In the past, many people have approached me on land banking and time sharing products. These are people who meet me at various events and claimed to know me. They gave me a business cards indicating their involvement in these companies. They wanted to market the products to me. I declined. Some of these marketeers called my home telephone to tell me about the investment opportunities. I also declined to talk to them.
I make it a point to avoid every one who markets investment products. I know that they earn commission from their sales to investors. It is easy for them to tell stories about how much profit can be made from these investments, so that they can close a sale and earn their commission. But the stories of the potential profits are mostly exaggerated.
I do not even bother to spend time to due research on these investment products. I just avoided all of them. This is why I did not know about the min-bonds, pinnacle notes and other credit-linked notes until they busted.
Tan Kin Lian
Friday, June 4, 2010
Medical insurance
Dear Mr. Tan,
I hope that you can post some advice in your blog on choosing between the Medishield, Shield and hospital insurance.
Reply
You can view some of my postings on medical insurance here. You can get a more complete writeup in my book, Practical Guide on Financial Planning.
My advice is to buy a Medishield plan (from CPF) or a Shield Plan B from an insurance company. There is no need to insure the co-payment and deductible, as these expenses are small and can be paid out of Medisave.
I hope that you can post some advice in your blog on choosing between the Medishield, Shield and hospital insurance.
Reply
You can view some of my postings on medical insurance here. You can get a more complete writeup in my book, Practical Guide on Financial Planning.
My advice is to buy a Medishield plan (from CPF) or a Shield Plan B from an insurance company. There is no need to insure the co-payment and deductible, as these expenses are small and can be paid out of Medisave.
Lawyers and shady practices
Dear Mr. Tan,
The land banking company that is mentioned in many blogs for failing to return the investments on maturity is being advised by a big legal firm in Singapore. This firm is headed by a well known lawyer who is also a MP. How can the Government allow the MP to be involved in advising a company that is engaged in shady practices? Is this why the relevant bodies are not prepared to investigate this land banking company, in spite of many complaints being lodged with the CAD and MAS?
REPLY
I do not know whether this MP is aware about the practices of the land banking company. Perhaps, it is another partner that is advising the company.
The land banking company that is mentioned in many blogs for failing to return the investments on maturity is being advised by a big legal firm in Singapore. This firm is headed by a well known lawyer who is also a MP. How can the Government allow the MP to be involved in advising a company that is engaged in shady practices? Is this why the relevant bodies are not prepared to investigate this land banking company, in spite of many complaints being lodged with the CAD and MAS?
REPLY
I do not know whether this MP is aware about the practices of the land banking company. Perhaps, it is another partner that is advising the company.
Thursday, June 3, 2010
RED Map
I wanted to look for GSM building in Middle Road. I went to the RED map, type in "GSM" and found the map immediately. It is easy to use and fast to search. I found that the nearest MRT stations were Bras Basah and Bugis. RED map is available at: http://projects.easyapps.sg/propinfo/Map.aspx
Practical Guide on Financial Planning
I wrote this book to contain tips that are important to every person, from the time that a young person starts work to the later stages of life of raising a family and approaching retirement.
The tips cover:
- need to set aside savings
- investing the savings in a low cost fund
- avoiding structured and unregulated investments
- managing risks of volatile markets
- withdrawing savings during retirement
The book cost only $12 but you will need to spend 12 hours to read and understand the concepts. This can save you a lot of money later on, by avoiding the investments that are bad for you.
The book can be ordered online here. It is an excellent gift for young people who are starting work.
I also give a monthly talk on the key principles contained in this book. The talks are organised by FISCA. Many people attend the talk to ask questions that has been worrying them, especially on advice that were given to them by financial advisers.
Tan Kin Lian
The tips cover:
- need to set aside savings
- investing the savings in a low cost fund
- avoiding structured and unregulated investments
- managing risks of volatile markets
- withdrawing savings during retirement
The book cost only $12 but you will need to spend 12 hours to read and understand the concepts. This can save you a lot of money later on, by avoiding the investments that are bad for you.
The book can be ordered online here. It is an excellent gift for young people who are starting work.
I also give a monthly talk on the key principles contained in this book. The talks are organised by FISCA. Many people attend the talk to ask questions that has been worrying them, especially on advice that were given to them by financial advisers.
Tan Kin Lian
Lawyer to handle a complaint
Dear Mr. Tan,
I wish to engage a lawyer to handle my complaint on the Vista investment plan. I have not been properly adviced about the penalty charges on the early termination of this plan. This has caused me to lose a large part of the amount that I have invested. Can you recommend this lawyer?
REPLY
I am not able to give you a name right now. If I come across a lawyer that is interested to take this case, I will inform you.
I wish to engage a lawyer to handle my complaint on the Vista investment plan. I have not been properly adviced about the penalty charges on the early termination of this plan. This has caused me to lose a large part of the amount that I have invested. Can you recommend this lawyer?
REPLY
I am not able to give you a name right now. If I come across a lawyer that is interested to take this case, I will inform you.
Discounted value of bonus on life policy
Dear Kin Lian
I have a GE policy with bonus @ $14,000. Recently I applied to withdraw the bonus instead of cancelling the policy or take a loan. Apparently I am granted only @ $8,000.
I was informed that my sum assured still remain the same. What I am disturb about is what happen to the balance $6,000. Will I loose it totally just because I draw out $8,000.
REPLY
A bonus of $14,000 is the amount that is payable on the maturity date of the policy or on death. So, this is an amount payable many years into the future. If you wish to withdraw the bonus now, you will get the present value of the bonus, i.e. the discounted value. In your case, the discounted value is $8,000. This is probably a fair amount depending on the rate of discount used to compute it.
I have a GE policy with bonus @ $14,000. Recently I applied to withdraw the bonus instead of cancelling the policy or take a loan. Apparently I am granted only @ $8,000.
I was informed that my sum assured still remain the same. What I am disturb about is what happen to the balance $6,000. Will I loose it totally just because I draw out $8,000.
REPLY
A bonus of $14,000 is the amount that is payable on the maturity date of the policy or on death. So, this is an amount payable many years into the future. If you wish to withdraw the bonus now, you will get the present value of the bonus, i.e. the discounted value. In your case, the discounted value is $8,000. This is probably a fair amount depending on the rate of discount used to compute it.
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