Suzy Orman - Cash value and Term Life Insurance

Suzy Orman talks about whole life and term life insurance. She explain why a whole life policy is not suitable for children. Watch this video.

Poor deal from a life annuity

A consumer was given a proposal to pay a large annual premium for 5 years, keep the money until age 65 and withdraw an annual payment for life. The benefit illustration was confusing, even to me. I was not sure if this is a life annuity or withdrawal from an accumulation account.

I asked the consumer to use Excel and do the same projection, if he invested the money on his own to earn 3%, 4% and 5% in a low cost investment fund. He found that the DIY option gave him a large balance at age 91 - which is significantly higher than shown in the benefit illustration. The simple calculation gave an obvious answer to him - he should invest on his own.

He asked, "where do I get a low cost investment fund?" I recommended the STI ETF available on the Singapore Exchange (SGX). The investment risk can be managed by diversification (in this single fund) and investing for the long term to average out the good and bad year. This is explained in my book on financial planning (available at www.tankinlian.com/ishop).

This simple advice could save the consumer several hundred thousand dollars! Do not buy a bad financial product (or life insurance policy) that can take away so much of your accumulated savings. You can DIY.

Tan Kin Lian

Economic Growth and Equity

Should we pursue economic growth or equity? These are not conflicting goals. They are complementary. We can achieve sustainable economic growth through equitable distribution of the economic output. Read my views in this article.

Donation to FISCA

Several people have approached me for advice and guidance. I have to spend time to educate them. In some cases, my guidance is able to save them several tens or hundred of thousand dollars. 

I like to ask these people to make a donation to FISCA in return for the guidance, if you find it to be valuable. Make any amount that you feel to be appropriate. Read this FAQ: http://tankinlian.com/admin/file.aspx?id=182

Your donation will help to pay volunteers who have to spend time to educate consumers in avoiding bad investment decisions. Do be generous and fair.

Tan Kin Lian

Suzy Orman on Life Insurance

Suzy Orman is a financial adviser who appears on CBNC Life on Sunday. She appeared in several videos posted in Youtube. She gave sensible advice about life insurance. Watch this video.

Existing life insurance policies - continue or terminate?

Many people who learned that their life insurance policy gives a poor yield asked me, "Should I continue or terminate the policy?"

I asked them to study this FAQ and do the calculations.

33.3% discount on Financial Planning book

There were several orders for the 3-copy bundle of my financial planning book, which is available at a 33.3% discount. Three people can join together to buy the book and enjoy the discounted price of $8 per copy, i.e. $24 for 3 copies). You can also buy 3 copies and give 2 away to your children or friends.

This book helps them to plan better for their financial future and get a better yield on their long term savings.