and 1 multi- ...
tankinlian.com/admin/file.aspx?id=144
My comment
The PDF format has a big advantage compared to HTML. It allows the document to be downloaded and sent by e-mail to another person. The perceived disadvantage - not searched by Google, is now removed.
I am promoting a new concept of the PDF centric website. My website, www.tankinlian.com has been developed on this technology. It receives 400 visitors daily. I encourage organisations to move to this new style of website and use the Internet to develop your business. Read here.
Inconsiderate marketing people
Some marketing people call my office and ask for me. They want to market their product. Their approach is inconsiderate. They often interrupt me when I am busy doing my work.
These people have my e-mail address and mobile phone. They can send an e-mail or SMS to me. Instead, the call the telephone, without any prior announcement, and try to market their products. For these inconsiderate people, I always tell them that I am not interested, goodbye!
Tan Kin Lian
These people have my e-mail address and mobile phone. They can send an e-mail or SMS to me. Instead, the call the telephone, without any prior announcement, and try to market their products. For these inconsiderate people, I always tell them that I am not interested, goodbye!
Tan Kin Lian
Unsuitable life insurance policies
Hi Mr Tan,
I came across your blog that you will help to review the life insurance policies. I attached 2 benefit illustrations
for a Vivolife policy and an ILP. My wife and I bought these life insurance about a year ago from a friend working for an financial adviser firm. Is it worthwhile to keep these policies? Both policies have a coverage of $10,000.
REPLY
The coverage of $10,000 is too low for your needs. These policies are not suitable for protection and offer a poor yield as an investment.
The ILP policy takes away 46% of the value of your accumulated premium at the end of 25 years, i.e. $102,000 out of $220,000). This is far too high. The Vivolife policy takes away 31%, i.e. $36613 out of $116694. This is high, but not as bad as other policy. According to my book, Practical Guide on Financial Planning, the fair deduction should be 20% for 25 years. If I were in your place, I would certainly give up the ILP policy now, but I am not sure about the Vivolife policy.
More important, you should read my book (you can buy the 5 book bundle at a 40% discount) to learn about how to safeguard your own financial future, i.e. buy term insurance and invest your savings in a low cost fund. You should also join FISCA and attend its educational talks.
I came across your blog that you will help to review the life insurance policies. I attached 2 benefit illustrations
for a Vivolife policy and an ILP. My wife and I bought these life insurance about a year ago from a friend working for an financial adviser firm. Is it worthwhile to keep these policies? Both policies have a coverage of $10,000.
REPLY
The coverage of $10,000 is too low for your needs. These policies are not suitable for protection and offer a poor yield as an investment.
The ILP policy takes away 46% of the value of your accumulated premium at the end of 25 years, i.e. $102,000 out of $220,000). This is far too high. The Vivolife policy takes away 31%, i.e. $36613 out of $116694. This is high, but not as bad as other policy. According to my book, Practical Guide on Financial Planning, the fair deduction should be 20% for 25 years. If I were in your place, I would certainly give up the ILP policy now, but I am not sure about the Vivolife policy.
More important, you should read my book (you can buy the 5 book bundle at a 40% discount) to learn about how to safeguard your own financial future, i.e. buy term insurance and invest your savings in a low cost fund. You should also join FISCA and attend its educational talks.
Insure against unemployment [2]
Can you buy insurance against unemployment? Read here:
http://tankinlian.com/admin/file.aspx?id=135
http://tankinlian.com/admin/file.aspx?id=135
New credit card rules in USA
Hi,
The United States recently imposed a new set of Credit Card rules protecting consumers, making sure big banks are not allowed to take advantage of customers with unfair fees, rate hikes, and a lack of clear information. Some of the key new rules set are (lifted from here)
- Limits on the size of late fees: Credit card issuers will no longer be allowed to charge you a late payment fee that is larger than your minimum payment. Banks also cannot charge a late fee higher than $25 unless one of your last six payments has been late or if the bank can show that the costs associated with the late payment justify a higher fee.
- Ban on multiple penalty fees for single violations: You cannot be charged more than one penalty fee for a single violation of your credit card agreement. For example, you cannot be charged both a late fee and a returned payment fee based on a single botched payment.
- Ban on inactivity fees: Card issuers will no longer be allowed to charge you a fee for failing to use your account enough or for terminating your account. Your account can still be closed for inactivity by your card issuer.
- More information about why your rate is going up: Since August 2009, card issuers have been required to give 45 days notice before raising your interest rate on future purchases. Now they must notify you of the reason they are imposing a rate hike, such as market conditions or a reduced credit score.
Such never before consumer protection rules should also considered by legislation of other countries and implemented everywhere.
How New Credit Card Rules Help You
Loh Hon Chun
The Online Law Degree | Online Law Degrees Problems Abound | Law Office Software
An online law degree appears to be a godsend for those wishing to pursuer a career in law in the United States. But there are problems with online law degrees..
Good post about the dangers associated with online law degrees..
Legal Case Management Software | Case Management Legal Software | Law Office Software
Case Management Legal Software
Leading providers of case management legal software include Abacus Law, Government Suite by LegalEdge, Monitor by Loryx, Amicus Attorney and Needles case management software. Some of the benefits of case management software include the database feature which allows you to keep track of each and every case you have handled, what judge presided and who acted for the other side with contact details etc.
Casino and Rolling Credit
Hi Mr Tan
The following is a short description of how the casinos are using "rolling" credit to encourage gamblers to gamble more. Please post it up if you think it is useful to share with others so that they do not fall into the trap of problem gambling.
CRA implemented rules to try and reduce the incidence of problem gambling.
Unfortunately, these restrictions have been cleverly bypassed. The main way of doing this is via rolling credit. This is offered to gamblers which the casino has identified as big gamblers based on their gambling patterns recorded in their card.
These big gamblers are advised to make a deposit (e.g. $50,000). After making a deposit, they are given a rolling “commission” based on the amount they play. This commission ranges from 0.5% to 1.0% of the gambled amount.
To earn what seems like “free money”, many big gamblers are enticed to make the deposit. In doing so, they are consistently tempted to gamble with more money than they had originally planned to gamble by drawing down on the deposit.
When the deposit is exhausted, the casino will usually offer to extend credit to allow the gambler to continue gambling. The amount extended will depend on the credit check done by the casino when the initial deposit is made.
Hence beyond operating a casino, the casino is also involved a lucrative money lending business. At this point in time, it is unknown what are the charges the casinos are levying for providing this credit. It is however likely that this makes up a significant portion of the record profits that have recently been reported.
Aurvandil
Discharge Transcription Services | Medical Transcription Services | Transcription Software
It is important to realize that any medical transcription services that you purchase are HIPAA(Health Insurance Portability and Accountability Act) compliant. This ensures that the security of any healthcare data is high and this is always a potential area of difficulty with the transfer of medical data.
Discharge Summary Transcripts
Discharge summary transcripts can be obtained from the major medical transcription service providers at what they claim are rates which are 3 times cheaper than local transcription services by using outsourcing to more competitive economies such as India and other countries where teleworking as medical transcriptionsists is well established.
Betting money
I like to share this joke. Hope you enjoy it.
A beggar approached a wealthy person and said "Please let me have $10 for my food. I have not eaten for two days".
The wealthy man replied, "I know you. If you give $10 to you, you will bet it on Toto!".
The beggar glared at the wealthy man and said, "I need your $10 for food. I already have betting money for Toto!".
A beggar approached a wealthy person and said "Please let me have $10 for my food. I have not eaten for two days".
The wealthy man replied, "I know you. If you give $10 to you, you will bet it on Toto!".
The beggar glared at the wealthy man and said, "I need your $10 for food. I already have betting money for Toto!".
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