My Backside Itchy

I dare say I am a relatively adventurous and spontaneous person. I and a friend have planned a trip to Malaysia one Chinese New Year over a coffee on CNY eve. He was lamenting how CNY is always so boring as he does not go visit his relatives. I told him I will be free after visiting relatives in the morning. We arranged very tentatively that we will go to KL the next day after visiting.

Chinese New Year came and after the usual 'Gong Xi Fa Cai' and collection of ang pow. I waited at home for this friend to call to leave for KL. 3pm, no call. 5pm, no call. 7pm, no call. Finally at 11pm, I called him. 'Eh! Thought we going KL?!'. He said 'Gia la!' (Let's go in hokkien). Hopped into my car, went and picked him up and realized in between us we had less than RM$10. We couldn't go to KL, at least not on the north south highway. We did not have enough to pay for toll. We changed plans and decided to go to Kuantan using route 3, so the only toll we have to pay is the one at Woodlands.

Off we went entering Malaysia just past midnight. We figured we can just try and find a resort in Kuantan and since it's CNY there should be rooms. As we got onto route 3, me being relatively familiar with the roads because of my frequent dive trips to Tioman, I told my friend that he has got a very important job: look out for cows. Those were the days when cows still roamed freely along route 3, they have since installed electric fence along the route to prevent stray cows getting onto the highway. I knew it is going to be at least 5 hours to get to Kuantan. 

About 2 hours into the drive, we were chatting when over the hill coming from the opposite direction another vehicle with its full high beam on, we were blinded. 'This fella so inconsiderate' (language used was far more colourful, adjusted for the purpose of this blog post) 'never mind, we high beam him back!'. Just as I flicked my high beam on, my lights caught the silhouette of a cow, it's ass taking up half the lane I am on. Instinctively, I swerved into the path of the oncoming vehicle and swerved back into my lane to avoid a head on collision with the vehicle and successfully avoiding the cow. 

We were silent for awhile, knowing that we were so close to getting into an accident either with the car or cow. Both would not have ended nicely. But as the initial shock faded we joked about it nervously and carried on our way, but at a relatively slower speed. 

We got to Kuantan at 5am plus, went into some more decent looking resort just to find out they are mostly full too! We forgot that it's Chinese New Year, the other non Chinese holiday too! Oh no! We are in Kuantan at 5 plus in the morning and no resort! My friend said :' bro, I've got friends in KL at the moment, we can bunk in the hotel room till we get a room tomorrow.' Ok, I said. KL then. I know that from Kuantan to KL we have no need to pay toll and therefore the lack of Ringgit will not cause any problem. But little did I know I will get a shock when I reach the highway.

I kept thinking that Kuantan and KL is on the same plane on the map. It should be a short drive from the east side to central Malaysia, when I got to the highway the road sign read: Kuala Lumpur, 270km. OMG! It's another 3 hours of driving! We have not slept at all and I know I am feeling sleepy. I looked at my friend and he was nodding off to sleep. I told him to sleep first, I will rest when I cannot take it. I drove for another one and a half hour and saw a petrol station along the highway and told myself that I better not push it, rest so that we can go further. So at 7.30am I parked the car in the petrol station and slept. 

Woke up at about 9am and continued our journey. We arrived safely in KL.

I took up diving in 1994 and have not looked back since. Diving is a great sport accept that it is still dangerous if not practiced properly. You may get decompression sickness, you may get lost at sea, you may be compromised if the boat you are on sinks. But if done properly all is good.

Got my driving license in 1994 and got my motorbike license in 1996. Upgraded to class 2 in 2002. Bought my BMW and eventually my Harley Davidson 5 years ago. Met my wife in 2004 and made frequent trips back to her hometown in Malaysia. Took my bike up to Melaka, KL, Cameron Highlands numerous times. Flew to Vietnam twice to rent Motorbikes to go up their mountains. 

Visited the Demilitarized Zone in South Korea on the day North Korea said they had missiles that can hit US. 

There are so many things that I have done and still doing that increases the chance of a hospitalisation. But never was I hospitalized for 38 years of my life till 24th July 2014. And the reason I was hospitalized: an infection on my left butt cheek......

In the course of my career as a financial planner, I have seen and heard many that have told me that it is not going to happen to them. I admit that I am guilty of that thought too. I never thought I will ever be hospitalized for an infection on my left butt cheek. I should be hospitalized for a collision with a cow on north south highway or falling asleep over the wheel. Maybe a diving encounter with a shark or poisonous creature. Or maybe an over ambitious attempt at a corner on my bike. Or maybe a food poisoning from an over adventurous try out at some Bangkok food street stall. But no... An infection on my left butt cheek.

And I will tell you my left butt cheek now cost $8,000 after a 2 night stay. Almost $1,000 from daily dressing change. And all I can say: thank God for insurance!

So I urge you that if you have not re-looked your financial portfolio recently especially your insurance, please email me tngjinyau@gmail.com. Even if it's just to ask me out for coffee to find out more.

Because I'm Worth It!

L'oreal's advertisement has a slogan 'Because I am worth it'. What does that mean to you? L'oreal had the intention to target females to embrace feminism, embrace independence, embrace confidence, self esteem, decisions, style and probably embracing lifestyle as a whole. 

But if we tell ourself that I am worth it, how much are you worth? How much does your success worth, how much does your job worth, how much does your life worth? Most of us will probably will never be able to quantify it because it is suppose to be priceless!

But if, unfortunately, a premature death was to happen, your loved ones will really know how much you really worth. Your $10,000 a month job is worthless when you are not around, your high flying career belongs to somebody else if you are not around, your priceless life means nothing if you are not there to enjoy it.

So how much are you worth? Do you even know how much life insurance cover do you have? So if you are supposedly priceless, then your life insurance should reflect that right?

So if you are priceless then will a minimum $1,000* per year premium for a $1,000,000 coverage on your life be of value to you? If it is, please drop me an email tngjinyau@gmail.com to request a quote. 

Live life to the fullest, but make sure somebody pays for it when you die.

* Based on Male, age 37, non smoker for 10 years. Terms and conditions apply.

"I Hate My Job!"

So how often have you felt that way? How often have you felt unappreciated? How often do you feel you are overworked and underpaid? How often have you managed to leave office on time? Can you go on leave whenever you like without having to consider that somebody else is on leave? Do you feel sidelined because somebody else seems to be able to carry the boss's balls better? Have your promotion been deferred because the person they promoted joined the company earlier than you but you clearly did more?  Do you drag yourself out of bed every morning to go to work? Are you bored?

So if your answer to many of the above question is 'Yes', what steps have you taken to get out of it? Have you asked yourself what's your 5 years goal for your life? Can your current job help you achieve your goal? 

Yes, stay in your current job and somehow swallow the injustice, hang in there you are almost there!

No, then what steps have you taken to get yourself out of it?

Research have shown that 95% of us spend up to 45 years of our lives making the rest of the 5% successful and wealthy. Too many of us complain about our work but what do we do about it? Usually nothing.... we complain just to let go of the frustration. Frustration vented we forgot how miserable our work is.

I felt all of that when I was working in corporate. I was promoted after somebody because they came in earlier. I was not promoted because somebody has a better relationship with the boss. I decided it is time to take my life, my career into my own hands. Nobody should dictate whether I should get promoted or not. Nobody should dictate that the work I put in should only cost $80,000 per year.

I went back to the financial services sector as a consultant so that I can serve the people I love. I was in the financial sector since 2000 and went through the bad times and good times in the economy and every time people seem to lose money in their investments. They do not have proper advise when it comes to investments and make rash decisions that are detrimental to them. Many also make rash decisions regarding their insurances and other financial solutions that also makes no economic sense at all.

I know that doing the right things for my clients and managing expectations of clients investments will eventually give me the remuneration. So how am I remunerated, one basic principle:

See the people, help the people. 

The more people I see the more I will be remunerated. I have clients that say that they don't like to talk to us consultant's because we make a lot of money.... eerrrr.... it still comes with hard work. She eventually upgraded her Medishield plan to cover all the expenses in a private hospital. At the point when I delivered her policy, she asked me how much I will earn from that. I told her about $100 plus for her $500 plus premiums. She looked at me horrified and said Only?! I said yes.. so we don't make a lot of money through one person. We can make a lot of money from tears, sweat, blood and grit. It is still all effort that we put in. But we can control our remuneration by just determining the number of people we want to see, to get the kind of income we want. Want more, work more. Want less, work less. 

This is the place where it does not matter when you come in, how well you can make the boss like you to get your promotion. This is a place where if you put in the effort, see the people, help the people you can choose your path. You can decide to be a manager or you can get promoted through the ranks as a consultant. The choice is yours. 

I just got back in May from an incentive trip and will be going for another in 2 months. Fully paid. All because of effort and hard work.

I am starting a team this year and is looking for people to join me. What kind of person should apply:

• Driven 
• Adventurous
• Motivated
• Loves to help people
• Knows what they want in life
• Won't settle for less
• Team Player
• Loves fun and travelling
• Not afraid of hard work
• 'Can do' attitude
• wants to be the 5% that is successful and wealthy
• Singaporean or PR

This is an opportunity that may change your life. Opportunity is not for the chosen few, but for the few who chose. Are you the few?

Please do not apply if:

• you want a fix pay
• you are comfortable in your misery
• you are not open
• your job can fulfil your dreams
• you hate to meet people

To apply, please submit your CV to: tngjinyau@gmail.com and I will get back to you shortly.

CPF... Cheating People Fund? Really?

Have been surfing the web and chance upon many post about CPF and how it seems to be taking monies from us and we never see it. Many is complaining about how we will never see our CPF monies. 

It's amazing how many of these information is publicly available but many still choose to rant and rave and not bother to go find out about it themselves. Though I have to agree that CPF seems to handle too many things and they try to put all that information on the website and it's kinda cluttered but still the information is there. So if any of you need information on CPF you can go to www.cpf.gov.sg

Many people has questioned that why is CPF taking our monies? CPF traditionally was formed to help us with our housing, education and retirement needs. Though with the pace of progress and with inflation, CPF cannot fully meet all those needs now. But it will still meet some. Many will have read the article posted on Facebook that there are people at 35 but with no savings... But the article did not mention they have CPF! They may still buy a house even if they have no cash savings. Nothing fancy but it's still a roof over their heads. 

Many is also planning to use their CPF for the education of their children in a local tertiary institution. 

For retirement, many complain that we cannot withdraw our monies at 55 if we do not meet our Minimum Sum Scheme. But let's say we can... What will we do? Splurge on a new car? A new home? Double or quits at one of the casinos? Invest? Leave it in fix deposits drawing 0.75%?

I read with amusement on one of the site that someone actually mentioned: How many investments in the world actually make money? None! He said. What ignorance! If you have invested in MSCI World since 1994 you will have gotten an average return of 7% per year today. Even if you have invested in MSCI World the past 10 years, you could still get about 6% per year today. Many lose money because of much teachings to cut loss. Cut loss? How much loss can you cut before you have practically lose all your money? Anyway that strategy ain't investing. It's speculating. So investing is about having a long term time frame and not let emotions take control of you so that you realize the losses that is on paper, unless you are sure the markets will go down forever and never recover ever again. By the time that happens, money or cash or currencies as we know it is of no value anyway...

Please email me or contact me if you have invested and is not making money in them. Let's have a free no obligations chat. 

So if strategy for investment is to have a long term time frame then isn't that what CPF has? CPF guarantees a minimum 2.5% return on your monies in OA, which other institution guarantees that without risk? All they need is time.

Many have also asked what happens to CPF monies when they die? Once again, publicly available information... Then we have people saying CPF take everything.. It's a ordinary account not savings account... Duh. Then CPF ask us to nominate for what? For fun? So that they can do more work? No lah.. So that they know who they can distribute your CPF to if death was to occur la.. So if I never nominate how? Then it will be distributed according to intestate laws through a notary public lor.. Though the process may take longer so it is always better to nominate your beneficiaries.

If you need help doing that please contact me too, if not the form can be downloaded from the CPF website.

CPF now has CPF life which will pay a monthly income to you till death occurs. Not good meh? So let us assume that you did withdraw your CPF monies at 55 then you are not the spending kind then you leave it in a Fix deposit that gives you 0.75%... Inflation 3% rate of return of your money -2.25%. Which means your money is being eaten up by inflation and value will drop over the long term. Leave it in CPF retirement account, get 4% then get paid a monthly income during retirement, if you so happen to leave a long life CPF will still pay you... So how does CPF cheat people money like that?

But with all that said, we still cannot rely on CPF to be the only source of funding for our retirement or education needs. Some forward planning is still needed. So please contact me if you have not started on your retirement plan or your children's education plan or your medical plan. 

There is still many aspect of CPF that has not been touched on, if I did then this blog will be as long as what CPF website has in pages.

What If You Strike $10 million ToTo Tonight

What if you strike the $10 million ToTo tonight? I use to dream that if I strike ToTo, I will write a resignation letter to my boss and ask him go fly a kite. I will not serve my notice period and just pay off my notice period and get the hell out of there. That was when I was in the cost center of a company.

When I was in the profit center of a company. I dreamt that if I strike ToTo, I will photostat and blow up my winning ticket and paste it on the wall behind my desk. Boss walks in and ask for my sales figures, I will just use my thumb and beckon to the winning ticket stuck on the wall. I will do whatever figures I like since more work I do does not necessarily equate fairly to what I will be paid.

But unfortunately, I never did strike...

But fortunately, I have left corporate and in my opinion strike my lottery. I have realised that be it in the cost center or profit center of any company, there is one thing in common. The company.

The company always comes with bureaucracy and red tapes. There is always office politics. There is always colleagues that is just doing things for their own agendas. There are always bosses that never seem to understand. There are always fixed working hours to abide by. Many a times you do things you never undertsand why. Nobody cares about your opinions. You never get to leave on time and if you do you get dirty looks. And you are never paid enough.

But of course, being in a profit center of a company is still better than being in a cost center. Got a little more bargaining power. Can speak a little louder. Demand a little more. But still being in a profit center still cannot make up for all the bad reasons associated with a company.

So do you know if you are in a cost center or profit center. To determine, does your work contribute directly to the profitability of your company? Yes, profit center. No, cost center. Don't know/ Don't care... you are bored and disengaged at work.. highly cost center.

So what will you do if you strike the 10 million tonight?

I am sure you already have your dreams thought out already. But first you must buy the ticket first, second you must strike....

But if an opportunity arise so that you can live your dreams? Will you take it? How much will you spend getting it? How much time will you invest checking it out?

I am currently looking for partners that are business oriented, customer focused, creative and intelligent. Being handsome or pretty is an added advantage... Just kidding.. though I am serious about looking for partners. Must be prepared to travel.

Only looking for Singaporeans or PR. Age between 21 and 40. If you are a fresh graduate with big dreams, you will also be considered.

Opportunity is not given to the chosen few, but the few who chose.

If you fit the above description and more, email me your resume at tngjinyau@gmail.com.

Elastic VS Inelastic

For many years now, whenever I shop for a pair of bermudas for casual wear, one of my concerns are always whether the waistband is elastic or inelastic. I always look out for bermudas that are elastic as I know if my waist line increases then there is more room for expansion. With elastic waistband I can eat more during buffets. If I put on wait I do not have to immediately run out and start buying new pants. If only somebody can design work pants that are also elastic yet look professional will be ideal. I can still remember the times when I bought Levi's jeans with waistline 32... today I struggle with a 38.. so elasticity is key in my choice.

In economics, whether the demand for an item is elastic or inelastic will determine how much price will affect the demand of it. Meaning if the demand for an item is inelastic, no matter how high the price the demand will still be there. Just like my bermudas if waistband not elastic then when waitline increase then will have to buy knew ones, no choice...

But of demand for a good or item or service is elastic then with increase in prices then demand will drop. Just like the case of my elastic waistband bermudas, if the waistline increase it does not matter I just have shorter strings to tie but still can wear for some time.

We have been taught that some of the things that has inelastic demand are cigarettes, alcohol, healthcare and probably funeral services. There probably are more but these are blatant examples. As you can see cigarettes have increased in price from a mere $3.50 in my first memory to about $11.00 today yet there is no lack of smokers. Same as alcohol and I do not have to say much about healthcare and funeral services.

But in Singapore, I have noticed that there are 2 other items that has also inelastic demand, cars and property. Its amazing how much people will pay for a piece of paper that is only valid for 10 years and you cannot even wipe your backside with after the 10 years. That piece of paper coast about $80,000 today. But when you ask the same people to set side $8,000 per year for the next 10 years for a potential return of 5% they think I am crazy.... 

$80,000 buying a COE, value after 10 years = $0

$8,000 set aside per year @ 5%, value after 10 years = $100,623

But of course I do agree that having a car is a necessity especially if you have kids and all.

I read about how LTA came up with the COE scheme and all because they use behavioural economics. Read all about the report here. They used chocolates as example to justify the need to charge for zoning of restricted zones and all. Chocolates and congestion what is the relationship!!?? The rationale is that if you have free chocolates, people will take the free chocolates but if you have to pay for the chocolates then less people will take.

The research have been done on a very shallow basis without taking into consideration of many other factors. For example the culture and tradition of Singaporeans. Singaporeans are still very much conscious about face and status. And 2 of the items that can fully express your status is a car and a big property or the number of properties you own.

I remembered that when I was younger my grandmother use to tell me in hokkien: more important to have big car then big house cos more people can see the car but not the house. 

So because of face many will still buy a car as a status symbol. And not any ordinary car but a big one. In Marketing there is something called the perfect price discrimination strategy, people like Toyota has come out with their luxury brand Lexus, so that they can capture all the market. On a budget buy Toyota, want to express status buy a Lexus. That is exactly how our COE is heading and yes that should be it.

But what I cannot fully comprehend is the need to have Motorcycle category. Ok so its a perfect price discrimination strategy so we also charge motorcycles but in the latest COE bidding it has been raised to $2700 up by 30%! Why? Are motorcycles now causing the congestion? But Tang relative to a car still cheap what? Yes but its the principal, the principal of COE is reduce congestion but motorcyclist taking less space on the road causing almost no congestion (unless in an accident) is slapped with higher COE? 

Ok I am somebody driven by principal and that is also why there is an internal struggle now for me to purchase a Sony PS4. I had chose to purchase a Sony PS3 in the past because they never charged for online gaming but the Xbox 360 did. But with the launch of the PS4 online gamers has to purchase a subscription.... contemplating switching back to PC....

Anyway, LTA should think out of the box to solve their congestions rather than just taking money.... unless they have already understood the inelasticity of Singaporeans car demands.

Matter of Life and Death

Many people have said that buying an insurance is not because someone is dead but more importantly there are people who are living. Over the past 2 weeks, I have seen and known of 2 deaths that has happened. RIP.

Its common for people to say RIP or rest in peace when deaths occur. The dead will rest in peace but will the living be in hell?

It is almost impossible for any families today to be earning only one income and having one income taken away unexpectedly is a nightmare for the living.

As an adviser, I have always advocated that financial planning be done as a family. And the usual exercise is done like this:

1. Ascertain total household expenses
2. Ascertain each income earners share of expenses
3. Ascertain how long will the surviving partner adapt to not having the other's income
4. Ascertain total amount of coverage needed for each income earner
5. Collate existing policies
6. Ascertain shortfall of coverage after taking into consideration of existing policies
7. Recommend solutions

With the steps taken above the surviving partner knows exactly what to do when an emergency happens. The surviving partner can be at peace financially knowing that the planning has been done.

Lets put into perspective:

Lets assume John and Mary is married. Their total household expenses is $2000. Yes I hear you.. its more than that but I use $2000 as an assumption.. can? I usually will breakdown these expenses into things like utilities, kids education, transportation, groceries, etc

Anyway, both of them contribute 50/50 to this $2000. Therefore the share of John is $1000 and Mary is $1000 towards the household expenses. After much discussion they feel that they will like to cover about 10 years of not having the other person around (this figure is an assumption and differs from every family).

With that using the simplest of calculation, we take $1000 x 12 x 10. Which means each of them should have a coverage of $120,000 covering each other so that in the case of premature death occuring the surviving partner will be at peace that there will be 10 yrs of $1000 per month (this calculation does not take inflation into consideration).

After going through their policies, Mary has an existing coverage of $50,000 and John has none (typical). Therefore, Mary should get $70,000 more coverage and John $120,000.

The solution that will be provided is dependent on what preference has each of them have. The few categories that can be considered are:

1. Term: high sum assured, low premiums, no cash value
2. Traditional whole life: higher premiums (pay premiums whole of life), lower sum assured, accumulated cash value
3. Limited pay whole life: highest premiums (pay premiums for limited time), lower sum assured, accumulated cash value
4. Investment Linked Whole Life: cheaper premiums than whole life plans, high sum assured, cash value determined by investments in funds.

Depending on what kind of plans John and Mary prefer, the solution will be presented. Affordability is also a factor that is contemplated here.

So these are the steps that will make the term RIP more meaningful. So sit your partner down, start taking out your policies (if you have a sensitive nose, be careful it usually dusty), collate your expenses, start talking to your partner about how long they will need to adapt not having you around. Do the simple calculations and see if you have any shortfall.

If its too much trouble, call me.. I do this as my job. And I assure you I do not charge.. yet. I can also email you a simple spreadsheet to help you do the above calculations just be you keying in all your figures. So email me, tngjinyau@gmail.com, it's free..