The shape quiz can help your child's thinking, creativity and problem solving. Watch the video here:
www.easysearch.sg/videos
Special promotion. Buy 10 mini-paks for $15 (usual price $20) as a gift for children and friends.
To order: www.easysearch.sg/ishop
Friday, April 2, 2010
A valuable gift to your children or friend
If you invest $12 and 6 hours in my book, Practical Guide on Financial Planning, you will be able to save $12,000 by avoiding the wrong type of investment. For example, if you save $500 a month in a life insurance policy and the distribution cost is 24 months, you will be losing $12,000 of your savings.
You can also help your children or friend to avoid wasting their savings on the wrong financial product. Present them with this book for them to read and keep. This may be a much appreciated gift.
Order here. www.easysearch.sg/ishop
You can also help your children or friend to avoid wasting their savings on the wrong financial product. Present them with this book for them to read and keep. This may be a much appreciated gift.
Order here. www.easysearch.sg/ishop
Hub and spoke system for public transport
A few people have written to the newspaper to complain about the proposed change to the hub and spoke system for public transport. They do not like having to transfer from one bus to another. They prefer the current system of many buses that travel long distance.
I believe that the hub and spoke system is more efficient and will benefit commuters as a whole. It will simplify the transport system and encourage more people to take public transport. The only drawback is the need to make a transfer, but this can be an advantage as the short walk will be good for health.
Commuters do not like to spend 10 minutes to wait for a transfer. When the new system if fully implemented, I expect that the waiting time will be shorter as there will be more buses to run the shorter routes.
Some people argued that the elderly and disabled will be inconvenienced. I believe that it is better for some other arrangements should be made for them, instead of using public transport.
Tan Kin Lian
I believe that the hub and spoke system is more efficient and will benefit commuters as a whole. It will simplify the transport system and encourage more people to take public transport. The only drawback is the need to make a transfer, but this can be an advantage as the short walk will be good for health.
Commuters do not like to spend 10 minutes to wait for a transfer. When the new system if fully implemented, I expect that the waiting time will be shorter as there will be more buses to run the shorter routes.
Some people argued that the elderly and disabled will be inconvenienced. I believe that it is better for some other arrangements should be made for them, instead of using public transport.
Tan Kin Lian
Platform fee on Fundsupermart
Hi Mr Tan,
I am unsure if you are aware that the famous online Unit Trust distributor Fundsupermart is imposing a platform fee in a month's time.
http://www.fundsupermart.com/
Many retail investors are very unhappy about this new fee to be implemented in such a short notice. In addition, we always try to keep our cost down but FSM, due to various reasons, go in different direction as its clients.
I have not receive any email or letter regarding this change in fee structure until a forumer alerted the rest.
JL
REPLY
Please ask Fundsupermart to show you where, in the contract, they have the legal right to impose such a fee. If you withdraw from this platform, are you able to keep your record directly with the unit trust or move the units to another platform? You can also ask the unit trust that you invested in.
UPDATE
Fundsupermart plans to levy a quarterly fee of 0.125% (0.5% p.a.) plus GST for equity funds. A lower charge applies for investments above $500,000. This is rather high, as the investor has to bear a management fee to the asset manager as well.
An investor told me that she plans to transfer her funds to Dollar Dex. There is no transfer charge. Dollar Dex indicated in their website that they do not plan to implement a platform fee. She said another option is to tranfer to POEMS.
I am unsure if you are aware that the famous online Unit Trust distributor Fundsupermart is imposing a platform fee in a month's time.
http://www.fundsupermart.com/
Many retail investors are very unhappy about this new fee to be implemented in such a short notice. In addition, we always try to keep our cost down but FSM, due to various reasons, go in different direction as its clients.
I have not receive any email or letter regarding this change in fee structure until a forumer alerted the rest.
JL
REPLY
Please ask Fundsupermart to show you where, in the contract, they have the legal right to impose such a fee. If you withdraw from this platform, are you able to keep your record directly with the unit trust or move the units to another platform? You can also ask the unit trust that you invested in.
UPDATE
Fundsupermart plans to levy a quarterly fee of 0.125% (0.5% p.a.) plus GST for equity funds. A lower charge applies for investments above $500,000. This is rather high, as the investor has to bear a management fee to the asset manager as well.
An investor told me that she plans to transfer her funds to Dollar Dex. There is no transfer charge. Dollar Dex indicated in their website that they do not plan to implement a platform fee. She said another option is to tranfer to POEMS.
Thursday, April 1, 2010
Goods and services tax (GST)
The Goods & Services Tax is a bad tax in the following ways:
- it is a regressive tax and hits the people at lower income most
- it is a wasteful tax as it incurs a heavy administrative cost to the tax collector and the payer
A better solution is to abolish GST and have higher income tax. If a country needs to lower income tax to attract higher income earners (a strategy for which I personally disagree) and needs to find an alternative source of revenue, here is a better approach to GST:
- levy a flat rate tax of 4% on payroll and investment income (which produce the same revenue than 7% GST)
- the payroll tax is a cost to the employer but can be recovered from employees earning above a threshold salary
There is a mistaken concept that GST is fair as it is imposed on consumption and encourages savings. A better way to encourage savings it to pay a higher rate of interest (which can be achieved through monetary policy) or to exempt interest from tax. Many retirees earns a low rate of interest on their savings and yet have to pay higher prices through GST.
GST has become so complicated, costly and open to abuse that it is time to abolish it and replace it with a more efficient tax.
Tan Kin Lian
- it is a regressive tax and hits the people at lower income most
- it is a wasteful tax as it incurs a heavy administrative cost to the tax collector and the payer
A better solution is to abolish GST and have higher income tax. If a country needs to lower income tax to attract higher income earners (a strategy for which I personally disagree) and needs to find an alternative source of revenue, here is a better approach to GST:
- levy a flat rate tax of 4% on payroll and investment income (which produce the same revenue than 7% GST)
- the payroll tax is a cost to the employer but can be recovered from employees earning above a threshold salary
There is a mistaken concept that GST is fair as it is imposed on consumption and encourages savings. A better way to encourage savings it to pay a higher rate of interest (which can be achieved through monetary policy) or to exempt interest from tax. Many retirees earns a low rate of interest on their savings and yet have to pay higher prices through GST.
GST has become so complicated, costly and open to abuse that it is time to abolish it and replace it with a more efficient tax.
Tan Kin Lian
Cost of a home
Every family needs a home to live in. A high property price translates into the high cost of a home and a high cost of living. When a family buys a costly property, they have to work hard for many years to pay off the mortgage to the home. They cannot afford to be unemployed or to have reduced earnings, as they cannot afford to pay the mortgage.
There was a mistaken belief that high property prices benefit the people at large, as the value of their asset has increased. In reality, they are paying a higher cost of living and have to work harder to survive. They are not able to unlock the value of their asset, as they still need a place to live in (unless they move to a smaller size property).
A small number of people benefit from the escalating property prices - people who own land and properties that they can sell to those who need a home. The families that need a home suffer from the higher cost.
Tan Kin Lian
There was a mistaken belief that high property prices benefit the people at large, as the value of their asset has increased. In reality, they are paying a higher cost of living and have to work harder to survive. They are not able to unlock the value of their asset, as they still need a place to live in (unless they move to a smaller size property).
A small number of people benefit from the escalating property prices - people who own land and properties that they can sell to those who need a home. The families that need a home suffer from the higher cost.
Tan Kin Lian
Work-life balance and the economics of workplace flexibility
Here is a report prepared by the Presidential Council of Economic Advisers in the USA.
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