Associate Estate Planning Practitioner(AEPP)

Mr. Liu, who is a widowed, decided to make his Will so that he can leave his estates to his love ones according to his wishes. He went to his lawyer to get the Will drafted. He drafted a simple Will that is just to distribute in equal share to his 2 sons. The lawyer was very professional and got the Will drafted. Mr. Liu was very please with himself that everything is in place and is confident that the 2 sons will not squabble over his (not much) wealth when he leave this world. He decided to call his best friend, Mr. Kiang, for coffee and shared what he had done so that his best friend knew he had drafted a Will and hope he can assist his family if needed.

Mr. Liu told his friend,” Bro, I did a Will and everything will be divided in equal share between my 2 sons. It will be a fair and equal share so they will not squabble over unfair treatment.”

Mr. Kiang asked Mr. Liu, ” Do you think it is a fair and equal share that will leave them happy with each other?”

Mr. Liu was surprised with that question. Afterall, what can be more peaceful and fair than an equal share among 2 sons? Mr. Kiang continues,” Bro, your elder son is married  and staying with his wife in their own house and your younger son is single staying with you. By getting 50/50 of your house, what do you think they will do with it?”

Mr. Liu replied,” Most probably my elder son will want to sell it since he has his own house and take 50% of the proceed while my younger son will want to continue staying in it.”

Mr. Kiang asked again,” What will happen?” And there was silence…

The above scenario might be a situation when a person speaks to a legal professional to get a Will drafted and when the estate planning is done with an Associate Estate Planning Practitioner(AEPP) before getting the Will drafted.

An AEPP is not there to influence your Will but to give you a scenario of “What-if”, highlight the possible hiccups if the estate is distributed in a certain manner and most importantly, to provide a solution if your estate distribution face a potential issue (such as the case of Mr. Liu).

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I am glad to be certified as an Associate Estate Planning Practitioner after procrastinating for a few years due to busy schedule. I hope my knowledge and skills gain in this course and the financial planning experience accumulated over the years will help to provide a better service and advice to my clients.

 

 

 

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Retirement Planning Seminar Part II

Avallis Financial had successfully conducted Part II of the Retirement Planning Seminar on 1st Nov 2017. The audience had a good session on retirement planning and the options that may be possible such as annuities, investment, properties etc. The advantages and disadvantages of the available options were discussed as well.

 

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Here are some articles on SRS that may be useful for you.

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Retirement Seminar

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The guests had an informative session and some were pleasantly surprised that there were no sales or product being pushed after the session unlike some similar sessions that they had attended.

The slides for the seminar as requested by the guests can be downloaded from the link below.

Retirement Planning Slides

Another session on retirement planning will be held in the last quarter of 2017. This coming session will be more ‘hands-on’ and it involves topics such as calculating your own retirement needs. If you are interested to the seminar, just drop me a sms/whatsapp if you have my number or just send the form below to me. I will keep you in the loop. I hope to see you at the next seminar. Read more of this post

Love, Hate feeling in cheque.

Many people reject a career as a financial adviser because they think it is a difficult sales job. Unlike someone who is selling a dress which a consumer can immediately see how good she looks in it or someone selling a weight reduction pills which a consumer can see the effect in week or months, financial products can be very intangible.

The effect of a financial adviser’s proposal will be felt by the client only in years to come when the client manage to retire comfortably. In some cases, a financial adviser’s proposal may be tested much earlier than he wished…. that’s when a claim arises.

20170804_172735_mh1501838966531(One of the cheques made out to a client.)

As usual, mixed feeling when we deliver cheques to clients. On one hand, I know what I have been doing really help the client. To know the client can have a peace of mind and not to worry about their medical cost as well as loss of income due to sickness is fulfilling. On the other hand, we are sad that clients have suffered.

To all the financial advisers out there, keep up the noble work despite the rejections that you may had faced.

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Comparison of Endowment policies

Endowment policies are commonly known as “Saving plans”. The main objective of getting an endowment policy is to accumulate a sum of money at the end of a period of time. For e.g. to provide a education when the child gets into university or to create a retirement fund at age 55.  While endowment policy is not the only way to achieve those financial goals, it is still a good method for those who are risk averse.

An endowment plan consist of a death benefit but that is usually not the main concern. Most will look into the guaranteed returns or total returns. It can be difficult to compare a plan with another these days due to the different features. For a 15 year saving plan, one company may require the policyholder to pay for the full 15 years while another may require you to pay for as short as 1 year, 3 years or just 10 years in what we called as a “limited-pay endowment policy”.

This is a case study of my client who have the following financial objective.

  1. An endowment plan to mature in 15 years time
  2. Expect about $70,000 in maturity amount.

A typical comparison of endowment plans starts with the plans that are able to achieve the client’s financial goal. In this case, there were a total of 8 plans from various companies.

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Table 1

Those highlighted were the “best” in their respective feature. The premiums used above were inclusive of any riders included. I prefer to use this premium instead of the basic premium because it is the actual amount paid and it should be used as a reference to the returns. However, other financial advisors may just use the basic premium and exclude any riders or premium loadings.

It can be difficult to compare since the premium, premium term and returns all varies from one plan from another. So, a more accurate way is to compute the internal rate of returns which are the percentage illustrated on the yield table.

It can be rather confusing for a client to make a decision if they have to consider all 8 plans so the plans are usually presented after filtering out the not so ideal plans as shown below.

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Table 2

From the above, the plans will be explained to the clients in detail and together with the comparison table, it will be easier for the client to make an informed decision.

A client with a budget constraint or concern with death benefit may choose plan 3 that has the lowest premium and highest coverage amount although it may not be the best option.

For someone who is extremely low risk taker may decide to take up Plan 1 for the highest guaranteed yield. What this means is in the worst case scenario that the insurer did not pay any bonus for the next 15 years, the principle amount is not only guaranteed but you still get a yield of 0.76% per annum.

If the client is very optimistic of the market or the insurance company, he may decide to look at either Plan 1 or 6 since they have the highest yield base on 3.25% and 4.75% projection respectively.

There is no hard and fast rule to suggest one should choose a particular plan. It all depends on an individual’s personal choice. My role as a Independent Financial Advisor is to provide an objective view so that the client have a clear answer to his financial goals.

 

 

 

 

 

 

IBF Standards

The IBF Standards are a set of competency standards for financial skills. It is a comprehensive quality assurance framework with both an accreditation and a certification system.

There are 3 levels of IBF Certifications as shown below.

certification_process(source:www.ibf.org.sg)

 

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More information on can be shared from this YouTube clip

Policies extend benefits to cover Zika Virus

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The number of cases for Zika Virus in Singapore have increase to more than 300 in less than a month since Patient Zero was identified. The preventive measures advised by NEA is the most effective way to minimise the risk of becoming the next Zika virus patient.

Insurance companies have also taken the initiative to extend the benefits of some plans to cover Zika virus at no extra cost. The following are the policies that cover Zika virus at the moment. I will update the list accordingly.

Personal Accident 

Juvenile Personal Accident 

Travel Insurance

Home Insurance

Maternity Plan

Medical Plans

 

I will update the list when more companies include Zika virus in the benefits. For more information, please contact me by submitting the form below.

By submitting this form, you agree that Avallis Financial may collect, use and disclose your personal data, as provided in this entry form, for the following purposes in accordance with the Personal Data Protection Act 2012 :

(a) to contact you for the purpose of the reply to your queries.

CPD hours for Rules & Regulations

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With effect from 1st January 2016, a registered financial adviser must fulfill a minimum of 8 hours of Continuous Professional Development(CPD) training hours on Rules & Regulations.

I have to admit such sessions can be disruptive to our work schedules but to get ourselves updated with the latest rules and regulations is very important because our industry is highly regulated. The rules can stiffen our job and sometime cause inconveniences to our clients but it is important as the way of money laundering and funding to terrorism gets more and more creative. The risk increases as we deal more clients from different countries. They may be locals and the source of funds may be in question as well.

This topic is a very dry subject but the trainer did a fantastic job to share real examples of how some regulations were breached and  we learn a lot from him. Thus, I am happy to see that while there are some online courses that allow the financial adviser to take the assessment at own time and place,  a handful of my colleagues and myself took the trouble of travelling down to AXA University and complete the 2  half-day sessions. And of course, the usual catching up with fellow practitioners may it be from own or other firms.

 

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CPF Life and retirement planning

You can get as low as $660 to as much as $1,920 per month for life from your CPF Life payout.

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(Source: CPF)

How can you increase the payouts and most important is how much do you need?

How the CPF Minimum sum, CPF Life really works and how it affects your retirement?

How can you supplement your retirement funds?

These are some issues that an financial advisor will address to the clients. Should you either need a 1-to-1 consultation or a seminar for group of people to find out more about CPF Life and retirement planning, let me know and I can arrange for you.

All you need is to submit the form below.

Motor insurance from Aviva at a lower cost.

norwichunionlogoI am able to place motor insurance for your car insurance with Aviva now. While you can get it online, there are some benefits to place the business with me and they are stated as follow.

For used cars

  • Additional 15% discount

*Campaign period : Now till 16 June 2017

For Brand New cars

  • $150 petrol voucher
  • Additional 15% discount

*Campaign period : Now till 30 Sep 2016

Please note this offer is exclusively to my clients who are having Aviva Term, Myshield &and/or MyCare policy.

Just give me a call for more information.