2013 is coming to an end

Its the end of the year again. A time for reflection and a time to give thanks. I will like to thank all my clients and friends that have supported me and believed in my service. Not only have you made my life and work more meaningful, you have also made you and your families lives more meaningful. This is the start of a mutually beneficial relationship which I want to maintain. Please feel free to call anytime. Will catch up again soon.

I will also like to apologise to those that I may have not been able to help getting insurance. I have tried my best. But there are other services I can help you with.

Reflecting upon my life till 2013, it has been an amazing journey. I can still remember the day I bought my first policy long long time ago...

The phone sounded and I picked up to see who called. It was a good friend and ex colleague whom we did many crazy things together. He called suggesting a coffee seaaion. Sure!

At the coffee session, he told me he has joined an insurance company. I felt betrayed thinking I have been lead into a coffee session to be sold an insurance policy. But as a friend I will also want to see him do well. I told him, Bro just prepare a savings policy of $250 a month. He said ok.

We met again to do the paperwork and before we signed he said he will have to present the product. No need, I said. I am doing this to support you, sign where?

But Tang I have to explain the policy first... sshh sign where?

Did the paperwork and we had coffee and talked about life. And till today, I feel thankful towards him. I never beleived in insurance because my dad told me bluff people one.. cheat money one. I had my pre concieved idea that its bull.

It all changed when in 2000 I did my Certificate in Life Insurance, the only paper you need then to be a financial representative of an insurance company. I started to realise and see the need for financial planning. But in 2009 I did not just see the need, I experienced it.

I woke up one morning with a tingling sensation in my shoulder: first thought.. stroke! Immediately booked my $300 plus medical checkup and waited 2 weeks for my results. Doc said that in an emergency we will call you within 2 weeks and please come down immediately, if not just come back in 2 weeks time.

The results were consoling yet damaging at the same time. I have no cholestrol (surprise!) but have minute traces of blood in my urine, fatty liver, slightly high reading of sugar in my blood and is obese (not surprising) Doctor advised exercise.

Whew! Not stroke, realised it was probably my new sleeping posture which prevents my snoring. I find out if I slept on my side I don't snore, so the tingling sensation was from me sleeping on my shoulder the whole night.

Better increase my coverage, I thought. I was a trainer then in an insurance company and I applied to upgradr my shield plan which was still at a public hospital A ward. Rejected!!! I have been denied coverage in a private hospital by their company I work with!!! I tried other companies and it was either a reject or premiums loaded. I resigned to my fate and got my coverage with loading and all.

If only I had gotten my coverage earlier. If only I had not felt so invincible then. I could have covered myself more. Sigh! If only I knew the numbers to this weeks 4D and ToTo.

Well, if you are at the moment healthy and fit, please do not be complacent about it. Nature has made us to last only for a limited time before we deteriorate. Even a car engine don't run forever. Just like when the car breaks down we want to push it into the best mechnic to get it repaired. And that cost money. Imagine when we start breaking down...

These cost can be eatimated and planned for and there is no better time then now. My sincere hope that your resolution for 2014 will include: start a financial plan or speak to a financial adviser.

Happy New Year! In advance.

Haunted... no more...

The time is 8pm. You are in the office working over time. You look up from your computer wanting to take a break and rest your eyes.

You suddenly realise you are all alone in the office. The silence is deafening! The ticking of the clock that is hanging on the wall is suddenly very loud. The photocopier machine suddenly starts up, then you realise its just fax coming in.

You look out the window but see your own reflection in it. You look away quickly, as you are worried you will see something else in the reflection other than yourself. You start recalling the horror stories you have heard from your friends about being in offices alone at night.

You think you hear the keyboard of somebody else clicking a few cubicles away. You tell yourself its all in your head. Suddenly your mobile phone rings, you practically jumped, the ringing of your mobile phone seems louder than usual.

You hesitate to pick up the phone, what if all your hear is static and unearthly clicking sounds like in The Ring?! The caller ID does not show a number, and the caller seems persistent. You slowly reach over to your phone and pick it up.

You pressed the answer button and said: Hello, hoping it ain't the static and clicking sound you hear.. while you were praying the caller said: Hello, may I speak to your name? Yes, you said, heaving a sigh of relieve it is a human voice. Hi, I am John calling from Insurance Company Name. 

Oh no a cold call from an insurance company! This is worst than static and clicking noises! Give me the static!!!

Is this how you feel when you get a call from an financial consultant? Have no fear! DNC is here! If you haven't read the news or have been living in a cave, DNC is 'Do Not Call' and as of yesterday you can start registering yourself on this list so that you can lodge a complain officially if you still get unsolicited calls.

To register yourself, please click here. Wait! You sure? You may be missing out on the best things in life... like financial planning and insurance or investment or property deals or... never mind you don't care about those anyway.. click away!

Just remember that if your financial consultant calls you don't go complaining that he flouted the DNC laws, you are a customer. If you don't have a financial consultant, please call me 9180 3448, Tang, I cannot call you.

Debts

Was in Australia over the past 5 days and I am amazed at the advertisements on TV. There were numerous advertisements on TV about insurance and I wonder how many Australians actually pick up the phone and respond to the ad on TV. For the companies to be placing ads on TV, I am sure the call backs must be quite a number. We already know that in many mature economies like US, UK and even Australia many already have embraced the fact that they need to do a financial plan, and they NEED insurance. Well, in Singapore we still haven't got there yet where people actively search for a financial planner and tell them 'I need a financial plan.' Many still fear talking to an adviser probably because of the bad perceptions of them. 

But one ad on TV actually caught my attention. It is the ads on TV that tells people that 'You are not alone if you are in debt, call this number and our friendly consultants can help you with it.' Wow! There was easily 2 companies that is offering that service. Once again, my believe is that if the TV ads was not effective there will be nobody advertising on TV. I wonder if we place ads like that in Singapore how many will respond.

I think it is a very Asian mentality that we do not talk to strangers about our monies or debt issues. Like that Chinese saying about not hanging your dirty laundry in the open. So we will never admit we have a problem in front of a stranger, neither will we admit we need help with our finances. And being Singaporeans we are worse because we expect the government to handle everything for us. We think the government should stop the inflation so things are cheaper. We expect CPF to help us with our housing, retirement, and kid's education. 

And worse of all is that many think that in death all debts are erased. Many do not know that these debts are actually passed on to their dependants when premature death occurs. Many I have spoken to is surprise to find out that debts are not cancelled at death. Some individuals I have spoken to came from rich family backgrounds with one of the parents in highly successful businesses. Highly successful businesses are usually highly geared with business loans generating good profits for the business. But all these works well with the business owner still alive. When the business owner dies prematurely, these business loans are passed on to the business and if the business is a sole proprietor or partnership these loans are automatically transferred to the estate and recovered from families. Some of the people I have spoken to have been victims to such instances. They have to pay off their parents debt because they never believe that death will happen early.

So if you know you or someone close to you are in debt, there are solutions to consider. Do not be afraid to raise it up to your financial consultant. That is one thing we do too. We can help you ascertain critical expenses and ensure that monies are channelled to reduce your debt. We have solutions to help cancel debts during certain events to ensure that your dependants are not burdened or even you are not burdened by your loved ones debt. Call me 9180 3448 or email me tngjinyau@gmail.com if you do not have anybody else to speak to. This is not some ah long service, if you need me to lend you money to pay off your debts, click the X button on the top right hand corner now... 

Crowdfunding... the new way forward?

Just read of 2 ladies helping to raise money for their mother's bills in the newspaper the other day. Their mother contracted ovarian cancer and the  bills and the care for her came up to about $9,000. They raised  $25,000 through crowd funding. Crowd funding is about getting strangers with big hearts to donate to a cause. Read more about crowd funding here. 

Wow! So can I assume the need to do a financial plan is now obsolete? No need to plan for critical illness because I can raise funds through crowd funding? No need to plan for retirement cos funds can be sourced through crowd funding? No need to plan to replace income if premature death occurs for your dependants? If you intend not to do any financial plan, then do your family and yourself a favour and teach them and yourself what crowd funding is. How crowd funding works and where to find the sources to get crowd funding to fund the emergencies. But if asking people for money in an emergency is too much for your pride and dignity then maybe it is time to sit down to do a financial plan. Let insurance be your crowd funding.

The fact is: insurance IS crowd funding. Anyone that pays a premium is technically pooling their monies into a fund so that they can withdraw it when an emergency happens. These emergencies are hospitalisation and surgery, premature death, critical illness or disability. And the amount of money that you fund is technically, one CENT for every dollar per year. Means that you give the insurance company $0.01 per year and when an emergency happens they give you $1 plus bonus. And to fully pay up the $1 the company will give you in an emergency you need 100 years. 

Some of you may think I have already leh... yes of course you have. But is it effective? Is it sufficient? I have met people who have claim to have already leh but only got 1 policy with $10,000 coverage. 

So let us take for example, you think you have no need for insurance because you are single and no dependants. Have you ever wondered how much money your parents have spent to bring you up? Lets not make it too complicated. Lets just take a meal of $4 a day. Your parents fed you 3 times a day, $12. In a year, $4,380 for the past 30 years $131,400. I have not even taken into consideration education, pampers, utilities and the other miscellaneous items. So if you left prematurely, all that money they spent is wasted and if you have only a $10,000 coverage what does it stand for. What can $10,000 do in this time and age? Think about it. 

You know who to call or email if you want to speak to someone.

And I have to share this video below.. I just love commercials that are tongue in cheek...enjoy!

Wait a minute! Did I just heard that?

If you have been listening to the radio while you are driving, taking the MRT or taking the bus, you will have heard the advertisement on radio by Singapore Cancer Foundation. I heard the advertisement on radio and thought to myself, 'these organisations should start realising ads that striking fear in people do not work anymore in a skeptical Singapore.

Saw a similar range of ads by the NKF in the MRT stations and thought the same thing. I usually give these ads a second thought and wonder how effective it has been for Singaporeans to take action. I mean, if we had seen the haze situation most people are reactive rather than proactive. You only do something when something happens. You only buy mask when haze happens. You only think about your spare tire in your car when you get a puncture. You will only study when there is an exam. So I really wonder if these ads were working.

While I was driving yesterday, the Cancer Foundation ad came on again and this time, I actually paid attention. I heard a startling statistic: in Singapore, 1 in 3 adults is diagnose with cancer everyday.. wait wait, just 5 years ago when I was still actively training financial people that statistic is 1 in 5! Its 1 in 3 already!! Damn those odds are better than 4D! I remembered then that the statistic will become 1 in 2 by 2020 or 2030 I cannot remember. So what does 1 in 3 means? Look to the person to your left and look to your right, one of you will be diagnosed with cancer. But you know what, most will still think its going to be the other 2 and not me.

For those who do not think its going to happen to them, I have a proposal for you. Buy me 2 meals with a drink a day everyday (you are very lucky I don't take breakfast, if not its 3 meals a day). If just so happens you are diagnosed with cancer, I will buy you 3 meals everyday thereafter, terms and conditions apply. 

If you want to take up this offer, please email me tngjinyau@gmail.com or call, sms or whatsapp me 9180 3448.

Anti Competition? You want to pay more?

I read in forums of our newspaper with interest after our National Day Rally. During our rally, there was an announcement that there will be a launch of Medishield Life and all will be included including people with pre existing conditions. Much has been written on forums with some calling for government to standardise the price for a private integrated shield plan.. but I am dead against that.

Where will be the competition if that happens? How will we know companies are pricing their plan at the most affordable price for us? Wouldn't that be anti competitive? So if all companies is suppose to come up with a plan that is priced the same then if they were to collude and price it high so all makes a tidy margin, will that not be detrimental to you as a consumer? Banks have been brought to task for fixing Libor rates in London, and some banks here too.

Once again, the choice is yours to go find out who has the cheapest plan in the market. Why should the governent do it? If they are suppose to fix prices then why not fix prices for hawker food.. televisions.. property prices.. utilities (oops they are already doing that).. everything that concerns us more on a daily basis.

Price fixing only benefits the companies and not you as a consumer. There are anti competition laws for a reason.

This post dedicated to Chris Chan, great question!

Sad Day For The Diving Industry

It is tragic to learn about the loss  of 2 fellow divers in Tioman over the weekend. Its always sad to know that people have loss their lives especially if they loss their lives doing something you love. 

My heartfelt condolences to their family and loved ones. 

National Day Rally

Its good news for the elderly in Singapore after the rally last night! It seems by next year, those who have pre-existing conditions and the elderly will also be accepted under Medishield Life! Even those who do not believe in insurance and opted out of Medishield (Really? Why would you do that!?) will now be automatically included. 

Medishield have just undergone a revamp March this year and this means that will be another revamp soon. Premiums have almost doubled for somebody age 21 to 30 years old in March this year from 30 plus dollars to $66 per year this March. And by the time you have about $2,000 in your medisave, the interest you earn from it will more or less cover the premium for your medishield. But this is for now. With the increase of coverage to cover for pre-existing conditions and coverage for life there maybe another round of premium increase next year but we still do not have to worry too much because I am sure even when we are old, the maximum cap on our medisave with the current interest rate of 4%, it still covers the premiums for Medishield.

Cap for Medisave Contribution = $38,500

Interest per year for Medisave = $1,540

For individual who is 51-60 years old, premiums for Medishield = $345.

Interest will nicely pay for the premiums with change. 

But of course there are many limitations in Medishield, if you are looking at staying in wards higher than B2 or C wards. 

If you are Singaporean and do not mind staying in a B2 ward or C ward you get 100% subsidy. If you are Permanent Resident here. Your subsidy is 44% and 58% respectively. If you are a foreigner on Medishield you only get 20% and 35% subsidy. 

If you decided to go with a private hospital you will only be subsidised 35%. 

In todays Straits Times (19 Aug 2013) article with the title 'Universal, Compulsory and for Life.' One health economist said:

'MediShield Life plugs the gaps in MediShield by extending basic cover to all. This is enough for the bulk of the population, so he is in favour of moving away from integrated shield plans provided by private insurers.

The important thing, he said, is to ensure "everybody is perceived not to be denied or deprived relative to other people".

This is a very dangerous statement to make as it is very irresponsible. My worry is again, a reliance on the Government to do everything for Singaporeans. One particular report on therealsingapore.com today was a 30 plus year old man who has an 8cm gash on his arm and fainted while waiting for treatment in A&E at CGH. They waited seven hours yet no doc to see them. They ask for transfer but no ambulance for them to use. The article is written by one who once again is pleading with the government to do something...................

Do something for yourself! Get a private integrated shield plan with the rider. Most plans come with ambulance fee covered. If you got the private hospital plan, go straight to a private hospital and get it done in 15 mins. You have a choice! The government have done that for you and given you that choice. Take it. But if you chose not to do it then its your fault and nobody elses's.

And to the health economist, your statement have just planted the idea that the government will do all.... they don't. Once again, what you do today echoes in eternity.

And if you are a Permanent Resident reading this, all the more you should get a private integrated shield plan. Ask your financial adviser about it. If you do not have one email me tngjinyau@gmail.com

Impossible To Retire in Singapore

How many times have we heard the phrase mentioned by Singaporeans? 'Singapore is getting too expensive.' 'How to retire here?' 'Government must do something'. It always irks me that many people expect the Government should do something for them, anything goes wrong its the Government. MRT breakdown, Government fault. Bus driver strike Government fault. Toilet breakdown, Government fault. Lorry knock down people, Government fault. I cannot retire, Government fault. 

The way I see it, many things are within the control of ourselves. Whether we can retire in future is very much dependent on the things we do today. For example, if you know you need to have 1 million in future at retirement, what do you do today? You save. But Tang, things getting more expensive in future! You save more. But Tang things so expensive now how to save? Why you never save earlier? But the truth is its all about managing your money. Too many of us (including me in the past) saves after spending. Our saving formula looks like that:

Salary - Expenses = Savings

But every month we have an excuse to spend on something or we want to go on a trip or there is a newly launched gadget or new season fashion or new handbag, new shoes, new everything... so Tang how to save?

Lets move the formula:

Salary - Savings = Expenses

Wa Tang like that no need to spend already. Well maybe, but  I dare bet that if your formula changes to the above you will definitely be able to retire. If you were to spend on one less gadget or one less holiday or even one less beer per week, you will have found some extra money to save for the future. 

If you believe that the above formula can work you will probably ask how much to set aside each month. Rule of thumb 10% to 20% of your current income will be a good start. As your salary increases (and I hope it does, if it doesn't please take a good hard look at yourself) you increase the saving amount to maintain the 10% to 20% ratio. 

Have a good mix of asset to ensure the monies you have set aside is moving your monies closer to the inflation rate. Yes property is a good hedge but please it should not be the only hedge. It is still an asset and the value will fluctuate. 

If you are currently planning for your retirement already, get a financial adviser to project and estimate the amount of retirement fund you will need and work backwards to ascertain the amount to save today towards your goal. This will give you a more specific amount to set aside on a regular basis. Once again, if this actually concerns you and you do not have somebody to speak to, please email me tngjinyau@gmail.com. Whatsapp or SMS me 9180 3448. My consultation is on a no-obligation basis and I do not charge a fee.... yet...

1 in 10 Borrowers Overstretched...

In today's Straits Times MAS warns that 1 in 10 borrowers are overstretched. These borrowers has debts that exceed 60% of their monthly income and majority of these debts are property...

An increase of home loan interest rates may just push these debts beyond 100% of monthly income, forcing this people to sell their property, causing more demand and bringing property price down and that was why Singapore's banking sector's credit was downgraded recently, cos there may be a repeat of 2003 where a condominium bought in 1997 at $980,000 cost $450,000 in 2003. Read my earlier post here. Well, peoples' memories going to be jolted again... maybe. We shall see..

Kovan Double Murders.. 14J

Damn! When was the last time something so major happened in Singapore? The last murder that was so dramatic was probably the body of a foreigner found behind the mural of Orchard MRT that was even before ION was built. Even then that murder wasn't so drama.. just some cleaner opening the bag and finding human parts.. this Kovan murder got victims getting dragged in full view of the public! 

Are you wondering now who the killer is? When will he be caught? What's the motive? Yes I am intrigued too. But I also wonder what will be the financial impact to the family? Was the elderly man the sole bread winner? He is a business man and did he have a business succession plan? What will happen to his family now? What will happen to the business? Is the business he has build with his blood, sweat and tears going down the drain because he is no longer around? 

I am sure these questions will eventually arise when they find the killer, they know the motive. After all the dust settles and the grieving done, some if not all of these questions will arise. It is usually now when these questions are asked then answers are sought.. I can only hope that most of the questions can be answered easily.

Life is so fragile and unpredictable... have you planned already... 

The Types of Managers You Love To Hate

The corporate world.. a world full of bureaucracy, red tapes, politics and fake people with agendas. I left all that after 8 years because I realise you have to be fake and nice to get where you want to be. You have to be a politician to get noticed and recognised unless your managers is real and is there because their bosses are real and see the true work you do. The rest of the managers, well somehow they were fake and nice to somebody who was fake and nice and eventually got to where they were. And in the corporate world, real nice managers and employees finish last.. sad but true.

And I suppose this bureaucracy is more apparent in an Asian culture where hierarchy is so important. In the asian culture we have always been brought up to respect our elders, respect their decisions and getting promoted to the next level feels like I am one up over the rest. The traditional managers always think what they say counts.

Through my observation, I think I can single out some of these managers and if you have others that I did not cover, please put down in the comments below.

My list of managers you love to hate, though I may write as he it can jolly well apply to a 'she' as well:

1. The Dictator

Well whatever this managers say counts... even if it is wrong or unethical. This managers have been brought up and entrenched so deeply in the asian culture that he feels superior to the rest of the people who are not his peers. He is afraid of losing control thus he needs to know everything thus he becomes a micro-manager. Whatever you do is not good enough, because it cannot be because he feels that he is the best so how can your work be better than his? He is asking you about your progress of a certain project almost daily. He wants to know who you are working with, how you getting it done. And nothing you do seems to satisfy him. He gets his ego boost from knowing his ideas are better and that is why he is there.. not you.

2. The Michael Jackson Boss

In the Michael Jackson song Black or White, the lyrics go: It don't matter if its black or white. For this manager, his lyrics probably will sound more like: It don't matter, it has to be black and white. These managers love emails. Whatever you need help with you need to email. Boss I need an approval for the project, email me. Boss I going on leave, email me. Boss, client wants better price, email me. Boss, stomachache need to go toilet, email me....

Sure in some management training they say these managers are Visual people in the VAK model. Probably so... some of them are just covering their backside. They want everything in black and white so that their asses are covered, they send you an email they print it out so that if you ever go back and say I never see, they whip out a file with all their emails, put on one white glove and say 'thereeee...' all the date, time and content capture in black and white.. eeeeyooooww. Backside covered. The extreme ones will even set settings so that a return email will pop up when you supposedly read them or delete the email without reading. It is then also printed out and filed.

3. The Parent

This manager though very similar to being a dictator but can be very nice sometimes but the problem is they always treat you like kids. They always feel that being new and fresh out of school we ain't thinking adults yet. We cannot be left alone to do things on our own. Constant monitoring and mentoring is needed. Yes, some but not all. They treat staff like kids and feel staff should be scolded when they do things wrong.

Had a run in with a boss like that, asked me why I never scold my staff, is it because I like being popular. Told him it is not being popular but it is a respect that I know what they are doing and treating them like adults. He said, adults? You think those people outside are adults? They are acting like kids. Told him that if he continues to think them as kids they will always be kids. its just like if you give peanuts, you don't expect tigers to appear. You are gonna get monkeys. So if you feel your staff is like children, they will be like children to reciprocate how they are being treated.

4. The Mama-san

These managers are like social butterflies. They are where their bosses at, whether they are really capable it does not matter. They are just damn good at PR. Their bosses probably got promoted the same way and he is telling you, you need to be seen in front of your boss. He will step over their peers or worse step over their own boss to go direct to the boss's boss.

You may be asked to do the same thing so that your boss can look good like his whole team worships the ground the boss's boss walks on. You indirectly have been implicated to become a slave to your boss and boss's boss. They get promoted not because of the work they do but because this person will look good in front of people.

If you are a female staff and look ok sometimes you get pushed to get recognised in front of the boss's boss. This happens in social gatherings and when alcohol is involved.... thus your boss like mama-san and you maybe blinded by the promise of promotion and all.

5. The Not-For-Profit

Ever entered a department and did not know what to do? You do not know where the department is heading? You have no mission because the boss has none or a very loose one.Your mission, vision and core value is on the wall but it does not seem the department is moving that way? Your boss is soft and weak. He does not have a mind of his own. Some people can be contented with bosses like that. Just chill relax, other departments know that your boss is like charitable organisation, they know you will do whatever that is thrown to him. They take it on. Typical yes man.

You get thrown the extra work to do without the extra pay. You start thinking what the hell you are doing things that are totally unrelated to you. You start wondering what the mission and vision on the wall really means. You start feeling that whatever you do has no more meaning.

So if you have other experiences with lousy bosses please comment below :)

HD Wallpapers

Hello Kitty

Ha $25k for a Hello Kitty? Fights breaking out because of a cat? And its not even a cat fight...

Come on people, seriously? What the hell is the draw for a plush cat? Besides hoping that you can make $25k from it, and if you were smart enough you will know it was probably made in China and a search on the internet will tell you, you can buy it off the net for just RMB35. Which works out to be S$7 and damn the chinese manufacturers will still be making a damn decent profit at $7...

So is it all about making money or a real passion for the cat? I wonder, because if making money is the reason there are other ways to make money. Like by investing, yes it does not give you 25K over night but at least you can accumulate wealth instead of spending your whole night queueing at McDonalds. You also can have 66% chance that your investment will return you 10%.

I search on the net that you have a probability of hitting 4D is 1 in 10,000. So isn't 66% chance of getting 10% a damn good odd.

So instead of looking at how Hello Kitty can make you alot of money, think about how spending a little more time to think about accumulating money may work better.

N95 Mask and Air Purifier in Singapore

This is unbelievable! Went everywhere looking for air purifiers.. all sold out! Asked Gain City take my money first. They said cannot, our list very long already they said... Sigh! My daughter is sick from the haze and I need the air purifier.. at least we will be getting some reprieve from the haze this couple of days.

My wife casually mentioned that this is so funny that everybody seems to want to buy air purifiers and mask when the NEED arises. Us included. She also mentioned that if we had just went out on the first day to get it (which we really did contemplate but eventually did not because my daughter fell sick) we probably have gotten ours already. Well isn't that just human nature. We don't see the need for many things till it is too late..

The Chinese must have understood all this when they said '临时抱佛脚‘ loosely translated, it means to hug a Buddha's feet at the last minute. It means that you only will do the things necessary at the last minute. Like for a student if you do not study on a regular basis, at the last minute you will have to hug the Buddha's feet and hope for the best. Or like this haze situation, at the last minute, may of us want to 'chiong' out and buy an air purifier or mask. 

6 months ago if we said we wanted to buy mask or air purifiers. Many will probably think you were crazy. So this brings me to the topic and purpose of this post. Many see a financial adviser now thinking we are out to take money from you for the good of our commissions.  Many think it is bad luck or too long to think about retirement or investment now. Many think that things will not happen to them to warrant a financial plan. So when will financial planning be warranted? By the looks of things, it will be warranted when critical illness strike, when retirement arrives or when the kids are going to school. And that is just a short list of financial objectives of an individual, family or organisation. And the big difference between the haze and financial planning is you can do something about the haze when it happens but not financial planning when one of the events happen. 

When a critical illness strikes can we 'chiong' out to buy a hospitalisation plan or critical illness plan? When retirement is tomorrow can we say we start accumulating wealth today? When inflation hit all time high can we find a suitable solution to give us a high return to counter that? 

Instead of expecting the government to do something now for us, I think we should start thinking about what have we done for ourselves. Have we done the necessary to protect and safeguard our own interest instead of expecting the government to do things for us?  I read in amazement the number of people calling out to the government asking them to do something about the haze, asking for more mask or getting more air purifier stock. Come on, the government is human too.. they are also reactive.  So take charge of your own life, predict the unpredictable, expect the unexpected, control what is controllable and live life! Read my post about predicting the unpredictable and expecting the unexpected here.

Taken while walking along the MBS to MBFC 

Your Job May Help You Live Longer

I read in amazement today in the papers today that the work we do may actually prolong our lives. We have been so concerned about diet and exercise to keep a healthy life that we forgot the one big important thing in our lives... our job.

Studies have shown that stress is one of the major contributing factor of cancer. And where do we get the most amount of stress from? Our jobs.. we spent a good part of our lives at work and therefore exposed to stress very often unless of course you enjoy the work that you do.

I also reckon that Singaporeans are exposed to more stress as we stay in high rise buildings. Research have shown that all of us have a personal space and we are in stress when this personal spaces are invaded. Personal spaces are imaginary boundaries that our sub-conscious mind have drawn out, and we are in stress when that space is invaded. Imagine an old lift, have you ever noticed which button in the lift is usually the most worn out? Its the close button. Nowadays our lifts have buttons that are embossed and this effect is rarely seen. But at those old HDB or commercial building's lifts the close button is usually most worn out.

Why? Well, the lift ain't exactly the biggest space and if a second person gets into the lift with you, your personal space gets smaller when more and more people gets into the lift the space gets even smaller, eventually it gets invaded. To prevent that from happening, most will want to shut the lift doors first before anybody else gets into the lift.

Studies have also shown that for drivers this personal space extends outwards when you are in the car. That is why when someone cuts you too close or tailgates you, you cannot take it, your personal space have been invaded. So if the next time the driver in the car you are in gets really flustered, just understand its an invasion of a personal space.

If being in a car extends your personal space then I can also assume that being at home you also have a personal space extending beyond the walls of your flat, right? That is why when your neighbours upstairs accidentally drop marbles you go insane. We are at stress when we are at home too and that is why the newspaper had once reported that 2 out of 5 Singaporeans will contract cancer in a couple of years time.

So how do we extend our personal space at home then? Many opt to keep their doors close when they are at home just so they know they are kept private in their own personal space. But if you knew your neighbours then your personal space can be reduced as they are friends not strangers. Being with friends personal spaces can diminish altogether. We can sit at a table with friends almost having shoulders touching each other but when we are in a cinema with a stranger next to us we feel uncomfortable. So if your neighbours are your friends will that not create less stress? I usually leave my door open at home. I say hi to my neighbours when they come home. We celebrate a birthday at home, we cut up some cake and pass it to them. They do likewise. We go overseas we buy something small for each other. They make sure my letters and newspapers are kept when I am away. I feel safe having neighbours like that. They are friends.

So things can be done at home, but what to do in the office? Do something you love.. cliche but true. Manage the stress or your job may eventually kill you..

Birthdays

I want to thank all my well-wishers on my birthday today 22nd May 2013. I just got older. So have you wondered why birthdays are celebrated? Well it seems that there is no real documentation of why Birthdays are celebrated. Though I will like to believe that in olden days, it is a joy to live another year if you have not already been taken by disease. I mean have you seen the average human life span in the early 1900s? People live till about only 40 plus years old. Today life expectancy is easily at 80. That is 40 more extra years!

So why the longer life span? Well with advent of new methodology to detect illness, these illnesses can be arrested earlier and treated, ensuring one live longer! In olden times, people say bless you when one sneeze because it may be the sign of one falling sick. And if you fall sick then, there may be a chance you will not survive. People were dying from the common flu! Today out common flu is treated at our local HDB block GP with that yellow tablet that makes you super drowsy and some can get high on..

So what is the future like in terms of life span? What are new medications that may be invented to treat our diseases? Will we live beyond a hundred? Will somebody invent something that will allow us to live like Benjamin Button after we hit 80? If you have not watch Benjamin Button, it is about a boy who lived his live backwards, from old to young.

We will never know what the future hold in terms of life span. But more importantly at this very moment if we know that our life span is about 80, what have you done to ensure that you will live life to the fullest? What have you done instead of burying your face in front of the office computer from 9 am to 9 pm at night? Have you set down and wrote your bucket list? The things you will want to achieve before death? Have you PLANNED to do those things?

Many of you may wonder why I sound like a pessimist, but I like to tell you 'I am not a pessimist but a planner' I control what I can control and spent less time worrying about what I cannot. I find predictabilities in unpredictables and control the predictabilities.

So when do you plan to retire? Do you intend to spend your whole life working? Those of you who is now thinking Tang retirement very far away leh... think again if you are 20, you only have 60 more years to live. If you are 40, you already lived half your life. If you are 60, I am sorry if you are still working without having the CHOICE not to work, but if you have a choice and you are working just to pass time, kudos to you!

So have you planned that upon your retirement, you can exercise the option of not working? If what I have mentioned is alien to you, please I urge you to make an appointment with your financial adviser, tell them to do a retirement plan for you. If your financial adviser just sells you products then call me, we can sit down and do a plan for your life and if you want to buy products from your adviser after doing your life plan with me, go ahead. I can rest peacefully knowing I have touched another life.

Mine! All Mine! My daughter at 1. Will she live to a hundred?

Experiment Results

My experiment is now concluded and I am sorry if you guys was hoping for some explicit or controversial post. I apologise if I have disappointed some of you. Why the experiment Tang?

Well, blogger has a reader statistic counter next to the post that was published and I was shocked that my last post about financial literacy and HR only got 17 hits! While the rest average 50 plus. My conspiracy theory post got 80 plus hits. The post other people shared got 90 plus hits. 

So I was shocked that when Financial Literacy was in the title nobody read. I made sure all my post was published in the morning, shared on Google+, Linkedin and Facebook. Every post was similar. So I can conclude that as long as its about financial planning or financial literacy nobody is interested.

My last post with title telling people to use discretion because there may be offensive material got 4 hits in the first minute. By noon it has already hit 50 plus! 

I think I can conclude that most of us cannot be bothered about financial literacy. Most of us probably don't even care. That's sad! 

I read in awe last night about Angelina Jolie having a double mastectomy just to prevent cancer because she found out she has the BRCA gene that increases the chance of getting breast cancer and ovarian cancer. So as a prevention she had both her breast removed. 

Some doctors have argued that actually having the BRCA gene does not mean you WILL get cancer, though you will have a higher chance. But that can be sorted out through early detection and treatment of the cancer. The article also has some startling statistics for cancer.

Medical experts are worried about what they call The Angelina Effect, this effect is named after Angelina Jolie because when Angelina had her first kid she named her Vivienne and all of a sudden the name Vivienne became one of the most popular names for newborns. Experts are worried that because of Angelina's double mastectomy many women may opt to go for a medical check to find out whether they have the BRCA gene and eventually go for the double mastectomy just to prevent cancer, if they have the gene, which many experts feel is an over-reaction.

But one thing for sure we do not have to worry about The Angelina Effect in Singapore. We have to worry about the Man On The Street Effect. The man on the street cannot be bothered. They feel its not going to happen to them, even when their relatives have suffered from some illness. They rather read half truth post about preventing cancer on Facebook then to do something about it if it REALLY happens.

Many will do preventive things to prevent cancer or other illnesses. They exercise, they cut down on sugar, they diet, they take vitamins, they quit smoking. But the sad truth is: this does not take away the chance of you falling critically ill!! It just reduces the risk. I know perfectly healthy people contracting illnesses after doing all of the above and more. Perfectly fit and healthy people that just drop dead.

I have written extensively about planning for the future in all my post. I have also written extensively about predicting the unpredictable and expecting the unexpected. If you are reading this for the first time, please go back to my previous posts (yes all of them, great toilet reading material. You can read too instead of playing candy crush :P). But if in any case you are not, let me just quickly summarise, whether or not you are going to contract an illness or drop dead prematurely is unpredictable and unexpected for you and your loved ones.

But the only predictable thing during those unpredictable events is monies that are needed. Hospital bills, living expenses for self and loved ones (spouse, children, parents), unexpected cost. So if you just take the first step to first come to terms with the fact that 'yes I may fall ill or die prematurely' what are some of the expenses I cannot do without. What are the consequences if the monies needed to pay for these expenses are taken away from you and your family? Will you and your family need to change your lifestyle? Aussie education is now more expensive than US and UK, am I still able to send my kid overseas to study in future? Am I even able to pay for my kids tertiary education in Singapore since inflation is growing faster than my pay increase?

I know many of you have these questions but many also choose to compartmentalise these into small boxes at the back of your head. Out of sight out of mind. Many also fear speaking to a financial consultant one on one, therefore I will be running out some financial literacy workshops for individuals to learn how to do a basic financial plan for themselves. And since most companies ain't interested to empower their employees then you better empower yourself. These workshops will empower you with the knowledge to have a meaningful discussion the next time you sit down and talk to your financial consultant. I am in the midst of doing up financial planning tools on excel where anybody after attending the workshop can do a basic financial plan for themselves. Will update about the workshop in future post.

This post may be offensive, reader's discretion is advised..

Some of the things discussed may be controversial.. please read with diecretion



This is just an experiment. If you are reading this. Let me apologise first. Stay tuned for my next post where I will discuss the findings...

Financial Literacy and Human Resource

Was asked by somebody if I have anything to offer the company's recreation club. I told her education and empowerment. I wrote a proposal to the recreation club stating that I will run financial literacy workshops and provide refreshments for FREE! I waited for a reply and I got none.

Just today, this person told me they actually tied up with another insurance company that is offering 25% discount to their staff. Sigh.... companies' sometimes just do not get it. It does not matter how much discount is given to the staff to purchase a plan, if the staff or employee is not empowered with the knowledge to make the right decision to purchase a suitable plan for their needs, 50% discount also no use.

In all my years in the financial industry, I always feel bothered that corporate staff of these financial institutions are not taken care of. They receive a call from an adviser, they say, I working in this and this bank or this and this insurance company.. ok so is your company providing you the financial planning that is needed? Probably not. Because it still about bottom-lines, market share and profitability.

I have tried time and time again to visit organisation's HR to offer financial literacy courses and have always met with, so Tang, how is your workshop going to benefit the company? Sigh.. firstly, what does the company rely on? Employees.. what does employees crave? Appreciation... and it goes further than telling them I appreciate you. It goes further than giving 25% discount on a policy, but more importantly by giving them the benefit of what the product will do for the benefit of you and your family first, then give 25% off the solution because the company understands that you and your family is important to the organisation..

Companies have to start understanding that even if you provide group insurance to your employees it does not mean when a catastrophic event happen to your employees, those group insurances will cover everything. There are limits so isn't it fair that you give your employees knowledge to empower them with a simple financial plan so that when certain event happens your employees do not come back to the company expecting company insurances to cover everything? If you have read my previous post you will understand how important it is to manage expectations.

Many I spoke to expects that the company insurances and medishield and medisave will be enough.. hhhmmm. Trouble..

So if you are reading this, ask yourself if you know the limits and terms & condition of your company insurance? If you don't you may want to consider forwarding this post to you HR. Be empowered today!

Dengue May Be Reaching Pandemic Levels

If the website about the dengue situation is true, dengue may be nearing a pandemic level in Singapore. Click here for dengue update. It never feel close enough until somebody close gets it.

My brother and girlfriend were victim of dengue fever few years ago and it was unbelievable the pain they went through. They have complained of joint pains and suffered high fever. There is no cure or vaccine for dengue fever only support is needed. Patients have to be monitored to ensure platelet counts do not fall below the normal level which may result in death in severe cases. Singapore experienced a dengue epidemic in 2005 and the situation now may escalate that is we do not do anything about it.

The only way to fight and prevent dengue is to be diligent in preventing dengue in our homes. All you need is just 10 mins to do a wipeout regularly. We just have to play our part in our homes.

But just in any case, you do get bitten. What measure have you put in place for hospitalisation? Have you upgraded your Medishield to ensure a more comprehensive coverage? Click here for Ministry of Health's estimated cost for treating dengue.

I am sure while you are reading this you are thinking that this will not happen to me. But if you re-frame your thinking and ask yourself what if it does? Now even if you do not think it will happen to you, if it happens to your loved ones? Are you prepared for the medical bills that they may incur? 

While you are still thinking, why not just fill up this simple questionnaire, leave your contact and lets sit down and discuss how ready you and your family is if dengue do strike.

And as of today 7 May there is another strain of mosquito borne disease happening in Bukit Timah, chikungunya. A disease similar to dengue. So please be vigilant, clear your stagnant water. Get yourself protected.. just in case.

Miscommunication.. Between genders

Since we are at the topic of miscommunication. The way men and women communicate is different too. Especially when there is a problem.

Men don't talk about their problems  We try and solve it. So men tend to keep quiet and think about their problems and how to solve it. And the last thing men needs is the women to them and ask, 'whats wrong?'... Men will tend to say 'nothing' to a question like that, because we do not discuss problems. Women will aggravate the situation by asking 'you got problem right? Why you not telling me? The problem is me right??...' sigh, now it is.....

You see, women tend to discuss problems. They do it when they meet each other, they do it when they meet men friends, they do it when they go to toilet together...ok ok I don't know about the last one, but I know they love to go toilet together.

Because of that women cannot phantome that men can keep their problems to themselves. Because women cannot. They talk about problems and most of the time do not expect a solution. But another problem with men is they tend to want to offer solutions.

Imagine the very familiar conversation between a husband and wife or girlfriend and boyfriend.

Boy friend pick up girl friend from work.. girl friend gets into car.. girl friend starts complaining about her colleague: you know ah that bitch in the office talk so loud over the phone like her grandfather office. She is oblivious... (continues with complaining about colleague). After sometime, boyfriend will tell her: relax la.. just don't bother about her lor, you get so worked up now worth it meh? Just chill.

Silence will usually ensue..

In the head of men, they will feel shiok he have helped her solve her problems not knowing it is the beginning of a black hole opening up.

In the head of women, they will be thinking, you know what I am going through meh? You also not me. Men never understand, I don't want to talk to him again!

Girl friend calls friend to complain how boy friend don't understand her. Also complains about colleague.. she feels better..

Next day girl friend forgets about not wanting to talk to boyfriend. Boy friend pick girl friend, girl friend start complaining again. Boyfriend try and solve problem: told you yesterday no need to bother about this kinda people right?

Silence... bigger black hole..

Eventually when boy friend picks up girl friend from work, girlfriend get into car.. silence.. and the silence becomes deafening.. beginning of the end...

Men (you, yes you), women need a listening ear, so just listen. Fight with all your might the urge to offer your solution. Give only when asked.. don't try and solve her problem. I use to think that was enough.. but actually they want acknowledgements too.

Example:

If wife / girlfriend complaining about colleague, answer with: ya lor, why got people like that one (shake head).. be aware that your body language and tones is congruent with what you are saying... women picks up non verbal communication surprisingly well. And now you know why you cannot lie to your mother.. she seems to know all the time.

Women (yes you in the dress), just leave the men be.. they will tell you their problems eventually. And its not you. And don't be surprise if men tells you they are thinking of nothing... they are capable of that.. if you ask them what they talked over coffee with their guy friends the past few hours, don't be surprise they will say nothing.. and if there are juicy gossips don't be surprise they don't know the details, they don't.. honestly, I know...

Miscommunication.. Has It Happened Yet

Our reliance on technology has redefined the way we do many things. Many have proved that you actually do not have to step out of the house and still be able to survive just relying on the internet alone. 

Lets look at the possibility of surviving not having to step out of the house at all. Lets look at basic needs of a human being according the the Maslow Hierarchy of Needs:

Photo from Wikipedia

Many of the aspect can actually be fulfilled by the internet. As long as you are home, your physiological needs of breathing, food, water, sleep excretion is taken care of. In Singapore, water can be drunk straight from the tap. Food can be ordered online. Groceries also bought online and delivered to your doorstep.

Money to buy the groceries? Do really stupid things like doing back flips and fall on your face or Harlem Shake, video it down. Post it on youtube, monetize the video and hope and pray it becomes viral....

Esteem seems to be bigger when you are on the internet, suddenly people can become more confident with more self esteem knowing they are under the shadow of the internet. They become racist, antagonistic and feel invincible posting comments on the internet. One will say things on the internet that he/ she will normally never say face to face to another person.

But one thing that the internet and technology has taken away is the art of communication. The feelings and emotions attached to a particular message is gone. And sometimes this creates unnecessary conflicts or misunderstanding.

Review this message. Text a friend to meet for lunch tomorrow. He said later ok? I thought later like later today, he meant later like tomorrow later. Well yes, he just replied the way he usually would if he was standing in front of me and I will have understood him clearly! Waited for him to finish his 'meeting' then text him about him still stuck in the meeting. It was then he called and said he meant tomorrow later....

So what went wrong? In the Neuro Linguistic Communications Model, communication is divided into 3 components:

1. Words

2. Tones

3. Body Language

Each component takes up a certain percentage to make it 100%. Now make a guess how much percentage does words take up? Some of you may say 50% or more because we talk everyday and we understand English as a language made up of words.... 7%.

Sure or not Tang 7%? Let me tell you all the percentages for the components first: Tones 38% and body language 55%. SURE OR NOT?

Ask yourself this ever felt that this particular person, although really friendly and chatty and all but there is something not right about him/ her? Ever see somebody and feel I cannot click with this person almost 2 seconds into meeting them, but not able to pin point why?

Its probably because 55% of their communication is not in line with yours already or whatever that is said by that somebody is not congruent with his body language. Think about the person you brand 'fake' after being acquainted with them, why? You probably cannot pin point why, but its probably because of in-congruence with what they are saying (words) and how they are saying it (tones & body language).

So if the next time you want to post something on Facebook, Twitter or any social media website. Think again, you never know you may find the authorities knocking on your door.

What you don't want to know, but need to know..

Well I realised I have been posting alot about investments and as a financial adviser I should be well rounded and post other financial portfolios too. This post I devote to insurance.

Now I grew up never being a believer of insurance because, my father told me they cheat people's money. My friends told me insurance agent very pushy. Other people tell me insurance don't pay till you are dead.

Well in some ways those saying ain't wrong. The truth is there is nothing wrong with the product but something wrong with the salespeople. After being in the industry for 13 years, I know exactly what some salespeople will do to make the sale. I know in times of desperation people can do stupid things.

I have met many clients who have told me their regular premium investment linked policies don't make money.... sigh.. its not suppose to. The mortality charges paying for your death and disability coverage is being drawn from your units, so as you grow older more is drawn to cover those charges.

Many a times the failure is not in the product but the failure to manage expectations. Just like what makes a good horror movie. Well my expectations of a good horror movie is one that leaves you thinking about it after the show ends. One without a soppy happy ending. Just think about horror classics, they never ended resolving the issue.. closing scene is still flickering lights and evil laughter. But nowadays horror movies has happy endings with issues resolved and they live happily ever after... yawn.

Ok ok that may not be the best analogy of managing expectations.. so lets look at some other expectations. Now imagine this scenarios:

1.  You are in a plane, the pilot comes over the radio telling all passengers to put on your life jacket and prepare for crash landing

2.  You bought a new car but damn suay, on the way home you got tire puncture

3.  It started to rain, you go into the shop to buy an umbrella. You walked out of the shop, opened the umbrella, its full of holes

What is the expectations for each scenario?

1.  Life jacket is under the seat

2.  Spare tire is in the trunk

3.  Go back to the shop ask for refund

But what if there was no life jacket under the seat, no spare tire in the trunk and no refund at the shop. You will feel cheated! Because its expected. But if you took the flight and the airline company have told you before you bought the ticket that their policy was that passengers have to pay if they wanted the life jacket. You have the choice to take the flight without the life jacket, take the flight with life jacket but top up some money or not take the flight even though it could be the cheapest.

Lets say you took the flight cheap without the life jacket and if scenario 1 happened, your expectations have been managed. You will not be upset (probably upset for not paying more for a jacket) because you chose. The airline company disclosed and you fully understood the risk. They probably made you signed some indemnity to indemnify them from the risk of you not wanting the life jacket.

That will be too much risk and paper work for them... but if only the financial industry have something like this. Imagine I go speak to a family man, I know his family. I try to talk to him about coverage but he tells me: insurance bluff people, cheat money, I cannot see until I die. Then I whip out an indemnity form ask him sign. The form will state the exact time, place, setting and whatever the guy said on it. He will sign on it. If something untoward happens and people start coming to ask why no insurance, why Tang you never ask him get himself covered since he got family, I can whip out this indemnity form and say I did, but he want to invest property, buy car, entertain frequently, invest stock market, find business opportunity, go shopping, everything else but buy insurance......

Everyday I live in fear of knowing that life is unpredictable. Not fear for myself but the fear of the people around me who some chooses to just ignore the need for financial planning. The fear that I may not have the opportunity to speak to the closest people before something happens. Then again, I ain't Snata Clause. I do not have a sleigh pulled by Rudolph and friends that can traverse the whole world on the 24th of December. 

Some clients I have spoken too very quickly will tell me, Tang I have insurance already. Ok.. but when it starts raining, umbrella has holes. You cannot believe that there are individuals with $10,000 coverage: I have already...

Ever considered liabilities and who is going to pay for them if something happens? Some people's credit card debts already more than $10,000. Well that is why sometimes families have to lose their dignity to ask for money from relatives, friends and even social support just to get through life after something bad happens to a key family member...

I have this very funny client when I showed him a term plan he commented: Wa this one like 4D. Term plans are plan that has very high coverage no cash value, just like car insurance. But if objective of client is coverage for death then I will recommend term. To put into perspective, it can be like $200 per month for coverage of a $1,000,000.

Told my client yes its like 4D except that for 4D you hope you tio, then get pay out, if not tio jia (get eaten). But for term plan, don't tio good thing, but if you tio got pay out. Win win situation,4D win lose situation.

For investment savvy clients, I will ask them if they know what an option is? Options are investments, you buy for a strike price and pay a minimum option fee for it. At the strike price you have the option to exercise it. Just like insurance, you pay option fee (premiums) for a future promise of exercising it at certain events.

Insurance are like options. Its a small fee for a big payout later. If you took the above example of a term plan paying $200 per month for $1,000,000 you need to pay 400 years of premiums before you cover that amount.

So if you now think you actually have an umbrella(insurance) already. When was the last time you opened it to check for holes? You don't want to check it for holes when it is raining. Do it now while its sunny. They say make hay while the sun shines. Think about it.

People Are Forgetful...

Its amazing how property prices in Singapore have moved up so quickly so fast ever since the last crisis caused by a property bubble bursting in US. Guess people are forgetful. People have forgotten how a $980,000 property bought in 1997 is valued only at $450,000 in 2003. 

Monthly repayments for home is affordable now because the crisis since 2008 is not fully resolved. Too much  money have been spent on resuscitating the economy to risk another collapse and most government is wary about rising interest rates too fast too soon. This has driven cheap money into the economy giving people the ability to buy more expensive houses, driving up the demand. Of course this always brings out the emotions in people and making them blind to the fact that property is still an asset and there is a possibility of prices going down.

With the cooling measures just introduced, it does not have much effect on the market. People seem to be still wanting more exposure into property.. its probably because monthly repayments are still affordable. 

Lets take for example, Buying a property that cost $1 million. Lets say being a first owner, you get to purchase your property with a 80% loan. The bank lends you $800,000. Your monthly repayment based on an interest rate of 1.5% for a 30 years term is estimated to be about $2,757.

An increase of 0.25% in the loan interest rate will move the repayment up to estimated $2.849. Bring the interest rate up to the point where it was in 2007 where lowest interest rate is probably 3%, monthly repayment estimated about $3,364 (3% is only for first year then)

This is for first timers, I do not even want to mention for those who buying second property having shorter repayment terms and higher duties. 

Inevitably when the interest moves up there will be less people being able to afford houses thus driving down demand thus bringing down the property prices, thus causing people to panic sell, thus having fire sales when people cannot pay up (we hope there is less fire sale compared to 2003), unless of course the government sticks to the promise of 6.9 million population which so many property owning Singaporeans are so against....

So when will interest rates move up? Its when economies are doing well, inflation is increasing, to cool an overheated economy governments increase interest rates as one of the strategies. When interest goes up, cheap money is taken out of the economy, causing less spending bringing down inflation. When this is happening which asset class is going up? Equities! Which asset class is slowing going down, property! So doesn't diversification make sense? Then again this is in theory, but again I maintain that diversification is the way to go. 

I just can only hope that what happened in 2003 does not happen again... then again people are forgetful...

Investing? Diversify!

Just sold off some investments I did 2 years ago in funds. Did these investments with a bank I was before. Been sometime I looked at it and thought now is a good time with the whole Cyprus issue and all.

Walked into the bank and asked for my portfolio. I glanced at the printed copy of my portfolio and was dismayed to find a particular fund that showed -12% under the rate of return column. Looked at the fund that was at negative 12%, Global Property. Alamak since when I have this fund man! Probably I did, it was one of those decisions I made that since global property has been going down the only way is up. Wrong call....

Glanced at the other funds I had. An asian managed dividend paying fund and a Singapore fund. 5% (excluding the dividends I got over 2years) and 29% respectively. Woohoo! Whatever losses I made in the property fund is nicely covered by my other 2 funds.

I have been an advocate of long term investments (though 2 years ain't that long term, but this is tactical asset allocation), diversified asset allocation and dollar cost averaging. This strategy has helped give potential returns of about 10% per year. Though like they say past experience is not indicative of future performance, but diversification has helped all the time.

Some of you may argue that Tang 10% could be something I do in an hour. Sure but will you tell me if you lost 10% in an hour? The fact is if something can give you a potential return of 10% in an hour it also potentially can give you 10% losses in the same hour. And that, like I have mentioned in my previous post is not investment but speculation.

And again it is not wrong to speculate, but do so only when you have core financial planning done then go speculate, knowing that losing 10% in an hour is not going to affect future plans. In fact, even if you lost all your money in the casino or spent it on all the quick picks in every Singapore Pools in Singapore for the 10 million price draw, you are rest assured that future plans will not be affected, then go ahead do it! Come on admit it, we all dream that one day when we tio the Toto we will throw resignation letter in our bosses face.

I have secretly dreamed that if I did tio the Toto, I will photocopy and blow up my Toto ticket and paste it behind me in my work station, then chill and do minimal work just to hit KPI, just to justify my existence. My winnings left in a dividend paying fund drawing 4%, for every million it is $40,000, can sustain my daily living and working is just getting more money from the company. Boss walks out of the room and say Tang your performance not up to standard, without looking at him, I use my thumb to beckon him to look at my winning ticket. Boss no choice walks back into room. If only....

Sigh...

But that was corporate life. Now I am the boss, resignation letter I throw in my own face :).

So before you foray into investments ask yourself some questions:

1. How long is my time horizon?
2. Is my core financial portfolio in place?
3. How much am I able to lose?
4. Is the investments I am going into diversified?

There are many solutions that fit different needs and risk profile so start taking action, because what you do today will impact your future.

Chinese New Year is Over

Well CNY 2013 was gone in a flash. The kgs put on also came in a flash. The season is changing once again and the heat seems to be back.

And I am going to Korea tomorrow! Stay tuned for my next escapade to Korea! Its great that most of my airfare and some of my accommodation is paid for. Woohoo!

The Day The World Changed

Imagine, before leaving for work,you said goodbye to your father in the morning at 6 am and by 11 am you are at the hospital the doctor is telling you your father is gone. And if you think this is some scene from some Korean or Hong Kong drama then you are wrong. This happened last Thursday to a friend of mine and I start to realise I cannot seem to be helping people fast enough to get them insured.

Why? There are many times when I ask friends who they are concerned about, who they love and care and tell them they have to consider the repercussions if something unfortunate was to happen. Ask them for their loved ones contact so that I can talk to them to prevent unnecessary financial cost if sometime happens.

Not only will there be financial cost but also the cost of living for those they leave behind. Even if death do not occur, financial liabilities will come from medical and living expenses of both the sick and the living.

In short many times I ask for referrals from people and the usual answer: don't have anyone in mind. I call them and ask them first. They are not free. They need they will call you.

The truth is when do people need insurance? When their loved ones pass away, when they are critically ill, when they are hospitalised, when they are disabled. But by the time those things occur, you need also cannot buy. Just like the life jacket on the aircraft.

If I ask anybody who has traveled on a plane before where the life jacket was, everybody will say under the seat. But the truth is do we actually know if it is physically there? We do not even pay attention to the air stewardess when she is explaining how to put on the life jacket, which tube to blow into to inflate, when to pull the tab to inflate the life jacket. We take it for granted that the plane will not fail.

And isn't that what we do in life? We take it for granted that all will be fine. We think we will never die, never fall sick, never get hospitalised never need that life jacket under the seat.

And that's the difference in life and on the plane. You know that if the plane was to fail and you hear the captain telling you to put on the life jacket, you can be rest assured the life jacket is there. If its not and if you survive the plane failure you can sue the airline company later.

What about life? When one is in an unfortunate incident, are we able to pull that life jacket out from under the seat? At the point when you actually need that life jacket can you tell the insurance company you want to buy one now? Who do you sue if you manage to come out of it. Will you still be able to live life at your current standard of living or has most of your assets been used for the medical and other cost?

That's where financial planning comes in. And yes I know this term has been used too loosely and its been abused by many. Many advisers tell people financial planning but eventually push a product and yes I understand its because of these people that many refuse to refer.

If you have read my earlier post, financial planning is a process where one go through what an accountant will do for the company. We first see an individual or family cash flow and net worth. This allows one to see if the individual or family is overspending. We see if the assets are allocated properly to achieve a desired return. We use past expenses and current assets, project them into the future with inflation and rate of return. We will then choose risk management theories to mitigate our risk. Then we implement solutions suitable for one's situation. After the implementation of the solutions, we become auditors. We need to monitor and review if the solutions implemented are still relevant. Certain events will render one's solution irrelevant, events like: getting a promotion, changes in expenses or income, buying a property, getting married, having a kid, kid going to school, retirement, changes to the economy, inflation, changing government policies, strike 4D, TOTO, big sweep. This list is not exhaustive.

So if you are reflecting on what kind of solutions you have and it has not been audited for some time, better consider doing one. Because many of the events mentioned above WILL happen, and the time to do something about it is NOW! And that is called planning. Stop taking things for granted because we do not have a life jacket like we do on a plane. And just like the life jacket we never want to use it but we are at peace its there. We may not want to use all the solutions in our financial plan but be at peace it is there.

So pick up your phone and give your financial adviser a call, tell them you want your plans reviewed. If you do not have one drop me an email tngjinyau@gmail.com or call, text, whatsapp 9180 3448. And if you still think its not going to happen to me, think again..

I apologise to those who take offence to this post so close to Chinese New Year. But my heart felt condolences go out to my friend and his families who has lost someone close.

To all my Chinese friends Gong Xi Fa Cai.