I advocate investing in a large, well diversified fund with low charges. Examples are the Combined Fund from NTUC Income and the STI Exchange Traded Fund (available through the Singapore Exchange).
Some people asked for my opinion on selecting actively managed funds. There are more than 500 of these funds available for investments. These funds that are country specific (e.g. China, India) or sector specific (e.g. energy, technology, financial). They usually have high expense ratio (of 1.5% to 3% per annum).
If you wish to invest in these funds, you have to seek the advise of a financial adviser. They charge a annual wrap fee (between 0.5% to 1%) to help you pick the funds. They will monitor the funds for you. The wrap fee is on top of the fund management fee.
I am not familiar with these actively managed, narrowly focused funds. I will not be able to advise you on these funds or on how to select the adviser.
A good approach is:
a) Invest 80% of your retirement savings in diversified, low cost funds
b) Invest 20% in actively managed funds (through an adviser).
Read these FAQ:
http://www.tankinlian.com/faq/returns.html
http://www.tankinlian.com/faq/savings.html
All the best in your investment decision.
Friday, December 21, 2007
A marketing tool
Hi Mr. Tan,
I have read the material about the WWAng Instant Target. I am not clear about how can I use it for my marketing?
Reply: Some property agents bought the database to select the occupiers living in a certain block or street. They print personalised letters to be sent to the occupiers. In some cases, they follow up with a telephone call. The database provides the names, address and telephone numbers of the occupiers.
Insurance agents and other marketing people can also use the database to market to people living in a locality.
Why is it called WWang?
Reply: It was a name created by my friend. He said that "Wang" means "money". So, perhaps you can make a lot of money in using the database for marketing.
For more information:
http://www.tankinlian.com/database/index.html
I have read the material about the WWAng Instant Target. I am not clear about how can I use it for my marketing?
Reply: Some property agents bought the database to select the occupiers living in a certain block or street. They print personalised letters to be sent to the occupiers. In some cases, they follow up with a telephone call. The database provides the names, address and telephone numbers of the occupiers.
Insurance agents and other marketing people can also use the database to market to people living in a locality.
Why is it called WWang?
Reply: It was a name created by my friend. He said that "Wang" means "money". So, perhaps you can make a lot of money in using the database for marketing.
For more information:
http://www.tankinlian.com/database/index.html
Agent to source for quotes
Dear Mr. Tan,
Thank you for you tips on how to get quotations from several insurance companies on motor insurance. Do you think that an insurance agent can source the quote for me?
REPLY:
You can ask the insurance agent to source the quote for you. They are familiar with the insurance companies, so it is easier for them to get the information and save you from the hassle.
However, the agent needs to be paid for the service. They will probably earn 10% to 15% commission from the insurance company. But, if they are able to get you a lower quote, then it is worth to let them earn this commission.
Make sure that the agent is able to get the quote from several companies, so that you really enjoy a lower premium.
Thank you for you tips on how to get quotations from several insurance companies on motor insurance. Do you think that an insurance agent can source the quote for me?
REPLY:
You can ask the insurance agent to source the quote for you. They are familiar with the insurance companies, so it is easier for them to get the information and save you from the hassle.
However, the agent needs to be paid for the service. They will probably earn 10% to 15% commission from the insurance company. But, if they are able to get you a lower quote, then it is worth to let them earn this commission.
Make sure that the agent is able to get the quote from several companies, so that you really enjoy a lower premium.
Invest for the long term
Hi Mr. Tan,
In your opinion, how long will the subprime crisis continue to haunt the global stockmarket? Will Asian be affected and how seriously? Is it safe to invest in stocks now?
REPLY
The experts are still uncertain. I can only give my personal gut feel.
I believe that the bad news on the subprime have mostly been disclosed. The large banks have made big provisions for their subprime losses.
Several large soverign funds, including GIC and possibly Temasek, have taken large stakes in the big American banks and stockbrokers. Perhaps they recognise that the current prices have fully reflected the bad news.
It may be a good time to make a long term investment as most stockmarkets have corrected more than 10%.
The challenge next year is a slowdown or a possible recession in the American and other economies and the high oil price. This is likely to be manageable as the central banks will adjust the interest rate to keep the economy moving along.
We have to accept these cycles and invest for the long term.
In your opinion, how long will the subprime crisis continue to haunt the global stockmarket? Will Asian be affected and how seriously? Is it safe to invest in stocks now?
REPLY
The experts are still uncertain. I can only give my personal gut feel.
I believe that the bad news on the subprime have mostly been disclosed. The large banks have made big provisions for their subprime losses.
Several large soverign funds, including GIC and possibly Temasek, have taken large stakes in the big American banks and stockbrokers. Perhaps they recognise that the current prices have fully reflected the bad news.
It may be a good time to make a long term investment as most stockmarkets have corrected more than 10%.
The challenge next year is a slowdown or a possible recession in the American and other economies and the high oil price. This is likely to be manageable as the central banks will adjust the interest rate to keep the economy moving along.
We have to accept these cycles and invest for the long term.
Family Insurance
Mr. Tan,
I am over 45 years old, got married last year and has a new born baby. Is it advisable for me to buy the Family Insurance Policy from NTUC Income for my family?
REPLY
This product is suitable for your family. It provides good coverage (death, disability, critical illness and medical expenses) at an affordable cost.
I am over 45 years old, got married last year and has a new born baby. Is it advisable for me to buy the Family Insurance Policy from NTUC Income for my family?
REPLY
This product is suitable for your family. It provides good coverage (death, disability, critical illness and medical expenses) at an affordable cost.
Invest in Bonds
Dear Mr. Tan,
I'm an avid reader of your blog. Thanks for sharing your insights at your blog.
I will like to find out from you about corporate bonds. Given the volatility in the stock market, is it better to invest in SGS and corporate bonds? Is the average returns for corporate bonds about 5%?
How do i go about buying corporate bonds?
REPLY
You should consider the Singapore Bond fund that is offered by NTUC Income. It is invested in Singapore Government securities and corporate bonds.
You can find out more information from NTUC Income or read this webpage:
http://www.income.com.sg/fund/frame.asp?fundid=6
If you are investing for the long term, it is better to choose an equity fund, as it can give a higher return.
I'm an avid reader of your blog. Thanks for sharing your insights at your blog.
I will like to find out from you about corporate bonds. Given the volatility in the stock market, is it better to invest in SGS and corporate bonds? Is the average returns for corporate bonds about 5%?
How do i go about buying corporate bonds?
REPLY
You should consider the Singapore Bond fund that is offered by NTUC Income. It is invested in Singapore Government securities and corporate bonds.
You can find out more information from NTUC Income or read this webpage:
http://www.income.com.sg/fund/frame.asp?fundid=6
If you are investing for the long term, it is better to choose an equity fund, as it can give a higher return.
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