Hello, Mr. Tan,
I was approached by an financial consultant offering an investment product called forex phaetorian. This product originated from an investment company in Singapore. It is a 2 years term, capital guaranteed and 12% interest guaranteed payable every six month. The consultant told me that 12% investment return in singapore is very common.
Mr Tan, what do you think? I mean, if it is so good, then the whole of Singapore should know about it and sold out fast. Why do they have to come to Malaysia and sell to us? I was told it is a private placement and not a public offering product.
REPLY
There must be a catch. If something is too good to be true, then it is likely to be a scam. Do not trust any product that appears "too good to be true".
Tuesday, August 19, 2008
Joke: reduce the probability
An actuary is walking down the corridor when he feels a twinge in his chest. Immediately, he runs to the stairwell and hurls himself down.
His friend, visiting him in the hospital, asks why he did that. The actuary replies, "The chances of having a heart attack and falling down the stairs are much lower than the chances of having a heart attack only."
His friend, visiting him in the hospital, asks why he did that. The actuary replies, "The chances of having a heart attack and falling down the stairs are much lower than the chances of having a heart attack only."
How to stretch your dollar
Dr. Money writes about how to stretch your dollar with the right type of insurance plan:
http://newpaper.asia1.com.sg/columnists/story/0,4136,172456,00.html
http://www.tankinlian.com/drmoney/
http://newpaper.asia1.com.sg/columnists/story/0,4136,172456,00.html
http://www.tankinlian.com/drmoney/
Monday, August 18, 2008
Perfect husband
Several men are in the locker room of a golf club. A cell phone on a bench rings and a man engages the hands free speaker function and begins to talk. Everyone else in the room stops to listen.
MAN: 'Hello'
WOMAN: 'Honey, it's me. Are you at the club?'
MAN: 'Yes'
WOMAN: 'I am at the mall now and found this beautiful leather coat. It's only $1,000. Is it OK if I buy it?'
MAN: 'Sure, go ahead if you like it that much.'
WOMAN: 'I also stopped by the Mercedes dealership and saw the new 2008 models. I saw one I really liked.'
MAN: 'How much?'
WOMAN: '$390,000'
MAN: 'OK, but for that price I want it with all the options.'
WOMAN: 'Great! Oh, and one more thing...the house I wanted last year is back on the market. They're asking $2,950,000' for it.
MAN: 'Well, then go ahead and give them an offer of $2,800,000. They will probably take it. If not, we can go the extra $150,000 if it's really a pretty good price.'
WOMAN: 'OK. I'll see you later! I love you so much!'
MAN: 'Bye! I love you, too.'
The man hangs up. The other men in the locker room are staring at him in astonishment, mouths agape.
He turns and asks: 'Anyone know who this phone belongs to?'
MAN: 'Hello'
WOMAN: 'Honey, it's me. Are you at the club?'
MAN: 'Yes'
WOMAN: 'I am at the mall now and found this beautiful leather coat. It's only $1,000. Is it OK if I buy it?'
MAN: 'Sure, go ahead if you like it that much.'
WOMAN: 'I also stopped by the Mercedes dealership and saw the new 2008 models. I saw one I really liked.'
MAN: 'How much?'
WOMAN: '$390,000'
MAN: 'OK, but for that price I want it with all the options.'
WOMAN: 'Great! Oh, and one more thing...the house I wanted last year is back on the market. They're asking $2,950,000' for it.
MAN: 'Well, then go ahead and give them an offer of $2,800,000. They will probably take it. If not, we can go the extra $150,000 if it's really a pretty good price.'
WOMAN: 'OK. I'll see you later! I love you so much!'
MAN: 'Bye! I love you, too.'
The man hangs up. The other men in the locker room are staring at him in astonishment, mouths agape.
He turns and asks: 'Anyone know who this phone belongs to?'
Joke: brother-in-law
Mr. Smith was brought to Mercy Hospital (a Catholic hospital), and taken quickly in for coronary surgery. The operation went well and, as the groggy man regained consciousness, he was reassured by a Sister of Mercy, who was waiting by his bed.
"Mr. Smith, you're going to be just fine," said the nun, gently patting his hand. "We do need to know, however, how you intend to pay for your stay here. Are you covered by insurance?" "No, I'm not," the man whispered hoarsely.
"Then can you pay in cash?" persisted the nun. I'm afraid I cannot, Sister."
"Well, do you have any close relative?" the nun questioned sternly. Just my sister in New Mexico," he volunteered. "But she's a humble spinster nun."
Oh, I must correct you, Mr. Smith. Nuns are not spinsters - they are married to God."
"Wonderful," said Mr. Smith. "In that case, please send the bill to my brother-in-law."
"Mr. Smith, you're going to be just fine," said the nun, gently patting his hand. "We do need to know, however, how you intend to pay for your stay here. Are you covered by insurance?" "No, I'm not," the man whispered hoarsely.
"Then can you pay in cash?" persisted the nun. I'm afraid I cannot, Sister."
"Well, do you have any close relative?" the nun questioned sternly. Just my sister in New Mexico," he volunteered. "But she's a humble spinster nun."
Oh, I must correct you, Mr. Smith. Nuns are not spinsters - they are married to God."
"Wonderful," said Mr. Smith. "In that case, please send the bill to my brother-in-law."
Foreign currency deposit rates
Dear Sir,
Currently the FD rates offered by banks in Singapore are 1% or less. I have just opened an Australian Foreign Currency Fixed Deposit that gives me 7+% per annum.
I have no intention to convert the money back to Singapore Dollars in the forseeable future. the money is kept aside for retirement. Would this be a way for Singaporeans to save. Has interest rates in Australia ever gone down to levels similar to Singapore?
REPLY
I suggest that you ask your bank to give this information to you. They have the past record of currency conversion rates and interest rates.
Currently the FD rates offered by banks in Singapore are 1% or less. I have just opened an Australian Foreign Currency Fixed Deposit that gives me 7+% per annum.
I have no intention to convert the money back to Singapore Dollars in the forseeable future. the money is kept aside for retirement. Would this be a way for Singaporeans to save. Has interest rates in Australia ever gone down to levels similar to Singapore?
REPLY
I suggest that you ask your bank to give this information to you. They have the past record of currency conversion rates and interest rates.
Sunday, August 17, 2008
Avoid whole life policies
Many people are badly advised by insurance agents into buying whole life insurance. Being expensive (compared to term insurance), the consumer has inadequate insurance for their needs.
The agent says that "term insurance will expire after 20 years, and you will not be uninsured at that time".
Many people are unduly concerned about this point. It is largely irrelevant. Most people only need adequate life insurance to cover premature death when their children are young. An insurance period of 20 years is quite adequate to meet this need.
Beyond 20 years, they need to have sufficient savings for their retirement. As a whole life policy provide a poor return, it will not meet this purpose. Many people who invested most of their savings in whole life policies received a poor deal.
I fall into this category. Two of my whole life Living policies have not even reach the breakeven point after more than 10 years. Fortunately for me, they represent only a small part of my total savings.
The return on my two Living policies are far below what is due to me, if my insurance company had distributed bonuses fairly, based on the actual experience of the fund. As these are participating policies, there is an expectation that the insurance company has to act fairly, but they did not. The return on similar policies offered by other insurance companies are probably worse, as they have higher expenses.
It is best to avoid all types of life insurance policies, except for term insurance. Many insurance companies overcharge on their term insurance policies, to push consumers into buying whole life policies. You can compare the premium rates with the benchmark provided in this FAQ:
http://www.tankinlian.com/faq/benchmark.html
If you wait for a few more months, a new life insurance company will be offering term insurance at an attractive rate.
If you have the opportunity, you should join a group insurance scheme, such as a plan offered by SAF, SAFRA or your employer. It does not matter that the term insurance is on a yearly renewable basis.
The agent says that "term insurance will expire after 20 years, and you will not be uninsured at that time".
Many people are unduly concerned about this point. It is largely irrelevant. Most people only need adequate life insurance to cover premature death when their children are young. An insurance period of 20 years is quite adequate to meet this need.
Beyond 20 years, they need to have sufficient savings for their retirement. As a whole life policy provide a poor return, it will not meet this purpose. Many people who invested most of their savings in whole life policies received a poor deal.
I fall into this category. Two of my whole life Living policies have not even reach the breakeven point after more than 10 years. Fortunately for me, they represent only a small part of my total savings.
The return on my two Living policies are far below what is due to me, if my insurance company had distributed bonuses fairly, based on the actual experience of the fund. As these are participating policies, there is an expectation that the insurance company has to act fairly, but they did not. The return on similar policies offered by other insurance companies are probably worse, as they have higher expenses.
It is best to avoid all types of life insurance policies, except for term insurance. Many insurance companies overcharge on their term insurance policies, to push consumers into buying whole life policies. You can compare the premium rates with the benchmark provided in this FAQ:
http://www.tankinlian.com/faq/benchmark.html
If you wait for a few more months, a new life insurance company will be offering term insurance at an attractive rate.
If you have the opportunity, you should join a group insurance scheme, such as a plan offered by SAF, SAFRA or your employer. It does not matter that the term insurance is on a yearly renewable basis.
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