Dear Mr. Tan,
You advised to buy personal accident insurance now, and life insurance later. What happens if at a later date, I am in poor health and not accepted for life insurance?
REPLY
The risk of uninsurability is quite low (less than 0.5% a year).
The bigger risks are:
1. People hesitate in buying expensive insurance, and are inadequately insured against accidents (more than 50%).
2. People buy an expensive life insurance and lapse the policy due to inability to continue paying the premium (5% a year).
It is better to have adequate personal accident insurance now, and upgrade to a more expensive insurance at a later date. For young people, the risk of meeting an accident is much higher than contracting a serious illness.
Monday, December 31, 2007
High speed train - Taipei to Kaoshiung
What is the fare of the high speed train from Taipei to Kaoshiung? I found this information from the internet.
A brand-new high speed (300 km/h) train service using Japanese bullet train technology started running in January 2007 between Taipei and Kaohsiung. It is run by the Taiwan High Speed Rail Corporation, http://www.thsrc.com.tw/
The 300km/h trains link Taipei and Kaohsiung every half hour throughout the day, or at times more frequently.
Journey time is 1 hour 40 minutes on the faster trains, 1 hour 55 minutes on the slower services. The fare is 1,490 Taiwan dollars (SGD 70) in economy class, 2,440 Taiwan dollars (SGD 110) in business class.
A brand-new high speed (300 km/h) train service using Japanese bullet train technology started running in January 2007 between Taipei and Kaohsiung. It is run by the Taiwan High Speed Rail Corporation, http://www.thsrc.com.tw/
The 300km/h trains link Taipei and Kaohsiung every half hour throughout the day, or at times more frequently.
Journey time is 1 hour 40 minutes on the faster trains, 1 hour 55 minutes on the slower services. The fare is 1,490 Taiwan dollars (SGD 70) in economy class, 2,440 Taiwan dollars (SGD 110) in business class.
Investing in Exchange Traded Funds
Hi Mr Tan,
1) What are the investment risks or disadvantages involved in U.S. Cross-Listed ETFs, listed in
http://www.sgx.com/psv/securities/etf/ETF_US_Cross-Listed.shtml
DIAMONDS®
SPDRs®
iShares S&P500 Index Fund
iShares MSCI Singapore (Free) Index Fund
iShares Dow Jones U.S. Technology Sector Index Fund
REPLY:
I am not aware of any special risk or disadvantages involved in the US Cross Listed ETFs.
In selecting an indexed fund, you want to look for a fund that is managed by a reputed fund manager, charges low fees and provide good service in accounting and execution.
You are taking the investment risk of the specific market. If you are investing for the long term, the risk will averaged out to give you an average return for the period.
2) There are more than 10 ETFs listed on SGX but why is it that you are only recommending STI-ETF. Since STI-ETF is only focused on Singapore, would it be better to invest in e.g. Lyxor ETF MSCI AC Asia-Pacific (covering Asia minus Japan?
REPLY
I recommend the STI ETF for people who are familiar with investing in Singapore stocks and wish to remain in Singapore currency exposure. If they are familiar with investing in Asia, the Lyxor ETF is suitable.
All indexed funds are suitable, if they cost is kept at a competitive level and the investment is for 10 years or longer.
1) What are the investment risks or disadvantages involved in U.S. Cross-Listed ETFs, listed in
http://www.sgx.com/psv/securities/etf/ETF_US_Cross-Listed.shtml
DIAMONDS®
SPDRs®
iShares S&P500 Index Fund
iShares MSCI Singapore (Free) Index Fund
iShares Dow Jones U.S. Technology Sector Index Fund
REPLY:
I am not aware of any special risk or disadvantages involved in the US Cross Listed ETFs.
In selecting an indexed fund, you want to look for a fund that is managed by a reputed fund manager, charges low fees and provide good service in accounting and execution.
You are taking the investment risk of the specific market. If you are investing for the long term, the risk will averaged out to give you an average return for the period.
2) There are more than 10 ETFs listed on SGX but why is it that you are only recommending STI-ETF. Since STI-ETF is only focused on Singapore, would it be better to invest in e.g. Lyxor ETF MSCI AC Asia-Pacific (covering Asia minus Japan?
REPLY
I recommend the STI ETF for people who are familiar with investing in Singapore stocks and wish to remain in Singapore currency exposure. If they are familiar with investing in Asia, the Lyxor ETF is suitable.
All indexed funds are suitable, if they cost is kept at a competitive level and the investment is for 10 years or longer.
Fed Ex Logo
Someone gave me the link to a forum discussing the Fed Ex logo. It is creative. Can you see the arrow between the letters E and x?
Overcome your Fear
Hi Kin Lian,
Thanks for sharing the video of the firework in Taipei.
I read from your blog about your recent experience on upgrading your computer. It is very encouraging and inspiring for computer illiterates like me to want to try too. What holds us back is the Fear Factor. What if our computer hangs! Only we can overcome this fear ourselves. You have shown the way.
Many are held back by their own fears. They fear doing maths or science, making decisions and even making simple comments on matters of special or even common interest. These are too many KIASU people. Unfortuantely some are even proud of this too!.
We all have our own talents to do certain things to make contributions which can benefit others. You and I have been doing this throughout our lives in various ways as a purpose of our lives, if not our mission, to add values to the lives of others.
Thanks for sharing the video of the firework in Taipei.
I read from your blog about your recent experience on upgrading your computer. It is very encouraging and inspiring for computer illiterates like me to want to try too. What holds us back is the Fear Factor. What if our computer hangs! Only we can overcome this fear ourselves. You have shown the way.
Many are held back by their own fears. They fear doing maths or science, making decisions and even making simple comments on matters of special or even common interest. These are too many KIASU people. Unfortuantely some are even proud of this too!.
We all have our own talents to do certain things to make contributions which can benefit others. You and I have been doing this throughout our lives in various ways as a purpose of our lives, if not our mission, to add values to the lives of others.
Carrefour, Taipei
I visited Carrefour in Taipei. It offers mainly local products, unlike the Carrefour stores in Singapore and Dubai.
I learned something about the Carrefour logo. Caj you see the small red arrow pointing to the left and a larger stylish blue arrow pointing to the right. Did you wonder what the two arrows meant?
I discovered it on my visit to Carrefoure in Taipei.
I learned something about the Carrefour logo. Caj you see the small red arrow pointing to the left and a larger stylish blue arrow pointing to the right. Did you wonder what the two arrows meant?
I discovered it on my visit to Carrefoure in Taipei.
Answer: If you look at the white space between the red and blue arrows, you will see the letter C. This is creative!
A new approach to improve the taxi service
To improve the taxi service in Singapore, we have to adopt a new approach. Here are my suggestions:
1. Taxi fares should be regulated (and not left to the market). The regulator can balance the interest of commuters and taxi drivers and seek to achieve an efficient system that that provides quality service at a fair price. This approach is adopted by most countries, including Hong Kong and Taiwan.
2. The regulator can approve premium taxi service that charge differently from the standard service. The premium service has to pick passengers by telephone booking only (i.e. not from the road or taxi stands). Commuters willing to pay a higher price can telephone for the premium service. This service will use a different color of taxis (i.e. not the same as the regular taxis).
3. Booking of taxi should be reduced to $1.50. This will compensate the taxi driver adequately for taking the call and improve the usage of the taxi (instead of plying the road to look for taxis).
4. Commuters should be allowed to share a taxi, if they are travelling in the same direction. The appropriate fare should be fixed. This will improve the usage of the taxi, reduce cost for the commuters and increase earnings for the taxi drivers.
1. Taxi fares should be regulated (and not left to the market). The regulator can balance the interest of commuters and taxi drivers and seek to achieve an efficient system that that provides quality service at a fair price. This approach is adopted by most countries, including Hong Kong and Taiwan.
2. The regulator can approve premium taxi service that charge differently from the standard service. The premium service has to pick passengers by telephone booking only (i.e. not from the road or taxi stands). Commuters willing to pay a higher price can telephone for the premium service. This service will use a different color of taxis (i.e. not the same as the regular taxis).
3. Booking of taxi should be reduced to $1.50. This will compensate the taxi driver adequately for taking the call and improve the usage of the taxi (instead of plying the road to look for taxis).
4. Commuters should be allowed to share a taxi, if they are travelling in the same direction. The appropriate fare should be fixed. This will improve the usage of the taxi, reduce cost for the commuters and increase earnings for the taxi drivers.
Make a lump sum investment
Hello Mr. Tan,
You have mentioned in your blog that up to 21 months of savings can be taken away to pay the agent to sell a monthly sum investment-linked policy. Does it mean it will be more worthwhile to buy a lump sum unit trust instead? I'm looking for long term investment actually.
My insurance agent has been asking me to buy monthly sum investment-linked policy and recommends that I treat it like a savings plan. I am not too sure whether I should take his advice.
REPLY
You should invest in a single premium ILP, such as the Flexi Link from NTUC Income. It has low charges, compared to a monthly plan.
You can see a comparison of the charges here:
http://www.askdrmoney.com/Ins_ILP_RP.htm
Read these FAQs to make your decision:
http://www.tankinlian.com/faq/savings.html
http://www.tankinlian.com/faq/ilp.html
You have mentioned in your blog that up to 21 months of savings can be taken away to pay the agent to sell a monthly sum investment-linked policy. Does it mean it will be more worthwhile to buy a lump sum unit trust instead? I'm looking for long term investment actually.
My insurance agent has been asking me to buy monthly sum investment-linked policy and recommends that I treat it like a savings plan. I am not too sure whether I should take his advice.
REPLY
You should invest in a single premium ILP, such as the Flexi Link from NTUC Income. It has low charges, compared to a monthly plan.
You can see a comparison of the charges here:
http://www.askdrmoney.com/Ins_ILP_RP.htm
Read these FAQs to make your decision:
http://www.tankinlian.com/faq/savings.html
http://www.tankinlian.com/faq/ilp.html
Adequate insurance
Dear Mr. Tan,
I have already bought a five years term insurance($15,000) from NTUC income, do you think I still need the DPS ($46,000) required by CPF board?
REPLY
It depends on your personal circumstances. If you have dependents, you should aim to insure for 5 to 10 years of your earnings. If you have accumulated savings, the insurance cover can be reduced by this amount.
Read this FAQ
http://www.tankinlian.com/faq/choice.html
I have already bought a five years term insurance($15,000) from NTUC income, do you think I still need the DPS ($46,000) required by CPF board?
REPLY
It depends on your personal circumstances. If you have dependents, you should aim to insure for 5 to 10 years of your earnings. If you have accumulated savings, the insurance cover can be reduced by this amount.
Read this FAQ
http://www.tankinlian.com/faq/choice.html
Investing a lump sum at 51 years
Dear Mr. Tan,
My mother is 51 years old now. She has $50,000 of cash to invest. What is your recomendation investment, annuity, etc?
REPLY
If she is investing for 10 years or more, it is better to invest in a low cost, diversified equity fund.
When she needs to draw out a monthly income, she can convert it into a life annuity. At that time, she should wait for a has good time when the investments showed a good gain of 5% to 8% per annum.
Read the following FAQs
http://www.tankinlian.com/faq/life.html
http://www.tankinlian.com/faq/savings.html
My mother is 51 years old now. She has $50,000 of cash to invest. What is your recomendation investment, annuity, etc?
REPLY
If she is investing for 10 years or more, it is better to invest in a low cost, diversified equity fund.
When she needs to draw out a monthly income, she can convert it into a life annuity. At that time, she should wait for a has good time when the investments showed a good gain of 5% to 8% per annum.
Read the following FAQs
http://www.tankinlian.com/faq/life.html
http://www.tankinlian.com/faq/savings.html
New Year Celebration in Taipei
There will be a big celebration to welcome the new year in Taipei. A big firework display will be launched from Taipei 101, which is currently the tallest building in the world. Most people in Taipei will be watching the fireworks.
We will be watching the fireworks from the roof top of my daughter's apartment. It is just 1 kilometer away from Taipei 101. We have to get a pass and pay an admission fee to access the rooftop - as it will be in high demand.
We will be watching the fireworks from the roof top of my daughter's apartment. It is just 1 kilometer away from Taipei 101. We have to get a pass and pay an admission fee to access the rooftop - as it will be in high demand.
Winter in Taipei
It is now winter in Taipei. Although there is no snow here, the temperature can be quite cold. It gets below 10 degree Centrigrade. I enjoy the cold temperature, as it is a good change from the hot climate in Singapore.
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