There was an article Does it pay to stick to a big name in insurance? (Straits Times 30 Dec 2016) which asked the question whether should consumers buy from larger insurance companies in hope of getting better returns. I felt that the question is a wrong question. Insurance is meant to protect and not meant as an investment. Unfortunately, majority of the policies sold were not meant to protect … [Read more...]
You are viewing real life case studies done by Wilfred Ling. Personal information and other sensitive information has been removed to protect the identity of the clients.
Case study of a typical 2nd generation high networth portfolio
Sometime ago I met an individual who wanted to consult me on his investment portfolio. One of the bond that he bought from a bank had defaulted. He was concerned that more bonds in his portfolio will default. The bond that defaulted consist of only a negligible portion of his portfolio (approximately less than 1.5%). Mathematically there is no cause of concern. But upon more fact finding, I … [Read more...]
Case study on CPF valuation limit
Question from an existing client (figures changed): I want to know how much CPF monies I can use for the mortgage with the aim to reduce amount of interest paid over time. I've done some calculation and I still am not really sure! On top of my $1987 monthly installment which is using CPF, can I make lump sum payments of perhaps $35K from the CPF? Will this cause my usage to exceed the CPF … [Read more...]
Case study on CPF Retirement Sum Topping-Up Scheme resource optimisation
One of the most time consuming task I have to do for comprehensive financial planning is often related to the allocation of limited resources. Under comprehensive financial planning, there are a number of conflicting needs namely retirement planning, children’s education and property purchases. For example, if one would to overcommit to a large property, it may jeopardise one’s retirement as … [Read more...]
Case study on simple integration of retirement & special needs planning
A client of mine has a daughter who suffers from Down syndrome. He wants to do some special needs planning for her but is not prepared to go through a thorough estate planning service because he has yet to decide on how to deal with many of his assets. Hence, he and his wife do not wish to write their wills (yet). They are also not prepared to go through a very detailed planning with me … [Read more...]
Case study to generate passive income for retirement planning
In this article, I would like to give a description on a case I worked on to help my clients monetise their existing assets in order to provide for a retirement income. My clients – husband and wife – were going to be 55 years old. Personally I felt that this age may be a little old to start a retirement plan. But it is better late than never. The couple expected their expenditure to be … [Read more...]
Integrating investment-linked policies with the core portfolio
I do not encourage my clients to terminate investment-linked policies (ILPs) although I am never an advocate of investment-linked policies. I have never sold any regular premium investment linked policy before. However, I can incorporate the ILPs into the core portfolio. As a fee-based financial planner, I do not need my clients to purchase the investments through me. If they already have … [Read more...]
NTUC Income, Tokio Marine & Aviva inconsistent underwriting standards
I want to share with you the different underwriting standards practice by different insurers. Recently, I have a client, age 27, whom I helped her applied for insurance and the outcomes were all different. The insurance applications were part of the recommendations from comprehensive financial planning. The client suffered from heart murmur. Her mother suffered from breast cancer, stroke and … [Read more...]
Case study on financial planning for a young family
This is a real case study for a young couple in their late twenties. Both of them are salaried persons and they were earning a combine gross income of $9,000. They were married with one son born just a year ago. They were still supporting all their parents. Hence, they had a total of 5 dependents. They engaged me to conduct a comprehensive financial plan. Credit management: They had … [Read more...]
Question on Investment Linked Policy charges (ILP charges)
Question: Wilfred, my financial adviser sold me a product called X and he told me that the insurance charges are constant throughout my entire life. My premium is $1,200 a year. However, I read in the forum that such ILPs’ insurance charges increase with age. I am confused, can you advise me how much will I be paying when I am say at 80 years old? I am a male and non-smoker. Answer: The … [Read more...]
