Archive for February, 2010
Wealth Rebuilding Strategy Book For Sale SGD12
Posted by Stephen Mok in Financial Planning on 17/02/2010
Written by Ms. Tan Swee Cheng
Introduction
Well, it’s been a heart-stopping and gut-wrenching 2008 and this economic crisis is not about to end anytime soon. Many individuals, banks, companies have been totally wiped out by this epic financial tsunami. It has been a year which most want to forget.
Everything changed in Sep 08 when Lehman Brothers collapsed. This has led to deleveraging and massive forced liquidation resulting in the price of almost every asset class falling significantly except for possibly US treasury bonds (more on this later).
Globally, losses from stock markets, money market funds, structured products, hedge funds, bonds, commodities, businesses, properties, foreign exchange could add up to US$100 trillion. To top it off, we ended 2008 with the ex-chairman of Nasdaq stock exchange, Mr. Bernard Madoff being arrested for running the largest ponzi scheme in history. Mr. Madoff reportedly “made-off” with US$65 billion.
By now, all the investors with money have no more guts to invest and all those with guts have no more money!
Many savvy investors including Kirk Kerkorian and Prince Alwaleed bin Talal lost money during this period. Long term institutional investors with a track record of delivering superior returns such as Harvard, Yale and Stanford University Endowment funds also took a hit in their portfolio.
I’m sure many of us have also seen the value of our investment portfolio drop significantly too.
Let me ask you, “Have you ever thought that this crisis is an opportunity to be very rich?”
In the coming months and years, a lot of bargain assets will be available – whether they be equities, properties or businesses . So we have to position ourselves for the grand bonanza. We need to play the game right and be alert to the windows of opportunities as they appear.
Investing using conventional wisdom and ideas that have served us well previously will not work in the current economic pandemonium. In this book, I will share with you the likely economic environment within which we could be in the next few years, key principles the rich use to grow their wealth, strategies to implement and action steps to rebuild your wealth.
About the author:
Ms. Tan Swee Cheng is an financial adviser with IPP Financial Advisers. Pte Ltd. Throughout her 18 year career, she has worked for Chase Manhattan Bank, Overseas Union Bank, Standard Chartered Bank and Phillip Securities Pte Ltd. During this time she managed a portfolio of S$2 billion; pioneered the trading of S$ instruments in S’pore Exchange; traded and marketed a wide range of financial instruments; and managed a pool of clients from Asia .
It was Ms. Tan’s in depth knowledge of financial products and commitment to understanding the products that were being marketed in 2007 that prompted her to advise her clients NOT TO INVEST in MINIBONDS and other similar products.
She provides individual clients and business owners with financial advice and financial solutions in the area of investment, wealth protection, wealth management and wealth distribution.
You can buy this book for S$12 and use Pay Pal services, just click on the “Add to Cart” button below.
Hospitalisation Insurance Does Not Cover 100%
Posted by Stephen Mok in Financial Planning on 10/02/2010
Most people, including insurance agents and financial advisers, thought that getting an insurance policy to cover expenses incurred for hospitalisation will cover every cent. This may surprise you but in reality, it may not.
One cancer patient told me that she was only able to claim the chemotherapy charges incurred but not the rest of the bill. Chemo sessions are considered “outpatient benefits” not hospitalisation benefits. Only the chemo charges are claimable.
Wow, this will be a rude shock to everyone who bought all the “Shield” insurance policies using their CPF Medisave!
So please read all the exclusion clauses in your policies. You must also be aware of how the annual deductible and co-insurance work in your case. Review it with our financial adviser. It may affect your “outpatient” compensations.
I know of a plan which pays both outpatient and inpatient charges. It is more expensive but if you have deeper pockets, please contact me for advice.
Have a great week ahead, my friend. : -)
Track Your Expenses
Posted by Stephen Mok in Financial Planning on 09/02/2010
I believe many of us do not track our expenses. At the end of the month, we wonder where we spent our money. Keeping a booklet in our pocket or in the handbag to keep track of our expenses daily is a good start. Don’t forget to bring along a pen!
Always remember to set aside your savings FIRST, before you start spending your money. Better still, siphon out a fixed percentage ( e.g. 20% ) from your savings account to another bank account is one way to discipline yourself to save. Lock up the bank book and the ATM card so you will not be tempted to use the savings.
I have compiled a list of major expenses for you to keep track on a monthly basis. Hope this will help you further to track your expenses.
1. Home expenses – Power Supply, Phone, Maid, Property Tax, Fire Insurance, Management Fees, Rental ( if applicable)
2. Family Expenses – Parents, spouse, children allowances, food, medical, clothing, school fees, tuition fees, school bus, childcare.
3. Personal Expenses – Clothing, recreation & hobbies, personal care, grooming care, gym fees, newspaper/magazine subscriptions, club membership, handphone bill, alimony, etc…
4. Transport – Car monthly repayment, petrol, car park coupons, motor insurance, servicing, ERP charges, public transport.
5. Insurance – Home Content, accident, medical, travel, term.
6. Gifts & Donations – Charity, Church offerings
7. Luxury Items – Vacations, SCV, Mio TV, Entertainment
8. Income Tax
9. Housing Repayments – Principal and interest
10. Other Miscellaneous expenses.
Add all of them up and you will get your monthly expenses accounted for.
Make sure your Income is MORE THAN your expenses!
Financial Planning is a discipline, call me and I will help you get the best out of the rest.
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