I wish to introduce the concept of a "no load" financial product.
Examples of "no load" products are:
a) bank account
b) shares and bonds bought through the stock exchange
Some "no load" products require you to pay a transaction fee (e.g. brokerage) but they are usually less than 0.5% of the invested sum.
Examples of "high load" products are:
a) Life insurance and investment linked policies
b) Structured financial products
c) Time-share properties
d) Land banking products
The "high load" products have high front end charges that may take more than one year of your savings or more than 5% of your invested lump sum. They are used to pay high commission to marketeers to "push" the products to consumers. After paying the high marketing costs, the consumers get a poor deal.
Go for "no load" products.
Thursday, March 20, 2008
Websites of large companies
The website of many large companies are a maze. It takes a long time to navigate through the website to find the relevant information.
Quite often, you will need an experience guide (from the helpdesk of the company) to take you through the website.
I wish to ask your your participation. Can you tell me which company has a good website that is easy to navigate?
Quite often, you will need an experience guide (from the helpdesk of the company) to take you through the website.
I wish to ask your your participation. Can you tell me which company has a good website that is easy to navigate?
A complicated feedback form
The express bus company sent me an online feedback form. It contained more than 50 questions for me to complete. I sent this reply by e-mail:
QUOTE
If you wish to ask for my feedback, you have to be considerate and send me a simpler form. Do think about the customer. Do not just think about your own convenience.
UNQUOTE
Like most other companies, this company is interested only to compile statistics. I do not think that they are genuinely interested to listen to the customer.
I hope that people will think more about the customer.
QUOTE
If you wish to ask for my feedback, you have to be considerate and send me a simpler form. Do think about the customer. Do not just think about your own convenience.
UNQUOTE
Like most other companies, this company is interested only to compile statistics. I do not think that they are genuinely interested to listen to the customer.
I hope that people will think more about the customer.
Poll: measures to cope with cost of living in Singapore
What measures will help most to cope with the cost of living in Singapore? (20 replies, multiple choices are allowed):
75% lower cost of transportation and reduced commuting time
40% higher wages for low income workers
30% higher return on financial products
20% better protection of consumers
75% lower cost of transportation and reduced commuting time
40% higher wages for low income workers
30% higher return on financial products
20% better protection of consumers
Insuring against poverty
Many people buy a large critical illness policy to insure against the risk of 30 critical illness. The chance of it happening during their working life is less than 5%.
There is a bigger risk that they overlook. It is insuring against poverty. The chance of this event is 95%.
There is a bigger risk that they overlook. It is insuring against poverty. The chance of this event is 95%.
Here is a good way to insure against poverty:
a) Save 10% to 15% of your monthly salary
b) Invest in a low cost, diversified fund to earn a good return over the future
Many advisers do not recommend this approach. They introduce high cost products to consumers, as these products provide an attractive commission to the adviser. The consumer gets a poor return. They face a conflict of interest
I hope that more advisers will come forward to give the proper advice that are good for consumers. They can earn a fair rate of commission, but at least they know that they are acting fairly and honestly.
Orderly transition in five state governments in Malaysia
A reader wrote to the Star paper in Malaysia. He congratulated Prime Minister Abdullah Badawi for the peaceful and orderly transfer of power to the new governments in five states in Malaysia. He described the Prime Minister as a gentlemen.
He mentioned about the experience in several other countries, where the opposition party faced obstacles in the election and after being elected.
He mentioned about the experience in several other countries, where the opposition party faced obstacles in the election and after being elected.
Travelling to Kuala Lumpur by bus
I took an express bus from Singapore to Kuala Lumpur. It is the first time that I took a bus to visit Kuala Lumpur. Previously, I have always taken the plane.
The journey took 5 hours. It was comfortable. I arrived in Petaling Jaya at 1 pm. If I have taken the plane, the journey would have taken the same travelling time.
I was able to have a nice discussion with another traveller on the journey. I could also do some work on the bus. I shall be travelling on this mode more often in the future.
The journey took 5 hours. It was comfortable. I arrived in Petaling Jaya at 1 pm. If I have taken the plane, the journey would have taken the same travelling time.
I was able to have a nice discussion with another traveller on the journey. I could also do some work on the bus. I shall be travelling on this mode more often in the future.
1,004 visitors to my blog
1,004 people visited my blog on Wednesday 19 March 2008. This is the first time that it exceeded 1,000 visitors.
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