A person named Eugene Yeo complained to the IM$avvy website that his insurance agent did not provide any follow-up or review for 11 years. He incurred 70% investment losses. Below is the full complain letter: I purchased an ILP from an insurance company in 1999. However, I did not receive any follow up or review of my financial status from my agent or the company. As a result, I stopped making … [Read more...]
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How to avoid scams
In the quest to find better returns at a lower risk, many people have been attracted to alternative investments. If these alternative investments do fall under the Securities and Futures Act (SFA), they are normally only available for Accredited Investor to purchase. Most common examples are hedge funds. However, many of these alternative investments do not fall under the definitions as … [Read more...]
Good advice doesn’t mean anything; bad advice doesn’t mean anything
Today I got news that a client wish to change financial adviser from me to another person (from another company). Not sure why like this as I take this quite personally. If I did a bad job, I deserved it. But for this case, I recalled that I saw the lady in 2008 when the financial crisis first happened. I advised her not to invest lump sum but do an RSP. She took my advice although she did not … [Read more...]
Financial Planning Reports used by Fake Planners
Not everybody going to like this blog posting but as usual, it is only my opinion. I know of a number of financial advisers who will write financial planning reports for their prospect. I have seen some of these fake reports. Here are my observations of these fake reports: 1. The prospect did not even read it. It is quite amazing when I asked the client whether did he or she read the report. … [Read more...]
Using ‘weighted average return’ approach for investment planning
Many people buy endowments that come in all sharp and sizes. Some give you regular cash back called dividends. People buy endowment because they felt that they cannot take any risk. But they don’t realize that endowments are not low risk. These days, hardly of these endowments promise to guarantee the return of capital. Much of these are merely projections. Moreover, even if there is a promise of … [Read more...]
What is the difference between savings and investments?
Very often I come across cases in which the client is unable to distinguish between savings and investments. The confusion is usually related to the unfamiliarity with the different asset classes. For savings, it is usually refer to putting money in asset class which (1) Will not have any chance of capital lost; (2) Whose value can be determine easily; (3) No contractual commitment; and (4) … [Read more...]
Survey shows investors will lose money
What Are the Sources of Profit?
Everybody looks at the price movements of their investments. Some have the bad habit of doing so everyday while others only look at it once in a while. There is another part of investment that is unseen which have a far greater impact on the total return. In this article written for INVEST magazine Dec 2009 issue, Wilfred Ling examines the sources of profit in equity investments and why many … [Read more...]
The Difference between value and price in financial services
Many people do not differentiate between value and price. Price is what you pay and value is what you get. For financial services, one must determine the value of an advice otherwise any price you pay (whether in fees or commissions) will be exorbitant. From my experience, most Singaporeans do not understand this and as a result make two serious mistakes: either (1) Paying for worthless advice … [Read more...]
4 Risks in Property Speculation
MAS flagged two risks to property buyers and painted two scenarios: 1. If the economy growth proves weaker than expected, property buyers may face capital depreciation when market corrects; 2. If the economy recovery stays on course, interest rates will increase causing mortgage loan installments to increase. Home buyers would have to pay a larger cash outflow. My comments: If you look … [Read more...]
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