Tag Archives: financial planning

What Can Singapore Do to Improve the Financial Literacy of Its People?

Just thought of sharing with you that my ideas on a subject I am passionate about have been published in the Straits Times on May 7, 2015 on page 29. Here’s a copy of my write-up as it appeared in the newspaper. Your opinion is welcomed 🙂 I received positive responses from many clients and they wish that… Read More »

Get Your Act Together – No More Excuses Not to Review Your Insurance Needs

I sat down with a prospect, Ms M, on a Saturday afternoon to educate her on the different types of insurance policies and how they worked. She came to me because she did not have a clear idea of what she is paying for and that she had not done a review for the past… Read More »

Key Report Findings of Singaporeans and Retirement Planning

The latest in HSBC’s (2013) series of independent global studies into “The Future of Retirement” highlights the real challenges in planning for and achieving the retirement people want. Of the 15,000 respondents in 15 countries, 1,000 were Singaporeans. Some key report findings of Singaporeans: Most Singaporeans envision to live their golden years filled with family… Read More »

ILPs Have A Bad Rep

Much has been reported about Investment Linked Plans. In my 10 years of financial advisory work, only 2 clients have requested for such a plan. The Business Times, April 12, 2006 – What Clients Are Not Told About ILPs The Straits Times, June 13, 2005 – Avoid ILPs, Case Advises Older Investors The Straits Times, May 24, 2005 – The Low-down… Read More »

ILP – A Ticking Time Bomb

“Insurance ‘Time-bomb’ Set To Explode” This Straits Times article title caught my eyes way back in Feb 2005. A regular premium investment linked product (ILP) combines insurance with investment (unit trusts). The underlying investment risk is born entirely by the insured. This means that returns are subject to market volatility and hence, not guaranteed. Why then… Read More »

ILPs and Escalating Insurance Charges

I have many clients whom have bought regular premium Investment Linked Plans (ILPs). All are unaware of the escalating insurance (or mortality) charges as they have never been informed of these charges when they were sold the plans. So, you can imagine the disbelief on their faces when I explain to them the impact of… Read More »

Compound Interest

Albert Einstein once said “the most powerful force in the universe is compound interest”. Simply put, it is earning interest on not just the principle amount but also on the accumulated interest. For example, with simple interest of 10% per annum, $100 would grow to: Year 1: $110 Year 2: $120 Year 3: $130 Whereas… Read More »

Mathematics of Financial Planning

Financial Planning involves the following calculations: A sum of the assets as well as liabilities of the client. The difference is the net worth of the client. A sum of the income less expenses of the client on an annual basis. This figure gives us the potential savings the client can make. Time value of… Read More »

Six Steps in the Financial Planning Process

Financial Planning is an essential process that individuals and families must go through at least once every year. It involves a thorough analysis of the present and future monetary needs of the client. The planner must also possess the following attributes: Logical mindset Emotional objectivity Mathematical proficiency Ability to make reasonable projections about the future… Read More »