Higher growth forecasts for the Singapore economy sent the benchmark Straits Times Index hurtling past the 3,000 mark on Wednesday. Traders queued up to buy heavyweight blue-chips, such as DBS Group Holdings and Singapore Airlines, following the Government's marked revision of its 2010 growth forecast from 4.5 to 6.5 per cent to between 7 and 9 per cent.
'The re-rating of economic growth is a powerful catalyst in moving the market up. Banks are surging because they are viewed as proxies to the economy, while electronics stocks are making a strong come-back as that is where the growth is coming from,' said NRA Capital executive chairman Kevin Scully.
The stampede of punters propelled the benchmark Straits Times Index higher by 48.14 points to 3,019.74 - its highest close in almost two years. Trader Peter Ong said that STI's latest advance reminded him of the surge experienced in early 2007, when the index last breached the 3,000 level and went on to hit a record high of 3,831 later that year. The re-framing of growth forecasts had analysts scrambling to revise their targets for the STI.
In US trading, the Dow is up 48, or 0.43 per cent, at 11,067.25. The Standard & Poor's 500 index is up 5.2, or 0.43 per cent, at 1,202.50, while the Nasdaq composite index is up 17.87, or 0.72 per cent, at 2,483.87.
Wednesday, April 14, 2010
Saturday, January 23, 2010
How much insurance coverage do I need?
To calculate the sum you should be insured for, first determine a time horizon required for coverage (the risk exposure period). This should take into account the remaining years to retirement, whether your children have started working and are self-sufficient, and whether your retirement savings is in place.
3 steps to determine the required sum assured:
1. Multiply your annual living expenses by the number of years till your youngest child becomes financially independent.
2. Add to this your additional debt/expenses such as income tax, credit card expenses and provisions for your children's education fund.
3. From this sum, deduct existing funds such as your investment, CPF, cash and existing life insurance policies. (N.B. This excludes long-term investment and inflation rates.)
Although most people realise the need for insurance, the sum insured tends to be insufficient. You are advised to take up a term, whole life, investment-linked or endowment policy. The latter 3 pollicies will allow you to withdraw the cash value when your insurance objective is met.
Buying a term policy provide you the required coverage at a lower costs, but you need to invest your money through purely investment channels, which is usually time consuming and it requires constant monitoring of your investment portfolio.
3 steps to determine the required sum assured:
1. Multiply your annual living expenses by the number of years till your youngest child becomes financially independent.
2. Add to this your additional debt/expenses such as income tax, credit card expenses and provisions for your children's education fund.
3. From this sum, deduct existing funds such as your investment, CPF, cash and existing life insurance policies. (N.B. This excludes long-term investment and inflation rates.)
Although most people realise the need for insurance, the sum insured tends to be insufficient. You are advised to take up a term, whole life, investment-linked or endowment policy. The latter 3 pollicies will allow you to withdraw the cash value when your insurance objective is met.
Buying a term policy provide you the required coverage at a lower costs, but you need to invest your money through purely investment channels, which is usually time consuming and it requires constant monitoring of your investment portfolio.
Thursday, December 3, 2009
What is diabetes?
After we eat, food is broken into glucose, which gives us the energy. For glucose to be used by the body, it has to be combined with insulin.
Generally there are 2 types of diabetes:
Type 1:- When a patient does not produce insulin- it is by far the more dangerous type. It strikes those under 40, has no known cause and cannot be prevented.
Type 2:- When a patient's body rejects insulin- it is usually caused by obesity and can be prevented or managed by exercise.
Here are the statictics:
- 8.2% or one in 12 adult Singaporeans aged between 18 and 69 have diabetes.
- 90% of local cases are type 2, and type 1 sufferers form less than 5% of all cases.
- 28% of all local diabetic patients are aged above 60.
The following are the symptons of diabetes:
- Frequent urge to urinate
- Unquenchable thirst
- Weight loss
- Weakness and fatigue
- Tingling or numbness in hands, legs or feet
- Blurred vision
- Dry or itchy skin
- Cuts and bruises take a long time to heal
Generally there are 2 types of diabetes:
Type 1:- When a patient does not produce insulin- it is by far the more dangerous type. It strikes those under 40, has no known cause and cannot be prevented.
Type 2:- When a patient's body rejects insulin- it is usually caused by obesity and can be prevented or managed by exercise.
Here are the statictics:
- 8.2% or one in 12 adult Singaporeans aged between 18 and 69 have diabetes.
- 90% of local cases are type 2, and type 1 sufferers form less than 5% of all cases.
- 28% of all local diabetic patients are aged above 60.
The following are the symptons of diabetes:
- Frequent urge to urinate
- Unquenchable thirst
- Weight loss
- Weakness and fatigue
- Tingling or numbness in hands, legs or feet
- Blurred vision
- Dry or itchy skin
- Cuts and bruises take a long time to heal
Monday, November 2, 2009
Recent Survey on Singaporeans' savings pattern
In a recent survey by a leading insurer in Singapore on "How should you plan your finances to cope with today's rising uncertainty?", there are 3 key findings:
Finding 1: Most choose to reduce expenses to cope with job uncertainty
27% Not possible to save due to commitment
73% Save 10-20% of earnings by reducing expenses
Finding 2: Most prefer a flexible savings plan
24% Save in traditional life insurance plan
10% Leave money in the bank
66% Prefer flexible insurance savings plan
Finding 3: Most prefer to invest their savings to achieve moderate risks and returns
29% Low risk and return of 3% p.a.
11% High risk and return of 7% p.a.
8% No risk with return of 0.5% p.a.
52% Moderate risk and return of 5% p.a.
Conclusion:
It is more important for us to save in times of uncertainty. There are investment-linked regular savings plan in the market that offers a wide range of low, moderate to high risks funds. Most of them also come with flexible feature like premium holiday or retrenchment benefits.
Finding 1: Most choose to reduce expenses to cope with job uncertainty
27% Not possible to save due to commitment
73% Save 10-20% of earnings by reducing expenses
Finding 2: Most prefer a flexible savings plan
24% Save in traditional life insurance plan
10% Leave money in the bank
66% Prefer flexible insurance savings plan
Finding 3: Most prefer to invest their savings to achieve moderate risks and returns
29% Low risk and return of 3% p.a.
11% High risk and return of 7% p.a.
8% No risk with return of 0.5% p.a.
52% Moderate risk and return of 5% p.a.
Conclusion:
It is more important for us to save in times of uncertainty. There are investment-linked regular savings plan in the market that offers a wide range of low, moderate to high risks funds. Most of them also come with flexible feature like premium holiday or retrenchment benefits.
Sunday, September 27, 2009
Change in Insurance Act & Insurance (Nomination Of Beneficiaries) Regulation
Insurance policyholders can name beneficiaries and change them when the need arises, thanks to the introduction of a new nomination law. The long-awaited Insurance Nomination Law provides policyholder with more flexibility and control over how to distribute the policy proceeds.
The new law came into effect on 1st Sept 2009 and is seen as a vast improvement on the arrangement it replaces, which did not allow policyholders to change beneficiaries even after a divorce. This means that if a policyholder named his spouse or children as policy beneficiaries, he effectively created a statutory trust even if he did not want to. Policyholders were prevented from changing their beneficiaries, or cashing in their policies without the consent of beneficiaries.
Many policyholders learnt of this only during divorce proceeds when they discovered that their former spouses still had a claim on their policies, or when an insured person's death sparked a bitter family dispute. Some did not realise that if they named other parties as beneficiaries, such as grandparents, siblings, aunts and friends, they have no legal claim to policy proceeds.
The exception is NTUC Income because its policy proceeds are paid to nominees under a different law- Cooperative Societies Act which allows a Cooperative member to make a nomination which includes spouse, children, relatives and friends.
Under the Insurance Nomination Law, customers has 2 choices- to either make a trust nomination or a revocable nomination.
With a trust nomination, the policyholder relinquishes all rights to the policy: this means that while he is still obliged to pay premiums, all policy benefits- living and death- belong to trhe nominees. An advantage is that the policy proceeds are protected from creditors in the event of bankruptcy.
The policyholder can regain his rights to own the policy benefits only with the consent of all nominees. And only the spouse or a child of the policyholder is eligible to become a nominee
With a revocable nomination, the policyholder can continue to retain full ownership over the policy. He retains the right to change, add or remove nominees at any time without the consent of nominees. The policyholder will receive the living benefits and only death benefits will be paid to the nominees.
Unfortunately, the new law does not apply retrospectively, but exisitng policies with no previous nominations are eglible.
The new law came into effect on 1st Sept 2009 and is seen as a vast improvement on the arrangement it replaces, which did not allow policyholders to change beneficiaries even after a divorce. This means that if a policyholder named his spouse or children as policy beneficiaries, he effectively created a statutory trust even if he did not want to. Policyholders were prevented from changing their beneficiaries, or cashing in their policies without the consent of beneficiaries.
Many policyholders learnt of this only during divorce proceeds when they discovered that their former spouses still had a claim on their policies, or when an insured person's death sparked a bitter family dispute. Some did not realise that if they named other parties as beneficiaries, such as grandparents, siblings, aunts and friends, they have no legal claim to policy proceeds.
The exception is NTUC Income because its policy proceeds are paid to nominees under a different law- Cooperative Societies Act which allows a Cooperative member to make a nomination which includes spouse, children, relatives and friends.
Under the Insurance Nomination Law, customers has 2 choices- to either make a trust nomination or a revocable nomination.
With a trust nomination, the policyholder relinquishes all rights to the policy: this means that while he is still obliged to pay premiums, all policy benefits- living and death- belong to trhe nominees. An advantage is that the policy proceeds are protected from creditors in the event of bankruptcy.
The policyholder can regain his rights to own the policy benefits only with the consent of all nominees. And only the spouse or a child of the policyholder is eligible to become a nominee
With a revocable nomination, the policyholder can continue to retain full ownership over the policy. He retains the right to change, add or remove nominees at any time without the consent of nominees. The policyholder will receive the living benefits and only death benefits will be paid to the nominees.
Unfortunately, the new law does not apply retrospectively, but exisitng policies with no previous nominations are eglible.
Friday, September 4, 2009
Singaporeans Grossly Under-insured- Study
The average Singaporeans now needs about $495,000 of life insurance, but is covered for only one-third of that amount- a drastic shortfall that needs urgent attention, an expert has warned.
According to a new report by Nanyang Technology University (NTU) Associate Professor David Yee, workers here aged 20 to 64 are under-insured by as much as $225 billion nationwide. The NTU report estimated the protection needs of a working adult in various typical households in each broad age group. It covers only the scenario in which both husband and wife work.
An average Singaporean needs life insurance protection of $494,851. However, his existing life cover is only $165,628 on average, even after including mortgage insurance and CPF savings. This leaves a stunning shortfall of $329,223.
This generally under-insured problem comes on the heels of another recent study, which found that Singaporeans consider themselves financially risk-averse. It was conducted early this year by Swiss Re, a member of the Life Insurance Association. Nearly three-quarters, or 73 per cent of Singaporeans were aware of the need to insure themselves, but only 48 per cent were aware of how to go about it.
This highlighted a need for consumer education, said Mr Low Kwok Mun, executive director of the insurance supervision department at the Monetary Authority of Singapore.
Extracted form Straits Times 21st August 2009
According to a new report by Nanyang Technology University (NTU) Associate Professor David Yee, workers here aged 20 to 64 are under-insured by as much as $225 billion nationwide. The NTU report estimated the protection needs of a working adult in various typical households in each broad age group. It covers only the scenario in which both husband and wife work.
An average Singaporean needs life insurance protection of $494,851. However, his existing life cover is only $165,628 on average, even after including mortgage insurance and CPF savings. This leaves a stunning shortfall of $329,223.
This generally under-insured problem comes on the heels of another recent study, which found that Singaporeans consider themselves financially risk-averse. It was conducted early this year by Swiss Re, a member of the Life Insurance Association. Nearly three-quarters, or 73 per cent of Singaporeans were aware of the need to insure themselves, but only 48 per cent were aware of how to go about it.
This highlighted a need for consumer education, said Mr Low Kwok Mun, executive director of the insurance supervision department at the Monetary Authority of Singapore.
Extracted form Straits Times 21st August 2009
Sunday, May 31, 2009
Things you need to know about Will Writing
1. Why should I make a Will?
If you make a will, you can :
(a) control who will benefit from your estate after your death. This will avoid dispute and will also make distribution of your assets faster and easier.
(b) Authorise suitable person(s) to be your representatives known as executors to manage your estate.
(c) appoint guardians for your children if they are below 21 years old.
(d) make funeral arrangements.
2. What happens if I die without a Will?
Your assets will be distributed in accordance with the Intestate Succession Act (Chapter 146).
3. Do I need to engage a lawyer to write my Will?
A Will is a legal document. Therefore, it is advisable to engage the help of a lawyer to write your Will.
4. Who must you inform that you have a Will?
Please do inform your executors and the guardians. You should also register the particulars of your Will at the Wills Registry run by the Public Trustee's office at www.ipto.gov.sg. This service is free of charge.
5. Is my Will valid forever once I have executed it?
Yes. However, a Will is automatically revoked everytime you write a new Will, or when you marry or when you remarry.
6. When should I review my Will?
You should consider reviewing your Will in the following situations:
(a) When you get married;
(b) When you get divorced;
(c) When you dispose of assets that are set out in the Will or gain new assets;
(d) When a beneficiary dies;
(e) When you decide to change the beneficiaries;
(f) When you wish to replace the executor(s), trustee(s) or guardian(s); and
(g) When you subsequently have more children or grandchildren.
6. Can a husband and wife make a joint Will?
Yes, but for practical reasons, it may be advisable to make separate Wills. You should seek independent legal advice on this matter.
7. Must I include assets located overseas in my Will?
Yes, but that is if you are not making a separate Will to cover your overseas assets.
8. What is the role of an Executor?
An Executor's role is to apply to the Court for a Grant of Probate, which gives formal authority to the Executor and the Will. Once the Probate is granted, the Executor will be authorised to take charge of your assets and distribute it according to your wishes as set out in your Will.
If you make a will, you can :
(a) control who will benefit from your estate after your death. This will avoid dispute and will also make distribution of your assets faster and easier.
(b) Authorise suitable person(s) to be your representatives known as executors to manage your estate.
(c) appoint guardians for your children if they are below 21 years old.
(d) make funeral arrangements.
2. What happens if I die without a Will?
Your assets will be distributed in accordance with the Intestate Succession Act (Chapter 146).
3. Do I need to engage a lawyer to write my Will?
A Will is a legal document. Therefore, it is advisable to engage the help of a lawyer to write your Will.
4. Who must you inform that you have a Will?
Please do inform your executors and the guardians. You should also register the particulars of your Will at the Wills Registry run by the Public Trustee's office at www.ipto.gov.sg. This service is free of charge.
5. Is my Will valid forever once I have executed it?
Yes. However, a Will is automatically revoked everytime you write a new Will, or when you marry or when you remarry.
6. When should I review my Will?
You should consider reviewing your Will in the following situations:
(a) When you get married;
(b) When you get divorced;
(c) When you dispose of assets that are set out in the Will or gain new assets;
(d) When a beneficiary dies;
(e) When you decide to change the beneficiaries;
(f) When you wish to replace the executor(s), trustee(s) or guardian(s); and
(g) When you subsequently have more children or grandchildren.
6. Can a husband and wife make a joint Will?
Yes, but for practical reasons, it may be advisable to make separate Wills. You should seek independent legal advice on this matter.
7. Must I include assets located overseas in my Will?
Yes, but that is if you are not making a separate Will to cover your overseas assets.
8. What is the role of an Executor?
An Executor's role is to apply to the Court for a Grant of Probate, which gives formal authority to the Executor and the Will. Once the Probate is granted, the Executor will be authorised to take charge of your assets and distribute it according to your wishes as set out in your Will.
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