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

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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.

 

Selection of products via the intangible way.

My colleagues and myself carry almost 95% of the life insurance, general insurance and unit trust available to the retail market.
There are reasons why although a product from one company may look cheaper n better but we choose not to recommend it especially for general insurance such as travel insurance or personal accident plans. I dare say commission is usually not the main reason cos the commission across companies are the same and it’s peanuts regardless what we choose.
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One main reason is the ease of claims or the ease to speak to a human being after-sales service. As a financial adviser, our job do not end when you buy. On the contrary, our job starts when you buy because that’s why a claim is likely to happen. Neither the client nor financial adviser likes to make a claim from the minor issues such as travel delay to a major one such as death claim. As a financial advisers, we super-duper hate making claims cos the client is making one claim but we are assisting to make multiple claims from different clients. We really appreciate a company that pays out claims without asking too many questions. Once, a claim officer asked questions to & fro 6 email correspondences asking silly questions over a claim of $500 despite providing them with all document necessary for claims while another claim of same nature with another company made at the same time had paid out a week earlier!  My 7th email to them was to tell them if they cannot afford to pay, just close the file and don’t pay. As these insurance companies are still our partners at the end of the day, we refrain from speaking bad about them and the best we can do is not to recommend that company’s product.
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Recently, I did a review for a long time friend and suggest a change of personal accident from Company A to B. The friend decided to discuss with his insurance agent from Company A who sold him the plan and later told me he will stick with it. I asked him why and the reply was ” The agent said Company A is easier to claim.” My reply was,” I am able to do both Company A & B on top of many others. I had claim from both company A, B & the few others to know who is easier to claim. Have your insurance agent tried to claim from Company B before?? If not, how is he suppose to know Company A is easier?” I could had counter-proposed to say I am able to sell Company A’s product too. Why not place it under me but I choose not to cos I don’t deal with difficult claims. I leave the choice to him.

I trust my fellow Independent Financial Advisors to do the same as me cos we have the choice to choose the better solution for our clients.

FPAS Networking Night

 

Had a good catch up with fellow AFP, AWP & CFP on industry matters & a discussion on Fee-based Financial Planning in Singapore on 29th Jun 2016.