Dear Mr. Tan,
I currently have a housing loan with HDB. Is it a good idea to pay off as much of the loan as early as possible? I have heard different views regarding this issue. Some people say it's better to use the money in the ordinary account to invest and earn more returns. Others say paying the loan earlier will help to reduce the interest amount. What is your advice?
REPLY
Interest charge on the HDB loan is 2.6%. You should be able to earn a better return over the long term from a low cost investment fund.
If you are willing to take some risk and invest for the long term, it is better to keep the loan and invest your savings. Read the following:
http://www.tankinlian.com/faq/savings.html
Tuesday, March 18, 2008
Difference: Singapore EQuity fund and STI ETF
Dear Mr. Tan,
What is the different of buying STI EFT and investing in Singapore Equity form NTUC?
REPLY
Both funds are invested mainly in equities.
The difference is in the upfront charges:
NTUC fund 3.5%
STI ETF 0.3%
The annual fee is also different:
NTUC fund - 0.65%
STI ETF 0.3%
You need $3,200 to buy 1,000 shares of STI ETF. You can buy the Singapore Equity fund for $100.
Trials & Tribulations of A Science Career
Our own home grown scientist Dr. Lee Kum Tatt has shared with us on many occasions the fun and glory of a science and research career.
The question that is sometimes asked “ Hasn’t he got some bad times doing science and what did he do about them”? His wife, Mrs. Engeline Lee has persuaded him to share with us some of the trials and tribulations of a science career and research worker’s life.
You can read about his comments in his blog www.leekumtattblogspot.com
The question that is sometimes asked “ Hasn’t he got some bad times doing science and what did he do about them”? His wife, Mrs. Engeline Lee has persuaded him to share with us some of the trials and tribulations of a science career and research worker’s life.
You can read about his comments in his blog www.leekumtattblogspot.com
Poll: LRT in CBD
Is it useful to have a LRT system within the Central Business District? (25 replies)
28% strongly support
44% can consider
4% neutral
24% not feasible
Strange. The results are exactly the same as poll on retirement housing!!
28% strongly support
44% can consider
4% neutral
24% not feasible
Strange. The results are exactly the same as poll on retirement housing!!
Travelling within the Central Business District
There is unhappiness over the new LTA rules that require taxis to pick up and drop passengers at designated stops. The LTA will make some changes to address these complaints.
Over the longer term, we need to improve the transport system within the Central Business District.
I suggest that an overhead light rail transport (LRT) be build. This will run along the major roads. It allows passengers to travel within the CBD or to connect to the MRT stations. Travel within the CBD can usually be done on one train or one change of train. Many buildings can have walkways to connect to the nearby LRT station.
We now have a LRT system in three towns in Singapore. The usage of the trains is low, due to the small population catchment and other factors. I expect that the LRT within the CBD will be more successful.
If more passengers uses the LRT to travel within the CBD, there will be less need for taxis.
Over the longer term, we need to improve the transport system within the Central Business District.
I suggest that an overhead light rail transport (LRT) be build. This will run along the major roads. It allows passengers to travel within the CBD or to connect to the MRT stations. Travel within the CBD can usually be done on one train or one change of train. Many buildings can have walkways to connect to the nearby LRT station.
We now have a LRT system in three towns in Singapore. The usage of the trains is low, due to the small population catchment and other factors. I expect that the LRT within the CBD will be more successful.
If more passengers uses the LRT to travel within the CBD, there will be less need for taxis.
Life assurance policies give poor return
Dear Mr. Tan
I have the following life insurance policies:
Plan: Life Plus
Sum Assured $100,000
Yearly premium $1,282
Insured for last 10 years
Cash value now: $10,300
Plan: Dynamic Prolife
Sum Assured: $50,000
Yearly Premium 1,519
Insured for last 10 years
Cash value now: $12,000
Should I keep the insurance or should I switch to low cost fund and term insurance? Based on my calculation, if I keep the cash value and subsequent premium in low cost fund, I can get a better return. If I keep the policies, I will have to wait for another 6 to 9 years for my cash value to breakeven. Pls advise.
REPLY
Please read this FAQ:
http://www.tankinlian.com/faq/existinglife.html
I hope that you find it useful for your decision.
I have the following life insurance policies:
Plan: Life Plus
Sum Assured $100,000
Yearly premium $1,282
Insured for last 10 years
Cash value now: $10,300
Plan: Dynamic Prolife
Sum Assured: $50,000
Yearly Premium 1,519
Insured for last 10 years
Cash value now: $12,000
Should I keep the insurance or should I switch to low cost fund and term insurance? Based on my calculation, if I keep the cash value and subsequent premium in low cost fund, I can get a better return. If I keep the policies, I will have to wait for another 6 to 9 years for my cash value to breakeven. Pls advise.
REPLY
Please read this FAQ:
http://www.tankinlian.com/faq/existinglife.html
I hope that you find it useful for your decision.
Simpler way to address a letter?
I have to send a letter to CPF. They asked me to mail it to the following address:
CPF Minimum Sum Topping-up Scheme (Retirement Services Dept)
CPF Board
79 Robinson Road
CPF Building
Singapore 068897
Here is a shorter way to address the letter:
CPF Retirement Services Dept
Singapore 068897
I wonder if my letter will arrive there?
I shall try to post a letter to myself as follows:
Tan Kin Lian
Singapore 809744
CPF Minimum Sum Topping-up Scheme (Retirement Services Dept)
CPF Board
79 Robinson Road
CPF Building
Singapore 068897
Here is a shorter way to address the letter:
CPF Retirement Services Dept
Singapore 068897
I wonder if my letter will arrive there?
I shall try to post a letter to myself as follows:
Tan Kin Lian
Singapore 809744
Poll: Retirement Housing in Singapre
Do you like the concept of retirement housing in Singapore, as described in my blog? (25 replies)
24% strongly support
44% worth considering
4% neutral
28% not feasible
24% strongly support
44% worth considering
4% neutral
28% not feasible
Retirement Housing in Singapore
1. Someone wrote to the Straits Times Forum proposing the development of retirement housing in nearby countries, where the cost of land is lower.
2. It is economically feasible to build the retirement housing in Singapore. The cost of land can be reduced by better utilisation of land. Here is my concept of a future retirement town to be build in Singapore.
a) Located in a corner of Singapore, say in Lim Chu Kang.
b) Comprise of 100 blocks of 100 units, i.e. total of 10,000 units
c) All internal transport by light rail transport (LRT) and personal automated transport (PAT)
d) LRT to connect to a nearby MRT station
e) Large car parks to be located outside of the town, for use by residentials and visitors
f) Medical facilities operated by private clinics to serve the residetials
g) Housing units to be owned by a residential REIT and rented to residents
g) Residents can invest their retirement savings in the residential REIT
g) Covered walkways to connect to parks, sports facilities, social clubs and food outlets
h) Easy for children to visit the elderly from other parts of Singapore and vice versa
i) Some blocks to be rented to foreigners interested in this lifestyle
j) Employment opportunities for the residents
h) The residential units and public areas are designed to be friendly to the elderly.
3. Employment opportunities. The residents can work in the social clubs, food outlets, care centers, call centers and remote work offices in the town to earn a supplementary income.
4. Residential REIT. The residents can invest a large part of their retirement savings in the residential REIT. The dividends from the REIT can be used to offset their rental payments, and leave a balance for their living expenses. They can also encash their units in the REIT gradually, during their lifetime, to provide a supplementary income.
5. The residents are encouraged to join a social club to meet friends, take part in social activities and also have their meals. This is similar to the lifestyle of the posh social club in London, but can be operated at low cost.
6. I hope that this idea will be taken up by the Government or a private consortium of sector sector developers.
2. It is economically feasible to build the retirement housing in Singapore. The cost of land can be reduced by better utilisation of land. Here is my concept of a future retirement town to be build in Singapore.
a) Located in a corner of Singapore, say in Lim Chu Kang.
b) Comprise of 100 blocks of 100 units, i.e. total of 10,000 units
c) All internal transport by light rail transport (LRT) and personal automated transport (PAT)
d) LRT to connect to a nearby MRT station
e) Large car parks to be located outside of the town, for use by residentials and visitors
f) Medical facilities operated by private clinics to serve the residetials
g) Housing units to be owned by a residential REIT and rented to residents
g) Residents can invest their retirement savings in the residential REIT
g) Covered walkways to connect to parks, sports facilities, social clubs and food outlets
h) Easy for children to visit the elderly from other parts of Singapore and vice versa
i) Some blocks to be rented to foreigners interested in this lifestyle
j) Employment opportunities for the residents
h) The residential units and public areas are designed to be friendly to the elderly.
3. Employment opportunities. The residents can work in the social clubs, food outlets, care centers, call centers and remote work offices in the town to earn a supplementary income.
4. Residential REIT. The residents can invest a large part of their retirement savings in the residential REIT. The dividends from the REIT can be used to offset their rental payments, and leave a balance for their living expenses. They can also encash their units in the REIT gradually, during their lifetime, to provide a supplementary income.
5. The residents are encouraged to join a social club to meet friends, take part in social activities and also have their meals. This is similar to the lifestyle of the posh social club in London, but can be operated at low cost.
6. I hope that this idea will be taken up by the Government or a private consortium of sector sector developers.
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