I was told by a friend that he just invested in a Malaysia investment plan which I think it's pretty suspicious....
From his rough explaination, it's kind of endownment (investment?) policy that required applicant to pay for regular amount of min $5-$10k per year for 6 years continuously and applicant can enjoy a guaranteed 10% dividend annually, principle is guaranteed too.
As far as I know on the investment or endownment plan in the market, none of it can guaranteed the principle with 10% interest annually. I still believe there isn't any free lunch in this world.
Showing posts with label 蛋蛋理财经. Show all posts
Showing posts with label 蛋蛋理财经. Show all posts
Friday, June 25, 2010
Wednesday, June 16, 2010
Transportation Cost (New Distance Fare)
New distance fare will be implemented from 03/July, and the online fare calculator are now available at PublicTransport@SG.
After comparing my new transport fee, I'm not sure whether I should be happy or dissapointed...
Current Fare | Distance Fare |Changes | %
MRT Journey: $1.72 | $1.82 | + $0.10 | 5.81% |
Shuttle Bus btw Home & MRT: $0.19* | $0.02 | - $0.17 | - |
Total: $1.91 | $1.84 | - $0.07 | -3.66% |
* after $0.50 transfer rebate
By looking at the final figure, I should be happy and satisfied with the new fare system because I save $0.07 per journey to/from office. Assuming 2 trips a day and 20 working days a month, my monthly savings would be $2.80 which is equal a plate of mixed rice with 1 meat and 2 vege.
But the dark side of this fare to my case is, purely the fare for the mrt journey has been increase significant by 5.81%. if I opt for healthier way by walking to mrt station instead of taking shuttle bus, theoretically I will suffer an addition $4/month ($0.10 x 2 trips x 20 wd) on my transportation cost.
While transport company is suffering a loss in fare reduction in shuttle service, it has to make a higher profit in other ways to cover this small losses as fare for shuttle service become so low that i think it's hard to cover its cost. Alternatively, shuttle service frequencies may be reduced or worse been cancelled.
After comparing my new transport fee, I'm not sure whether I should be happy or dissapointed...
Current Fare | Distance Fare |Changes | %
MRT Journey: $1.72 | $1.82 | + $0.10 | 5.81% |
Shuttle Bus btw Home & MRT: $0.19* | $0.02 | - $0.17 | - |
Total: $1.91 | $1.84 | - $0.07 | -3.66% |
* after $0.50 transfer rebate
By looking at the final figure, I should be happy and satisfied with the new fare system because I save $0.07 per journey to/from office. Assuming 2 trips a day and 20 working days a month, my monthly savings would be $2.80 which is equal a plate of mixed rice with 1 meat and 2 vege.
But the dark side of this fare to my case is, purely the fare for the mrt journey has been increase significant by 5.81%. if I opt for healthier way by walking to mrt station instead of taking shuttle bus, theoretically I will suffer an addition $4/month ($0.10 x 2 trips x 20 wd) on my transportation cost.
While transport company is suffering a loss in fare reduction in shuttle service, it has to make a higher profit in other ways to cover this small losses as fare for shuttle service become so low that i think it's hard to cover its cost. Alternatively, shuttle service frequencies may be reduced or worse been cancelled.
Wednesday, May 26, 2010
Spending Cut
I deactivated my auto roaming mobile phone service which subscription cost me $5.35/mth and use Pay-As-You-Roam with $0 subscription, even the roaming call charges is 20% higher than the previous choice.
I can use my existing JB mobile line to while I am in Malaysia.
Still thinking whether to deactivated my Caller ID to save another $5.35/mth... =)
I can use my existing JB mobile line to while I am in Malaysia.
Still thinking whether to deactivated my Caller ID to save another $5.35/mth... =)
Tuesday, May 25, 2010
Unjustified Price - Brown Rice
Brown rice is produced when only the outermost layer of a grain of rice (husk) is removed. While to produce white rice, the next layers underneath the husk are removed.
Since the less processing steps are required to produce brown rice, why the price of brown rice at the markets are almost double than the white rice?
Ways toward healthy diet could be in lower cost without the unjustified price hike.
Brown rice is a greener choice too, it's basically down to processing - the less processing of a food, the less energy required. I can't imagine how many processing steps (maybe chemical process?)are carried out before our bags of "shinning white" white rice are placed on sheves.
Since the less processing steps are required to produce brown rice, why the price of brown rice at the markets are almost double than the white rice?
Ways toward healthy diet could be in lower cost without the unjustified price hike.
Brown rice is a greener choice too, it's basically down to processing - the less processing of a food, the less energy required. I can't imagine how many processing steps (maybe chemical process?)are carried out before our bags of "shinning white" white rice are placed on sheves.
Friday, April 30, 2010
Transportation Cost
A new distance fare structure will be implemented in coming July, I still suspect whether we'll be benefit from the changes even it was told reported the fare will be reduced generally and the operators are suffering a lost on this changes.
It just a game play on figure, the authority can decide how to present it and come out the results as they wish.
My current transportation cost per journey to office is
MRT Journey to office $1.72
Shuttle Bus from Mrt station to home $0.69
Minus: Transfer Rebate $0.50
====================
Total $1.91
====================
*** Cross my finger and hope the coming changes won't affect my current budget.
It just a game play on figure, the authority can decide how to present it and come out the results as they wish.
My current transportation cost per journey to office is
MRT Journey to office $1.72
Shuttle Bus from Mrt station to home $0.69
Minus: Transfer Rebate $0.50
====================
Total $1.91
====================
*** Cross my finger and hope the coming changes won't affect my current budget.
Thursday, November 19, 2009
SPH - CIMB
One for the future
More light on Clementi bid
Maintain Neutral and S$4.38 target price; further underperformance could provide buying opportunity. We earlier believed that SPH’s bid price of S$2,797psf for a Clementi mall site represented a hefty premium over comparable malls. Since then, SPH’s share price has weakened. The large premium it put in over the secondhighest bid (42% premium) meant that SPH was unlikely to lose the tender. Thus, it was not much of a surprise when SPH announced that it has won the tender. Given its recent share-price underperformance, we believe further downside is limited. In an analysts’ briefing yesterday, SPH took great pains to explain the rationale for its bid, conveying its optimism on the Singapore property market and making it clear that it intends to own attractive infrastructure to ride on Singapore’s population growth and/or undertake future residential development projects. No change to our earnings estimates for now as contributions from the mall are expected only further out. Our sum-of-the-parts target price remains S$4.38.
The details. SPH teamed up with NTUC for a joint bid for a Clementi mall site. SPH will own 60% of the venture, NTUC 40%. The bid price of S$542m is for a site with 269,100sf of retail/commercial GFA and NLA of 193,750sf. Part of the difference is accounted by the space occupied by a library (21,250sf) paying concessionary rents. The Housing Development Board will build the core structure and facade, and hand it over to the SPH consortium in Aug 2010. SPH estimates fit-out costs at less than S$40m and expects the mall to start contribution in the first half of 2011. Adjusting for lower fit-out costs, the total consideration could be S$3,003 psf. The pricing still looks steep when compared with Ion Orchard (S$3,800 psf), Bishan Junction 8 (S$2,306 psf), Serangoon Nex (S$2,167 psf), Northpoint (S$2,129 psf) and Causeway Point (S$1,706 psf). Assuming gross rents of S$15psf, net property yield is only 4.8%. In contrast, mainstream landlords were bidding at closer to 6% yields.
SPH explained the bid differential. SPH gave three reasons for its aggressive bid. First, it had wrong intelligence that there was going to be an aggressive bid from a private equity firm. Second, its bid was based on expected rental rates in the future. SPH pointed to the neighbouring mall, CityVibe, where rents topping S$18psf had been achieved. Last but not least, SPH alluded to its ability to secure cheap financing, which can help push up the mall’s overall returns. No details on optimal gearing or cost of debt have been disclosed yet.
How good can it be? The wild card in this whole deal is really financing rates. Assuming SPH does achieve S$18psf rents and full occupancy in 2011, net property yields (un-geared) can rise up to 5.75%. If financing rates are low, effective property returns would look even better. Earlier in the year, REITs were refinancing at spreads of 200-300bp above cost of funds. By August, A-REIT had secured its refinancing at spreads of below 150bp. One could imagine banks pricing spreads for a retail asset with stable cash flow at below 150bp. The 5-year SGS is now about 1.36%. Taken together, the all-in cost of debt could end up at 2.5%-3.0%. Assuming the SPH consortium takes 60% debt for the project and borrows at 3%, the effective rate of returns (on a geared basis) goes up to 9.9%.
The quest for stable yields for ‘excess capital’. SPH’s declared dividends in FY09 amounted to about S$420m. FY10 dividends do not appear to be under threat from this property foray since there will be a similar amount of proceeds coming from Sky@Eleven in FY10. As at end-FY09, SPH had about S$993m worth of investible assets comprising S$299m cash, S$245m long-term investments (bonds) and S$449m short-term investments (equities, including stakes in Starhub and M1). SPH’s 60% share of the Clementi mall implies a share of project costs at about S$350m. Assuming the consortium does borrow up to 60% LTV, SPH would need to set aside S$140m for its equity portion, equivalent to half its idle cash hoard. Cash does not earn much these days, so the move to mobilise cash into retail malls can be viewed positively. We asked management if its dwindling cash hoard would imply an end to SPH’s property investments for now. Management’s answer: its potential property investments are not limited by current cash levels, but are assessed on each project’s expected returns vs. other investments within its S$1bn pool of investible assets. This is all done to provide adequate returns for its excess capital, outside its core media operations. We retain our view that the bid price was not low, but for a company in SPH’s position and given the current environment of population growth and low interest rates, one can understand the move.
More light on Clementi bid
Maintain Neutral and S$4.38 target price; further underperformance could provide buying opportunity. We earlier believed that SPH’s bid price of S$2,797psf for a Clementi mall site represented a hefty premium over comparable malls. Since then, SPH’s share price has weakened. The large premium it put in over the secondhighest bid (42% premium) meant that SPH was unlikely to lose the tender. Thus, it was not much of a surprise when SPH announced that it has won the tender. Given its recent share-price underperformance, we believe further downside is limited. In an analysts’ briefing yesterday, SPH took great pains to explain the rationale for its bid, conveying its optimism on the Singapore property market and making it clear that it intends to own attractive infrastructure to ride on Singapore’s population growth and/or undertake future residential development projects. No change to our earnings estimates for now as contributions from the mall are expected only further out. Our sum-of-the-parts target price remains S$4.38.
The details. SPH teamed up with NTUC for a joint bid for a Clementi mall site. SPH will own 60% of the venture, NTUC 40%. The bid price of S$542m is for a site with 269,100sf of retail/commercial GFA and NLA of 193,750sf. Part of the difference is accounted by the space occupied by a library (21,250sf) paying concessionary rents. The Housing Development Board will build the core structure and facade, and hand it over to the SPH consortium in Aug 2010. SPH estimates fit-out costs at less than S$40m and expects the mall to start contribution in the first half of 2011. Adjusting for lower fit-out costs, the total consideration could be S$3,003 psf. The pricing still looks steep when compared with Ion Orchard (S$3,800 psf), Bishan Junction 8 (S$2,306 psf), Serangoon Nex (S$2,167 psf), Northpoint (S$2,129 psf) and Causeway Point (S$1,706 psf). Assuming gross rents of S$15psf, net property yield is only 4.8%. In contrast, mainstream landlords were bidding at closer to 6% yields.
SPH explained the bid differential. SPH gave three reasons for its aggressive bid. First, it had wrong intelligence that there was going to be an aggressive bid from a private equity firm. Second, its bid was based on expected rental rates in the future. SPH pointed to the neighbouring mall, CityVibe, where rents topping S$18psf had been achieved. Last but not least, SPH alluded to its ability to secure cheap financing, which can help push up the mall’s overall returns. No details on optimal gearing or cost of debt have been disclosed yet.
How good can it be? The wild card in this whole deal is really financing rates. Assuming SPH does achieve S$18psf rents and full occupancy in 2011, net property yields (un-geared) can rise up to 5.75%. If financing rates are low, effective property returns would look even better. Earlier in the year, REITs were refinancing at spreads of 200-300bp above cost of funds. By August, A-REIT had secured its refinancing at spreads of below 150bp. One could imagine banks pricing spreads for a retail asset with stable cash flow at below 150bp. The 5-year SGS is now about 1.36%. Taken together, the all-in cost of debt could end up at 2.5%-3.0%. Assuming the SPH consortium takes 60% debt for the project and borrows at 3%, the effective rate of returns (on a geared basis) goes up to 9.9%.
The quest for stable yields for ‘excess capital’. SPH’s declared dividends in FY09 amounted to about S$420m. FY10 dividends do not appear to be under threat from this property foray since there will be a similar amount of proceeds coming from Sky@Eleven in FY10. As at end-FY09, SPH had about S$993m worth of investible assets comprising S$299m cash, S$245m long-term investments (bonds) and S$449m short-term investments (equities, including stakes in Starhub and M1). SPH’s 60% share of the Clementi mall implies a share of project costs at about S$350m. Assuming the consortium does borrow up to 60% LTV, SPH would need to set aside S$140m for its equity portion, equivalent to half its idle cash hoard. Cash does not earn much these days, so the move to mobilise cash into retail malls can be viewed positively. We asked management if its dwindling cash hoard would imply an end to SPH’s property investments for now. Management’s answer: its potential property investments are not limited by current cash levels, but are assessed on each project’s expected returns vs. other investments within its S$1bn pool of investible assets. This is all done to provide adequate returns for its excess capital, outside its core media operations. We retain our view that the bid price was not low, but for a company in SPH’s position and given the current environment of population growth and low interest rates, one can understand the move.
Friday, November 13, 2009
Clementi Mall
HDB announced the bidding results of the Clementi Mall on Tuesday. The good news is a JV of SPH (60%), NTUC fairprice (20%) & NTUC Income (20%) is the winner of this project. The bad news is the bid price is closed to 42% higher than the second highest bidder.
Apparently, the bad news has lead the selling pressure on the SPH from Monday closed price $3.89 till current trading range at about $3.71 - $3.73. I think the investor could be over react on the project, specifically the excessive high bid price. By looking at the longer term perspective, the potential of the mall will definitely bring in the the much bigger benefit to the company. According to Knight Farnk, to archieve a net property yield at about 5.5% - 6%, average gross monthly rental of about $18 psf wold be required, while the current best suburban malls is about $15-16psf. I believe it won't be so difficult to archieve the targeted rental if the momentum of the economic is picking gradually until the completion of the mall.
I was complaining about the crowd and inconvenient of Clementi without a decent shopping mall during my NUS time. Hostel students flooded into Clementi town to get their grocery and foods. The demand of a shipping mall is definitely strong and firm.
Clementi mall will be located at the current temporary bus interchange which comprises two basement levels and five storeys above ground. An air-conditioned bus interchange will be on the first level and the third level will be connected to Clementi MRT Station. Fairprice will also operate a supermarket within. The easy accessible to the mall will definitely draw the crowd from others town nearby.
Generally, I'm quite optimistic on SPH with this new project. The company's effort in diversification of the business will definitely beneficial in longer term. besde it's core business in publication & media, the property investment on Paragon is sucessful, its BUZZ pod retail business and investor/financial onine portal seems also expanding at a faster pace now. The return in short-long term investment in M1 and Starhub will be stable too. It's appropriate to increase its capex to explore the higher benefit to the shareholders.
The strong balance sheet, stable dividend payout is attractive. FY09 dividend stood at 25cts (include contributions from Sky @ 11), assuming the same dividend for FY2010, a yield at $3.74 is an decent 6.7%.
Thursday, November 12, 2009
Calculate Your Housing Loan in Excel
If you're not familiar with the financial calculater and fancy on how a bank salesperson calculate your housing loan monthly payment in just few pressing on the calcualtor, you may actualy DIY through microsoft excel function.
PMT:
each repayment/instalment amount
Rate:
interest per period of a loan, e.g 5% p.a divide by # payment per year = 5%/12 = 0.00417
NPER:
total # of payment for full tenure, e.g. monthly payment for 30 years = 30x12 = 360
PV (Present Value):
Loan amount
FV (Furutre Value):
For housing loan, ZERO as fully paid up the loan when matured e.g 30 year later.
To find out how much monthly repayment you're paying for a $250,000 30-yrs loan at loan interest of 5% p.a interest? You may key in the formula in the Excel cell.
=PMT(0.00417,360,250000,0)
The answer should be deficit figure of $1,342.05 and this is your constant monthly repayment.
Of course, the function of PMT, PV, FV, NPER are extremely useful in other area such as calculating effective interest rate for regular savings, investment, inflation and your financial planning, etc.
Do spend some time to manage this function, it will be very helpful.
PMT:
each repayment/instalment amount
Rate:
interest per period of a loan, e.g 5% p.a divide by # payment per year = 5%/12 = 0.00417
NPER:
total # of payment for full tenure, e.g. monthly payment for 30 years = 30x12 = 360
PV (Present Value):
Loan amount
FV (Furutre Value):
For housing loan, ZERO as fully paid up the loan when matured e.g 30 year later.
To find out how much monthly repayment you're paying for a $250,000 30-yrs loan at loan interest of 5% p.a interest? You may key in the formula in the Excel cell.
=PMT(0.00417,360,250000,0)
The answer should be deficit figure of $1,342.05 and this is your constant monthly repayment.
Of course, the function of PMT, PV, FV, NPER are extremely useful in other area such as calculating effective interest rate for regular savings, investment, inflation and your financial planning, etc.
Do spend some time to manage this function, it will be very helpful.
Tuesday, November 10, 2009
Chart Analysis
Pressure on shares price has last for previous whole week, some of my picks seems become attractive based on its price/book ratio and yield. The candlestick charts seems also suporting the move. Price fall below moving average price, RSI, stochatics and MACD all appear oversold status. It might be the time to take up some of your picks gradually.
Currently share price level seems to be more reasonably reflect a company's value, substainability still depend on the investors' emotion rather than the fundamental.
Currently share price level seems to be more reasonably reflect a company's value, substainability still depend on the investors' emotion rather than the fundamental.
Thursday, October 29, 2009
Fail Investment
I sold 2 of my my CPF-OA unit trust fund today to accomodate my hdb downpayment. It look pretty decent for $10,000 initial invesmtnet plus a 5% gain of close to $500. When take a closer look, I'm actually suffer a losses...
I bought the fund 3 years ago, which mean my gain is about 1.67% p.a (i.e 5%/3), this is even lower than the CPF-OA 2.5% interest. If I remained the principle amount with CPF, I would have gained a compounded interest of $769 today.
$769 - $500 = $269 is my actual loss in this particular investment.
I won't blame the bad timing due to the market correction over last few days, without the sudden price drop, I would have recovered my principle plus the interest if I remain the $$$ with CPF.
No regret in selling this investment because it's unavoidable. For investment, the key point still the holding power.
I bought the fund 3 years ago, which mean my gain is about 1.67% p.a (i.e 5%/3), this is even lower than the CPF-OA 2.5% interest. If I remained the principle amount with CPF, I would have gained a compounded interest of $769 today.
$769 - $500 = $269 is my actual loss in this particular investment.
I won't blame the bad timing due to the market correction over last few days, without the sudden price drop, I would have recovered my principle plus the interest if I remain the $$$ with CPF.
No regret in selling this investment because it's unavoidable. For investment, the key point still the holding power.
Reits again?
Price for reits seems are getting to their fair value, some of the reits market price already went above its nav, yield are mostly in a range of 5% to 7%, price/book ratio >1 and with high gearing. It seems not too attractive to me anymore when other high yield stocks are offering the similar yield with a healthy balance sheet.
90% distribution of the income for the reit is not a must nowadays. To archieve a better gearing, healthier balance sheet and fulfil the loan convenant, more than 20% of income will be retained to fulfil the truts' need. This means the reduction of DPU and lower yield.
Would the current downtrend be the correction period which just temporarily? Hunting a value stock with a long term prospect still the right strategy.
90% distribution of the income for the reit is not a must nowadays. To archieve a better gearing, healthier balance sheet and fulfil the loan convenant, more than 20% of income will be retained to fulfil the truts' need. This means the reduction of DPU and lower yield.
Would the current downtrend be the correction period which just temporarily? Hunting a value stock with a long term prospect still the right strategy.
Tuesday, October 27, 2009
Investment Link Assurance Charges
Further to the topic on the Investment Link Insurance, let's take a closer look on the assurance charges
Wifey paid $100/month for the sum assured $82k with coverage of Death, Total & Permanent Disability, Terminal Illness and Crisis Cover Provider III ("Protection"). Of course, this $100 will go into purchase of unit trust while assurance and administration charges will be deducted by the insurance company by way of selling your unit in your policy based on market price. Different kind of charges will be imposed on the policy holder indrectly.
Based on the insurance policy booklet provided, for a Female, non-smoker, sum assured $82k, at the age of 56, the montly assurance charges would have exceed $100, which means that from age of 56 onward, your $100 are not sufficient to contra off your assurance charges, you are on the mercy of good unit trust performance and hope the balance units are sufficient to fill up the shortfall.
If another round of financial crisis hits during that period, price of your unit trust fall sharply, and unit deductions are much faster than the initial planned. When tthe time your existing units are fully deducted and your monthly $100 contributions is sufficient for the assurance charges, policy termination, premium increment, sum assurance reduction is the left few solutions for you.
Do you really want to fall into this dilemma?
Wifey paid $100/month for the sum assured $82k with coverage of Death, Total & Permanent Disability, Terminal Illness and Crisis Cover Provider III ("Protection"). Of course, this $100 will go into purchase of unit trust while assurance and administration charges will be deducted by the insurance company by way of selling your unit in your policy based on market price. Different kind of charges will be imposed on the policy holder indrectly.
Based on the insurance policy booklet provided, for a Female, non-smoker, sum assured $82k, at the age of 56, the montly assurance charges would have exceed $100, which means that from age of 56 onward, your $100 are not sufficient to contra off your assurance charges, you are on the mercy of good unit trust performance and hope the balance units are sufficient to fill up the shortfall.
If another round of financial crisis hits during that period, price of your unit trust fall sharply, and unit deductions are much faster than the initial planned. When tthe time your existing units are fully deducted and your monthly $100 contributions is sufficient for the assurance charges, policy termination, premium increment, sum assurance reduction is the left few solutions for you.
Do you really want to fall into this dilemma?
Friday, October 23, 2009
Dividend Time
Reits and Trusts have been a major part of my investment portfolio since the financial crackdown down last year. I deeply believe relatively stable yield and grow are still my cup of tea for a mid / long term strategy. October is the month companies releasing their 3Q results, noticed most of the Trusts are reducing their distribution per unit (DPU) despite the improvement in net profit. Cambridge proposed a reinvestment scheme to opt for receiving shares instead of cash as distribution; Pacific Shipping Trust reduced its distributable income to 70% instead of 90%. These steps are necessary to assure the constant growth and improve the balance sheet (gearing) for a trusts, 100% income pay out are not substainable in a long term. Investors should get out from the mentality of high pay out sweet time. The long term growth still the key point to maintain substainable distribution.
Monday, October 12, 2009
Promotion Tricks
Can we assume promotion items on the top shelf are the cheapest you can get in the same shop? This is not really the case.
Take the toothpaste i got from NxxC yesterday as example,
(A) 1 piece single monthly special price pack x 250ml @ $3.15 (at the unnoticeable bottom shelf)
(B) 3 pieces value pack x 175ml @ $6.75 (at obvious promotion shelf)
What is your pick?
Here is the per unit (ml) price
(A) $3.15 / (250 x 1) = $0.0126/ml
(B) $6.75 / (175 x 3) = $0.0129/ml
The unit price of the "value pack"(B) is actually higher. We might end up buying more quantity at higher price and also use up the space of the storeroom.
Since both are the same original flavour and the expiry date for (A) is 2012 (not sure about (B)), I don't see the reason to buy (B) which indicating "value pack" on the packaging.
Take the toothpaste i got from NxxC yesterday as example,
(A) 1 piece single monthly special price pack x 250ml @ $3.15 (at the unnoticeable bottom shelf)
(B) 3 pieces value pack x 175ml @ $6.75 (at obvious promotion shelf)
What is your pick?
Here is the per unit (ml) price
(A) $3.15 / (250 x 1) = $0.0126/ml
(B) $6.75 / (175 x 3) = $0.0129/ml
The unit price of the "value pack"(B) is actually higher. We might end up buying more quantity at higher price and also use up the space of the storeroom.
Since both are the same original flavour and the expiry date for (A) is 2012 (not sure about (B)), I don't see the reason to buy (B) which indicating "value pack" on the packaging.
Friday, October 9, 2009
Why GST for Gold?
The weakness on US dollar has once again created another surge on gold price. The possible further weakness on the greenback and the rumours about countries are in discussion about using other currencies and gold rather than US dollars as trade settlements have further pushed up the gold price.
This prompt me a question, why are we charged with the goods & services tax (gst) while purchasing gold since it's considered a kind of 'currency' in trade. The gold is a currency in trade since thousands year ago and countries are considering gold as a payment mode nowadays, I wondering why we're still charged with the gst while there just a exchange of 'currency' instead of purchasing a goods.
Of course, the price of a gold jewellery includes the price of gold and the cost of workmanship, I have no problem to pay the gst for the workmanship, maybe not gold.
Hopefully when gold gradually become another popular mode of international trade settlements, people will realise the right price they should pay for.
Monday, June 8, 2009
Don't Anyhow Tap Your Ezlink Card (2)
I just got the refund for my Ezlink card double deduction on my bus fare last Friday!!! No doubt on their effeciency, but lack of awareness from the public on similar incident.
You may lodge your claim through their website, hotline or the Tickets Offices.
https://www.transitlink.com.sg/claim/claim_complain.html
You may lodge your claim through their website, hotline or the Tickets Offices.
https://www.transitlink.com.sg/claim/claim_complain.html
Wednesday, June 3, 2009
Don't Anyhow Tap Your Ezlink Card (1)
I'm not sure how many of you are aware of the case of bus fare double deduction while tapping your Ezlink card on a reader which is showing "ENTRY" mode while getting off from the bus (particularly from the front door). There's a time the reader showing sign of new ride instead of the amount deducted and the balance figure of your card that lured my couriousity.
I went to the topup machine and checked my card records, it was a double deduction of my bus fare which mean the correct bus fare and the new ride fare from the alight bus stop until the last station/terminal.
After checking on the bus company website and I realised that by tapping your card on a reader showing sign of "ENTRY" instead of "ENTRY/EXIT" will occur a double deduction of bus fare which is not intentionally but not observable by some people like me. I'm wondering how many of you will check on the sign of the reader before tapping your card. I get down the bus from its front door (only me), the drive opened the door for me, and I believe I can I assume that I can just tap the reader for the right fare deduction.
I'm worrying for the senior citizens who are not aware of this system and don't understand English or what does it mean of the sign on the reader. There might be a huge amount of double deduction happened unconciously everyday just because we're to easy with the convenient we have now. Even though claims can be done, it's rather complicated for me. It can be much easier to set "ENTRY/EXIT" mode as default for front reader to avoid double deduction.
So, just have a check on the reader before you tap your card, it's ur hard earn money, protect it.
- A victim of bus fare double deduction.
I went to the topup machine and checked my card records, it was a double deduction of my bus fare which mean the correct bus fare and the new ride fare from the alight bus stop until the last station/terminal.
After checking on the bus company website and I realised that by tapping your card on a reader showing sign of "ENTRY" instead of "ENTRY/EXIT" will occur a double deduction of bus fare which is not intentionally but not observable by some people like me. I'm wondering how many of you will check on the sign of the reader before tapping your card. I get down the bus from its front door (only me), the drive opened the door for me, and I believe I can I assume that I can just tap the reader for the right fare deduction.
I'm worrying for the senior citizens who are not aware of this system and don't understand English or what does it mean of the sign on the reader. There might be a huge amount of double deduction happened unconciously everyday just because we're to easy with the convenient we have now. Even though claims can be done, it's rather complicated for me. It can be much easier to set "ENTRY/EXIT" mode as default for front reader to avoid double deduction.
So, just have a check on the reader before you tap your card, it's ur hard earn money, protect it.
- A victim of bus fare double deduction.
Friday, March 27, 2009
Investment Link Product - Are you ready to pay for the price?
I was going through my family insurance policy over the past few weeks and reviewing the protection structure among them including myself. I noticed there is a kind of investment link insurance which is very popular now.
My initial ideal on the policy is by paying the regular monthly premium, part of the premium will be paid for the insurance coverage while the balance is going into investment (by buying the selected unit trust). However, after going into all the details of the policies, the structure as per chart showing below...
There're few possible charges in the investment link insurance:
(1) Net Sales Charges
100% of the premiums will be used to purchase the UnitTrust (at offer price) before paying for the premium of insurance protection. By purchasing the UnitTrust (UT), an Net Sales Charges will occurs.
(2) Continuing Investment Charges
Normally about 0.1% to 2% p.a., this charges was reflected in the price difference between offer and bid price.
(3) Initial Investment Charge
Mnthly premium paid and used to purchase the UT will be impost by a certain percentage (some companies are harging about 5%), this charges was reflected in the price difference between offer and bid price.
(4) Administration Charges
Charges for your protection coverage (death, permanent and total disability, critical illness, terminal illness) which was charged on monthly basis by selling your existing UT's units (base on bid price). normally about few dollars per months.
(5) Assurance Charges
Charges for your protection coverage which was charged on monthly basis by selling your existing UT's units (base on bid price). This charges are growing rapidly (scary figure) as you get older. You can calculate it based on the rate indicated in your policy. Rates are not guarantee which mean the insurance company may increase the rate any time by giving sufficient notice period as indicated in the policy.
By selling ur existing unit to pay for charges (4) & (5), you're paying the charges (1), (2) & (3) indirectly just to get your protection apart from invesment.
While you get older, the assurance charges will get higher than your monthly premium. There are few options at that stage:
(I) Reduce sum assured to mantain the same premium
(II) Increase premium to maintain same sum assured
(III) Maintain same premium and sum assured by deducting more existing units which was purchase previously.
For options (III), your UT's units will gradually reduced to sufficient the cost of your protection (administration and assurance charges), expecially during the market trumble, value of the UTs are drop sharly which mean more unit will be deducted (you're forced to sell) and you're suffering a loss from your preious investment.
** Please correct me if my understanding are not correct.
There is an forum discussion on this issuse too...
http://sgforums.com/forums/10/topics/117370
My initial ideal on the policy is by paying the regular monthly premium, part of the premium will be paid for the insurance coverage while the balance is going into investment (by buying the selected unit trust). However, after going into all the details of the policies, the structure as per chart showing below...
There're few possible charges in the investment link insurance:
(1) Net Sales Charges
100% of the premiums will be used to purchase the UnitTrust (at offer price) before paying for the premium of insurance protection. By purchasing the UnitTrust (UT), an Net Sales Charges will occurs.
(2) Continuing Investment Charges
Normally about 0.1% to 2% p.a., this charges was reflected in the price difference between offer and bid price.
(3) Initial Investment Charge
Mnthly premium paid and used to purchase the UT will be impost by a certain percentage (some companies are harging about 5%), this charges was reflected in the price difference between offer and bid price.
(4) Administration Charges
Charges for your protection coverage (death, permanent and total disability, critical illness, terminal illness) which was charged on monthly basis by selling your existing UT's units (base on bid price). normally about few dollars per months.
(5) Assurance Charges
Charges for your protection coverage which was charged on monthly basis by selling your existing UT's units (base on bid price). This charges are growing rapidly (scary figure) as you get older. You can calculate it based on the rate indicated in your policy. Rates are not guarantee which mean the insurance company may increase the rate any time by giving sufficient notice period as indicated in the policy.
By selling ur existing unit to pay for charges (4) & (5), you're paying the charges (1), (2) & (3) indirectly just to get your protection apart from invesment.
While you get older, the assurance charges will get higher than your monthly premium. There are few options at that stage:
(I) Reduce sum assured to mantain the same premium
(II) Increase premium to maintain same sum assured
(III) Maintain same premium and sum assured by deducting more existing units which was purchase previously.
For options (III), your UT's units will gradually reduced to sufficient the cost of your protection (administration and assurance charges), expecially during the market trumble, value of the UTs are drop sharly which mean more unit will be deducted (you're forced to sell) and you're suffering a loss from your preious investment.
** Please correct me if my understanding are not correct.
There is an forum discussion on this issuse too...
http://sgforums.com/forums/10/topics/117370
Saturday, March 21, 2009
Your Money or Your Life ???
I'm always very interest in figure, especially related to fiancial management. Since I'm so free currently (hopefully won't be too long), I've been talking to financial advisors and reading books related to personal financial management... << Your Money or Your Life >> (NLB: English 332.02401/ Chinese 332.02401), a book which will make you realise the important of time, how much does the time worth in ur life time. Have you ever calculated what is your hourly paid? Every single dollars you spent will take how many hours of your life earn that amount?
This is the simple calculation...
Monthly Wages (assuming no other sources of income)
[Minus] Work Related Expenses (e.g clothes, transportation, food,entertainment, destress clubbing)
[Divide By] Total hrs u spend on works + work related activities
= Your Hourly Pay
The ideal ofthe book is not encouraging you not to work but to emphasize the hours spent in your life for every spending and ultimately control your uncessary spending. For examply, based on above calculation your hourly pay is $10, for buying an $200 luxury electronic, it takes you 20 hrs of your life in exchange. This is very subjective, right or wrong? You've to justify by yourself...
The logic are simple yet are generally neglected...
The ultimately aim is help the reader to understand the important on control your desire. Human being are tend to ask for more if there are choices, and always out of their limitation unknowingly...
This is the simple calculation...
Monthly Wages (assuming no other sources of income)
[Minus] Work Related Expenses (e.g clothes, transportation, food,entertainment, destress clubbing)
[Divide By] Total hrs u spend on works + work related activities
= Your Hourly Pay
The ideal ofthe book is not encouraging you not to work but to emphasize the hours spent in your life for every spending and ultimately control your uncessary spending. For examply, based on above calculation your hourly pay is $10, for buying an $200 luxury electronic, it takes you 20 hrs of your life in exchange. This is very subjective, right or wrong? You've to justify by yourself...
The logic are simple yet are generally neglected...
The ultimately aim is help the reader to understand the important on control your desire. Human being are tend to ask for more if there are choices, and always out of their limitation unknowingly...
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