The attached article was pubished in the Edge Magazine.
http://www.tankinlian.com/articles/savings.html
It contained eight tips:
Tip 1: Do not over-invest in a property using your CPF savings.
Tip 2: Set aside at least 10% of your earnings as personal savings for the future.
Tip 3: Get an attractive rate of return for your personal savings.
Tip 4: Buy a decreasing term insurance plan to cover you up to age 65 years.
Tip 5: Avoid duplicated medical insurance.
Tip 6: Have a budget for your monthly expenses.
Tip 7: Look for an honest adviser to help you to make the financial and insurance decisions.
Tip 8: Be educated about the fundamentals, so that you can make the right decision.
Monday, January 21, 2008
Personal Accident
Dear Mr. Tan,
I wish to insure for 5 years of my earnings, but I prefer to buy personal accident as it covers injury as well, and not just for death. Can you tell me more about this insurance coverage?
REPLY
You can read this FAQ:
http://www.tankinlian.com/faq/pa.html
I wish to insure for 5 years of my earnings, but I prefer to buy personal accident as it covers injury as well, and not just for death. Can you tell me more about this insurance coverage?
REPLY
You can read this FAQ:
http://www.tankinlian.com/faq/pa.html
Difference between Flexi Link and Ideal plans
Hi Mr. Tan,
I am confused about the Combined funds. It can be invested through Ideal and Flex-link Policy. What's the different between the two?
REPLY:
The Flexi Link is a single premium policy. 100% of the premium is invested, but you suffer a spread of 3.5%.
The Ideal is a regular premium policy. 85% of the premium is invested during the first 3 years, i.e. you suffer a distribution charge of 15% for 3 years. The remaining premium is invested at the same spread of 3.5%.
It is better to invest in the Flexi Link as you avoid the additional 15% charge for 3 years. There are other charges that you have to consider.
You can read this FAQ:
http://www.tankinlian.com/faq/ilp.html
I am confused about the Combined funds. It can be invested through Ideal and Flex-link Policy. What's the different between the two?
REPLY:
The Flexi Link is a single premium policy. 100% of the premium is invested, but you suffer a spread of 3.5%.
The Ideal is a regular premium policy. 85% of the premium is invested during the first 3 years, i.e. you suffer a distribution charge of 15% for 3 years. The remaining premium is invested at the same spread of 3.5%.
It is better to invest in the Flexi Link as you avoid the additional 15% charge for 3 years. There are other charges that you have to consider.
You can read this FAQ:
http://www.tankinlian.com/faq/ilp.html
Critical Illness Cover
Dear Mr Tan,
I would like to ask, why did you say $50,000 is enough for critical illness policy?
Let say if i am really hit by one of the illness which is insured by the policy, will $50,000 be really suffice for medical fee and hospitalisation?
REPLY
I expect most people to have a Medishield plan that will cover most of the cost of medical care.
I advice people to avoid over-insuring and pay too much premium on high cost insurance products. They should have more savings for their retirement.
Read this FAQ:
http://www.tankinlian.com/faq/choice.html
If you have adequate savings, you can use part of your savings to meet the unexpected medical expenses (instead of relying on high cost insurance).
I would like to ask, why did you say $50,000 is enough for critical illness policy?
Let say if i am really hit by one of the illness which is insured by the policy, will $50,000 be really suffice for medical fee and hospitalisation?
REPLY
I expect most people to have a Medishield plan that will cover most of the cost of medical care.
I advice people to avoid over-insuring and pay too much premium on high cost insurance products. They should have more savings for their retirement.
Read this FAQ:
http://www.tankinlian.com/faq/choice.html
If you have adequate savings, you can use part of your savings to meet the unexpected medical expenses (instead of relying on high cost insurance).
Safari Park near Puncak
I visited the Safari Park near Puncak, outside of Jakarta. I was surprised at the high quality of the park. The visitors drive through the safari park in their vehicles. The animals were allowed to roam freely. They are in good health and well taken care of. The visitors can feed the animals with carrots.
Structured Products invested in subprime CDOs
Hi Mr Tan,
I need your advice. Last year, I invested $50,000 in the Pinnacle Notes which will mature in 2012. Will the US subprime mortages affect this product? Can you advice on the risk involved in this product ?
REPLY
I am not familiar with the actual investments of this product. I understand that some structured products were invested in Collaterialised Debt Obligations (CDOs) which comprise of these subprime mortgages.
I suggest that you ask this question to the issuing bank. I am interested to know their answer as well.
I need your advice. Last year, I invested $50,000 in the Pinnacle Notes which will mature in 2012. Will the US subprime mortages affect this product? Can you advice on the risk involved in this product ?
REPLY
I am not familiar with the actual investments of this product. I understand that some structured products were invested in Collaterialised Debt Obligations (CDOs) which comprise of these subprime mortgages.
I suggest that you ask this question to the issuing bank. I am interested to know their answer as well.
Bear Market
We are now in a severe bear market. The stockmarket around the world has dropped more than 20% from its recent peak. The drop can be 5% a day. It can drop a few days in a row.
This is the work of hedge funds. When the market is weak, they sell in large volumes, causing weak holders to panic and sell their holdings. There are no buyers, so the drop is severe. Later, the hedge funds will bear back their short positions at the depressed prices and make a profit. It has happened on many occasions in past years, during bear markets.
Long term investors should not worry. This short term massive selling last a few days and will stabilise or recover. In fact, this is a good opportunity to buy stocks at extremely depressed prices.
This is the work of hedge funds. When the market is weak, they sell in large volumes, causing weak holders to panic and sell their holdings. There are no buyers, so the drop is severe. Later, the hedge funds will bear back their short positions at the depressed prices and make a profit. It has happened on many occasions in past years, during bear markets.
Long term investors should not worry. This short term massive selling last a few days and will stabilise or recover. In fact, this is a good opportunity to buy stocks at extremely depressed prices.
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