Hi Sir,
Thank you for posting updates on your blog for the information of your readers. Wikipedia has now published a page on the Spa closures in Singapore, a topic which prompted fierce online responses in numerous forums and a discussion in the Parliament.
http://en.wikipedia.org/wiki/Spa_closures_in_Singapore
I hope the politicians will address the issue of how come the government or law system in Singapore allows unethical directors of businesses to take advance payments from huge number of people and are continued to be protected by the corporate veil/the concept of the separate legal entity.
Spa Victim
Monday, January 10, 2011
Bursting of the bubble [2]
Dear Mr Tan,
Thanks for your blog and sharing the tips on “How to survive the bursting of the bubble”. It has been helpful in many ways. I agree with you on the bubble. The current property anti-speculation measures has certain overlap with those introduced in 1996. This link from REDAS shows the significant events and historical property price index of the past from 1960 to 2006.
The Asian Financial Crisis in July 1997 is somewhat triggered by inflow of “hot money” targeted at the currency. Nevertheless, China is preparing to combat the inflow of “hot money”
However, as much as anti-speculation policies can be introduced, all it takes is just a significant event to trigger any short selling such as when the South Korea went ahead with the military drill despite threats of North Korea
I have currently more than S$100k invested in Singapore and HongKong shares of which the values have appreciated from the time which is bought many years ago. The plan is to slowly sell it probably from Feb 2011 onwards to the period of Singapore general election date and wish to seek your advice on the timing.
REPLY
I am not able to give timing advice. But in general, it is better to get out of the market when it is high, and not wait for it to go higher. Wish you all the best.
Thanks for your blog and sharing the tips on “How to survive the bursting of the bubble”. It has been helpful in many ways. I agree with you on the bubble. The current property anti-speculation measures has certain overlap with those introduced in 1996. This link from REDAS shows the significant events and historical property price index of the past from 1960 to 2006.
The Asian Financial Crisis in July 1997 is somewhat triggered by inflow of “hot money” targeted at the currency. Nevertheless, China is preparing to combat the inflow of “hot money”
However, as much as anti-speculation policies can be introduced, all it takes is just a significant event to trigger any short selling such as when the South Korea went ahead with the military drill despite threats of North Korea
I have currently more than S$100k invested in Singapore and HongKong shares of which the values have appreciated from the time which is bought many years ago. The plan is to slowly sell it probably from Feb 2011 onwards to the period of Singapore general election date and wish to seek your advice on the timing.
REPLY
I am not able to give timing advice. But in general, it is better to get out of the market when it is high, and not wait for it to go higher. Wish you all the best.
Sunday, January 9, 2011
Benchmark of 20%
A few people have asked how I got the benchmark of 20% for the amount to be deducted at the end of 25 years. This is stated in page 62 of my book on Financial Planning.
I encourage people to buy and read the book a few times to get a better understanding of the subject. They should not expect to be given individual coaching as it is time consuming for the teacher. These difficult questions require an understanding of the principles and the need to make personal judgement - and is not appropriate to be asked as a question.
Tan Kin Lian
I encourage people to buy and read the book a few times to get a better understanding of the subject. They should not expect to be given individual coaching as it is time consuming for the teacher. These difficult questions require an understanding of the principles and the need to make personal judgement - and is not appropriate to be asked as a question.
Tan Kin Lian
Saturday, January 8, 2011
Financial Planning Book and Answers
Hi Mr. Tan,
I am an undergraduate who reads your articles with interest as they give me good insights into the basics of financial planning from a relatively unbiased point of view.
You mentioned about distribution costs = 100% of annual premiums and deduction costs = 20% of total premium value as 'benchmarks'. May I ask how did you arrive at these figures?
I was recommended to a financial advisor. He introduced me to a limited (25yr) whole life insurance which covers 150,000 life and CI rider for $250/month. I rejected it as I have no intention of getting insurance now since it'll eat up too much of my monthly allowance. After reading your articles, I was shocked to realize the true meaning of distributive/deduction costs involved. I'd like to clarify the 'figures' you quoted.
REPLY
you have to find the answers from my book on Financial Planning or the FAQ in my website. I am not able to give individual coaching on these matters.
www.tankinlian.com/ishop
I am an undergraduate who reads your articles with interest as they give me good insights into the basics of financial planning from a relatively unbiased point of view.
You mentioned about distribution costs = 100% of annual premiums and deduction costs = 20% of total premium value as 'benchmarks'. May I ask how did you arrive at these figures?
I was recommended to a financial advisor. He introduced me to a limited (25yr) whole life insurance which covers 150,000 life and CI rider for $250/month. I rejected it as I have no intention of getting insurance now since it'll eat up too much of my monthly allowance. After reading your articles, I was shocked to realize the true meaning of distributive/deduction costs involved. I'd like to clarify the 'figures' you quoted.
REPLY
you have to find the answers from my book on Financial Planning or the FAQ in my website. I am not able to give individual coaching on these matters.
www.tankinlian.com/ishop
Life insurance policies and benchmark of 20%
Hi Mr Tan,
You always mention that Benchmark for Deduction should not more than 20% after 25 yrs for life insurance.
Do you mind to tell me which are the insurers that meet this benchmark ?
REPLY
None of the life insurance policies in the market now meet my benchmark of 20% deduction. It is better for the consumer to buy term insurance and invest your savings in an indexed fund. The long term cost is likely to be less than the 20% deduction. Read my book on financial planning (available at www.tankinlian.com/ishop).
If consumers reject the existing life insurance products that offer a low yield, the insurance companies will be forced to offer new products that give better value to consumers, i.e. meet the benchmark of 20%. It is possible for them to achieve this goal.
You always mention that Benchmark for Deduction should not more than 20% after 25 yrs for life insurance.
Do you mind to tell me which are the insurers that meet this benchmark ?
REPLY
None of the life insurance policies in the market now meet my benchmark of 20% deduction. It is better for the consumer to buy term insurance and invest your savings in an indexed fund. The long term cost is likely to be less than the 20% deduction. Read my book on financial planning (available at www.tankinlian.com/ishop).
If consumers reject the existing life insurance products that offer a low yield, the insurance companies will be forced to offer new products that give better value to consumers, i.e. meet the benchmark of 20%. It is possible for them to achieve this goal.
How to survive the bursting of the bubble
The Asian economies are in a bubble. It will have to burst and follow the fate of Japan and America. Here are some tips on how to survive the bursting of the bubble.
www.tankinlian.com/latest.aspx
http://tankinlian.com/admin/file.aspx?id=356
Tan Kin Lian
www.tankinlian.com/latest.aspx
http://tankinlian.com/admin/file.aspx?id=356
Tan Kin Lian
Financial Planning Tool for Fresh Graduates
It is important for a fresh graduate to start financial planning with their first job. They should set aside savings for the future and invest their savings to get a good yield. They should avoid financial products that provide a poor yield. They should also take into account the effect of future inflation on their savings.
Learn about the right approach towards financial planning using the tool created by Prof. Tan Kin Lian in this website, www.easysearch.sg/life21.
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