Enjoy a 33.3% discount when you order 3 copies of the financial planning book for $24. Each book cost $12, so you are getting the 3rd copy free. You can join with your friends to buy the 3 copies and share the discount. You can also buy the 3 copies to be given away as a Gift.
Spend 3 hours to read the book and learn how you can save more than $100,000 by making the right investment (or avoiding the bad one). Invest in your financial literacy and be confident of making the right decision.
www.tankinlian.com/ishop
You can also place your order by sending an e-mail to inbox@tankinlian.com with your mailing address and mobile phone number.
Friday, November 12, 2010
Recent events and financial literacy
If you wish to understand the exchange of letters in the Straits Times on SM Goh's suggestion for insurance agents to sell term insurance, and also the merits of investing in the DBS preference shares, you can register and attend the talk on financial planning conducted on 4 December 2010.
Be educated about insurance and financial planning and be confident about taking the right decision. You will be able to understand the advice given to you by an insurance agent and to distinguish between the good and bad advice, from the perspective of the consumer.
More details here.
Be educated about insurance and financial planning and be confident about taking the right decision. You will be able to understand the advice given to you by an insurance agent and to distinguish between the good and bad advice, from the perspective of the consumer.
More details here.
Invest in preference shares
If you wish to invest in preference shares, you can read this FAQ which explains some of the terms of the preference shares. It is stored in www.tankinlian.com/ask.aspx (search for Preference Shares).
Youth gangs
There are some incidents involving youth games engaging in violence. Here are the views of readers.
www.easyapps.sg/sgep/latest.aspx
www.easyapps.sg/sgep/latest.aspx
Thursday, November 11, 2010
Product Highlight Sheet for DBS Preference Shares
I was surprised to find that consumers have to read a 117 page prospectus on the DBS preference shares. I recall that, one or two years ago, MAS had a requirement for financial products to be described in a product highlight sheet. Is this requirement already implemented? Can someone working in MAS or the financial sector enlighten me?
Answer
I spoke to a MAS official. She told me that the requirement of a Product Highlight Sheet has been accepted by MAS but has not been implemented yet. Still, it would be nice for DBS to provide this PHS, rather than give a lengthy prospectus to the retail public.
Answer
I spoke to a MAS official. She told me that the requirement of a Product Highlight Sheet has been accepted by MAS but has not been implemented yet. Still, it would be nice for DBS to provide this PHS, rather than give a lengthy prospectus to the retail public.
Preference shares - perpetual and redeemable
Dear Mr. Tan,
The DBS preference shares are perpetual (i.e. have no expiry date), but are callable (redeemable) by the bank in 2020. Does it mean that DBS will return the capital investment to the investors in 2020?
REPLY
The perpetual nature allows DBS to keep the money forever and to pay the dividend at the specified rate.If DBS is in trouble, they may not pay the dividend (you have to check on this point).If DBS goes bankrupt, you may lose all of the invested sum (but this risk is very small). A preference shareholder has a higher risk that a bond holder but lower risk than DBS sharehholders.
The DBS preference shares are perpetual (i.e. have no expiry date), but are callable (redeemable) by the bank in 2020. Does it mean that DBS will return the capital investment to the investors in 2020?
REPLY
The perpetual nature allows DBS to keep the money forever and to pay the dividend at the specified rate.If DBS is in trouble, they may not pay the dividend (you have to check on this point).If DBS goes bankrupt, you may lose all of the invested sum (but this risk is very small). A preference shareholder has a higher risk that a bond holder but lower risk than DBS sharehholders.
DBS has the option to redeem the preference shares in 2020 and pay back the shareholders. They will do so, if they find that the interest rate is low and they can refinance the preference shares at lower cost. However, if interest rate goes up high, they are likely to keep the preference shares beyond 2020.
The preference shareholder can sell the shares at any time through the stockmarket, at the prevailing market price. The price will increase above par, if the market interest rate has dropped. the price will decrease if the market interest rate increases.
I have asked a financial expert to make a brief analysis and post the details in the FISCA website (www.fisca.sg). It will be available to FISCA members after login.
Medishield for a pensioner
Dear Mr Tan
Can you advise if there is a need for a pensioner to purchase Medishield. As a pensioner, the medical scheme covers 85% of the medical charges. I am worried that it may come a time that I may not be able to pay the 15% medical charges if the amounts are very large.
REPLY
Frankly, I don't see why the bill should be so large. If the cost of treatment is really expensive, you can opt for B2 ward where the cost is capped. The 15% can be paid from Medisave savings. In fact, if you have a Shield plan, it is complicated (with deductible and co-payment) that it may not cover your 15% co-payment. So, you may be paying money for nothing.
Can you advise if there is a need for a pensioner to purchase Medishield. As a pensioner, the medical scheme covers 85% of the medical charges. I am worried that it may come a time that I may not be able to pay the 15% medical charges if the amounts are very large.
REPLY
Frankly, I don't see why the bill should be so large. If the cost of treatment is really expensive, you can opt for B2 ward where the cost is capped. The 15% can be paid from Medisave savings. In fact, if you have a Shield plan, it is complicated (with deductible and co-payment) that it may not cover your 15% co-payment. So, you may be paying money for nothing.
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