Career as an IFA

While this article is from US, the datas & info are not much different from the local scene except on “How to Become a Financial Advisor”. Due to the different regulations between the countries, we have our set of rules.

Please submit the form below to arrange for an interview if you are interested to find out more about the career as a Financial Advisor, the pros n cons of an Independent Financial Advisor vs a Financial Advisor or you know someone who may be interested/suitable.

By submitting this form, you are giving permission Avallis Financial Pte Ltd and the staff to contact you via Email or Mobile for the purpose of recruitment.

Disruptive Technology Fund

  • What is Disruptive Technology?

Disruptive technologies are advances that will transform life, business, and the global economy.

 

  • Is this something new?

No, articles on disruptive technology can be found as far back as 1995.

  • What are some examples of Disruptive Technology?

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  • What is the future for disruptive technology?

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If you want to know more how you can put your money into these companies and ride the disruption wave with them, you many want to join the fund managers from Lion Global Investors and listen to what they have to say.

Date : 18th May 2017, Thursday

Time: 1900hrs

Venue: Holiday Inn Orchard City Centre

The seats are limited, please register here before the tickets are gone!

Register Here

 

 

 

Investment scheme or scam

http://www.straitstimes.com/business/investors-file-police-reports-against-property-company

Let me first state that land banking is a legitimate investment and if we look from another point,  any forms of legitimate investment can be a scam too.

Some clear warning signals are when 

  1. the returns is too good to be true,  
  2. the risk is too low to be real and
  3.  the investment is a “Sure-win”.

However, greed can cloud the situation & the sweet talks of the scammer can make the usually common sense uncommon. And to be fair,  some scams may need good investment knowledge to tell the real from the reel. 

One way is check out ACRA to look for the paid-up capital of the investment firm. In the case mentioned in the above article and other scams,  the companies set up with very low paid-up capital and some as low as $1. You might want to think twice why a investment company that is serious in business have that low paid-up capital cause in the worst case scenario,  that is the amount you might have to share with other investors. 

Coverage for diabetics

AIA Singapore had launched, AIA Diabetes Care, a first-in-market critical illness plan tailored specifically to the needs of patients aged 30 to 65 and diagnosed with Type II diabetics and pre-diabetics  .

It is challenging for diabetics to purchase additional insurance cover as the insurance applications are often rejected, or the insurance cover is often subject to exclusion, or an extra premium is loaded. Instead of the usual long medical questionnaires, AIA Singapore made the process of application easy for the applicants with just 5 simple questions.

AIA Diabetes Care provides coverage for key diabetes-related conditions, ensuring you have the financial support you need in case the unexpected occurs.You have the option to cover against Major and Early/Intermediate Stage Cancer.

The 5 key diabetes-related conditions covered in the policy are

download        Blindness

Heart bypass       Coronary Artery By-pass Surgery

Heart attackHeart Attack of Specified Severity

kidney      Kidney Failure

stroke       Stroke

For more details on AIA Diabetes Care, please contact me via the contact form below.

Enjoy 10% discount off first-year annual premium for applications before 31st May 2017.

 

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.

 

 

 

 

 

 

Is claiming for travel insurance difficult or slow?

Submission was made on the 27th Feb 2017 and acknowledge by the insurer.20170303_115751

As the claim was made online, the insurer requested for the original copy of the receipt. I collected the receipt on the same day and submitted to the insurer.

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On the 3rd day, the claim was admitted and paid. My client received the payout within the next few days via post.

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The process might be even shorter if the original receipt was submitted but even with 3 days, I think the turn over time is fantastic!

A claim of any insurance can be the easiest job on earth and it can be the worst. It all depends on the document proof submitted to the insurer for assessment of claims.

Presentation on Medishield Life.

Matthew Ho conducted a presentation on Medishield Life on 1st March 2017 to a group of teachers. It was his first presentation and it was very successful.

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The audience were great and the session were interactive as they shared their experiences and clarified their queries.

One of the audience have a child with congenital diseases and was curious what could be done. Another shared the experience of a relative hit with cancer and she was prepared to sell off her property to fund the hospital bills but was thankful these plans were around to pay it off. 20170301_155824_mh1488513934425

The audience also gave us  good feedback which included comments like our position as an Independent Financial Advisor make it “less pressuring” because we did not end the  session with a sales nor we do it at any point in the presentation.

Our position also allow us to make an objective view on Medishield Life as well as other similar plans in the market. During this session, we also have a brief sharing on other area of financial planning such as Eldershield and retirement planning.

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After the presentation ended, we proceed to an 1-to-1 session and answer to some queries that the individuals may want to seek further clarification. We were glad that our objective of the session i.e. to give the audience a better clarity of Medishield were met.

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If you are interested to have a similar session for your staff, please fill in the form and we will contact you to make the arrangement. We look forward to hear from you.

Insurance industry in 2016

2016 was a challenging year for the insurance industry. Other than the economical changes that affected the financial sector, FinTech became more common to consumers and they have more choices when it comes to buying an insurance policy. There were several regulatory changes too. So, how did the insurance industry ended in 2016?

According to reports from Life Insurance Association(LIA), the total new business underwritten rose 10% to SGD3.29bn  in the year 2016 from 2015. Out of this amount, SGD 2.26bn were from annual premium products .

Therewas a minor shift in distribution channel of insurance policies as well.

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Common Reporting Standard

January was a busy month for some financial institutions(FIs) as the Common Reporting Standard (CRS) was implemented on the 1st Jan 2017.   The FIs may be banks, specified insurance companies, investment entities and custodial institutions.

For accounts that were opened before 1st Jan 2017, the FIs may contact the account holders to declare their tax residency. This declaration of tax residency will be a standard question in the application forms for any accounts open after 1st Jan 2017. In short, there is nothing you need to do if the FIs did not send you any forms to update your tax residency.

  • What is Common Reporting Standard?

The CRS is an internationally agreed standard for the automatic exchange of information on financial accounts between jurisdictions for tax purposes. It is to enhance tax transparency to detect and deter tax evasion through the use of offshore bank accounts.

  • How is a person’s tax residency determined?

It is oftenly mistaken that a person’s citizenship is the same as the tax residency.

For the purpose of tax, a person’s citizenship is secondary. In general, the tax residency of an individual is determined by the person’s physical presence or duration of stay in a jurisdiction in a year. You are a tax resident if your stay in that jurisdiction exceed 183 days in a year.

  • How CRS works?

(Source:www.newgensoft.com)

 

Please speak to your tax professional if you need more clarification and for more information on CRS, please visit IRAS.

Happy Lunar New Year

鸡年吉祥

Good luck for this Rooster year

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