The Singapore Exchange allows a shareholder to transfer shares to a family member at a nominal fee of $10 per transfer per share. This arrangement applies only to a transfer to a family member only.
To transfer shares to any other person, the shareholder has to sell the shares through the exchange, and pay the normal fees (which are much higher).
Sunday, August 17, 2008
20 year Term Insurance
I advice consumers to buy a 20 year Term Insurance (or 30 year Decreasing Term insurance).
Some people felt that they need whole life insurance. They must have been "sold" this idea by an insurance agent. Here is the reason why a 20 year Term Insurance is suitable for most people:
http://www.youtube.com/watch?v=sGDgYLCpnDo&feature=related
At present, Decreasing Term insurance is not available in the market. It will be available in 2009.
Here are some benchmark premium rates:
http://www.tankinlian.com/faq/benchmark.html
Some people felt that they need whole life insurance. They must have been "sold" this idea by an insurance agent. Here is the reason why a 20 year Term Insurance is suitable for most people:
http://www.youtube.com/watch?v=sGDgYLCpnDo&feature=related
At present, Decreasing Term insurance is not available in the market. It will be available in 2009.
Here are some benchmark premium rates:
http://www.tankinlian.com/faq/benchmark.html
Joke: accurate but totally useless
A skydiver is blown off-course and lands in a tree in a remote area. After dangling from branches for an hour, he spots a hiker walking by. "Excuse me," yells the parachutist, "but could you tell me where I am?"
The hiker looks up and says, "Yes, you're twenty feet above the ground." "Thank you," replies the skydiver, "You must be an Singaporean."
"What makes you say that?" asked the hiker.
The skydiver answered, "Because what you just told me was 100% accurate, but totally worthless!"
The hiker looks up and says, "Yes, you're twenty feet above the ground." "Thank you," replies the skydiver, "You must be an Singaporean."
"What makes you say that?" asked the hiker.
The skydiver answered, "Because what you just told me was 100% accurate, but totally worthless!"
Educational videos on Life Insurance
View these videos:
Whole Life vs Term
http://www.youtube.com/watch?v=yQZ1285SkgY&feature=related
Susie Orman – Life Insurance
http://www.youtube.com/watch?v=sGDgYLCpnDo&feature=related
Term vs Cash Value Life Insurance
http://www.youtube.com/watch?v=7zGRDIVKUh4
Whole Life vs Term
http://www.youtube.com/watch?v=yQZ1285SkgY&feature=related
Susie Orman – Life Insurance
http://www.youtube.com/watch?v=sGDgYLCpnDo&feature=related
Term vs Cash Value Life Insurance
http://www.youtube.com/watch?v=7zGRDIVKUh4
Saturday, August 16, 2008
Ask the right questions
A reader was given a Benefit Illustration for a life insurance policy (PayMyUni). He did not understand the product and asked for my advice.
The Benefit Illustration contained many pages of information. It is quite complicated to read through the details. Most of the information are not relevant to the consumer who has to make the decision.
The consumer should ask a few questions to the financial adviser:
1. What is the amount that I can get back at the end of the term, based on a projected yield of 3.75% and 5.25% p.a. ?
2. What is the amount that I can get by investing the same premium over the same period to earn 4% p.a. ?
If you buy Term insurance (and spend 5% of the premium) and invest the remaining 95% in a low cost investment fund, you should be able to earn a net yield of at least 4% p.a.
The insurance agent will tell you a lot of other information, that are usually irrelevant to your decision. You should not be distracted by the sales talk. You should focus on getting the relevant figures for your decision.
My advice is to avoid all life insurance products sold by insurance agents, as they have high expenses. To save for a child's education, you can follow the tips here:
http://www.tankinlian.com/faq/education.html
The Benefit Illustration contained many pages of information. It is quite complicated to read through the details. Most of the information are not relevant to the consumer who has to make the decision.
The consumer should ask a few questions to the financial adviser:
1. What is the amount that I can get back at the end of the term, based on a projected yield of 3.75% and 5.25% p.a. ?
2. What is the amount that I can get by investing the same premium over the same period to earn 4% p.a. ?
If you buy Term insurance (and spend 5% of the premium) and invest the remaining 95% in a low cost investment fund, you should be able to earn a net yield of at least 4% p.a.
The insurance agent will tell you a lot of other information, that are usually irrelevant to your decision. You should not be distracted by the sales talk. You should focus on getting the relevant figures for your decision.
My advice is to avoid all life insurance products sold by insurance agents, as they have high expenses. To save for a child's education, you can follow the tips here:
http://www.tankinlian.com/faq/education.html
Pro-Trader getting to be popular
105 players have now registered to try this application that provides a simulted trading environment:
http://tankinlian.com/trader/
35 players logged in yesterday to play the game. Many of them played a multi-player game to compete against other players.
http://tankinlian.com/trader/
35 players logged in yesterday to play the game. Many of them played a multi-player game to compete against other players.
Save for a child's education
Dear Mr. Tan
I've read your blog and aware of benefit of term insurance (cheaper compare to whole life policy). I intend to buy one term and one education policy for my child. As you were formerly with NTUC Income, you should be able to tell me more about the plan call 'PayMyUni' whether it provide good returns or not.
REPLY
I am not familiar with PayMyUni as it was introduced after I left Income. Usually, I advise people to save for a child education through a low cost investment fund. Read this FAQ:
http://www.tankinlian.com/faq/education.html
I've read your blog and aware of benefit of term insurance (cheaper compare to whole life policy). I intend to buy one term and one education policy for my child. As you were formerly with NTUC Income, you should be able to tell me more about the plan call 'PayMyUni' whether it provide good returns or not.
REPLY
I am not familiar with PayMyUni as it was introduced after I left Income. Usually, I advise people to save for a child education through a low cost investment fund. Read this FAQ:
http://www.tankinlian.com/faq/education.html
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