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...