Here are 10 important tips.
My tips on insurance and finance can be found in Practical Guide on Financial Planning.
Monday, May 17, 2010
Medical expenses of parents
Dear Mr. Tan,
Thank you for your many insightful postings, I believe many people benefit from your blog.
My parents, who are current in their mid-sixties, are working class people, who worked hard to bring up my siblings and I. They don't have much savings, nor much in their medisave accounts. I don't believe their included under Eldershield.
Is there a good way to plan for their future medical needs? Based on some earlier posts on your blog, insurance for the elderly seems to be expensive. They'd probably exclude coverage on what my parents really need coverage on (my dad has a history of hypertension, so I believe all heart conditions are excluded?).
So far, I can only think of setting aside a lumpsum of cash in FD, as an emergency fund. However, being of limited means, I am not sure how much to set aside as well. I've taken a look at the MOH medical bills, and wonder which bills to take into consideration. I suppose I should also need to take into consideration my medisave savings, since they can be used for my parents.
REPLY
You can top up the Medisave account of your parents and enjoy some tax relief. Your parents can use the Medisave to buy Medishield or pay their medical bills out of Medisave, if they are not insured.
Most importantly, they should go to a subsidised ward if they fall ill, as the cost is much lower than a non-subsidised ward or private hospital. The medical care in the subsidised ward is of quite acceptable standard.
I hope that they can stay in good health and do not require hospitalisation.
Thank you for your many insightful postings, I believe many people benefit from your blog.
My parents, who are current in their mid-sixties, are working class people, who worked hard to bring up my siblings and I. They don't have much savings, nor much in their medisave accounts. I don't believe their included under Eldershield.
Is there a good way to plan for their future medical needs? Based on some earlier posts on your blog, insurance for the elderly seems to be expensive. They'd probably exclude coverage on what my parents really need coverage on (my dad has a history of hypertension, so I believe all heart conditions are excluded?).
So far, I can only think of setting aside a lumpsum of cash in FD, as an emergency fund. However, being of limited means, I am not sure how much to set aside as well. I've taken a look at the MOH medical bills, and wonder which bills to take into consideration. I suppose I should also need to take into consideration my medisave savings, since they can be used for my parents.
REPLY
You can top up the Medisave account of your parents and enjoy some tax relief. Your parents can use the Medisave to buy Medishield or pay their medical bills out of Medisave, if they are not insured.
Most importantly, they should go to a subsidised ward if they fall ill, as the cost is much lower than a non-subsidised ward or private hospital. The medical care in the subsidised ward is of quite acceptable standard.
I hope that they can stay in good health and do not require hospitalisation.
Unfair practice of used car dealer
Dear Mr. Tan
I signed a purchase agreement to buy a used vehicle from a large used car dealer whic his a subsidiary of a large motor distributor.
They were unable to attain a loan approval for the vehicle I have purchased. I wanted to to pay in cash but they refuse to complete the deal. No where in the agreement does it that states that there must be a successful loan for the purchase agreement to be valid. I have also paid a $500 deposit.
As they are so big, they don't even need to be under the CASETRUST-SVTA accreditation. In addition, CASE says that they can mediate and if the dealer does not honour the deal, there is nothing CASE can do about it.
Should a consumer back out from a deal, the dealer would sue the the buyer. However, when the dealer refuses to complete the deal, they get away with it. I have spent much time and effort going through many different cars, it doesn't feel good to be taken advantage of.
This is akin to a new car dealer that sells you a "GUARANTEED COE" new car, and just walks away when COE rises.
The dealer knows that a helpless consumer will not pursue their rights if they are being bullied as it costs too much money and time. They are a big company and have the financial clout and legal personnel to corner the consumer into submission.
Hopefully, you can get highlight this on your website and help prevent other consumers from being cornered and bullied by a large MNC.
JS
I signed a purchase agreement to buy a used vehicle from a large used car dealer whic his a subsidiary of a large motor distributor.
They were unable to attain a loan approval for the vehicle I have purchased. I wanted to to pay in cash but they refuse to complete the deal. No where in the agreement does it that states that there must be a successful loan for the purchase agreement to be valid. I have also paid a $500 deposit.
As they are so big, they don't even need to be under the CASETRUST-SVTA accreditation. In addition, CASE says that they can mediate and if the dealer does not honour the deal, there is nothing CASE can do about it.
Should a consumer back out from a deal, the dealer would sue the the buyer. However, when the dealer refuses to complete the deal, they get away with it. I have spent much time and effort going through many different cars, it doesn't feel good to be taken advantage of.
This is akin to a new car dealer that sells you a "GUARANTEED COE" new car, and just walks away when COE rises.
The dealer knows that a helpless consumer will not pursue their rights if they are being bullied as it costs too much money and time. They are a big company and have the financial clout and legal personnel to corner the consumer into submission.
Hopefully, you can get highlight this on your website and help prevent other consumers from being cornered and bullied by a large MNC.
JS
Bad Customer Service (CISCO)
I bought a Flip videocam which was highly recommended on the user reviews. The videocam was easy to use and satisfactory. Unfortunately, it stopped working after two weeks.
I called the manufacturer CISCO on its warranty. I had a difficult time. Here is my experience:
a. It was difficult to communicate with the call center (which was outsourced overseas)
b. Much time was spent to spell out the details for the call center staff to record into their system.
c. I was asked later to detailed form on another website.
d. There was some fault in the computer system that garbled up the details.
e. When I appeared at their agent to get a replacement videocam, the staff was quite rude and unhelpful.
I do not know why a high-tech company like CISCO make it so troublesome to the customer to have a replacement of a faulty product. The technology is supposed to make life easier for the customer, but it actually made life more difficult by passing the hassle of the paperwork to the customer.
Compare it with the "old fashion" way. If I buy a product from a retail store and it is faulty, I bring it to the retail store. They will check the date of purchase and confirm that it is faulty and replace it. They will do the paper work later and does not involve the customer in this hassle.
Tan Kin Lian
I called the manufacturer CISCO on its warranty. I had a difficult time. Here is my experience:
a. It was difficult to communicate with the call center (which was outsourced overseas)
b. Much time was spent to spell out the details for the call center staff to record into their system.
c. I was asked later to detailed form on another website.
d. There was some fault in the computer system that garbled up the details.
e. When I appeared at their agent to get a replacement videocam, the staff was quite rude and unhelpful.
I do not know why a high-tech company like CISCO make it so troublesome to the customer to have a replacement of a faulty product. The technology is supposed to make life easier for the customer, but it actually made life more difficult by passing the hassle of the paperwork to the customer.
Compare it with the "old fashion" way. If I buy a product from a retail store and it is faulty, I bring it to the retail store. They will check the date of purchase and confirm that it is faulty and replace it. They will do the paper work later and does not involve the customer in this hassle.
Tan Kin Lian
Sunday, May 16, 2010
Implementing I.T. systems
Comment posted in my blog.
Dear Mr Tan,
I have been involved in implementing IT Projects in the private sector since I started working 20 years ago. I am an Accountant by profession. I have gone thru implementing many kinds of IT systems. I find implementing the simple ones have the best chances of success.
IT systems have come a long way since then. Modern IT systems is able to cater to a lot of requirements. What is critical to the success of implementing IT systems is there must be a Project Manager handling the implementation full time. He must have enough experience implementing IT Projects and he must have approval to hire resources.
The Directors and the employees have an unrealistic expectation in implementing IT systems. They want the system to be able to do everything without lifting a finger because its a million dollar system. This is in turn compounded by the IT Consultants promising almost everything can be done without managing customers expectation. The IT Consultants charge their fees by project. So they will allocate a number of man hours to the project. If the project runs into difficulties, the IT Consultants will charge additional fees.
Another critical factor to the success of the project is the employees themselves. The question is are they willing to change their working habits and spent time to learn new skills to adapt to the system while also doing their job?
Thirdly, IT systems should be implemented by phases SLOWLY. This is so that the person working on the system has time to adapt to it. Implementing every thing at once brings the risk of multi-million dollar failure.
This is because there is huge resistance to change on the part of employees.
The consultancy firms will be happy that the hospitals want to implement all at once bec it will bring them huge revenues. They of course hope that their clients will succeed in implementing the system as it will bring them recognition.
No one wants to hire and pay mature workers who have hands on experience adequately and who can get the job done well. Instead CEO's nowadays say pay the consultants WELL. IT Consultants are skilled in "Consulting and IT work". Not in actually implementing the system.
What is actually needed is a person in the Co. who understands IT, its strength and limitations, who understands the company employees and culture, what they can or cannot do and assist them and have adequate experience in implementing IT projects and have hands on experience utilising IT.
Dear Mr Tan,
I have been involved in implementing IT Projects in the private sector since I started working 20 years ago. I am an Accountant by profession. I have gone thru implementing many kinds of IT systems. I find implementing the simple ones have the best chances of success.
IT systems have come a long way since then. Modern IT systems is able to cater to a lot of requirements. What is critical to the success of implementing IT systems is there must be a Project Manager handling the implementation full time. He must have enough experience implementing IT Projects and he must have approval to hire resources.
The Directors and the employees have an unrealistic expectation in implementing IT systems. They want the system to be able to do everything without lifting a finger because its a million dollar system. This is in turn compounded by the IT Consultants promising almost everything can be done without managing customers expectation. The IT Consultants charge their fees by project. So they will allocate a number of man hours to the project. If the project runs into difficulties, the IT Consultants will charge additional fees.
Another critical factor to the success of the project is the employees themselves. The question is are they willing to change their working habits and spent time to learn new skills to adapt to the system while also doing their job?
Thirdly, IT systems should be implemented by phases SLOWLY. This is so that the person working on the system has time to adapt to it. Implementing every thing at once brings the risk of multi-million dollar failure.
This is because there is huge resistance to change on the part of employees.
The consultancy firms will be happy that the hospitals want to implement all at once bec it will bring them huge revenues. They of course hope that their clients will succeed in implementing the system as it will bring them recognition.
No one wants to hire and pay mature workers who have hands on experience adequately and who can get the job done well. Instead CEO's nowadays say pay the consultants WELL. IT Consultants are skilled in "Consulting and IT work". Not in actually implementing the system.
What is actually needed is a person in the Co. who understands IT, its strength and limitations, who understands the company employees and culture, what they can or cannot do and assist them and have adequate experience in implementing IT projects and have hands on experience utilising IT.
Customer Service at Call Centers
I will be using my videocam to record my experience in calling the call center of big organisations, such as the government agencies, banks, telcos, insurance companies and airlines. Each video will be for up to 5 minutes. I will upload the video showing my personal experience - which hopefully will be good, but could show the negative aspects.
I hope that these videos will be educational and will encourage the big organisations to make changes to their call centers to improve the customer experience.
Please share the call centers that you wish me to try, giving me the name and the telephone number.
Tan Kin Lian
I hope that these videos will be educational and will encourage the big organisations to make changes to their call centers to improve the customer experience.
Please share the call centers that you wish me to try, giving me the name and the telephone number.
Tan Kin Lian
Investing in land abroad
Read this letter.
My comment
When several people lodge complaints with the authority that they have been misled into purchasing these investments through misrepresentations of the facts, the authority should investigate if there were intent to to defraud the public. The authority should also report the results of the investigation, even if no conclusive evidence could be found about the alleged misrepresentations. This would at least warn the public about the dangers of investing in these products.
This type of actions were taken in Malaysia and the UK leading to the closing down of the companies involved in the fraudulent activities and the prosecution of the perpetuators in court.
My comment
When several people lodge complaints with the authority that they have been misled into purchasing these investments through misrepresentations of the facts, the authority should investigate if there were intent to to defraud the public. The authority should also report the results of the investigation, even if no conclusive evidence could be found about the alleged misrepresentations. This would at least warn the public about the dangers of investing in these products.
This type of actions were taken in Malaysia and the UK leading to the closing down of the companies involved in the fraudulent activities and the prosecution of the perpetuators in court.
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