Dear Mr.Tan,
I am new to investing and will like to start investing after getting my bonus next month. I read some of your blogs and the Exchange Traded Funds seems like a good choice. I am interested in investing in ETFs but not familiar with the process. How much do i need to invest in ETFs? Can i do the investment on my own or through a broker? I do not have any trading accounts, do i need to get a trading account first?
REPLY
If you go through a stockbroker, you need about $3000 to buy 1000 shares of ETF.
If you wish to invest in smaller amounts, you can go through Philips Securities. They have a plan to allow you to invest monthly, but they impose a monthly charge. I do not know the details. You can ask Philipps Securities.
Saturday, August 9, 2008
Private Shield with Riders
What is the cost of a Private Shield plan, covering medical bills as charged in a private hospital, together with a rider to cover the Deductible and Co-insurance of 10%?
I calculated the total cost from age 30 to 85 to be more than $100,000, based on the premium rates today. If you add the cost beyond age 85, it will be much higher. The premum rates will increase in future years, but the future increase can probably be covered through the interest earned on your savings.
If you wish to have a private Shield plan to cover your expenses in a private hospital, you must have $100,000 in your Medisave account by the time you retire.
Insurance agents advice you to buy a private Shield plan. I hope that they have pointed out to you about the lifetime cost, so that you are well informed.
If you have to set aside $100,000 for your private Shield insurance, how much of that money is actually paid in claims? Based on the figures available from MAS website, the claim payout is 43%. This means that you are paying $100,000 in premium to get $43,000 in claims. Can you afford to give away the additional $57,000 of your savings to the insurance company?
After paying so much in premium, are you worried that your claim may be rejected due to "non-disclosure of pre-existing medical conditions", especially if you were not aware about these conditions? This has happened to many policyholders.
Think about the lifetime cost, if you wish to buy the insurance plan that covers all expenses "as charged". Make sure that you have sufficient money to pay the premium up to age 85 and beyond.
Note: If you take a private Shield plan without the rider, the total cost is $66,000. In this case, you have to pay the Deductible and Co-insurance.
I calculated the total cost from age 30 to 85 to be more than $100,000, based on the premium rates today. If you add the cost beyond age 85, it will be much higher. The premum rates will increase in future years, but the future increase can probably be covered through the interest earned on your savings.
If you wish to have a private Shield plan to cover your expenses in a private hospital, you must have $100,000 in your Medisave account by the time you retire.
Insurance agents advice you to buy a private Shield plan. I hope that they have pointed out to you about the lifetime cost, so that you are well informed.
If you have to set aside $100,000 for your private Shield insurance, how much of that money is actually paid in claims? Based on the figures available from MAS website, the claim payout is 43%. This means that you are paying $100,000 in premium to get $43,000 in claims. Can you afford to give away the additional $57,000 of your savings to the insurance company?
After paying so much in premium, are you worried that your claim may be rejected due to "non-disclosure of pre-existing medical conditions", especially if you were not aware about these conditions? This has happened to many policyholders.
Think about the lifetime cost, if you wish to buy the insurance plan that covers all expenses "as charged". Make sure that you have sufficient money to pay the premium up to age 85 and beyond.
Note: If you take a private Shield plan without the rider, the total cost is $66,000. In this case, you have to pay the Deductible and Co-insurance.
Opening of Beijing Olympics
The Beijing Olympics opening ceremony started at 8:08:08 pm on 8 August 2008. How creative!
The opening ceremony is a combination of:
> modern technology
> art and culture
> discipline and focus of the people.
China can be proud of its remarkable achievements during the past two decades. Many people now forget that China is a Communist controlled country. China has shown that a Communist system can deliver peace, progress and prosperity for its people. I am amazed at the pride and loyalty of the people towards China.
The opening ceremony is a combination of:
> modern technology
> art and culture
> discipline and focus of the people.
China can be proud of its remarkable achievements during the past two decades. Many people now forget that China is a Communist controlled country. China has shown that a Communist system can deliver peace, progress and prosperity for its people. I am amazed at the pride and loyalty of the people towards China.
Friday, August 8, 2008
Gracehaven Children's Home
The Salvation Army, Gracehaven Children's Home would like to cordially invite you to join us for a day of fun at our Carnival on 6 September 2008, Saturday, from 10am-6pm. This day has been set aside by the Home to raise funds for the children and young persons residing with us.
The proceeds from the Carnival's targeted amount of $150,000 will go into providing for their educational needs, social and rehabilitative programs.
Your support in every way would be most valuable to us. To join us in this partnership of care, you may support us in any of the following areas below:
1) Sponsorship in cash for the food and drinks for sale, logistical items such as power generators, tentage, fans, tables, games and food stalls, etc.
2) Purchase of carnival coupons. Each coupon is priced at $10 per piece, and it has 5 portions of $2, and a special redemption coupon for your free gift.
Tax exemption receipts can be issued for your donation upon request.
For any enquiries and donation in cash or kind, please feel free to contact our Program Co-ordinators,
- Ms. Goh Kailin at 64881531, email - goh_khai_ling@smm.salvationarmy.org
- Mr. Liu Minjie at 64881700, email - liu_min_jie@smm.salvationarmy.org
The proceeds from the Carnival's targeted amount of $150,000 will go into providing for their educational needs, social and rehabilitative programs.
Your support in every way would be most valuable to us. To join us in this partnership of care, you may support us in any of the following areas below:
1) Sponsorship in cash for the food and drinks for sale, logistical items such as power generators, tentage, fans, tables, games and food stalls, etc.
2) Purchase of carnival coupons. Each coupon is priced at $10 per piece, and it has 5 portions of $2, and a special redemption coupon for your free gift.
Tax exemption receipts can be issued for your donation upon request.
For any enquiries and donation in cash or kind, please feel free to contact our Program Co-ordinators,
- Ms. Goh Kailin at 64881531, email - goh_khai_ling@smm.salvationarmy.org
- Mr. Liu Minjie at 64881700, email - liu_min_jie@smm.salvationarmy.org
Help the low income people
Dear Mr. Tan,
I see many poor people in Singapore. In your opinion, what is the best way to help them? In some countries, certain essential goods are subsidised, but they tend to be abused. Is there a better way to give the help, and prevent abuse?
REPLY
Here are some ways to help the low income people:
1. Pay them an adequate wage
2. Encourage them to save, and help them to get a higher return
3. Help them to avoid debts and paying high interest
4. Keep down the cost of essential goods (but not through a subsidy)
5. Help them to get access to eduation and health care, paid through taxation
I see many poor people in Singapore. In your opinion, what is the best way to help them? In some countries, certain essential goods are subsidised, but they tend to be abused. Is there a better way to give the help, and prevent abuse?
REPLY
Here are some ways to help the low income people:
1. Pay them an adequate wage
2. Encourage them to save, and help them to get a higher return
3. Help them to avoid debts and paying high interest
4. Keep down the cost of essential goods (but not through a subsidy)
5. Help them to get access to eduation and health care, paid through taxation
Transfer savings into CPF special account
Hi Mr. Tan,
I am contemplating transferring my CPF-OA funds over to CPF-SA to earn more interest.
However, I am concerned that if I transferred too much over, I may not have the minimum OA amount at retirement for withdrawal. Besides this, what other withdrawal restrictions is likely to happen for such a case of large OA-to-SA funds transfer?
REPLY
It is better to transfer to SA to earn higher interest rate. The SA can be withdrawn during your lifetime. If you have excess amount in SA over the minimum sum, the balance can be withdrawn at that time.
I am contemplating transferring my CPF-OA funds over to CPF-SA to earn more interest.
However, I am concerned that if I transferred too much over, I may not have the minimum OA amount at retirement for withdrawal. Besides this, what other withdrawal restrictions is likely to happen for such a case of large OA-to-SA funds transfer?
REPLY
It is better to transfer to SA to earn higher interest rate. The SA can be withdrawn during your lifetime. If you have excess amount in SA over the minimum sum, the balance can be withdrawn at that time.
Personal insurance
Dear Mr. Tan,
I read that it is important to get a H&S plan althought our employer do cover us ? Since we may not work for the same employer next time. Plus, a H&S plan is more important than a Critical Illness plan ?
REPLY
Read this FAQ:
http://www.tankinlian.com/faq/choice.html
I read that it is important to get a H&S plan althought our employer do cover us ? Since we may not work for the same employer next time. Plus, a H&S plan is more important than a Critical Illness plan ?
REPLY
Read this FAQ:
http://www.tankinlian.com/faq/choice.html
Subscribe to:
Posts (Atom)