Don't Fall for the Lure (29-Dec-09)

Most of us would at some point of time being approached by our financial advisers to invest your hard-earned CPF money into Unit Trust investment. Absolutely nothing wrong with that, but it can be disastrous if you end up with an unscrupulous one.

Yr CPF-OA account is earning you 2.5%p.a. (at the moment) while your CPF-SA is earning 4.0%p.a. (at the moment). Looking at the long term, as an IFA, I would also advise you to park some of your CPF-OA account into some good funds to enable your money to work harder for you. But before you invest, make sure yourself as a consumer knows what you are buying into.

Understand what kind of risks and returns you are exposed to. If someone offers you risk-free product with high returns, definitely something is very fishy. Remember, there is no free lunch in this world.

Key to Unit Trust investment is constantly reviewing with your reliable financial adviser and going forward with a strategy. If in doubt, pls contact me at 9876-0237 straight away.

Memories are Forever (03-Dec-09)

Happened to come across a meaningful article in 'Mind Your Body' section in today's paper and liked to share with you. A few important lines:

"Who does not know that cancer is a terrible illness & that many succumb and die from it? One in four Singaporeans will die from cancer""

"She had never smoked and had advanced stage lung cancer with brain metastases"

"However, most patients do not die from the cancer per se. Infection, especially chest inefection, is a very common cause of death"

"Death is always and certainly inevitable"

No, I am not a medical doctor here telling you how to take care of your health and avoid cancer and other illness. The moral of the story is that, IF something really unfortunate happen to you, or to the people around you, would you be ready to tackle it? Psychologically wise, perhaps never will be. BUT financially wise, this is something you can prepare while you are still healthy & in the right state of mind.

Have you got yourself a good hospital & surgical plans to limit your medical bills?

You have some insurance policies, but is it sufficient to cover all your potential liabilities?

Do you plan to leave a legacy behind if one day death occurs, be it naturally or not.

If you have many question marks & not knowing the answers, why not seek professional help and use the right instruments to solve your problems?

Probably some of you will brush this topic aside and think that everyday is a peaceful day. But I leave the decision to you. This morning, it perturbs me to read abt the 5-year old little child being killed instantly when crossing the road. Because yesterday I also had a near accident when a reckless van driver cut into my lane from a side road. CMI.

Don't Expect Interest Rates to Rise: Experts (23-Nov-09)

If you think your money is safe inside the bank, wrong. Without you knowing it, your savings mught just get eaten up by inflation silently. Savings account earned an average of 0.22%/annum in January 2009, before holding at just 0.16% from July to last month.

If your intention is to preserve the value of money, there are many options available outside the bank. Do approach me @ 9876-0237 to help you understand what other instruments are available to make your money work harder for u.

Insurance in a Time of Uncertainty (08-Nov 09)

How many of you have heard of Robert Kiyosaki's theory on "Why the Rich Gets Richer"? One method is to stay ahead, think bigger, and come out with a better plan. Key word is planning. What we all have on our hand is the same comodity called 'time'. No matter what you are doing now, time is ticking away. So do you want to make use of time to better use?

http://sg.promo.yahoo.com/managingyourmoney/expert?blogid=expert&postid=1&viewPost=1

In this article by Mr. Ben Fok, the CEO of Grandtag Financial Consultancy, and my former lecturer for my CFP course, he again highlighted on the usage of insurance as one of the tools for proper wealth management.

"The virtues of life insurance are obvious. By paying a premium to the insurer, I get to enjoy the coverage as it will step in to meet its obligations should anything untoward happen to me. Most importantly I know that all of my family's financial needs are well taken care of."

I am quite sure most of you will have some insurance policies stored in your cupboards (collecting dust), thinking: "Enough liao lar... don't waste money on further policies... spend spend spend only..."

From my professional point of view, it simply boils down to whether you are having sufficient coverage, and whether you are using the proper instruments to achieve your objectives in the first place.

Of course, you can choose to procastinate the process and pray hard that nothing will happen to you. But just look at the news and people around you, are you financially strong enough to absorb that kind of unforeseen risk? Can you imagine yourself losing that kind of regular income overnight due to accident.. or critical illness...or... ?

Nobody fails to plan, only plans to fail.

Do contact me @ 9876-0237 if you seriously wish to take a strong step to establish your financial goals and objectives.

Four Insurance Plans are All you need (25-Oct-09)

In this article, they highlighted the key coverages that an average person should have to have a comprehensive array of protection. Unless u are the invincible Wolverine or Superman, maybe then you do not need it.

Insurance is typically a form of risk transfer. If you happen NOT to claim from it, good for you. These premiums will serve as a form of savings in the long run (depending on which kind of policies). If you happen to claim from it, also good for you, meaning that u are using a small sum of money to 'exchange' for a bigger sum of money. No matter how I look at it, it's a win-win situation.

As a professional IFA, the priorities I would offer to my clients would be:

1) Medical Coverage

- Medical costs in Singapore have been rising more rapidly that the inflation rate. If you think your basic Medishield or company H&S plans are sufficient, think again. There are better plans out there to ensure your bill is controlled to a certain level.

2) Death / Total & Permanent Disability cover

- Nothing can compensate for the death of a loved one, but if the financial aspect is well taken care of, it makes things a little more bearable. This is especially true for people with alot of dependents like a non-working spouse, small children, or even elderly parents.

3) Critical Illness cover

- If you think u are not the unlucky one, think again, and again. From statistics, I think the chances are higher that tio-ing your weekly Toto. No doubt the H&S plans are covered majority of the "in-hospital" expenses, there are other expenses that would not be taken care of... e.g. specialized drugs, well-chair, maid, etc. And critically, it is supposed to replace your income for a reasonable span if well planned.

4) Disability cover

- This is meant to ensure a monthly income payout if you cannot perform your primary occupation because of an injury, accident or any illness. A very simple illustration would be say... an engineer who lost the use of his legs in a car accident. He would be unable to claim from the Critical Illness coverage, but would be entitled to a disability cover (+ perhaps an accident plan).

Do not undermine the importance of insurance. You perhaps just need a good adviser to explain to you the objectives behind each coverage. With proper protection, then you would be well on your way to your other aspects of wealth management.

Retire With S$1 Million – even if you haven’t started to save (22-Oct 09)

By Stephanie Thng, Funds Supermart

Start saving early and it could make a world of difference to your retirement plans. Time is your best friend as you will find in this story. Here, we assume five individuals at different stages of their life, from those earning at entry-level, to those close to retirement age. All aim to achieve a monthly income of S$2,500 during their retirement years from age 62 to 82. We also taken into account that the inflation rate stands at 3% per annum, meaning that the general cost of goods and services rises by that amount each year.

Further, we assume that whatever the investors save during their pre-retirement days will earn 8% annually. After they hit the age of 62, we assume that the return on their savings drops to 4% per annum as they take less risk in their investments. This simple illustration does not take into account your other financial needs, such as whether you have planned for your insurance needs (life or term insurance, mortgage insurance, health and hospitalization plans).

If You're 25
Savings: S$0
Monthly Salary: S$2,500
Rate of Increase in Wages: 3% p.a.
Number of Months in Bonus: 2 months
Housing Loan: Not Required
What You Need to Save per Month for the next 37 years: S$158.30

Planning for your retirement when you are 25 years old may seem a bit far-fetched. But the benefits of starting early cannot be underestimated. Assuming that a person starts working at 25 with a salary of S$2,500, you would need to save S$158.30 per month to ensure that your retirement income can stand at S$2,500 per month during your retirement days, which we assume will run from the age of 62 all the way to 82. Even with no savings to start with, having a regular savings plan (RSP) may be a good way to start planning. An RSP would ensure that you have the discipline to force yourself to invest – there is little room for excuses! Very often, we may be tempted to use up our savings for a travel trip or to purchase that dream car. And even for those who believe in the merits of investing, they may not have the discipline of investing regularly because they feel it is not the "right" time to invest. This could be especially true when markets are going through a bull run and some may feel that it is too expensive to go into markets. An RSP is a disciplined way to ensure that you will invest no matter markets are up, down or sideways.

If You're 35
Scenario 1
Savings: S$0
Monthly Salary: S$6,000
Rate of Increase in Wages: 3% p.a.
Number of Months in Bonus: 2 months
Housing Loan: S$800 per month over 30 years
What You Need to Save per Month for the next 27 years: S$666.57

Scenario 2
Savings: S$40,000 (earning 1% p.a.)
Monthly Salary: S$6,000
Rate of Increase in Wages: 3% p.a.
Number of Months in Bonus: 2 months
Housing Loan: S$800 per month over 30 years
What You Need to Save per Month for the next 27 years: S$620.73

At the age of 35, the monthly salary is assumed to have risen to S$6,000. But being able to afford an expensive lifestyle has meant that there are no savings in the bank account, and now you have a housing loan to deal with. While things do not look very bright, it is not too late. Save S$666.57 per month and you could ensure that you have S$2,500 every month during your retirement days.

If You're 45
Scenario 1
Savings: S$0
Monthly Salary: S$8,000
Rate of Increase in Wages: 3% p.a.
Number of Months in Bonus: 2 months
Housing Loan: S$800 per month over 20 years
What You Need to Save per Month for the next 17 years: S$1692.34

Scenerio 2
Savings: S$40,000 (earning 1% p.a.)
Monthly Salary: S$8,000
Rate of Increase in Wages: 3% p.a.
Number of Months in Bonus: 2 months
Housing Loan: S$800 per month over 20 years
What You Need to Save per Month for the next 17 years: S$1582.63

At the age of 45, things will get tougher if no plans have been made yet for retirement. After all, the time horizon till the retirement age of 62 is less than 20 years. Assuming that there are no savings in the savings account, you would need to save S$1692.34 per month. And even with savings of S$40,000, you would still need to save S$1,582.63 per month.

If You're 55
Scenario 1
Savings: S$0
Monthly Salary: S$10,000
Rate of Increase in Wages: 3% p.a.
Number of Months in Bonus: 2 months
What You Need to Save per Month for the next 7 years: S$5319.54

Scenario 2
Savings: S$40,000 (earning 1% p.a.)
Monthly Salary: S$10,000
Rate of Increase in Wages: 3% p.a.
Number of Months in Bonus: 2 months
What You Need to Save per Month for the next 7 years: S$4937.02

The lesson is to start early. The later you drag your retirement planning, the higher the cost. You would need to save over S$5,000 per month (over half your salary) from the age of 55 to 62 to ensure that you have S$2,500 per month during your retirement days.

POSB Invest SingGrowth Account

Today I was queuing up at POSB settling some stuff, then just happily flipped through their pamphlets that were within my reach.

First one, one telling people how to manage their money. Very good, very in line with what I am doing at the moment, helping pple to ensure that they are well insured and putting their money hard at work.

Second one, ah-huh, the famous 'POSB Invest SingGrowth Account' that was published quite prominently in the newspaper. I always wanted to find out more about this plan, thinking how is it possible that it can give so good interest rates. After reading, then I realized how difficult it was to achieve the kind of interest rate they were promoting.

Features:
1. Guaranteed return of full principal at maturity or upon Specified Redemption Event (unless banks totally collapsed)
2. The minimum interest over 5 yrs would be 2.78+1.08+1.18++1.28+1.38 = 7.70%. Over 5 yrs, it will work out to be 1.54%

Here comes the interesting part:
3. The Specified Redemption Event occurs when the Return of each Share is at or above 15% on a Fixing Date. What a clause??!!! Why do I say that? It simply means for the Bonus Payout to occur,

ALL 4 of the shares (Singapore Telecom, UOB, SPH, SembCorp) MUST achieve more than 15% ROR. If any one of them fails to do so, NO bonus payout!

Mathematically speaking, assuming these variables are independently related, the probability of the equation would be:
P(Share X achieveing >15% ROR) = 0.5 (to put it very optimistic)
P(ALL shares achieving >15% ROR) = 0.5 x 0.5 x 0.5 x 0.5 = 0.0625!

It would be far off to put your money in a simple short term endownment plan which generates more than 1.54%/annum. Or if you are interested to know more about instruments to make your money grow harder, contact me anytime.

Lessons from Get-Rich Courses (05-Oct-09)

As you flipped through the papers everyday, without fail, you will find some 'gurus' claiming to be able to help you make LOTS of money with little knowledge or NO knowledge to start with. Either with options, forex, eBay, courses, etc.

How true is that? Personally I attended a Wealth Mentors seminar and an eBay seminar before, simply just to satisfy my curiousity on what these 'gurus' are claiming. Blah blah blah.. they say this good lar.. that one se-bei-ho lar... at the end of the day, ask you to sign up for their 4-digit figure course, then throw a little gimmick by saying give you $X discount off lar...

It was interesting to hear what they have to offer, but too difficult to part with my precious money. Perhaps that if you are diligent enough to follow their 'guidance', you can make big, JUST like them. But being a typical skeptical Singaporean, we still do not believe money can be made so easily. So back to our daily lives and jobs....

As an IFA, we believe in another concept. Working hard for your money is the right thing to do, but making your money work harder for you, is even the 'right-ter' thing to do! Make sure that whatever insurance policies you had bought, whatever investment you had made, are done systematically and with the correct objectives in mind.

If you have doubts on what is your current financial status, do gimme a ring. I will be there to guide you with my professional knowledge in financial planning.

Property agents to be regulated (05-Oct-09)

THE Government is moving quickly on a plan to regulate real estate agents in the wake of growing calls to improve the standards of the industry.

The Straits Times understands that an independent body will be set up and chaired by a neutral party appointed by the Government. It will also house a dispute resolution centre to mediate between agents and consumers.

Key agency bosses, industry associations and individual agents have already met with Government officials to discuss the reforms.

The proposals, which could be made public in the next month or two,will likely require that agents sit a compulsory exam and that all accredited agents be monitored through a central database run by this independent body.

This will mean that errant agents will no longer be able to switch agencies easily, as they can now. Currently, agents fired from an agency for dodgy activity can just switch to another firm.

There are also suggestions that agents will have to buy indemnity insurance protecting customers for losses resulting from negligent or unethical conduct.

While the Government has in the past maintained that the industry should self-regulate, it has decided to step in due to an increasing number of complaints against rogue agents, which has occurred in tandem with Singapore’s property market boom.

In February, for example, a couple successfully sued ERA Realty Network over its agents’ conduct. The agents, who have since resigned from ERA, had made a profit from ‘flipping’ an apartment they were supposed to sell for the couple.

The Consumers Association of Singapore (Case) received 1,100 real estate-related complaints last year, 1,113 in 2007 and 991 in 2006. This year, it received 619 complaints from January to August.

Case executive director Seah Seng Choon told The Straits Times this week that the proposed measures were long overdue.

‘There is a need to ensure a proper standard of practice so there aren’t abuses in the industry,’ he said.

Mr Seah is pleased that a central dispute resolution centre will be set up to help consumers and agents settle rows.

Although a clearer picture of the proposed reforms has emerged, two big questions remain: Are agents going to be individually licensed, and who else will be involved in running the independent body?

There are now two industry bodies – the Singapore Accredited Estate Agencies (SAEA) and the Institute of Estate Agents (IEA)- but it is not compulsory for agents to join either. While both associations are involved in the review process, discussions are ongoing as to their specific role in the independent body.

Industry observers note that some of the associations’ existing functions may become redundant in light of the new regulatory framework.

Ngee Ann Polytechnic real estate lecturer Nicholas Mak said that ideally, agency bosses, many of whom advise the current industry bodies, should not be involved in this new independent body, as they might resist the reforms or have a conflict of interest.

‘The priority now is to put in place a system that can permanently remove errant agents from the industry so they think twice about behaving unethically,’ he said.

Agency heads say they fully support the suggested reforms.

‘Even if it involves more work for agency bosses like myself, I don’t mind so long it makes our industry more professional and disciplined,’ said C&H Realty managing director Albert Lu.

Mr Lu is one of many who back the idea of licensing not just agencies but individual agents.

‘They are the ones doing the transactions, so they should be made accountable for their actions,’ he said.

Knight Frank agent Peter Tan, 40, said it was a good idea to have a compulsory exam ‘to give clients confidence that agents know their stuff’.

But it remains to be seen how effective the new accreditation will be, he said.

‘It’s the right initiative. But there are many agents who resort to unethical conduct because it’s quite a tough business. We’ll have to see if it is enough to deter such behaviour.’

Public consultation on the proposed reforms is due to begin this month with the findings due by December.

Source : Straits Times – 5 Oct 2009

New Insurance law addresses Pitfalls of Trusts (27-Sep-09)

Let me help those who are still confused with the new Insurance Nomination Law. I am quite sure some of you would have chuck this information aside because it is a bit too heavy to digest.

The thing is, do you have to do anything?

• If YES, what do you have to do?
• If NO, what would happen?
  

1. Is there a need to do a nomination?
- Making a nomination is NOT compulsory, but the new regime provides a simple avenue to ensure that your policy proceeds are paid out to the right person at the right time, and in the right amount. This is much cheaper than writing a will.
- In the absense of a valid nomination, the insurer may pay up to the first $150,000 of proceeds from a policy to a proper claimant. The balance will form part of the deceased's estate and will be distributed according to the interstate law or a will. This process will be quite lenghty.

2. Options for existing policyholder (bought before Sept 1 2009)
i) Had never made any nominations: You can now make a revocable or trust nomination under the new law.
ii) Had named your spouse or children as beneficiaries: You have created a statutory trust under Section 73 and your nominees will continue to be recognised. If you wish to make changes, it is possible.
iii) Had named people other than your spouse or children as beneficiaries: All these will not be legally binding. The new law will allow you to make fresh nominations in your plan
iv) Had named your spouse or children AND other people or relatives as beneficiaries: The ability to make new nominations under the new law will depend on the status of these nominations & the terms of the policy. You may have to seek legal advice.

3. Revocable vs. Trust Nominations
- Explaination as below:

If you wish to do a nomination, do approach me so that I can help you get the appropriate nomination forms from the respective insurance companies. At the same time, you may also wish to do a portfolio review of your existing insurance and investment policies to ensure your objectives are still in line when you bought these policies.

Are Homes Affordable? (27-Sep-09)

If you looked at the latest HDB ballot under 'Sale of Balance Flat, Oct-09', you can see that the demand for flats is still far-exceeding than that of the supply. The application is easily 10-folds or 20-folds to that of the flats available. Who's the one laughing all the way to the bank? Must be HDB...

3~4 years back, I was one of those who gave up on the balloting system after 3 failures.. and I din manage to strike 4D with the unlucky balloting 4-digit queue number either.

Going to the open market, are homes affordable? I snagged at the HDB's ruling of the decade-old $8,000 income ceiling, where this group of people cannot apply for new flats or enjoy housing grants in the resale market. They also find private homes too pricey now. (For those, who can well afford it, congratulations.)

As an IFA, I would advise my clients to buy a house within their purchasing means, meaning the debt-service to income ratio ideally less than 40%. The idea of financial independence is to have a fully paid home (or + even a fully paid car), and building a sufficient lump sum for your retirement needs WITHOUT the need to go to work. But the reality is that many people still end up buying BIG HOUSE, BIG HOME in pursuit of present luxury.... pay pay pay their present debts, and forgetting to build up their retirement funding.

Remember, your home is not a true asset if it's used purely for residential purposes. It's only when you generate income out of it then it becomes a valuable asset.

For those who are looking for their dream homes, do a wise calculation on how much you can afford and plan far away. Call me at 9876-0237 for a non-obligation good financial planning. I believe my role as an IFA and Real Estate Agent would assist you to make an informed decision.

Capital Guaranteed?

Next time you buy any product, read and ask.

What is capital guaranteed and what is not? For e.g. Do you know how much of your ILP is guaranteed? Do you know when is your breakeven year?

Financial Planning, Inc: lifting the veil (20-Sep-09)

When was the last time your financial adviser did a comprehensive financial review with you? Was the feeling like, "Aiyar... must be got new products to sell then find me"? I used to have that kind of feeling as well. From there, we will give all sorts of excuse of not meeting up our "advisers".

You see, true & quality financial planning entails a long & tedious process of understanding a client's need for certain investment returns, his ability to bear the risk because of the returns he needs, and finally how willing he is to bear the risks. This must be done before any recommendations are given.

But sometimes, it is not always the fault of the financial advisers not doing their jobs. It may also be that the consumers themselves prefer not to share too much personal financial details with their advisers. This is quite typical of an Asian's trademark.

To give reasonably sound financial advice, one should have at least a tertiary education, a professional certification like a Certified Financial Planner. But most importantly, I feel the personal trust must be established. Without this factor, it will be like a bank transaction of buying and selling a product.

Just like we expect our doctors, lawyers and accountants to be properly qualified, you should not expect something less from someone who will be managing your life savings and hard-earned income. A responsible financial adviser is someone who looks after your financial welfare like a financial doctor, and looks after your best interest. And not like a roadshow salesman trying to shove the product down you throat, and tempting you with a FREE GIFT!

Joining this industry as an Independent Financial Adviser, I am determined to serve my client in the truest professional manner. Do refer to my earlier blog entry on what are the advantages of engaging an IFA to look after your portfolio.

Cancer: The No.1 Killer

Recently, a series of events and articles prompted me to find out more about the typical medical cases that happens on Singaporean such as a cancer, hypertension, heart attack, etc. In this blog, I would like to highlight on Cancer, the number 1 killer in Singapore. It's going to be a bit dry and medically-technical, but read on for your own good.

Cancer: Genetic or Lifestyle Disease?

Certain cancers, such as breast and colon cancers, tend to run in families while others are believed to skip generations. In all, only 5 - 10% of cancers are hereditary.The main causes for the majority of cancers however, have to do with how we live. Hence, it is important to change your lifestyle to reduce cancer risks as much as possible.

Cancer Risk Factor 1: Body Weight

Risks: Cancers of the womb, kidney, colon, gallbladder, oesophagus and breast (post-menopausal)

Obesity has been found to be linked to an increased risk for cancer. Very overweight (obese) individuals are more likely to develop cancers of the womb, colon, gallbladder, kidney, oesophagus (gullet) and breast.

Research cited by Cancer Research UK, for instance, indicated that a high body mass index (BMI) increases likelihood for colon cancer, especially in cases where most of the body fat is accumulated in the abdominal area (abdominal obesity). The findings also showed that being overweight or obese can increase the risk of breast cancer in post-menopausal women, as well as kidney and oesophagus cancers.

Cancer Risk Factor 2: Diet

Risks: Cancers of the breast, stomach, prostate, and colon

Failure to eat a healthy, balanced diet is known to increase the risk of cancer. Bowel cancer incidence is generally lower in populations with high fibre, low fat diets compared to populations with westernized diets. Besides offering fibre content, fresh green foods such as fruits and vegetables are rich in antioxidants, which have cancer-fighting properties.

In addition, the way the food is prepared also affects the carcinogenicity of the food. According to American Institute for Cancer Research, cancer researchers have found that the high heat of grilling causes proteins in red meat, poultry and fish to produce cancer compounds. These compounds, called HCAs (heterocyclic amines), have been shown to increase the possible risk of breast, colon, stomach and prostate cancer in humans.

Another cancer-causing substance - polycyclic aromatic hydrocarbons (PAHs) - forms when fat from meat, poultry or fish drips onto the hot coals. When the smoke rises, the carcinogen can get deposited onto the surface of the meat.

Cancer Risk Factor 3: Lifestyle Habits

Risks: Cancers of the lung, liver, mouth, throat and oesophagus

Certain lifestyle habits contribute to the risk of cancers, such as alcoholism and tobacco smoking. Frequent drinkers of large amounts of alcohol are likely to develop liver cancer. They are also at risk of developing cancer of the mouth, throat and oesophagus.

Tobacco contains about 40 different carcinogens and can cause cancers of the lungs, mouth, throat, oesophagus, stomach, pancreas, kidney and bladder. In particular, cigarette smoke not only harms the smoker, but also puts people who are exposed to second-hand smoke at risk.

Cancer Risk Factor 4: Viruses

Risks: Cancers of the uterine cervix and liver

Some viruses have also been linked to cancer. Chronic infection with the Hepatitis B or Hepatitis C virus is a leading cause of primary liver cancer (hepatoma), while the Human Papilloma virus (HPV) has been identified as a major cause of cervical cancer.

*****

So, the underlying moral of the story is, do not take your good health for granted. It can happen to an adult, or even to a child, or anyone else. I guess you would have read articles of healthy sportsman with healthy diet also will kana cancer of some sort. Sometimes when crisis strikes, there is nowhere to hide. No full proof explaination is actually available.

As a professional IFA, I will tell my clients that the only thing you can prepare while you are healthy is to make sure your H&S and insurance plans are well in place so that there will not be a further financial strain on yourself and your family when the unexpected happens. Does it make sense to you?

Going back to my previous entry, cancer is curable if detected early. Start living healthy.

CPF Life (Sep-09)

Do you want to be 'financial independent'? Or to so called enjoy the fruits of 'financial freedom'.

Different people have different definitions of being F.I., but in general, the concept is to be able to stop working because there is not a need to. You would have a fully paid house and sufficient money to spend for the rest of your life. If you continue to work, it would hopefully is because you LOVE to work, and not you NEED to work.

The CPF LIFE Program was launched by the CPF Board because they realized that the old Minimum Sum Scheme system which gives only a 20yrs payment after retirement is not that ideal.

The CPF Lifelong Income For Elderly (CPF LIFE) is a scheme that will provide you with a monthly starting from your Draw Down Age (DDA), for as long as you live.

For e.g.

The difference between the 4 types of plans; Basic / Balanced / Plus / Income, is to strike a balance between your monthly payout and the bequest that would be left behind for your beneficiaries. Your choice would ultimately depends on your retirement needs. Do encourage your elderly parents above 55 to sign up for the program to enjoy the Life Bonus up to $4k.

This, no doubt is a good option for our retirement planning. But, think again, is this kind of payout sufficient to sustain your lifestyle? Say for e.g. you are now a working adult earning $3k a month, assuming that you spent a bare minimal on necessities of at least $1k a month, the CPF payment may not be sufficient (excluding the factoring in of inflation). If you want to have enjoy a good lifestyle of staying in a big house, driving a car, and going for regular holidays, do not depend on your CPF savings ONLY.

By having a proper financial planning, and using good financial tools to your advantage, it is giving you the options of how you want to retire. There are many good instruments in the market whose objective is to provide you with a well-built up retirement fund. What you need to put in is disciplined savings and time for it to grow.

For more information, pls contact me for a detailed discussion. 9876-0237

The value of Unit Trust

Before I became a professional full-time IFA, like a consumer, I was cursing and swearing on why my CPF money is going the opposite direction on where I want it to be... isn't it supposed to be making $$$???

Entering this line, I started to understand the true meaning of Unit Trust and how to help clients better manage their portfolios.

Under Wikipedia definition:

A unit trust is a form of collective investment constituted under a trust deed.

Unit trusts are open-ended investments; therefore the underlying value of the assets is always directly represented by the total number of units issued multiplied by the unit price less the transaction or management fee charged and any other associated costs. Each fund has a specified investment objective to determine the management aims and limitations.

Bringing you backwards to the Investment Linked Policies, most of the insurance companies invest in Unit Trust in the form of ILPs. Features of the ILP is that the choices of unit trust funds are limited to that of the company, e.g. Company A can only use A funds.... Company B can only use B funds.. etc.

There's where independent platforms like iFast, Navigator, or even fundsupermart.com comes in to give consumer more choices. Why limit yourself to a small coffeeshop when you visit a hawker centre?

Next, to the performance of Unit Trust. If you are the ones who started investing in Unit Trust from 2007 onwards.. probably you would have suffered a heartache as your portfolio goes down to as much as 40~60% in 2008 financial crisis era. Right now, your funds should have breakeven or close to breakeven? Don't lose heart.

As an IFA, we still believe in the use of Unit Trust as one of our instruments to help our clients achieve their financial goals and objectives. If you look at the above picture, I gave the e.g. of a few random funds vs. the STI index:

i) Aberd**** Global Technologies

ii) Aberd*** Pacific Equitiy

iii) Fi*** State Bridge

iv) D** China Equity

Over a period of 5~10years, most of the funds would have outperformed the STI benchmark. And it can really make a big big difference.

To put it simply, Unit Trust is still a viable and good way to grow your wealth, subjected to the following factors below:

i) Time. (> 5yrs)

ii) Choice of funds. Go for champion funds.

iii) Switch of funds at required times. Dun expect miracles to happen by sticking to a single fund.

iv) Competency of the financial adviser and fund managers. i.e. Strategies.

Of course there is a long chain of argument of why other instruments like stocks, commodities, options could be better than unit trust. But ultimately, the key is to build up a good portfolio that is adjusted to your risk profile and other factors.

Do not hesitate to call me to review your insurance & investment portfolios. 9876-0237

The beginning of knowledge is the discovery of something we do not understand. - Frank Herbert

Investment Linked Policies?

In this topic, I would like to highlight on this policy type that most of you would have purchased, either using cash or your CPF $: Investment Linked Policy, or more commonly known as ILP. Many of my clients feedback that they have little idea on how does this policy works as insurance agents failed to point out to them the features of it.

What is an ILP?

An ILP is an insurance policy which provides a combination of protection and investment. Premiums buy life insurance protection and investment units in professionally managed investment-linked funds.

ILPs DO NOT GUARANTEED cash values. The value of the ILP depends on the price of the underlying units, which in turn depends on how the investments in the fund perform. Fees, expenses & insurance charges are paid for through a deduction of the premium and/or sale of purchased units.

Sounds chim? Layman words. A portion of your premium goes into insurance charges (which increases year by year), and the remaining portion goes into buying of units on a regular basis. Although for most cases, the premium paid is levelled throughout, your allocation between insurance:investment actually changes over the years. Do you realize this?

********

If you deeply go and scrutise your personal ILP, do you often find the case that even though you had paid alot of premium, your coverage is still very little? In my previous blog entry, findings have shown that most Singaporeans are under-insured. One of my suspects is that many insurance agents in the past do not give proper advise to their clients during their selling of ILPs.
For e.g. taking the case of a 30years old healthy man. Do you know that for a $100/mth premium, his insurance coverage can stretch between a simple $10k to a high $200k coverage for Death/TPD/CI?

Pls do not get me wrong in saying the person who designed the $10k coverage is unethical. It ultimately boils down to what are the objectives of the client during the purchase of the policy... was in more for protection coverage... or was in more for investments.. or a combination of both? It is the duty of a professional adviser to understand the needs of the client and design out the allocation accordingly.

There are pros and cons to buying an ILP in which the details I shall not discuss here. For your reading pleasure, pls refer to the LIA link below.

http://www.lia.org.sg/ftpsite/guide/ILPguide(17Aug06).pdf

Do feel free to approach me for a review of your existing policies to make sure what you holding on is something that is aligned to your needs.

CPF-approved Funds do well in 2nd Quarter (22-Aug-09)

From my dealing with my clients, MOST of them have a portion of their CPF money in Unit Trusts and Investment-Linked Insurance Products with the respective insurance companies. Me too.

In this financial crisis that started from end 2007 onwards, most people would have suffered a loss in the range of 20% - 60%. And they started to lose trust in such products. Pretty fair enough judgement at a glance.

Let's take a step back and review. Did your so-called 'financial consultant' explained to you the situation and do the necessary actions for you? I went through portfolios where the funds were never touched from the first day it was implemented until today. WHY? Because the consultant is no where to be found. Obviously the loss is unimaginable.

Unit Trust / ILPs are not instruments for you to make a quick buck within 2-3yrs, because you also have to factor in the peaks and troughs of the economy. The portfolio you have should be in line with your objectives, time horizon, risk profile, and expectation. It is through a combination of i) Time (probably >5yrs) and ii) Regularly monitoring that your portfolio is able to make reasonable returns. I put my actions where my mouth speaks. My portfolio is almost similar to what I buy for my clients.

Remember, an IFA works on the side of the client, and not for the company. U win = I win.

UP (Aug 09)

I dun know if this comes with age. How many times have you heard yourself saying.. "I should have done this 10yrs ago", OR "If only I had done that when I was in Uni or whatever", OR "If only I had done this this this...." etc.

In "UP", this lovely couple dreams to build their house on the mysterious Everland since young. It was only after that the wife passed away, the husband finally plucked up the courage to DO IT. Although eventually he did it, BUT realistically, is it a bit too late? The morale of the story is to tell people not to forget their dreams and continue to pursue it while you can. But my interpretation is to GO DO IT while your dreams & your goals are still fresh in your mind, and while you still have TIME.

What we are today is a combined result of many decisions we made in the past. And what we are in the future, is the result of many decisions we make today. Agree with me?

Have you considered how you want to lead your retirement years? Is it eating plain porridge and watching your plasma TV at home, play mahjong with kakis or stroll leisurely along your nearby park? Or will it be something more financially needy like travelling round the world with your loved ones... doing charitable work, or blah blah blah.... tai-tai lifestyle?

THINK again. Do you want to give yourself the options of a simple or moderate or luxurious lifestyle? Or simply wait and see what happens when you reach 50s or 60s... and says "...see how lar, things will work out by themselves"...

If you find yourself not saving regularly, and worse still, not using the appropriate instrument, beware! You do not want to end up 10 or 20yrs later and find yourself buying the wrong products for a different objective.

Do contact me @ 9876-0237 for a good financial review, or simply to have an idea what it takes to reach your goals and dreams. UP UP & AWAY!

Singaporeans grossly Under-Insured: Study (21-Aug-09)

If you are a responsible person to yourself and your family, do read this with due care.

Studies have shown than the average Singaporean needs about $495,000 of life insurance, but is covered for only 1/3 of that amount. You may be thinking like... 'Aiyar.. it's just a b***s*** number, only to cheat people to buy more insurance only one... I no money to buy some more...'

Let's put it in another perspective, and think whether does it make sense:
What are the chances that you or your loved ones will meet up with the 3 enemies, namely Death, Total&Permanent Disability, or Critical Illness?

If your answer is low, fair enough.

Next question. What would you do IF it happens? Use your own savings to tahan the crisis period? Or you would rather get the insurance companies to pay for you? Use a cent to pay for a dollar, that's what insurance is all about.

Yes, it is a probability game when it comes to 'Who will kana Death/TPD/CI'. We all think that it would only happen to unlucky people whom we never met in our life. BUT, deep down in your heart, can you GUARANTEE that it won't happen to you? Or worse still, your loved ones.

If you are convinced, read on.

What does they come out with $495,000 as a proper coverage? My rough guess would be this:

If your liability is $2,000/mth for a typical family man, and you have to support your older parents or younger children for another 20yrs, it will work out to be
$2,000/mth x 12mths x 20yrs = $480,000

This is the sum of money that you want to leave behind for your dependents in the event of Death. The calculation of Critical Illness could be even higher as the expenses would add on.

"Nearly 3/4 of Singaporeans were aware of the need to insure themselves, but only 48% were aware of how to go about it."

In the past, insurance agents are merely product pushers because of the incentive structures. But times have changed. The role of an independent financial adviser is to focus on the needs on the consumers, and choosing the best instrument to suit their needs.

Would you want to help youself achieve a peace of mind? Start by engaging a competent financial adviser to assist you. If you trust me on a personal & professional level, do contact me for a non-obligation discussion on how we can go about doing a solid financial planning. It's much more than buying a few policies and chucking it aside it your shelves. \(*-*)P

Disability Income Insurance

I guess most of you would be familiar with the typical coverage of an insurance policy, namely 'Death', 'Total & Permanent Disability', and 'Critical Illness'. My concern is, what happen if you are unable to work for reasons that cannot fit into the above 3 categories?

In this topic, I would like to touch on the 'Disability Income Insurance (DII)' which is still quite undeveloped in Singapore.

If you look at the definitions of TPD & CI closely:

Firstly, TPD is generally defined as one of the following:

• Total and irrecoverable loss of use of two limbs at or above the wrist or ankle.
• Total and irrecoverable loss of sight in both eyes.
• Total and irrecoverable loss of sight in one eye and loss of one limb.

The actual claim statistics for TPD is usually quite low as one needs to satisfy the stringent requirements for both ‘total’ and irrecoverable’.

Secondly, the scope of Critical Illness is very narrow. It usually refers to the typical 30 Dread Diseases found in most insurance policies, with slight variation from company to company.

Pls do not mistaken me as saying that our life insurance plans are not useful. On the contrary, they are very, very important! Their existence is there to ensure that if you or your loved ones, unfortunately faced with such a crisis, the money payout would be far more precious that you can imagine to be.

The application of a Disability Income Insurance is to compliment your existing life insurance as an additional safety net for your wealth protection planning. A DII cover is different from the usual TPD in the sense that it does not require disability to be permanent or total.

Features of DII:

• After a waiting period of 60~180days (depending on T&C of the policies), a monthly payout would be given to the insured if he/she is incapable of going to work, as diagnosed by the doctor.
• As the name implied, it is meant to provide you with an income in the event of partial disability, up to 75% of your existing income
• Expiry date can be extended up to age 55, 60, or 65

e.g. Mr X is a salaryman whose monthly income is $4,000. One day, he is being knocked down by a car, and unable to go to work for many months due to whatever medical reasons, e.g. loss of one leg, severe backpain, partial paralysed, etc. Under the definition of TPD, he would be UNABLE to claim anything from his life policies, but what he can claim is from his Personal Accident Plan, and also the Disability Income Insurance Plan.

Assuming he is insured under a 75% DII plan, he is entitled to $3,000/mth ($4k x 75%) up to the day he is able to go back to work. And in this case, if he lose his original job after his 'recovery', and has to take up a lower salary job of $2,000, he would be able to claim another 75% of the difference ($4k - 2k) = $1,500/mth. In other words, his total income would be: $2,000 + $1,500 = $3,500/mth.

Don't you think it's advisable to equip yourself with the right instruments so that financially, you are prepared for any major crisis that may strike you unknowingly?

From my dealings with my clients, many are unaware how much they are insured, and how much risks they are absorbing on themselves. Do not take chances where you cannot afford to lose. Just look at how many accidents on the road, and how many patients at the hospitals.

Target market: Anyone!
The doctor/specialist who need his nimble hands to operate on his patients, the engineer who is in risk of handling big machines, or even a clerk who need to type report, etc. Can you imagine not being able to work and not getting an income while you are partially disabled?

Do contact me if you wish to find out more on this Disability Income Insurance. I have one. Do you?

Who says you can't be Rich? (16-Aug-09)

Financial Independence or Financial Freedom. In a simple meaning, it simply refers to the status where you can choose NOT to work and continue to enjoy the lifestyle that you desire. If you continue, it's hopefully because you LOVE to work, and not because you NEED to work.

Look at the people around you. Do you think the smiling auntie at the McD or KFC is truly enjoying her work, serving customers, faithfully cleaning the floor because she loves the job? Was it a choice that these employers prefer to work out their retirement years for 'fun', or was it because they need the money for survival reasons?

When it comes to wealth management, many people wants to take charge of their own destiny (afterall it's their hard-earned money). But many choose to procrastinate and get indulge in their existing work issues and current problems.

In this article, the Ms Lorna Tan (the regular finance correspondent of ST) described the belief of getting rich, which I totally agreed. There is one part which said: " Another unpleasant truth is that most people are too lazy to be rich. They may say they want to be rich but they don't do much about it except to hope to become rich by chance e.g. Toto, 4D..etc."

How many times had we gossiped among our friends and colleagues, envying this guy buy this condominum or car, that guy earning 5 digits, that lady what what what.... then at the end of the conversation, we go back to our 9-to-5 job and carry on our daily activities. End of story. I was one of them. But I decided to change and put words into actions.

The fundamentals of getting rich, it seemed, is to have the correct beliefs and mindset.

Last, but not least, changing your mindset is not enough, so have an action plan to help you achieve your goals. Be diligent in acquiring more financial knowledge by reading up about money management and investing. Get professional advice.

If you truly wants to be financial prepared for the present and the future, you can consider my professional assistance at 9876-0237 for a good discussion. That's so much to gain and practically nothing to lose!

SGP Fixed Deposits Comparison (Aug 09)

These are some useful information I extracted from a website:
http://singaporesearchsite.com/singapore-tips/fixed-deposit-interest-rate/

As there is a myriad of fixed deposit interest rates available for various tenor/period as well as deposit amount, we shall concentrate on the most common combination:

Tenor/Period: 12mths
Deposit Amount: less than S$10k to S$50k

Based on the above tenor and deposit amounts, the following is a comparison of the Fixed Deposit Interest Rate (% p.a.) offered by the full banks in Singapore.

Rates collated on 5 August 2009:

At a glance, none of them is giving any interest rate > 1.0%.

Money in the bank is important for your liquidity usage. A wise guideline is to have at least 6~12mths of your monthly expenses in your bank in the event of any job loss or unexpected event, doesn't really matter how much interest it is earning.

The next aspect is in how to make sure of your "spare cash" to their fullest use. Do you think it's the wisest choice to lock them in banks' fixed deposit? You decide.

There are other instruments by different insurance companies that can provide a much better rate of interest. The lock-in time frame can range from a short 2yrs to a possible 20yrs. And on top of that, they normally give a basic sum assured for death coverage.

And not to forget there are unit trusts, stocks & shares, etc. A simple rule of thumb, low risk low return, high risk high return. Don't expect to strike gold by paying peanuts. If you have such a method, pls teach me!

If you want to know how to make your money work harder while you are working hard at your job, do not hesistate to call me @ 9876-0237 directly!

Property Boom in Recession Times? (Aug 09)

SINGAPORE (AFP) - Despite Singapore's worst economic slump since independence, the residential property sector is in the midst of a new boom reminiscent of 2007, when the city-state was known as the world's hottest real estate market.

Greed and its twin brother Fear are back in play as punters stake out condo launches days before sales open, with some offering blank cheques to pre-book flats, prompting the government to hint it may have to cool things down.

"Some of the practices and habits that you saw in the last property boom are beginning to come back, so I think we'll have to be careful," said Minister for National Development Mah Bow Tan, whose portfolio includes housing."

"A little bit of speculation is inevitable in every market, but when it becomes excessive, then it is something that we should try to avoid," he said.

Prices of luxury condos -- the segment worst hit by the recession -- are now inching toward peak levels achieved around mid-2007, according to an analysis by business weekly The Edge.

Foreign investors, including Asians looking for a secure place to park their money, are also back in the Singapore market.

Singaporeans enjoy one of the world's highest savings and home ownership rates, but most live in relatively spartan government-built flats, making owning condos an obsessive goal for families.
- extracted from Yahoo! Singapore

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For those who are rushing on the bandwagon of getting a property, cool down first. Singapore is the only country in the world (I think) where the property market is growing like wild fire despite us entering the worse recession that most of us experience for the first time in our lifetime.

Buying a home, or even a 2nd property, is a big commitment. Do not have those mentality that 'U jump, I jump'. Sometimes the consequences are beyond your imagination if things do not go your way.

Do your mathematics and understand your limits on how far you can stretch your dollar, e.g. your monthly CPF contribution, % of bank loans you can take, rental yield, etc. Many Singaporeans end up asset rich but cash poor when they reached their retirement years. Is that desirable?

If you need any advice on what kind of debts (good debts vs. bad debts) you can expect to face, do give me a call. I can also help you source for your ideal property as well as an extra service.

MindChamps®: A Champion Mindset

Have you wondered what it takes to be a champion?

After years of research by those gurus, the answer is actually very simple. A champion mindset.
It has been proven that this champion mindset can be 'copied' and applied to whatever field, and you still can remain a champion. This verdict was concluded after many interviews and researches with the great Olympic champions and world leaders.

Financial Perspectives (the pioneer and market leader of the CERTIFIED FINANCIAL PLANNER®(CFP®) Certification Program in Asia) and MindChamps® (the world's leading Specialists in Mind Development Programs), have come together to collaborate and promote this champion mindset among the younger generation.

"MindChamp: Our mission is to challenge and improve educational standards internationally, because we believe that the beginning of the twenty-first century is the time to be living - and learning - for the future. "

There are many learning centres around in Singapore that helped to develop your child's ability. But I am quite sure if you want to give the best to your precious child, MindChamps would be right choice for you. Why do I say that so confidently? I was there personally to attend their seminar and was so impressed by how they are able to transform an ordinary child into an extraordinary child with better learning abilities, and more imporantly, a child that is learning happily. See it, and experience for yourself.

If you keen to know more about MindChamps and their courses, do drop me an email or call me directly. I will be very glad to share with you my experience with them!

http://www.mindchamps.org/about.html

Who's Problem Is It Really?

A man feared his wife wasn't hearing as well as she used to and he thought she might need a hearing aid. Not quite sure how to approach her, he called the family Doctor to discuss the problem.

The Doctor told him there is a simple informal test the husband could perform to give the Doctor a better idea about her hearing loss.

Here's what you do," said the Doctor, "stand about 40 feet away from her, and in a normal conversational speaking tone see if she hears you. If not, go to 30 feet, then 20 feet, and so on until you get a response."

That evening, the wife is in the kitchen cooking dinner, and he was in the den. He says to himself, "I'm about 40 feet away, let's see what happens." Then in a normal tone he asks, 'Honey, what's for dinner?"

No response.

So the husband moves to closer to the kitchen, about 30 feet from his wife and repeats, "Honey, what's for dinner?"

Still no response.

Next he moves into the dining room where he is about 20 feet from his wife and asks, Honey, what's for dinner?" Again he gets no response. So he walks up to the kitchen door, about 10 feet away. "Honey, what's for dinner?"

Again there is no response.

So he walks right up behind her. "Honey, what's for dinner?" "

James, for the FIFTH time I've said, CHICKEN!"

The problem may not be with the other person as we always think, could be very much within us!

Retiring Without Tears (02-Aug-09)

An annual Future of Retirement study from HSBC has found that an alarming 91% of Singaporeans do not have any idea what their retirement income would be, and only 9% are prepared for this phase of life. In addition, while 39% feel that they understand their short-term finances very well, only 23% can say the same about their long-term finances.

So, what have you done? Are you the type who just work and work everyday and hope that when you retire at X yrs old, there is sufficient money to fund your retirement years? Or is there a backup plan, like... depending on your children? Work for longer years (provided your young boss still needs you...)? Or work part-time at fast food restaurant? Seriously, I am quite sure most of us do not expect such scenario to happen to us.

But why HOPE for it to happen, when you can PLAN for it to happen? Yr retirement nestegg is also an important big ticket item, along with yr house, your car, that needs time and gd instrument to build up.

According to the article, to improve your prospects of a comfortable retirement, you cannot afford to delay reviewing your retirement nest egg. Here are some considerations:

i) Your retirement age. 55? 60? 65?

ii) Number of years of retirement. 20yrs? 30yrs?

iii) Retirement lifesyle. Simple? Moderate? Lavish?

iv) Inflation

v) Financial commitment. Children? House? Car? Insurance Premiums?

vi) Medical expenses. Is your H&S plan in place?

vii) Leaving a Legacy?

viii) Existing assets & Post-retirement income

My role as a professional IFA is to help you analyze your current financial situation, and work alongside you to work towards your goals and dreams in a realistic way. I had made my move, have you? Medically, a doctor is there to cure you. Financially, an IFA is there to assist you, a.k.a. a financial doctor. Has your existing financial consultant done enough to make sure you are on the right track?

If you want to make an easy job seem mighty hard, just keep putting off doing it. ~Olin Miller

What is MediShield?

Last week, the govt was appealing to those 100,000 women (in particularly housewives) who have yet to take up MediShield. I would like to take the opportunity to explain why is this so.

So what is Medishield and its purpose? Under CPF website, it says:

" Medishield is a BASIC MEDICAL INSURANCE that helps CPF members & their dependents meet large hospitalisation costs. Members & their dependents are covered individually under the scheme. Medishield works most effectively for hospitalisation at Class B2/C level in restructured hopsitals.

Additional insurance coverage, including treatment in Class A/B1 in restructured hospitals or treatment in private hospitals, can be obtained by purchasing a Medisave-approved enhancement plan offered by a private insurer.

Medishield and IP premiums can be paid using Medisave, up to $800 per insured person per policy year. For insured members who are 81 years (as of age next birthday) and above, the Medisave withdrawal limit is $1,150 per insured person per policy year from 1 Dec 2008."

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So a few simple questions are:
1. Are you or your loved ones covered by the basic Medishield?
2. Have you upgraded your basic Medishield to a private insurer under the "as-charged" plan? Or rather, have you upgraded your family's protection against hefty medical bills in the event of a long illness or a serious accident?

Reasons being:

- Do not under-estimate the hospitalisation fee in Singapore. As our country continues to drive to become the medical hub of Asia, our medical cost is expected to increase gradually.

- What are the chances that you or your loved ones will end up in hospital for some reason or another? I do not know. But I definitely do not want to take chances and fight against the hospital bills with my life savings , or worse still; beg, borrow, or steal? Do you?

- And do you know that the money under your Medisave Account can never be withdrawn in cash even when you retire?

Solutions:

- Medishield is a good option to transfer the risk away. BUT the basic plan is probably insufficient for large hospital bills. The table below shows the limit under the basic plan for some of the items.

- By upgrading to an “as charged” plan, it covers the amount as charged, and is not submitted to a sub-limit for individual items (e.g. surgery, room and board, investigation) in the hospital bill. It is useful if you wish to be treated in a private hospital where the charges can be quite high.

If you are serious about providing family security for yourself or for your loved ones, taking responsibilities of the potential hospital bill is the first step you should take. Do give me a call at 9876-0237 if you are keen on improving your current status.

Some things are worth waiting for. But many things cannot wait!

10 Points to consider before parting with your Money (27-Jul-09)

" CONSUMERS THEMSELVES NEED TO BE MORE WARY OF WHAT INVESTMENTS THEY MAKE."

People are all trying to make their money work very hard for them. But once bitten twice shy, many laymen on the street become very worried, or rather skeptical of whatever products there were pushed out in the market.

It is important for any consumers to know what they are in for. Typical questions:
1. What's the kind of risks involved?
2. What things are guaranteed? And what are not?
3. What kind of lock-in timeframe? What is the breakeven year?
4. Are the returns reasonable? Or too good to be true?

5. Err.. got free gift or not? (J-o-k-e J-o-k-e)

Are you buying the product based on a personal trust with yr financial adviser, or based on a professional trust between a buyer and a seller? The bottom line is, DO NOT invest if you i) do not understand the document, ii) find the various risks too technical and difficult to understand, iii) not comfortable with or cannot accept that you may incur a loss.

If you are in doubt of what you are having now, or planning to have, pls feel free to contact me for a no-obligation review or advice. \(*-*)P

NTUC's drive to get more housewives to sign up for MediShield (26-Jul-09)

"Extracted from Channelnewsasia, By Valarie Tan/Shaffiq Alkhatib/Ng Lian Cheong, Channel NewsAsia"

SINGAPORE: Singapore's labour movement has started a campaign to get more women to sign up for MediShield, a government insurance scheme that can cover up to 80% of large hospital bills.

The Ministry of Health (MOH) says an estimated 100,000 women, mostly housewives, are not covered as they have no income. Flyers, posters and videos on the campaign will be distributed to some 1,200 unionised companies soon.

Madam Kumutham was diagnosed with kidney failure in 2001. The 50-year-old had to give up her job as a cleaner and now undergoes dialysis three times a week.

Her treatments and drugs can cost some $2,000 a month. But her family pays less than $400 every month, thanks to MediShield.

Her husband uses his Medisave fund to pay for Madam Kumutham's MediShield premium since she has no income. She said: "The payment of $300 plus (for MediShield yearly premium) is very good for me. I'm so happy for this."

And, MediShield is the best gift husbands can give their homemaker wives, according to NTUC's latest campaign.

NTUC deputy secretary-general, Halimah Yacob, said: "This is not just good for the wife but also good for the husband and the family, because the costs of hospital care in later years could also be a tremendous burden on the family."

This is especially so when women can live up to 82 years old on average, five years longer than a man's lifespan.

Video:
http://www.channelnewsasia.com/video/index.php


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Medishield is the first plan that everyone in Singapore should have to cover the basic Hospital & Surgical needs. But do you know that in the event of a major crisis where the hospital bill can blow up to tens of thousands, there is a limitation on how much you can depend on the basic Medishield plan?

This is why it is reasonable for us to upgrade to a private insurer under the "as-charged" plan. Payment can be made via CPF Medisave, and for extra benefits, riders (cash portion) can be applied as well. For those who desire more information, pls contact me directly.

Run For A Cause (26-Jul-09)

If you are an avid runner with a bit of spare cash, why not run it for cause? I summarized some of the meaningful runs for the remaining 2009.


1. 2009 Race against Cancer
Date: 23 August 2009, Sunday
Time: 7.45 am – 11.00 am
Venue: Angsana Green, East Coast Park
Route: 5 km or 10 km
Participation Fee:
$30 for Adults
$18 for Child – 12 years or below / full-time student with student ID
Official Website: www.raceagainstcancer.org.sg


2. Yellow Ribbon Prison Run 2009
Date: 6 September 09, Sunday
Gathering Time: 7.00am
Start Point: SAF Open Field, Farnborough Road (Near Changi Village)
End Point: Changi Prison Complex
Run Pricing:
5km Fun Run $25 ; 10km Competitive Run $30
Official Website: www.yellowribbonprisonrun.sg/


3. Run For Hope 2009
Date: 22 November 09, Sunday
Gathering Time: 7.00am
Vanue: Angsana Green, East Coast Park
Run Categories: 4km & 10km
Run Pricing:
Category Early Bird Rates (1st – 31st Aug 2009): Adult $30, Youth $15
Normal Rates (1st Sept – 16th Oct 2009): Adult $35, Youth $18
Official Website: www.runforhopesingapore.org/


4. Standard Chartered Marathon 2009
An initiative of Standard Chartered Bank, the Run for a Cause programme aims to raise funds for the beneficiaries of the three adopted charities supported by Community Chest, the Official Charity Partner of the Standard Chartered Singapore Marathon 2009.

Date : Sunday, 6 December 2009
Start Point : Esplanade Drive, The Esplanade Bridge
End Point : St Andrew’s Road, The Padang
Run Pricing: Miscellaneous
Official Website: http://www.singaporemarathon.com/

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“My momma always said, Life was like a box of chocolates. You, never know what your gonna get.” - Forest Gump

Juz keep running my friend.