Many people find it difficult to choose among the four options given by CPF Life. Many of them do not like the CPF Life scheme for reasons that are peculiar to their personal situation. Here are my suggestions on how to get out of this messy situation.
Tuesday, September 27, 2011
Financially sound retirement
Read this article about how to prepare for a financially sound retirement. Several tips refer to the tax situation in America which does not apply to Singapore. Some of the other tips, e.g. do not have debts, how to spend within your means - are relevant.
Class action on Pinnacle Notes
An important decision on the class action for the Pinnacle Notes in the USA will be decided soon - the hearing will start on 28 September.
By GRACE LEONG (Business Times)
A lawsuit involving allegations that Morgan Stanley & Co Inc sold rigged Pinnacle Notes as 'safe, conservative' products to a group of Singaporean investors including Singapore's oldest credit cooperative, costing them US$154.7 million in investment losses, is making its way through federal court in Manhattan.
A hearing is scheduled for Sept 28 in which the US District Court for the Southern District of New York will decide whether the case can proceed in the US or whether it should be dismissed and heard in Singapore, The Business Times has learned.
If approved, the Singapore investors will seek class-action status.
NOTE:
Under a class action (in the USA), any compensation received will be shared by all investors in the class, including the investors who were not involved in lodging the original complaint. There is no provision for a class action suit in Singapore.
By GRACE LEONG (Business Times)
A lawsuit involving allegations that Morgan Stanley & Co Inc sold rigged Pinnacle Notes as 'safe, conservative' products to a group of Singaporean investors including Singapore's oldest credit cooperative, costing them US$154.7 million in investment losses, is making its way through federal court in Manhattan.
A hearing is scheduled for Sept 28 in which the US District Court for the Southern District of New York will decide whether the case can proceed in the US or whether it should be dismissed and heard in Singapore, The Business Times has learned.
If approved, the Singapore investors will seek class-action status.
NOTE:
Under a class action (in the USA), any compensation received will be shared by all investors in the class, including the investors who were not involved in lodging the original complaint. There is no provision for a class action suit in Singapore.
Volatile gold and silver prices
Gold an silver prices can be quite volatile. Gold dropped 8% in 3 days and is expected to rally. However, there is the risk that it may drop much further. The drop in silver is more severe. This is an example of a speculative and volatile market. Be careful.
http://www.businessweek.com/news/2011-09-27/gold-rallies-after-biggest-three-day-drop-since-lehman-collapse.html
Here is a bearish view:
http://www.cnbc.com/id/44667027
http://www.businessweek.com/news/2011-09-27/gold-rallies-after-biggest-three-day-drop-since-lehman-collapse.html
Here is a bearish view:
http://www.cnbc.com/id/44667027
How to use private bankers
In some countries, financial advisers or private bankers can advise their wealthy clients on tax and estate planning, so that they can minimize the tax payable on their income or on the estate that is transferred to the dependants.
It is difficult for these advisers to help their clients in market timing or stock selection - as this is speculation and a zero-sum game. In fact, after allowing for the cost of transactions and fees, it is a negative sum game for the clients.
The best way to get a good yield on the investments is to invest in an index fund and to invest for the long term - to average out the good and bad years. There is little that the advisers can help the client to achieve a better yield.
I have seen many cases where the investor who had relied on the financial adviser to pick the manage the investments on their behalf - only to be disappointed with the bad results. The financial adviser probably did their best, but when the market is volatile, some investors will be at the wrong end, and the results can be disastrous. For each winner, there will be a loser - and after deducting fees and expenses, most investors (actually speculators) will be worse off.
To avoid speculation, you should learn how to invest for the long term. Read my book on financial planning (www.tankinlian.com/ishop) or attend the financial planning talk organized by FISCA (www.easysearch.sg/fisca).
It is difficult for these advisers to help their clients in market timing or stock selection - as this is speculation and a zero-sum game. In fact, after allowing for the cost of transactions and fees, it is a negative sum game for the clients.
The best way to get a good yield on the investments is to invest in an index fund and to invest for the long term - to average out the good and bad years. There is little that the advisers can help the client to achieve a better yield.
I have seen many cases where the investor who had relied on the financial adviser to pick the manage the investments on their behalf - only to be disappointed with the bad results. The financial adviser probably did their best, but when the market is volatile, some investors will be at the wrong end, and the results can be disastrous. For each winner, there will be a loser - and after deducting fees and expenses, most investors (actually speculators) will be worse off.
To avoid speculation, you should learn how to invest for the long term. Read my book on financial planning (www.tankinlian.com/ishop) or attend the financial planning talk organized by FISCA (www.easysearch.sg/fisca).
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