Sunday, May 8, 2011
A Mandate for the Opposition
Hi, Kin lian,
ROUGHLY 1 in 3 voters endorses the Opposition. The percentage of total votes polled should rightly reflect the number of seats won, but it does not in the present system. A ‘proportional representation’ electoral system provides for a more equitable representation in Parliament. A 30% to 40% of total votes polled by the Opposition is, by any measure, a substantial mandate. A mandate for the Opposition, to continue both in and out of Parliament to push for greater transparency of policies and a greater accountability of actions.
Francis Tan tc.
ROUGHLY 1 in 3 voters endorses the Opposition. The percentage of total votes polled should rightly reflect the number of seats won, but it does not in the present system. A ‘proportional representation’ electoral system provides for a more equitable representation in Parliament. A 30% to 40% of total votes polled by the Opposition is, by any measure, a substantial mandate. A mandate for the Opposition, to continue both in and out of Parliament to push for greater transparency of policies and a greater accountability of actions.
Francis Tan tc.
Minister's pension
A letter explaining the pension paid to ministers has been posted in SGEP. Here is the direct link.
Dear Kin Lian
As an actuary, I am sure you can easily quantify the amount paid out in a year or the amount needed to be set aside for this pension. It would probably run into billions a year and the public has a right to know. Let not forget this amount is for life and pay out of our tax money.
I am not against pension system. I think it is a good social safety net for all Singaporean. Previously, public servants are getting a pension because their remuneration are lower than the private sector so it is a way to compensate them. However, since CPF was implemented decades ago, still PAP does not have a transition mechanism to migrate the pension system for Ministers to CPF system.
While I think that we may not be able to stop these pension payment to those who have retired due to contractual reasons, we should at least push the govt to review the system so as not to burden our future generations with such huge financial obligation. As you are keenly aware, The longer we wait, the compounding effect of this financial burden will increase astronomically.
Steve
Dear Kin Lian
As an actuary, I am sure you can easily quantify the amount paid out in a year or the amount needed to be set aside for this pension. It would probably run into billions a year and the public has a right to know. Let not forget this amount is for life and pay out of our tax money.
I am not against pension system. I think it is a good social safety net for all Singaporean. Previously, public servants are getting a pension because their remuneration are lower than the private sector so it is a way to compensate them. However, since CPF was implemented decades ago, still PAP does not have a transition mechanism to migrate the pension system for Ministers to CPF system.
While I think that we may not be able to stop these pension payment to those who have retired due to contractual reasons, we should at least push the govt to review the system so as not to burden our future generations with such huge financial obligation. As you are keenly aware, The longer we wait, the compounding effect of this financial burden will increase astronomically.
Steve
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Fat pension for ousted ministers
Dear Mr. Tan,
Some people feel sympathy for the ministers that are ousted in the general election, having lost the election at Aljunied GRC. They is no need for sympathy. The ousted ministers will not be paupers. Each person may be getting a lifetime pension of half a million or more a year. They can retire quite comfortably.
REPLY
Are you sure of the figures? When does the pension start to be payable - from age 55 or 60, or 65?
Some people feel sympathy for the ministers that are ousted in the general election, having lost the election at Aljunied GRC. They is no need for sympathy. The ousted ministers will not be paupers. Each person may be getting a lifetime pension of half a million or more a year. They can retire quite comfortably.
REPLY
Are you sure of the figures? When does the pension start to be payable - from age 55 or 60, or 65?
Drop Life, buy Term, Invest the Difference
Dear Mr Tan,
At last I got a someone who can give advice objectively which I could not get from elsewhere. Your book 'Get Value From Your Life Insurance' is an eye-opener to me. I only started to read about financial planning a year ago when there was a major change in my life stage. I start to realize that saving in bank and CPF alone will not be enough to see me and my wife through retirement. This is so especially that we belong to the sandwich generation. Now at 40, my family commitment has increased financially and this is affecting my long term goals with retirement planning being more urgent than ever before as nowadays I find myself difficult in setting saving aside immediately after every pay cheque, even though I regard myself as a modest-living person and with no car. I'm currently reviewing my 3 existing whole life insurance policies which I bought during my early years when I've very little financial knowledge.
Your book provide an easy to understand determination of the effect of deduction and yield, but trying to interpreting the policy and its BI figure proves confusing with limited information in them. I'm a firm believer of 'buy term, invest the difference' ever since I started to know more about insurance planning. I will greatly appreciate, out of your busy schedule, if you could provide advice if my 3 existing insurance policies are worth continuing? Attached are the 3 polices for your review.
Will it be more advisable and worthwhile in terms of cost saving for me to get a decreasing term policy when my financial commitment start to lessen in my later stage of my life?
Recently in the market, there is a new product covers for early stage critical illness. May I know what is your opinion on this product?
REPLY
Please read this FAQ and consult Vincent Sear
http://tankinlian.com/admin/file.aspx?id=435
At last I got a someone who can give advice objectively which I could not get from elsewhere. Your book 'Get Value From Your Life Insurance' is an eye-opener to me. I only started to read about financial planning a year ago when there was a major change in my life stage. I start to realize that saving in bank and CPF alone will not be enough to see me and my wife through retirement. This is so especially that we belong to the sandwich generation. Now at 40, my family commitment has increased financially and this is affecting my long term goals with retirement planning being more urgent than ever before as nowadays I find myself difficult in setting saving aside immediately after every pay cheque, even though I regard myself as a modest-living person and with no car. I'm currently reviewing my 3 existing whole life insurance policies which I bought during my early years when I've very little financial knowledge.
Your book provide an easy to understand determination of the effect of deduction and yield, but trying to interpreting the policy and its BI figure proves confusing with limited information in them. I'm a firm believer of 'buy term, invest the difference' ever since I started to know more about insurance planning. I will greatly appreciate, out of your busy schedule, if you could provide advice if my 3 existing insurance policies are worth continuing? Attached are the 3 polices for your review.
Will it be more advisable and worthwhile in terms of cost saving for me to get a decreasing term policy when my financial commitment start to lessen in my later stage of my life?
Recently in the market, there is a new product covers for early stage critical illness. May I know what is your opinion on this product?
REPLY
Please read this FAQ and consult Vincent Sear
http://tankinlian.com/admin/file.aspx?id=435
Growth in life insurance sales
The life insurance sales grew by 40% during the first quarter of 2011. However, the total assets grew by only 8% - a large part of it can be attributed to the higher stock market values. What account for the difference?
I suspect that a significant portion of the increase in sales is due to replacement of life insurance policies. Many insurance companies introduce new insurance products every year. Their insurance agents use the new products to get customers to stop an existing policy and "upgrade" to a "better policy". This is called "replacement of policy". When it happens, there is really no increase in sales. However, the insurance company usually count the new policy as a sale and does not deduct the termination of the existing policy.
When a life insurance company reports a spectacular increase in sales, the real increase may be quite small, as a large part can be attributed to replacement.
When the policyholder replaces a policy, the policy has to incur the upfront expense all over again. This can be up to 2 years of the regular premium or 5% on the single premium. The cost is exorbitant, and eat away the yield on the policy - giving a poor net yield. The policyholder is usually not aware about these high charges and may be misled by the high "projected yield".
Many investment-linked policies are still being sold on the high projected yield of 9%. The policyholder is not told that the net yield, after deducting the charges, is only 5% (i.e. a reduction in yield of up to 4%. If the real yield in the future is 6%, the net yield will only be 2%, which cannot cover inflation. This is a poor yield, considering the investment risk that has to be borne by the policyholder.
When an insurance agent approaches an existing consumer to recommend a new product, the consumer should reject the recommendation. There is a high risk that the consumer will be taken for a ride. I am not aware of any new insurance policy that make sense for a consumer, considering the high charges that are taken away to pay the agent and to make profit for the insurance company.
Read about the evaluation of the insurance policy from my book, "Get Value from your Life Insurance Policy', which is available from i-shop.
Tan Kin Lian
I suspect that a significant portion of the increase in sales is due to replacement of life insurance policies. Many insurance companies introduce new insurance products every year. Their insurance agents use the new products to get customers to stop an existing policy and "upgrade" to a "better policy". This is called "replacement of policy". When it happens, there is really no increase in sales. However, the insurance company usually count the new policy as a sale and does not deduct the termination of the existing policy.
When a life insurance company reports a spectacular increase in sales, the real increase may be quite small, as a large part can be attributed to replacement.
When the policyholder replaces a policy, the policy has to incur the upfront expense all over again. This can be up to 2 years of the regular premium or 5% on the single premium. The cost is exorbitant, and eat away the yield on the policy - giving a poor net yield. The policyholder is usually not aware about these high charges and may be misled by the high "projected yield".
Many investment-linked policies are still being sold on the high projected yield of 9%. The policyholder is not told that the net yield, after deducting the charges, is only 5% (i.e. a reduction in yield of up to 4%. If the real yield in the future is 6%, the net yield will only be 2%, which cannot cover inflation. This is a poor yield, considering the investment risk that has to be borne by the policyholder.
When an insurance agent approaches an existing consumer to recommend a new product, the consumer should reject the recommendation. There is a high risk that the consumer will be taken for a ride. I am not aware of any new insurance policy that make sense for a consumer, considering the high charges that are taken away to pay the agent and to make profit for the insurance company.
Read about the evaluation of the insurance policy from my book, "Get Value from your Life Insurance Policy', which is available from i-shop.
Tan Kin Lian
Online Marketing Ireland-Can Internet Marketing Benefit Your Business? | Web Design Dublin
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Internet marketing is surrounded by a fog of confusion and is intimidating to many small business owners who are not familiar with how the internet can be used to raise the profile of their businesses and generate more leads, clients and sales.
Online marketing in Ireland can take many forms but primarily should include
1. A good, seo optimised website for your business
2. The use of Facebook, Twitter and other social media websites to communicate your companies message
Insurance of gadgets
Have you insured your i-pad, mobile phone or laptop? Give me the details of the coverage and premium, and the insurance company that provide the cover.
Aljunied - putting into perspective
A view from a reader:
The five who lost Aljunied GRC last night basically went through what thousands of Singaporeans have gone through, which is losing their jobs due to competition.
The five who lost Aljunied GRC last night basically went through what thousands of Singaporeans have gone through, which is losing their jobs due to competition.
Lessons from the General Election 2011
Here are 5 lessons that can be learned by observing the results of the general election 2011. TKL website
Oppositon parties should have 25 seats in Parliament
Dear Mr. Tan
To be fair, we replace the 'first past the post' system with the 'proportional representation' system. This is what the GE results will look like this:
WP Votes won 12.82 % Seats won: 10.5
NSP 12.04 9.8
SDP 4.83 3.9
OPPOSITION SEATS WON - 25
Francis Tan TC.
To be fair, we replace the 'first past the post' system with the 'proportional representation' system. This is what the GE results will look like this:
WP Votes won 12.82 % Seats won: 10.5
NSP 12.04 9.8
SDP 4.83 3.9
OPPOSITION SEATS WON - 25
Francis Tan TC.
Managing a Town Council
One of the duties of the elected MP is to manage a town council. Many people probably worry about the lack of experience of opposition MPs i nmanaging a town council, although Low Thia Khiang and Chiam See Tong appeared to do this job quite well - but it could be an exception. The other opposition MPs, if elected, might not have the same calibre and dedication - and this uncertainty might have deterred the voters from voting for them.
I like to write a paper on what a new elected team of MPs should do to manage a town council well. They do not need to do the day to day work, as they can appoint professionals to do the job, but the town council needs to have a system of managing the expectations of the residents and responding to a crisis or emergency.
Can I have contributions to this topic, from people who have managed a town council before. What are the key strategies and "to-do" list? Please post your comments here, or send them to kinlian@gmail.com.
Tan Kin Lian
I like to write a paper on what a new elected team of MPs should do to manage a town council well. They do not need to do the day to day work, as they can appoint professionals to do the job, but the town council needs to have a system of managing the expectations of the residents and responding to a crisis or emergency.
Can I have contributions to this topic, from people who have managed a town council before. What are the key strategies and "to-do" list? Please post your comments here, or send them to kinlian@gmail.com.
Tan Kin Lian
New Foreign Minister
My guess is that Wong Kan Seng will be appointed the Foreign Minister. He as the Foreign Minister for a short period before he became the Home Minister. His long tenure with the Government gives him the experience for this job - at least for the interim period, until a new person can be found. I also expect Goh Chok Tong to take a more active role in this ministry, perhaps being the mentoring minister.
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