Shin Min and Sunday Times have covered my suggestion, posted in this blog, to promote flexible work by paying an hourly rate (instead of a monthly salary)
The key thrust of my proposal is to create employment for school leavers and for people who lose their jobs due to restructuring and other reasons beyond their control.
If a company employs 1,000 people working 40 hours a week, they can employ an additional 100 people, if each person works 36 hours a week. A person working less hours will earn less based on the hourly rate, but at least more people can be employed. This is fairer than having 10% of the people being jobless.
Working 36 hours a week means more time for the family, for hobbies, for continuing education and for leisure. Those who wish to have a supplementary income can continue to have part time work, e.g. provide tuition or other service. It diversifies their sources of income, and will not affect them badly if they should get retrenched.
Under the hourly rate system, there is no need for people to work longer hours, without overtime pay, just to impress the employer and keep their full time job.
There is a need to ensure that the hourly rate of pay provides long term security for employees. I shall address this point in a separate article.
Tan Kin Lian
Sunday, October 11, 2009
RED Portal (18) - Do your research
My friend bought a cluster house at an attractive price recently. The market price has since moved up.
She was able to get the good price due to the time that was spent in carrying out research. She looked at the comparable price for landed property in the target vicinity. When the opportunity comes, she and her husband was able to make a decision quite quickly.
Apart from getting a good price, the cluster house is suitable for their needs, considering the workplace of the spouses, future schools for their children, and their lifestyle needs.
For people who are spending more than $1 million for a private house or condominium, it is important to carry out the research early and study the market for a few months.
Do not act when a property agent bring an offer to you and tell you that it is a good offer. The agent probably tells the same story to many other potential buyers, who have rejected the offer.
To carry out your research, you can study the property websites in Singapore. Look for actual transactions, rather than the properties that are listed for sale (as they are likely to be inflated).
I have created the RED Portal to offer this information to potential buyers. It is also useful for sellers to get to know the market, so that they do not underprice their property. Please tell your friend about the RED Portal.
Tan Kin Lian
She was able to get the good price due to the time that was spent in carrying out research. She looked at the comparable price for landed property in the target vicinity. When the opportunity comes, she and her husband was able to make a decision quite quickly.
Apart from getting a good price, the cluster house is suitable for their needs, considering the workplace of the spouses, future schools for their children, and their lifestyle needs.
For people who are spending more than $1 million for a private house or condominium, it is important to carry out the research early and study the market for a few months.
Do not act when a property agent bring an offer to you and tell you that it is a good offer. The agent probably tells the same story to many other potential buyers, who have rejected the offer.
To carry out your research, you can study the property websites in Singapore. Look for actual transactions, rather than the properties that are listed for sale (as they are likely to be inflated).
I have created the RED Portal to offer this information to potential buyers. It is also useful for sellers to get to know the market, so that they do not underprice their property. Please tell your friend about the RED Portal.
Tan Kin Lian
Pay the right price for insurance
If you are offered an insurance product and there is no comparable products to compare the cost quoted to you, you can take the following approach:
a) Ask the adviser to get the insurer to disclose the claim to premium ratio for the product
b) If the ratio is 60% or higher, the product is fairly priced
In the competitive product for motor and health insurance, the claim ratio is usually 70% or higher. However, some health insurance products have a claim ratio less than 50%, as they are designed to make it difficult for customers to compare the price.
The insurer is able to disclose this information based on the past claim experience for that product. For a new product, they can state the assumptions used in the calculation. Ask for the information to be stated in writing.
If the insurer refuses to disclose the information, you should not buy the product - as the product is likely to be highly priced to generate a high profit margin.
This approach applies for an insurance product that offers pure protection, i.e. without any savings.
In the case of a savings product, a good method is to calculate the reduction in yield. If the reduction is 1% or lower, it is fairly priced. The cost of insurance can be computed separately. If the reduction is higher than 1%, the product is not fairly priced and should be avoided.
Tan Kin Lian
a) Ask the adviser to get the insurer to disclose the claim to premium ratio for the product
b) If the ratio is 60% or higher, the product is fairly priced
In the competitive product for motor and health insurance, the claim ratio is usually 70% or higher. However, some health insurance products have a claim ratio less than 50%, as they are designed to make it difficult for customers to compare the price.
The insurer is able to disclose this information based on the past claim experience for that product. For a new product, they can state the assumptions used in the calculation. Ask for the information to be stated in writing.
If the insurer refuses to disclose the information, you should not buy the product - as the product is likely to be highly priced to generate a high profit margin.
This approach applies for an insurance product that offers pure protection, i.e. without any savings.
In the case of a savings product, a good method is to calculate the reduction in yield. If the reduction is 1% or lower, it is fairly priced. The cost of insurance can be computed separately. If the reduction is higher than 1%, the product is not fairly priced and should be avoided.
Tan Kin Lian
Remembering Seng Guat Neo
I went to the wake of Seng Guat Neo, who passed away recently due to a sudden illness. I knew her for about 25 years; she was active in selling insurance for NTUC Income as a part time organiser, and was the President of the Summit Club for many years.
Mdm Seng, as she is popularly known, is passionate about helping people to buy insurance to get protection for their family and to get an attractive return on their savings for the future. She worked extremely hard and was not deterred by the low rate of commission paid to her for her efforts, so that her clients can enjoy good value from the insurance policies. Many of her clients were doctors and nurses working in her workplace. She served them over the years through her personal service and care.
I met her husband and daughter. We recalled the values of the old days where the welfare of the policyholders was the driving force that make many people like Mdm Seng worked so hard.
I met another long time organiser at the wake. He disliked the new products that were introduced recently, as the premiums were higher and the policies provided a poor return to the policyholders. He will only sell the products that give a fair return to the policyholders, such as the single premium products. He believed in placing the interest of his clients above his own personal interest. He has reduced his selling activities considerably in recent years.
Tan Kin Lian
Mdm Seng, as she is popularly known, is passionate about helping people to buy insurance to get protection for their family and to get an attractive return on their savings for the future. She worked extremely hard and was not deterred by the low rate of commission paid to her for her efforts, so that her clients can enjoy good value from the insurance policies. Many of her clients were doctors and nurses working in her workplace. She served them over the years through her personal service and care.
I met her husband and daughter. We recalled the values of the old days where the welfare of the policyholders was the driving force that make many people like Mdm Seng worked so hard.
I met another long time organiser at the wake. He disliked the new products that were introduced recently, as the premiums were higher and the policies provided a poor return to the policyholders. He will only sell the products that give a fair return to the policyholders, such as the single premium products. He believed in placing the interest of his clients above his own personal interest. He has reduced his selling activities considerably in recent years.
Tan Kin Lian
Saturday, October 10, 2009
President Obama pushes for Financial Reform
Dear Mr. Tan,
The President pushes for one of the pillars of his new economic foundation: reforming our financial system to look out for consumers, not just banks.
I admire how the American's strong showing in protecting consumers. Obama openly pointed how consumers, even CPA certified, got "cheated" by the financial institutions' pages and pages of fine prints, unfair rates hikes, unfair dealings, etc.
Obama said
- He do not want them to compete by figuring out how much they can fool ordinary Americans.
- The Financial Consumer Protection Agency is not for big banks, financial firms, but for hardworking Americans.
http://www.youtube.com/watch?
Kudos to the Obama Administration!
Squeeze on the middle class
The middle class is being squeezed by stagnant income and higher expenses. This report refers to the situation in America. It applies to Singapore as well, except that both the middle and lower income classes are being squeezed.
This is caused by the widening income gap, brought about by deregulation, globalisation and the free market. This is bad for the future of society.
This is caused by the widening income gap, brought about by deregulation, globalisation and the free market. This is bad for the future of society.
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