保险金字塔

保险三重功用：保障，保证，保全

第一重：保障的是现有的生活

保全的是责任，这是风险管理

第二重：保证未来的幸福

保证的是未来，这是风险投资规划

第三重：保全已经创造的财富

保全的是成就，这是资产配置

 

当物质生活水平不断走高，人们的幸福感却没增加，反而越来越低。我们必须面对失业问题，养老问题，医疗问题，子女上学问题，还要面临交通意外，生活食品安全的隐患，环境污染和新食物链中致癌物质的侵害，以及社会持续通货膨胀所需的理财规划等等。

 

面对生老病死，无人可以回避，人们之所以表现出前所未有的忧虑，就在于对未来人生不测的担忧和恐慌。这些担忧无法为其他商品代替，可以人寿保险的十大黄金价值所解决:

1。爱有所继；2。亲有所奉；3。病有所医；4。壮有所倚；5。残有所仗；
6。钱有所积；7。幼有所护；8。老有所养；9。产有所保；10。财有所承 

我把以上的资料整理然后再把它编成了解图，以方便大家容易的参考：

 

 

click to enlarge the pic

希望这个解图可以让大家更容易的明白人寿保险的功能和价值

Sincerely, 

Tan Min Chin, CH3

Cost of Delay - Senario 2

Assumption:

1. Estimated Tuition Fees per Course for 3+0 Degree Business Programs at Private Colleges /Private Universities in Malaysia at year 2011 is around RM43,000 - RM75,000 and estimation for the living expenses is around RM1,000 - RM1,500 per month. Let say we take an average figures, RM60,000 for the tuition fees and RM45,000 living cost for 3 years. Total amount = RM105,000.

2. Assume inflation = 4%. Base on rules of 72, the amount will be doubled at 18 years. Total cost needed after 18 years = RM 210,000.

3. Both Prospect A and B are age 1, their parents want to save for their education by the age of 18.

4. Prospect A is saving payment amount of RM5,800 with 8% interest start from age 1.

5. Prospect B delays his saving 5 years later with the same interest as Prospect A.

Conclusion:

1. Prospect A and Prospect B gets RM211,411.44 and RM211,101.56 respectively at the age of 18.

2.To get around the same savings balance with a 5 years delay, the amount invested of prospect A is RM98,600 and the Prospect B is RM123,600.

3. Prospect B would need to pay RM10,300 per year instead of RM5,800 and total extra amount invested RM25,000 just because of 5 years delay.

Click to enlarge the picture

Click to enlarge the picture

The sooner you start, the lesser you need to pay. ;)

Sincerely,

Tan Min Chin, CH3

Cost of Delay - Senario 1

Assumption:
1. Both Prospect A and B are age 30, they want to save for their retirement by the age of 55.

2. Prospect A saves 10 years with payment amount of RM6,000 with 8% interest.

3. Prospect B delays his saving 5 years later. He pays continuously until the age of 55 with the same payment amount and interest as Prospect A.

Conclusion:
1. Prospect A gets RM297,780.80 by the age of 55.

2. Prospect B is Postponing 5 years and he would get RM296.537.53 by the age of 55.

3.To get around the same savings balance with a 5 years delay, Prospect B would need to save 20 years instead 10 years. The amount invested of prospect A is RM60,000 and the Prospect B is RM120,000. The amount Invested of Prospect B is DOUBLED in comparison to Prospect A.

Click to enlarge the picture
Click to enlarge the picture

Start your saving now, don't wait. ;)

Sincerely from
Tan Min Chin, CH3

勿陷買房出租6誤區

目前，傳統投資工具回報率不高，而住房價格正處於低位。那麼眼下是不是考慮買些住宅以供出租的好時機呢？

如果一切順利，現在投資房地產有可能獲取意外豐厚的利潤。許多地區的房租都在攀升，而且市場上可供出租的房屋可能還會增加。

邁克爾麥克里里（Michael McCreary）說，過去，投資者希望獲得的租金回報是房屋總價的1%，也就是說如果一棟住宅的價值是10萬美元，那麼投資者期望的月租金是1千美元，年回報率為12%。

麥克里里是房地產中介公司McCreary Realty的老闆，這家公司管理著亞特蘭大地區大約300處房產。麥克里里稱，如今他的投資者中一些人得到的房租回報高達房價的2%。

不過，一般而言，扣除費用後的平均回報率要大幅降低，大概在房價的5至6%，房地產市場預測公司Local Market Monitor的總裁因戈文策爾（Ingo Winzer）表示，即使如此，也比其他許多投資的收益率要高得多。

先別急著去找合適的房源，行動之前要記住：擁有可出租住宅是一項耗時、費錢而且麻煩不斷的投資，而且不少投資者都在這上面栽了跟斗。下面我們來對一些常見的誤區做一番瞭解。

誤區1：把廉價交易當作好交易

誠然，你能以極低的價格買到一些房子，不過這並不意味著你就能把這些房子租出去。偏僻地區的住宅不但對買房者毫無吸引力，租客同樣對這類房子不感興趣。這個道理也適用於那些不那麼受青睞的房產或是位於不太好的學區的房子。

房地產管理公司Home Pointe Property Management的羅伯特馬沙多（Robert A.Machado）說，來自舊金山的投資者常常會在薩克拉門托（Sacramento）高價買房，以為那裡的房子能給他們帶來像加州舊金山灣區（Bay Area）一樣高的房租回報，結果卻證明他們支付的價格過高了。馬沙多通過很多途徑來評估房租價格，其他業內人士則建議仔細考察週邊的公寓，不僅要看房 租，還要看他們是否提供特別優惠。

誤區2：忽略了關鍵成本

單單知道了可能獲得的租金回報還不夠。買房前，你還要考慮到大約佔交易總金額3至6%的交易結算費用、修葺和維護房子的開銷以及你持有房產的成本。然後算上你期望獲得的回報，只有這樣你才能算出你能買得起甚麼樣的房子。

誤區3：忘記了時間就是金錢

房地產經銷商Home Vestors Of America總裁戴維希克斯（David Hicks）稱，在房地產投資上，時間是你最大的敵人。

如果房子空置沒有人住，不管這時候你是在粉刷房子還是在等待招新租客，你就是在虧錢。若你在秋季買下一套房子卻等到春季才裝修完，那麼你也在虧錢。從經濟上來看，接受較低的租金比等一個願意付高價的租客或許更劃算。

誤區4：以為能坐等租金自己飛進口袋來

房地產公司Get There First Realty的馬克科萊蒂特（Mark Kreditor）說：“一旦你做了房東，你就成了一個房租催討者。”這家房地產公司在達拉斯－沃思堡地區管理著1千600家出租房屋。

就像買房子的人可能付不起貸款一樣，租房子的人也可能丟掉工作然後無法付房租。趕他們出去可能需要幾週時間，有些租客還會偷屋子裡的電器或是其他東西。科萊蒂特說，一個月總有那麼一兩次，租客在搬出去的時候將屋子裡的銅管偷出去賣廢品。

誤區5：低估維修成本

跟所有擁有住宅的人一樣，你將面臨大量維修工作。出租房屋的地毯通常每5年就必須更換一次，而且每次更換租客時，你都必須重新刷一遍房子。全國住宅管理者協會會長托尼德羅斯特（Tony A.Drost）建議留出6個月的費用以備需要重大維修時使用。

誤區6：將出租房屋等同於自己的住宅

人們住自己的房子時可能接受一些瑕疵，租房子住時卻不願湊合。另外，美國許多州和社區都針對房 東制定了嚴格（且繁復）的法律，哪怕是你只有這一套住宅也必須遵守。房屋中介能幫你解決大部份麻煩事，不過你需要支付他們一個月的房租作為尋找以及甄選租 客的傭金，而且還要支付管理費，最多為月租金的10%。

Source: 星洲日報／投資致富‧置產有道

The rising cost of education

One of the biggest worries for parents nowadays is how to fund their children’s education, which does not come cheap.

In addition, as with everything else, education expenses, be it in foreign and local colleges/universities, private primary and secondary schools, are expected to trend upwards in future.

According to CTLA Financial Planners Sdn Bhd managing director Mike Lee, the trend is upwards as far as education costs are concerned.

“In predicting the future, we can only use assumptions such as cost and inflation factors in child education planning.

“The general increase for local studies is about 3% per year and foreign about 5% and this applies to a general business degree of three years,” he tells StarBizweek. (see table)

The increasing cost is due to rising inflation as a result of hikes in food and accomodation expenses, travelling costs, books and exam fees as well as salaries, among other factors.

E.T. Education Services Sdn Bhd managing director Matthew Gan sees an average increase of between 5% to 7% annually in education costs for studies locally and in countries such as Britain, United States, Australia, Canada and Singapore (excluding foreign exchange rate fluctuations).

“Moreover, there are certain years where the increase can be in a lump sum instead of percentage depending on the circumstances,” he says.

Whitman Independent Advisors Sdn Bhd managing director Yap Ming Hui has tagged a 6% inflation rate per annum for the cost of a university education locally or overseas.

“Parents nowadays have higher expectations when it comes to their children’s education unlike before so there is a tendency to send them to private or international schools and foreign universities.

“So education becomes more expensive,” he says.

For example, business for private school Sri KDU has been flourishing since it opened its doors in 2003 with enrolment increasing to some 2,400 students currently from 500 when it first began.

Marketing manager Rina Thiagu-Kler says school fees for primary and secondary education range from RM15,000 to RM17,000 per annum with an average 10% increase in fees every two years.

Sri KDU is also expanding – its international school for secondary education is expected to be ready next year. In general, primary and secondary education in an international school is in the range of RM30,000 per annum.

So how can parents have sufficient funds for their children’s education? Lee says three things have to be considered simultaneously to ensure that money is available when needed - investment for returns such as units trusts, equities and property; insurance for protection and will needs to be written to protect the child or family in case the breadwinner dies.

“The common advice is to save and invest your money as early as possible. Let your money grow with your child,” he advises.

He says one should save according to what one can afford for the time being which is a good start. As one’s income increases, then the savings goes up as well.

“This way, parents do not feel the pressure and find that starting early will allow a smooth continuation of the funding over the years,” Lee says.

AbacusForMoney.com founder and chief executive officer Carol Yip says the ideal approach is to start saving as much cash as possible and then multiply it by investing in investment vehicles to hedge against the increase in cost of living and education.

Yip says there are several approaches to savings and investment strategies. First, choose a strategy where the investment product has capital growth and if possible has income yield in the long term, for example, property investments.

Second, have a portfolio of several types of investment assets that will give you investment returns over a period of time to meet the education costs. Third, select an investment strategy that enables you to buy and sell your investments for capital growth such as company shares and venture capital investments.

“More importantly, the chosen investment strategy must suit the parents’ style and preferences in managing investments because it is a lifelong pursuit until the child is financially independent and able to make a living for himself or herself,” Yip says.

Whitman’s Yap says some of the common mistakes parents make when saving for their child’s education fund are starting too late, saving without investing and not considering foreign exchange fluctuations for those who aim to send their children overseas.

“It is important to determine what the education costs are in current value and identify a suitable savings and investment vehicle.

“Some parents don’t even have a clue how much education costs,” he says.

refer to next article: education plan

Source: The star news online

Education Plan

Education plans should have the following features:-

• Education fund at child's college age -- which allows you to withdraw funds when your child reaches certain ages such as 18 or 21 years old.
• Payor benefit (should either one or both parents die or become incapacitated, the plan runs by itself)

There are 2 ways to fund your child's education plan:

• Insurance Education Plan
• Unit trust

Insurance Education Plan

Insurance education plan's features normally have payor benefits. One significant advantage of such plan is that should the contributor die or be totally and permanently disabled, the future payments due until the plan matures are immediately waived. The beneficiary will receive the benefits as defined in the plan, i.e., the child's education fund is secured no matter what happens.

Another advantage of using insurance education plan is the tax deduction.

Education Planning through Unit Trust

However, if you choose to fund your child education by investing in unit trust, remember to complement it with an equivalent term life plan, so that should the payor die or become incapacitated, the there will still be a fund for your child to continue pursue his or her education dream.

The investment portfolio must also be monitored closely and rebalanced every year, so that as the child's age grows closer to his or her tertiary education age, the fund should be rebalanced to more conservative portfolios.

Reference: YKconsultancy

Return and Risk

Knowing Return and Risk
Return and Risk are Primary consideration in Investing. They should likely form the basic for all your investment decision. Thus it is a MUST that you understand what return and risk are and how they are originate and they are related.

Return
You invest to get return. It simply get Gain (positive return) or lost (negative return) on your investment after you have sold it. When you invest, you expect a particular return level . However, the actual return may differ from your expected return. Investing is based on expected return. It is therefore that you do not have unrealistic expectations

Risk
Many think of investment risk as the possibility of losing money. This is a valid concern. Other define risk as the uncertainty of receiving the expected returns. All can these can be measured and quantified by a statistic. Different investment products have different degrees of risk or volatility. Look at the various product like shares, bonds and cash deposit on their annualised return and Risk.They can be classified into two categories:-

(1) Systematic Risk -factors that effect the market in general and it include things like general economic conditions, changes in interest rate or a sudden adverse change in market conditions. And as investor, you cannot avoid these risk

(2) Non-Systematic Risk-factors that are applicable only to the investment itself like quality of a company's management and the sustainability of its product development strategy.You can reduce this risk by spreading your investments over a number of holdings.

Thus, the risk-return trade-off is an important consideration in investment - Higher expected returns have higher risks. Investors not able to take risk have to contend with lower returns. You need to apply the Risk-Return trade off when purchasing the product.
When deciding on the appropriate level of risk, you need to consider two issues. Firstly, what is your tolerance level of risk and secondly, is the length of time you are investing for.

"Don't put all your eggs in one basket", is the basic idea behind Diversification and it is a powerful tool in managing risk. Diversification involves spreading your investments over a variety of assets and securities to avoid excessive exposure to any single source of risk. If you put all your money in a single security, what happen if the insurer goes bankrupt?

To diversify effectively, you must apply the ideas of Correlation, which is a measure of the tendency of a security or investment class to follow that of another. Assets with returns that move in the same direction are positively correlated; if their returns move in opposite directions, they are negatively correlated. Investing in different securities in different asset classes like cash, bonds and shares is a way to go.

When you invest, you operate with a Time horizon in mind. It is the time available to invest to achieve your financial goals. Example, if you are 40 years old and investing for retirement at age 60, then your time horizon is 20 years. Therefore, you can use Time and Return to grow your money or Time and Risk to stomach more risk with time to invest in Riskier assets.

Dollar cost averaging can reduce risk in a long Investment horizon. The idea is to invest a fixed sum of money at a regular interval, regardless of whether the market is rising or falling. If you invest in only a certain time, you may buy when prices are at or near the peak.

Reference: MAA financial Planners SG

What is Investing

Investing is how you make your money grow, or appreciate for long term financial goals. It is a way of saving your money for something further ahead in the future.

Saving is a plan to set aside a certain amount of your earned income over a short period of time in order to be able to accomplish a short term goal. It is a plan of action where you plan on acquiring a certain amount of money by redirecting some of the money you have received from your various sources of income.

Investing, on the other hand, is a much longer term activity. We consider investing as an action that is based on long term goals and is primarily accomplished by having your money make more money for you.

Many people realise the importance of saving but have reservations about investing. Investing is often regarded as "gambling"; "too risky"; "only for the rich";"only for those about to retire"; too complicated"; "not necessary". While misleading, such reservation also deter us from investing. We then forgot the opportunity of growing our savings. If you are in this situation, we will address some of your concerns and questions you may have about investing.

Reference: MAA Financial Planners SG, DFI Kidspace