Dear Mr. Tan,
My daughter who has recently started work, was approached by an insurance agent from X at MacDonalds. The agent gave a long sales talk to my daughter. She was not clear about what the product was, and was coerced into buying the policy.
I told her to cancel the policy, as a large part of her hard earned money will be used to pay commission to the agent. I advised her to read your blog and understand insurance and investments better, before she make this type of financial decision.
REPLY
Many young people have been approached in this manner. In many cases, the agent who sells them the policy was their friend or classmate.
It is true that they will waste their hard earned money buying the wrong, expensive product that gives a poor return.
It is better for them to buy Term insurance or personal accident insurance first. They can accumulate their savings in the bank account and decide later on how to invest it.
Saturday, January 12, 2008
Motor insurance joke
Prosecutor to defendant accused of reckless driving, "Is it true that you knocked down five people this year?"
Defendent: "No. I only knocked down four people. One of them was the same person that I knocked down twice."
Defendent: "No. I only knocked down four people. One of them was the same person that I knocked down twice."
Lawyer's joke
A man was being sued for returning a borrowed lawn mower in a damaged condition.
His lawyer told the court, "I will prove my client's innocence in the following ways: Firstly, he never borrowed the lawn mower. Secondly, the lawn mower was already damaged when be borrowed it. Thirdly, the lawn mower was in perfect condition when he returned it. "
Joke: Some lawyer can argue any point in a convincing manner.
His lawyer told the court, "I will prove my client's innocence in the following ways: Firstly, he never borrowed the lawn mower. Secondly, the lawn mower was already damaged when be borrowed it. Thirdly, the lawn mower was in perfect condition when he returned it. "
Joke: Some lawyer can argue any point in a convincing manner.
Index Fund or ETF?
Mr Tan,
Should I invest in an Exchange Traded Fund and an Index Fund? Both funds track an index.
http://stquote.sgx.com/live/st/STETF.asp http://www.lioncapital.com.sg/default.asp?action=category&ID=24&order=rank&sort=asc&limit=0
REPLY
If you are investing for the long term (and not trading for the short term), it is better to buy an indexed fund, as it is based on the net asset value of the fund at the end of the day. You do not have to worry about trading based on the actual price fluctuation during the day.
Should I invest in an Exchange Traded Fund and an Index Fund? Both funds track an index.
http://stquote.sgx.com/live/st/STETF.asp http://www.lioncapital.com.sg/default.asp?action=category&ID=24&order=rank&sort=asc&limit=0
REPLY
If you are investing for the long term (and not trading for the short term), it is better to buy an indexed fund, as it is based on the net asset value of the fund at the end of the day. You do not have to worry about trading based on the actual price fluctuation during the day.
Post Hospital Expenses
Dear Mr. Tan,
I agreed with Ministry of Health that there is no Medi-crisis at the macro level. My family members have been treated in public hospitals, and the charges are affordable.
But we face a financial crisis at the micro level, in meeting the post-hospital expenses covering the following:
Taxi Fare/Ambulance
Consultation Fee
Laboratory Test Scan
Meal at Hospital Foodcourt
Medicine
Food suppliment
The total cost for each medical appointment is more than $200 (not counting loss of productivity). This has to be multiplied by the number of visits over the years for two elderly persons.
Each retiree gets only $297 a month from the CPF savings.
I agreed with Ministry of Health that there is no Medi-crisis at the macro level. My family members have been treated in public hospitals, and the charges are affordable.
But we face a financial crisis at the micro level, in meeting the post-hospital expenses covering the following:
Taxi Fare/Ambulance
Consultation Fee
Laboratory Test Scan
Meal at Hospital Foodcourt
Medicine
Food suppliment
The total cost for each medical appointment is more than $200 (not counting loss of productivity). This has to be multiplied by the number of visits over the years for two elderly persons.
Each retiree gets only $297 a month from the CPF savings.
Decreasing Term
Dear Mr . Tan,
I am 25 years old. Should I take a 40 year Decreasing Term or a 20 year policy and renew it at the end of 20 years?
REPLY
You should take a Decreasing Term for 40 years. It should cover the duration of your expected working career.
If you take a Decreasing Term for 20 years and wish to renew it at the end of 20 years, the renewal is subject to your health condition at that time. The premium will be based on your age at that time, and will be much higher.
This arrangement is not suitable, as the sum insured under the Decreasing Term will reduce during each period of 20 years.
I am 25 years old. Should I take a 40 year Decreasing Term or a 20 year policy and renew it at the end of 20 years?
REPLY
You should take a Decreasing Term for 40 years. It should cover the duration of your expected working career.
If you take a Decreasing Term for 20 years and wish to renew it at the end of 20 years, the renewal is subject to your health condition at that time. The premium will be based on your age at that time, and will be much higher.
This arrangement is not suitable, as the sum insured under the Decreasing Term will reduce during each period of 20 years.
A Message by George Carlin
The paradox of our time in history is that we have taller buildings but shorter tempers, wider freeways , but narrower viewpoints.
We spend more, but have less, we buy more, but enjoy less. We have bigger houses and smaller families, more conveniences, but less time. We have more degrees but less sense, more knowledge, but less judgment, more experts, yet more problems, more medicine, but less wellness.
We drink too much, smoke too much, spend too recklessly, laugh too little, drive too fast, get too angry, stay up too late, get up too tired, read too little, watch TV too much, and pray too seldom.
We have multiplied our possessions, but reduced our values. We talk too much, love too seldom, and hate too often.
We've learned how to make a living, but not a life. We've added years to life not life to years. We've been all the way to the moon and back, but have trouble crossing the street to meet a new neighbor. We conquered outer space but not inner space. We've done larger things, but not better things.
We've cleaned up the air, but polluted the soul. We've conquered the atom, but not our prejudice. We write more, but learn less. We plan more, but accomplish less. We've learned to rush, but not to wait. We build more computers to hold more information, to produce more copies than ever, but we communicate less and less.
These are the times of fast foods and slow digestion, big men and small character, steep profits and shallow relationships. These are the days of two incomes but more divorce, fancier houses, but broken homes.
These are days of quick trips, disposable diapers, throw away morality, overweight bodies, and pills that do everything from cheer, to quiet, to kill. It is a time when there is much in the showroom window and nothing in the stock room. A time when technology can bring this letter to you, and a time when you can choose either to share this insight, or to just hit delete...
Remember; spend some time with your loved ones, because they are not going to be around forever. Remember, say a kind word to someone who looks up to you in awe, because that little person soon will grow up and leave your side. Remember, to give a warm hug to the one next to you, because that is the only treasure you can give with your heart and it doesn't cost a cent.
Remember, to say, "I love you" to your partner and your loved ones, but most of all mean it. A kiss and an embrace will mend hurt when it comes from deep inside of you. Remember to hold hands and cherish the moment for someday that person will not be there again. Give time to love, give time to speak! And give time to share the precious thoughts in your mind.
AND ALWAYS REMEMBER:
Life is not measured by the number of breaths we take, but by themoments that take our breath away.
George Carlin
We spend more, but have less, we buy more, but enjoy less. We have bigger houses and smaller families, more conveniences, but less time. We have more degrees but less sense, more knowledge, but less judgment, more experts, yet more problems, more medicine, but less wellness.
We drink too much, smoke too much, spend too recklessly, laugh too little, drive too fast, get too angry, stay up too late, get up too tired, read too little, watch TV too much, and pray too seldom.
We have multiplied our possessions, but reduced our values. We talk too much, love too seldom, and hate too often.
We've learned how to make a living, but not a life. We've added years to life not life to years. We've been all the way to the moon and back, but have trouble crossing the street to meet a new neighbor. We conquered outer space but not inner space. We've done larger things, but not better things.
We've cleaned up the air, but polluted the soul. We've conquered the atom, but not our prejudice. We write more, but learn less. We plan more, but accomplish less. We've learned to rush, but not to wait. We build more computers to hold more information, to produce more copies than ever, but we communicate less and less.
These are the times of fast foods and slow digestion, big men and small character, steep profits and shallow relationships. These are the days of two incomes but more divorce, fancier houses, but broken homes.
These are days of quick trips, disposable diapers, throw away morality, overweight bodies, and pills that do everything from cheer, to quiet, to kill. It is a time when there is much in the showroom window and nothing in the stock room. A time when technology can bring this letter to you, and a time when you can choose either to share this insight, or to just hit delete...
Remember; spend some time with your loved ones, because they are not going to be around forever. Remember, say a kind word to someone who looks up to you in awe, because that little person soon will grow up and leave your side. Remember, to give a warm hug to the one next to you, because that is the only treasure you can give with your heart and it doesn't cost a cent.
Remember, to say, "I love you" to your partner and your loved ones, but most of all mean it. A kiss and an embrace will mend hurt when it comes from deep inside of you. Remember to hold hands and cherish the moment for someday that person will not be there again. Give time to love, give time to speak! And give time to share the precious thoughts in your mind.
AND ALWAYS REMEMBER:
Life is not measured by the number of breaths we take, but by themoments that take our breath away.
George Carlin
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