Wednesday, August 25, 2010
Bright Tangram
This app will be released soon in Apple app store. It is a more challenging version of tangram.
FIDREC Adjudication process
I carried out a survey on the FIDREC adjudication process a few months ago. Less than 5 people responded. I was not able to post any results.
Term insurance, payable to 100 years
Dear Mr Tan,
I've been following your blog and understood your point is there's no need to insure myself beyond 65yrs old, since there's not much income to be insured against. My agent sent me this benefit illustration when I asked for a $1M term life coverage to 100 years old.
I'm currently 34, assuming I die at 100 yrs old, I'll have to pay premiums for (66 x 3,940 = $260,040) That's the maximum premium payable. But my coverage will be $1,000,000, and I can't imagine I'll live beyond 100 years old. Even our statistics shows, men's expectancy is only up to 79years old. So a payout is almost guaranteed.
Isn't this too good to be true? Apart from the fact that I won't get to use this $1M, it'll be a pot of money for my loved ones. How does the insurance companies make money from these?
REPLY
Based on your calculation (and I can see no fault in it), the policy does look attractive. The possible catch is:
a) There is no cash value. If you discontinue the policy at any time in the future, you will lose the excess premiums that have been paid (i.e the difference between insuring up to age 65 and 100).
b) There is the risk that you may overlook to pay the premium and the policy is cancelled. The insurance company may refuse to reinstate your policy even if you opt to pay back the arrears in premium. I do not know what are your reinstatement rights
c) If you live beyond age 100, you will lose all of the premiums that you have paid.
Based on SAF group insurance, you only need to pay $1,540 a year for $1 million of cover up to age 65.
Based on SAF group insurance, you only need to pay $1,540 a year for $1 million of cover up to age 65.
Tuesday, August 24, 2010
Interest rate and bonds
Read this article.
When interest rate goes up in the future, the value of the bonds will fall. The fall will be highest for the long dated bonds, i.e. those that mature many years down the road.
For example, if you buy a bond that gives a yield of 3% for 10 years, and the interest rate increases to 4%, the bonds will fall in value by about 8%. However, you do not need to realize this loss. You can keep the bond until maturity, receive your yield of 3% and the par value at that time. If you bought the bond at higher than the par value,you will suffer a small loss as only the par value is returned.
When interest rate goes up in the future, the value of the bonds will fall. The fall will be highest for the long dated bonds, i.e. those that mature many years down the road.
For example, if you buy a bond that gives a yield of 3% for 10 years, and the interest rate increases to 4%, the bonds will fall in value by about 8%. However, you do not need to realize this loss. You can keep the bond until maturity, receive your yield of 3% and the par value at that time. If you bought the bond at higher than the par value,you will suffer a small loss as only the par value is returned.
Abuse by credit card companies
Read this article.
My view
Some of the practices of the credit card companies are unconscionable. I respect the right of a business to make a profit, but I do not tolerate practices that border on "cheating the consumers". Two years ago, I received a letter from a credit card company that stated the penalty for a late payment is $50 and that is on top of the 2% interest rate charge per month. I called the credit card company and cancelled the card.
The customer service manager was surprised. This is also practiced by other credit card companies. Furthermore, they will waive the charge if the customer complaints.
What type of nonsense is this? Trying to cheat the customer if the customer overlooks the charge, or is helpless? Why impose an unconscionable charge in the first place?
I hope that consumers will come forward and express their views strongly on these unconscionable and predatory practices. I hope that the Parliament of Singapore will pass similar legislation to stop the credit card companies from fleecing the consumers of Singapore.
My view
Some of the practices of the credit card companies are unconscionable. I respect the right of a business to make a profit, but I do not tolerate practices that border on "cheating the consumers". Two years ago, I received a letter from a credit card company that stated the penalty for a late payment is $50 and that is on top of the 2% interest rate charge per month. I called the credit card company and cancelled the card.
The customer service manager was surprised. This is also practiced by other credit card companies. Furthermore, they will waive the charge if the customer complaints.
What type of nonsense is this? Trying to cheat the customer if the customer overlooks the charge, or is helpless? Why impose an unconscionable charge in the first place?
I hope that consumers will come forward and express their views strongly on these unconscionable and predatory practices. I hope that the Parliament of Singapore will pass similar legislation to stop the credit card companies from fleecing the consumers of Singapore.
Google Search now finds PDF
Dear Mr. Tan
Looks like some of your earlier critics were not quite accurate about PDF search. I ran a search for ‘soho bundle’ and your link surfaced in the results. When I click on the link, the window containing the PDF document appear. Congrats.
PDF]
SOHO Bundle.pub
File Format: PDF/Adobe Acrobat - View as HTML
12 Aug 2010 ... Do you have an example of an office using the SOHO bundle? ... The SOHO Bundle that consists of 1 File Server, 5 notebooks and 1 multi- ...
tankinlian.com/admin/file.aspx?id=144
My comment
The PDF format has a big advantage compared to HTML. It allows the document to be downloaded and sent by e-mail to another person. The perceived disadvantage - not searched by Google, is now removed.
I am promoting a new concept of the PDF centric website. My website, www.tankinlian.com has been developed on this technology. It receives 400 visitors daily. I encourage organisations to move to this new style of website and use the Internet to develop your business. Read here.
12 Aug 2010 ... Do you have an example of an office using the SOHO bundle? ... The SOHO Bundle that consists of 1 File Server, 5 notebooks and 1 multi- ...
tankinlian.com/admin/file.aspx?id=144
My comment
The PDF format has a big advantage compared to HTML. It allows the document to be downloaded and sent by e-mail to another person. The perceived disadvantage - not searched by Google, is now removed.
I am promoting a new concept of the PDF centric website. My website, www.tankinlian.com has been developed on this technology. It receives 400 visitors daily. I encourage organisations to move to this new style of website and use the Internet to develop your business. Read here.
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