Alvin Soong’s Blog

Returns as high as as 4.75%pa paid in AUD. For more info., please see attached.

Right click to download:
aia-wealth-accumulator-brochure-aud.pdf

Take out a VISTA policy and receive your second month’s premium FREE (please see attachment for Terms & Conditions).

* For clients taking out a new VISTA policy between 15 February to 31 March 2010, we will cover the cost of equal to one month’s premium
* The free premium will be allocated against the second month’s premium

What do you need to qualify?

* Take out a new VISTA with a minimum policy term of minimum 10 years
* Submit your applications to our office between 15 February to 31 March 2010

This special offer (from 15th Feb to 31 March 2010) runs together and concurrent with our current special offers (see attached for your reference):
1) Double bonus (up to 200% bonus allocation)
2) International Term Assurance (ITA) Free premiums (up to 2 months)
3) International Wealth Account (IWA) 1% extra bonus allocation on Initial contribution and 1.5% extra bonus allocation on top-ups
4) Free 2 months Credit card payment

Accredited Investor, a term found in financial articles and reports, refer to an individual whose net personal assets are at least $2 million in value or whose income in the preceding 12 months is not less than $300,000. The term can also refer to a firm with net assets exceeding $10 million in value.

Because of their accredited status, these high net worth individuals enjoy access to certain financial products that are not sold to retail investors. This is because some products from financial institutions, such as unit trusts and structured products, are made available only to these accredited or sophisticated investors.

The minimum investment amount for these products may start from at least $200,000.

Examples of such products we have in our financial advisory firm includes Man AHL Investments (with Australian Bank) and Superfunds.

Some Singaporeans may not trust their inner money secrets to a complete stranger but would rather do their sums through internet. However internet websites with some of its financial data and advice, cannot replace a financial adviser.

Internet websites however do have certain advantages:
It will help you ask the right questions when you move on to engaging a financial adviser or you can use the Web’s vast resources to construct your own wealth management plan. And it can be done at any time to divulge how much cash and property - or debt - you have.

There are several websites that encourage visitors to check out their financial health and pick up tips via virtual templates, calculators and games. These also help to work out any shortfalls you face in order to achieve your goals. Here are some tips on what to look out for in a financial website.

1. Reliability
Check out who is behind the website as it will indicate if the content is reliable. Is it a non-profit organisation or a financial advisory firm touting products and services? What are its track record and market reputation?

2. Relevance
A website that caters to the financial needs of Singaporeans would be more useful and relevant than one that does not. For example, financial sites from the United States tend to be US-centric, often making references to 401K pension plans, something lost on most of us. It is important to choose local relevant websites that can also include your CPF for calculation.

In local websites, eg. Some of the online tools in the CPF website have an option to enter your personal SingPass details. By doing so, your relevant CPF details will be automatically inserted into the calculator.

3. Ease in navigating
Some websites use spreadsheets to help with personal budgeting, resulting in a personal income statement and balance sheet.
As most people have some loans, a loan calculator is another useful tool in planning for a mortgage, car or study loan. The calculator should also show the effective interest rate you will pay.

4. Flexibility
Good sites offer the flexibility to develop different financial scenarios and calculate alternative benefit amounts. Some sites also have a save-and-retrieve feature that allows users to save their financial details and simulations. This allows users to review at a later stage and, if they wish, take the next step of presenting this saved simulation when they meet their advisers.

5. Generating a financial plan
A good site should allow the user to generate and review even a relatively basic plan responsibly, added Mr Campbell. It should be user-friendly yet provide a certain level of awareness about the long-term impact of these financial goals.

5. Simple to understand
The subject matter of good financial websites should be presented with as little jargon as possible.

6. Need for professional advice
Still, experts caution that financial websites cannot replace the role of a trusted adviser. As financial planning is a holistic approach, a virtual tool such as a savings calculator can do only so much. Online tools should be regarded more as a way to help one get started. Individuals are encouraged to work with a professional financial adviser who can help them in prioritising their financial goals and establishing the needs and shortfalls. As it is difficult to be objective about your own situation, you will still need a qualified adviser for help and recommendations. A trusted adviser usually helps guide you through the journey and helps you understand the trade-offs within competing goals and helps you prioritise, quantify and put in place customised strategies that work towards achieving your long-term goals.

Here are some recommended financial websites:

1. CPF website (http://mycpf.cpf.gov.sg
The virtual tools will give you a good start in estimating your financial needs. Begin by answering the questions in the IM$avvy Quiz. IM$avvy users can also watch financial videos, attend webinars, watch webcasts, read and comment on blogs and engage in online forum discussions.

Here are some virtual calculators you will find on the website:
# The Savings Calculator will enable you to learn how much and for how long you need to save to reach your financial goals.
# For investments, the Compound Interest Calculator helps you calculate the compounded value of an investment, which you can use as a basis for the projected returns.
# For life insurance, there is the Insurance Estimator. Based on your current assets and liabilities, you will be able to estimate your required life insurance coverage.
# For retirement, Mr Lam recommends the Retirement Saving Interactive Calculator which helps determine the amount of savings you need to retire based on your desired retirement age and lifestyle.

2. Others
For tax planning, you can plan in advance by using the Income Tax calculator to estimate your tax on the Iras website at www.iras.gov.sg

National Financial Education website www.moneysense.gov.sg is also aa good resource for its useful articles and consumer guides.

For shares, www.shareinvestor.com is also a good resource center for education

Info. summarised and extracted from Sunday Times 31st Jan 2010

AIA has recently launched and early payout for Critical Illness. The plan is called: AIA Complete Critical Cover. This is aCritical Illness Standalone Term Insurance Plan to age 75 years. The features below.

1. AIA Complete Critical Cover covers the traditional 30 critical illness, as well as 8 common Early Critical Illness conditions and 5 Catastrophic Critical Illness conditions.

2. Immediate Payout on Early Diagnosis. The plan pays out up to 25% of the Insured Amount in the event of a qualifying diagnosis of an Early Critical Illness. Max. payable amount is $50,000 per Insured for Major Cancers, Heart Attack/Coronary Artery Surgery and Blindness.

3. Can Make Multiple Claims
In the event of a claim for an Early Critical Illness or Major Critical Illness, the plan will not terminate. One can continue to be protected. If one’s condition deteriorates to a more serious or advanced stage, you may make further claims of up to 200% of the Insured Amount. It is also possible to claim for a combination of multiple Early, Major or Catastrophic Critical Illnesses up to a maximum of 200% of the Insured Amount.

4. Immediate Payouts up to 200% of the Insured Amount for Catastrophic Illness
For certain Catastrophic Critical Illnesses (e.g. Stage 4 Major Cancer, Stroke leading to inability to perform 3 out of 6 ADLs, Severe Heart Attack, Heart & Lung Transplant, Total Paralysis/Loss of Use of All 4 Limbs), the plan pays out an immediate lump sum equal to 200% of the Insured Amount less any amount(s) paid out previously.

5. Waiver of Premium Benefit
In the event of a Major Critical Illness claim, you can receive a payout of up to 100% of the Insured Amount, and you will no longer have to pay the future insurance premiums. Therefore, your Critical Illness coverage under the AIA Complete Critical Care plan will continue and you will remain eligible to make further claims of up to 200% of the Insured Amount.

6. Major Cancer Relapse Benefit
In the event of a successful claim for any of the Major Cancers covered under the policy, you will receive a payout of up to 100% of the Insured Amount. Following treatment, if your cancer goes into remission and you subsequently suffer a cancer relapse after 1 year of being in remission, you may be eligible to receive a further payout of 25% of the Insured Amount. This benefit is subject to the 200% limit on the total insured amount payable under your policy.

In comparison, there are other options from other companies that have limits for early payout plans (those who require more info. can email me on this)

Waiting period where no benefits will be paid applies to 30 days for all surgical procedures/diagnosis of critical illness conditions prior to policy inception or reinstatement. For specific conditions, the waiting period is extended to 90 days for conditions e.g. Heart Attack, Cancer, Coronary Artery Surgery; and 180 days for Carcinoma-In-situ and Prostrate Cancer (Early Cancer diagnosis).

Survival period of 30 days applies to claims be it Early Critical Illness, Major Critical Illness, Catastrophic Critical Illness or Major Cancer Relapse. No additional waiting period (other than for Major Cancer Relapse) applies so long as the claim is for a different group of Critical Illness or if the condition has deteriorated to a more serious advanced stage.

summarised from various sources