NBC News - Investing In Life Insurance

Investing in life insurance can be an important asset in your investment portfolio.

What is your financial planning philosophy?

A financial planner should talk about his or her planning process and not about hot stocks or unusual investments. If a prospective financial planner says he or she can beat the market and promises big investment returns, end the meeting. Nobody can predict market movements. A good financial planner will make sure you are well-diversified, so you can limit risk and maximize returns.


As the financial planner explains his or her philosophy, ask yourself: Are you being coached or sold to? And get a feel for how rushed the financial planner is. If he or she does not have time to attract you as a client, the financial planner might not have time for you after you become one. Finally, note the words and tone he or she is using. Is he or she speaking in financial jargon, knowing you don’t understand? It actually takes greater skill and knowledge to explain things simply.

Never agree to an investment you don’t understand. If you cannot explain it to your teenage child or your elderly mother, don’t do it.

This is a great rule because it can keep you out of the harm’s way. That is not to say you shouldn’t endeavor to learn more about finance basics. You shouldn’t shy away from stock mutual funds because you are not quite certain what they are.

There are many good resources for investing basics, including books and web sites.

Remember, starting on the right financial track, even if it is mediocre is better than doing nothing

Confused by financial jargon? Help is on the way

Sat, Feb 27, 2010

The Straits Times
 
By Gabriel Chen
 
 
 
 
DO CREDIT events get your mind boggling, and do structured deposits send your head spinning?

Well, help is at hand in the form of a financial products dictionary that aims to shed light on the notorious jargon that so annoys investors.


The online dictionary is being launched by the Financial Planning Association of Singapore (FPAS) and will be available in English and Chinese in October.

It will give consumers a better understanding of financial products so they can make informed investment decisions, said FPAS president James Sim at the association's Chinese New Year charity lunch yesterday.

'The financial products dictionary grew out of the lessons learnt from the Lehman crisis,' he said. 'There is a real need to explain, in clear, layman's language, what financial terms actually mean, in order to remove any ambiguity. This is especially so for new, innovative and often complex financial products.'

More than 10,000 investors lost money when a number of structured products were terminated, along with the collapse of United States investment bank Lehman Brothers in 2008.

Investors, including many elderly and poorly educated people, said the risks of the complex products were never clearly explained. Some were subsequently compensated for their losses.

FPAS is working with a number of local bodies to launch the dictionary. These include the Life Insurance Association, the Investment Management Association of Singapore and the Securities Investors Association (Singapore). The dictionary will be available at http://www.financialproductsdictionary.sg/

Separately, FPAS yesterday announced the results of an inaugural survey of 387 financial planners here.

About 71 per cent of respondents were optimistic that their financial planning business will improve in the next six months. The survey also found that 31 per cent of planners felt it was a challenge to persuade customers to do financial planning, while 26 per cent felt the process was easy.

Homes are for keeps, not speculation: PM

Wed, Feb 24, 2010


The Straits Times


By Rachel Chang



PRIME Minister Lee Hsien Loong yesterday urged Singaporeans to treasure their homes and not use them as an easy means to make a quick buck or settle a debt.

He disclosed that MPs have been approached by many residents who have sold their homes for cash to pay off loans or make purchases.

'They have a problem finding another home or getting a loan to buy another home...it is not easy to solve the problem,' he said, in a speech underlining the importance of treating a residential property as a long-term investment.


'Property is for people to buy to live in, not for speculating,' he said.

His remarks, in Mandarin and English, at a Chinese New Year dinner last night came two days after the Government made a surprise announcement to cool property speculation.

Mr Lee stressed that the Government cannot control property prices.

'We can try to influence it, but whether it goes up or goes down depends on sentiment, depends on what happens in the region and the world...

'But we can apply measures to try to guide it in a broad way, so that if it is getting carried away, we can pull it back a bit,' he added.

The measures announced last Friday include the introduction of stamp duty on those who sell their residential property within a year of buying it. The duty is around 3 per cent of the price.

Also, buyers can borrow only up to 80 per cent, not 90 per cent, of their property's value from a financial institution.

Mr Lee said these measures were a pre-emptive move. Prices have risen sharply in the last six months, he noted.

'While it has not yet reached a dangerous level... the trend has been so fast, and the mood so exuberant, that we are worried it will get carried away beyond what is wise,' he told about 1,300 Ang Mo Kio GRC residents attending the dinner at his Teck Ghee constituency.

'It is better to pre-empt a bubble than wait for it to get serious and have to take more drastic measures,' he said, assuring Singaporeans that his government's priority is to ensure homes remain affordable.

At the other extreme, falling home prices is undesirable for the many Singaporeans who own their homes, he added.

A home, an appreciating asset in Singapore, is a nest-egg, said Mr Lee.

'Please take good care of it. It's for you to live in, it's for you as an investment, it's for you for your old age.


'Don't think of selling prematurely to make a quick buck,' he advised.

Alternatively, home-owners can pass their flats on to their children, he said and added: 'This means you need to have children to pass your home to.'

Mr Lee then reiterated his worry that not enough Singaporeans are starting families. Total fertility rate last year hit a new low of 1.23. For the Chinese community here, it was even lower at 1.09.

But falling birth rate is an issue faced by East Asian countries, he noted, and it is partly a result of changing values.

In China, young people, to avoid nagging from their parents, have resorted to 'renting' a boyfriend or girlfriend to take home during this new year period, Mr Lee observed.

'It's amusing, but it's also sad,' he said. 'I'm relieved there's no such reports in Singapore. I hope it doesn't happen.' Still, a little social pressure is useful but more importantly, parents and relatives need to encourage them and show them support.

Unmarried residents interviewed said they first needed to save enough and have a stable career before settling down and starting a family.

Said Mr Jason Quak, 28, an operations manager: 'Now you need money for everything, especially for a wedding.'

He and his 25-year-old girlfriend want to buy a flat in Ang Mo Kio, near his parents, but he is not confident he can find one within his budget of around $300,000.

Teacher D. George, 32, welcomed the latest anti-speculation measures but argued that these will not have a major impact on rising HDB prices.

This article was first published in The Straits Times.

China bubble will go pop 'within 10 years'

China as the world's fasting growing major economy will do 'very well this century'. But there is no way you can go on for a decade without having a bump in the business cycle. China will have a financial crisis one day and land is the "best bet" to cause China's bubble to pop.

Poverty exposes you to endless humiliation, it cuts your wings, it eats your soul like a cancer. It is not wealth one ask for, but just enough to preserve one’s dignity, to work unhampered, to be generous, frank and independent.

Top-ups for elderly and families with children

Most of Singaporeans aged 50 and above will receive a one-off top-up to their CPF Medisave accounts. Only those whose annual assessable incomes above $100,000 in the 2009 tax year will not be eligible.

Explaining my role

What do a scalpel and a life insurance policy have in common? Both are tools. A scalpel in the wrong hands can be lethal, yet in the hands of an experienced surgeon, it can save lives. So is it with a life insurance policy. In the hands of an experienced financial planner it should perform exactly as expected by delivering the right money at the right time to the right people and save the financial lives of the intended beneficiaries.


When a client told me his bank manager advised against life insurance I recommended, I asked him, “Would you allow an anesthetist to comment to your patient on the advisability of a hernia operation?” Of course not. He has a specialist area of expertise. Similarly, the bank manager is experienced at lending money, not at life insurance.

When a mother tells me she does not life insurance, I explain she does not have to like it, she just has to have it. I ask, “Do your children like all the foods they are supposed to eat, or do you have to say, ‘Come on, eat this. It’s good for you’? Life insurance is just like that; its part of a balanced financial diet and everyone needs some.”

Long-Term Care Insurance 101

Learn the basics about long-term care insurance in a flash. Hear from one advisor who will explain why long-term care insurance is so important, help demystify the long-term care insurance process and quickly provide you with a good understanding of important insurance terms and concepts.

Don't let the crisis crush your retirement nest egg

A recent survey found out that majority of Singaporeans are not relying on the CPF savings as their only source of retirement income as they believe that CPF will provide only some or very little of their retirement income. An alarming 52% of people do not know how much they will need for their retirement years.


Emergency cash reserves should be set aside first before you begin investment in equities for wealth accumulation. Investors are reminded to protect your current assets by ensuring you have appropriate insurance protection to hedge against liabilities, such as home loans. Proper insurance protection can also prevent money from your investment or savings going to the surgeon’s income when misfortunes happen.

For people before the age of 40, time is generally on your side as your investment horizon is easily more than 10 years which allows you to be able to ride the market ups and downs.

For people before the age of 60, the risk which you are taking will be moderate as retirement is not far away. There is a need to stay invested to recover losses if investment took a beating in the previous crisis; however it is important to move towards safer assets as you approach retirement.

A few pointers to note:

• Rule of thumb, the percentage of equity investment should be 100% - (Your current age)
• Reduce your debt and limit your spending by keeping track of your expenses to make sure you are not living beyond your means.
• Ensure you have adequate medical cover.

Disability Insurance

Your life is uniquely yours. Full of people you love, and activities you enjoy. It's a lifestyle you've worked hard to create and you've taken steps to protect it. When you think about your life, you may never picture a disability.

Disability can be caused by an accident. But it is more likely to be caused by a common illness such as heart disease, back problems, diabetes, depression.

If you cannot work, disability insurance can help safeguard the life you love, and the people who matter most. It is like insuring your paycheck to help you pay for life's necessities (e.g. Mortgage, Food, Retirement)

So when you are making financial plans, ask yourself what matters most. It's your life, Plan It. Protect it. Share it. Enjoy it.

Love me, love my money habits

Disagreements and conflicts on money issues can break a couple up. So do iron out any potential money issues even before they get hitched.

Remle Winand Real Life Story

LIFE Foundation produces several videos each year. These videos feature stories of individuals who have overcome hardships by owning life insurance.

Are you on top of your financial situation?

Are you and your spouse adequately covered by life and medical insurance? How much debt are your carrying? What type of savings or investments do you have to carry you over if you encounter tough times? If you cannot answer these questions, you are tempting fate.


Promise yourself you will sit down this weekend with your spouse, or with a financial planner if you are on your own, and discuss all aspects of your financial health. The situation is not about you. It is about your children and their quality of life if something happens. It is not being morbid, it is being financial responsible. Establish a plan so you can sleep at night knowing that you and your family will be provided for if your income is cut off if misfortune happens.

Don’t wait until your financial DNA has to be put on life support.

Use Medisave at these 12 M'sian hospitals

Tue, Feb 16, 2010


AsiaOne
 
 
 
 
PATIENTS who want to use Medisave to pay for private medical care abroad can do so at 12 hospitals and medical centres in Malaysia from March 1, 2010.

The facilities are owned by two Singapore health-care groups - Health Management International (HMI) and Parkway Holdings.

Patients who opt for the Malaysian hospitals must be referred by the Singapore groups' referral centres first.


HEALTH MANAGEMENT INTERNATIONAL

Referral centre: Balestier Clinic and Health Screening Centre (221 Balestier Road, #03-04 ROCCA Balestier)

» Regency Specialist Hospital (Johor Baru)
» Mahkota Medical Centre (Malacca)


PARKWAY HOLDINGS

Referral centre: East Shore Hospital (321 Joo Chiat Place)

» Gleneagles Intan Medical Centre (Kuala Lumpur)
» Pantai Hospital Kuala Lumpur
» Pantai Hospital Cheras
» Pantai Hospital Ampang
» Pantai Hospital Klang
» Pantai Hospital Ipoh
» Pantai Hospital Ayer Keroh
» Pantai Hospital Penang
» Pantai Hospital Batu Pahat
» Pantai Hospital Sungai Petani