Author: Akhiat

Young Generations from Lower to Middle Income families starts their footing with debts

I did financial planning for many young gruduates over the years and really empathise with many of them on their financial difficulties in their early years and I have my fair bit of challenges in helping them getting the right insurance coverages and wealth accumulation discipline. Many graduates from low or middle income families have to start paying study loans to the banks or to their parents CPF from day 1 they graduate. The average starting pay for a polytechnic graduate is about $1,800/mth and for a University Graduate about $2,400/mth. After CPF deduction, their take home is about $1,440 and $1,920 respectively....

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Blog Temporarily ceased. No new articles allowed

Dear all, I’d stopped writing for quite sometime due to some of our new company’s policies. All website or blogs maintained by advisers have to be approved by the company regardless if the FA firm is named or un-named as long as wealth planning issues are discussed. Every future new blog postings must be also approved by the compliance team. I am also not supposed to receive any leads or enquiries from the blog as it will constitute that this blog is meant to solicit business and cannot be regarded as a personal blog. If I have intention to get any referrals from this blog, then all my previous postings...

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Habits of a Successful Adviser (2)

The professionalism have to be in place though the points below are more sales based. The reality in life is that this business is largely on Sales and knowing where to find people who appreciate our expertises. I leave my fate to the almighty till 30th June but had somehow accepted that I will get a paycut from 1st July if that is his will. I think I can only look forward to my new banding year positively and aims to hit my sales figures next year. I hope any advisers who wants to be a good and honest will be encouraged by what I wrote below and strive to...

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Habits of a Successful Advisor (1)

I have been going through a rough and frustrating patch since end of 2010.  The long hours I spent with my work had taken a toll on my health, family and relationships. I couldn’t explain to my family on why I spend so many hours outside and yet not bringing home the desired income. I know that with way I conduct my business and how I position myself, I will still be the same or probably worse years down the road. A lot of advices have been poured over me but find it hard to implement. They suggested me to either leave the industry, reduce my time in analysing...

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An insurance portfolio that makes my blood boil.

I was at one point wondering if Financial Advisers in Singapore are helping people or they are helping themselves by exploiting the people. I have been compiling portfolios over the years and I seldom come across a portfolio which in my opinion, proper… I’ll like to show one classic example on the type of portfolio that I frequently compiled. I’m sure that this supposedly IFA is making a very good income by such planning for his clients… (Ps: I’m not saying that all Financial Advisers are bad. I am far from perfect either. However I have an interesting observation which is “Many(not all) of...

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Woman and Financial Planning

It is the 100th anniversary of the International Women’s Day today and I like to write a bit more about woman on this special Day. I always feel that woman is a very special creature. My observation is that they are a very hardworking, determined and meticulous when we compare them to man. I also admire their spirit in going through the ordeal of child bearing and motherhood. In today’s society, they also carry the burden of bringing additional income for the betterment of the family. In term of Financial Planning, woman tends to have some disadvantages compared to the men....

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Wisdom on How to Live Life

For those who knows me will know that I’m not someone who are keen in reading except financial reports and occasionally motivational books. One series of books that actually caught my attention sometime early last year was by Dr Tommy Wong S.W. The name of the 3 books are “Wisdom on How to Live Life”… I just like to share a few note about these book and perhaps it might interest you. Dr Wong uses conversations between Tom and 2 Gurus named Dick and Harry to convene his message in all his 3 books. Tom is a young man seeking to understand how the world works and...

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Enquiry on Term or WL plan

From Mr T, whom I will be meeting to understand his financial needs and direction soon… ++ QTE ++ Hi akhiat   I’m XXX, i read your blog online. I would like to seek advice from you, currently i’m having a whole life insurance policy under TM asia legacy plus 20yr plan – cover S$100k plus S$100k dread disease rider, annual payment of $2294. I took up this policy under my friend agent, i read your articles and find out that term policy are more affordable than whole life. for my case this coming jun 2011, my whole life policy under TM asia...

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Distribution of CPF monies on death

As I was helping with my client’s death claim recently, I got to recap on some of the issues arising from CPF monies on death. I was surprised that many people had so many different versions on how CPF monies are distributed upon death. The common misconceptions are: CPF monies will only transfer to beneficiaries CPF accounts, Medisave monies cannot be withdrawn, CPF monies goes back to government, CPF monies are equally shared between Parents and Spouse regardless with Children or not… If valid CPF Nomination was made prior death * CPF Board will invite the beneficiaries to come forward to file...

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Too Little, Too Late…

On 23rd January 1:02am, I received an sms from one of my policyholder’s brother-in-law. He informed me that MG had passed away in Tan Tock Seng Hospital due to a sudden cardiac arrest. MG was 33 years old, perfectly healthy and fit, active in Lion Dance. He left behind his elderly mother, 3 years old son and his wife. MG was referred to me in 2006 through his brother-in-law, who also happens to be my policyholder. Back then, MG was a storeman, working in a logistic firm, earning around $1,300/mth. He was interested to get a medical insurance for himself. After...

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Papaya measures to curb property prices

This is a good piece of news to me as a concerned Singaporeans and probably to many of our fellow friends who are looking towards buying their first property and yet being deprived by the speculators. The measures taken in September last year are too soft which in my opinion are not effective. The measures taken back then only reduce the crazy mode to a less crazy mode. Previously it rose at a rate of 30% a year and it reduces to around 20% a year. Back then, the private housing market had resisted rounds of cooling measures and surged 38.2% in June last year,...

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3 minutes investment updates – 01/2011

First of all, I’ll like to wish all of you a very happy new year. May 2011 be a blessed and fruitful year for all of you. In my first day at work back in office, I’ll like to give you some updates on the indices movement for this year and my personal views for 2011. Pls note that whatever I wrote will be my personal opinion and not from any firm that I may represent. Pls regard me just as a member of public, innocently giving opinion.. First Minute – Let me summarise on the indices that I monitor on...

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CPF Life, MSS or Annuity?

I was approached by one of my client to do some calculation on the difference between CPF Life, MSS and Annuity. She is currently 57 yrs old and wants me to use $100,000 as a basis for comparison. Assumptions 1) Mrs X – Female (16th Aug 1953) 2) Has exactly $100,000 when she was 55 yrs old in her Retirement Account 3) With interest of 4%p.a, she probably have around $108,160 in her Retirement Account now 4) Property Annual Value – $6k to $11k / Annual Income – $24k to $54k (for calculation of bonuses given for taking up CPF Life before end...

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The problem about regular investments (RSP)

I received an email from one of my policyholder recently asking if he should stop and sell his RSP investments as his current investment is giving him over 10% of profits at the moment. Such is a common request even in good and bad times. He is not wrong to stop and redeem all his investments when he is already on 10% profits, especially if he has the need to use the funds now. However, I don’t remember that he have any specific short term need of the fund and hence I had advised against the termination and the should probably review on the...

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Covering our needs with Term Insurance

During the NTUC Income 40th Year anniversary dinner held in October this year, Senior Minister Mr Goh Chok Tong encouraged the insurance industry to place more emphasis on term insurance plans while he addressed the protection needs of Singaporeans. His words came timely because according to a research conducted by Nanyang Technological University in 2009, Singaporeans has an average cover of only $165,628 upon death, after taking account of mortgage insurance payout and CPF savings when their average needs should be $494,851. It was revealed in separate surveys that Singaporeans have the perception that getting insurance protection is costly...

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