Sunday, October 18, 2009
RED Portal (20)
Click on the label "RED Portal" on the right to get a list of all the articles on the Real Estate Data. Do your research of the property market before you decide to buy, sell or rent any private property.
Public Forum on CPF Life
Venue: Park Mall, Meeting Room level 13 (opposite Dholby Ghaut MRT)
Date: 24 Oct 09 (Sat)
Time: 230 - 530 pm
Interested participants may register at clubs.ntu.edu.sg/rms
RED Portal (19) - Latest Transctions
How is the property market moving?
The RED Portal has a new feature. It shows the latest 100 transactions compared with the benchmark price (BMP). It gives an idea on the trend of prices in recent transactions for specific projects.
The transaction date shows the lodging of the caveat which can be between 1 to 3 months from the actual date of the initial negotiation.
Latest transactions.
The RED Portal has a new feature. It shows the latest 100 transactions compared with the benchmark price (BMP). It gives an idea on the trend of prices in recent transactions for specific projects.
The transaction date shows the lodging of the caveat which can be between 1 to 3 months from the actual date of the initial negotiation.
Latest transactions.
Saturday, October 17, 2009
Benefit Illustration for a Life Insurance Policy
If you have bought a life insurance policy within the last two years and you wish to me give you an analysis, you can send it by fax to me at 64053100.
Guaranteed products
Some people like to have guaranteed products. They may not realise that these products are "guaranteed to lose".
Suppose you buy a product that is guaranteed to give you a yield of 5% over 20 years. Is this a good product?
If there is high inflation in the future, the value of your investment will drop. You are locked into a product with a low yield, compared to the market rates. The issuer of the product makes a big profit.
If interest rate drops to near zero, like in Japan for many years, will you benefit by getting the guaranteed 5%? Maybe not. If the issuer is not able to meet its obligation, they will declare bankrupcy. You lose again.
Do not buy a guaranteed product unless it is backed by a financially strong institution. Do not buy a "guaranteed product" which may be "guaranteed to lose".
This is why I prefer to buy an exchange traded fund of equities and keep it for the long term. It has liquidity, transparency and diversification. It does not provide any guarantee, but is likely to give a better yield than any guaranteed product.
Note on Exchange Traded Fund (ETF)
There are several ETF available in the Singapore Exchange. The most well known is the STI ETF which is intended to track the performance of the Straits Times Index. It offers diversification into several large stocks and has low annual fee of 0.3%. You have to ask your stockbroker about the ETF or attend a briefing organised by SGX.
Suppose you buy a product that is guaranteed to give you a yield of 5% over 20 years. Is this a good product?
If there is high inflation in the future, the value of your investment will drop. You are locked into a product with a low yield, compared to the market rates. The issuer of the product makes a big profit.
If interest rate drops to near zero, like in Japan for many years, will you benefit by getting the guaranteed 5%? Maybe not. If the issuer is not able to meet its obligation, they will declare bankrupcy. You lose again.
Do not buy a guaranteed product unless it is backed by a financially strong institution. Do not buy a "guaranteed product" which may be "guaranteed to lose".
This is why I prefer to buy an exchange traded fund of equities and keep it for the long term. It has liquidity, transparency and diversification. It does not provide any guarantee, but is likely to give a better yield than any guaranteed product.
Note on Exchange Traded Fund (ETF)
There are several ETF available in the Singapore Exchange. The most well known is the STI ETF which is intended to track the performance of the Straits Times Index. It offers diversification into several large stocks and has low annual fee of 0.3%. You have to ask your stockbroker about the ETF or attend a briefing organised by SGX.
Postive views about CPF Life
I believe that CPF Life is good for the people. Here are my reasons:
a)It is operated as a mutual scheme. The future payment will reflect the investment yield and mortality experience.
b) The administrative expense is low
c) Most people (except the affluent) will receive a bonus when they join the scheme
d) The interest rate credited to the investments is higher than the market rates.
e) CPF or the Government will not make any profit from the scheme.
Members who buy CPF Life is getting a good deal, much better than any life annuity that can be offered by an insurance company. The view held by some people, that the Government is trying to make money from CPF Life is unfounded.
The non-guaranteed nature of the monthly payout will work better for the members. If there is high inflation in the future, it is likely that a higher payount will be made under CPF Life (as inflation is usually accompanied by higher interest rate).
I hope that readers of my blog will listen to my positive views on CPF Life and not be influenced by the negative views and the distrust.
Tan Kin Lian
a)It is operated as a mutual scheme. The future payment will reflect the investment yield and mortality experience.
b) The administrative expense is low
c) Most people (except the affluent) will receive a bonus when they join the scheme
d) The interest rate credited to the investments is higher than the market rates.
e) CPF or the Government will not make any profit from the scheme.
Members who buy CPF Life is getting a good deal, much better than any life annuity that can be offered by an insurance company. The view held by some people, that the Government is trying to make money from CPF Life is unfounded.
The non-guaranteed nature of the monthly payout will work better for the members. If there is high inflation in the future, it is likely that a higher payount will be made under CPF Life (as inflation is usually accompanied by higher interest rate).
I hope that readers of my blog will listen to my positive views on CPF Life and not be influenced by the negative views and the distrust.
Tan Kin Lian
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