Workshop on ABC - Ass with Piles, Blood in Stool, Colon Cancer

This is the second time we are holding this workshop by Dr

Heah. He has over 30,000 cases of experiences, is humorous

and guaranteed you will benefit from this workshop and have

a better understanding on Piles, blood in stools and the

preventive steps you can take towards fighting off colon cancer.

Call or email me to reserve a seat for you:

Christopher Pua

chrispua@yahoo.com

Mobile: 9239 0070

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How to plan for your retirement?

I you think you are too young to start planning for retirement, think again. If you are 50, and think you are too late to plan for retirement, think again.

Watch this video from www.howdini.com. it will open up your mind.

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Choosing a Financial Advisor.

Choosing the right Financial Advisor

source: www.imas.org.sg

Advice & Advisors

How to choose a good Financial Adviser Representative The representative must be honest, trustworthy and ethical If you sense a lack of sincerity and trust in the representative, you probably want to seek a second opinion. An adviser who lacks strong ethical standards and compromises ethics for convenience will not hesitate to compromise your position. The representative must be able to understand your financial responsibilities. If he has little or no idea about your situation after you have explained to him, and cannot determine your problem areas, then he probably cannot recommend you the solutions that meet your needs. The representative must think of your interests instead of his. Client centred is vital. An adviser who thinks of his interest before yours will probably recommend solutions that benefit him more than you. Your interest can be easily compromised in the process. The representative must be impartial and objective when recommending solutions. This is to ensure he is able to provide appropriate and effective advice in accordance to your needs. The representative must have access to a wide range of financial products. An adviser who is limited by products will not be able to offer competitive and creative products in his recommendation. The representative must have good knowledge of the various financial products available. It the adviser is ill-informed of the various financial products, he will not be able recommend solutions that have taken into consideration various alternatives available. The representative should possess good work ethics and habits. He has to be diligent and be prepared to serve your financial needs. An adviser that is often difficult to contact will frustrate you and cannot help you achieve your objectives. The representative must be a good listener. An adviser that is impatient will tend to hurry you into committing on the investment too soon. The adviser should gather sufficient information before proposing a solution. He must be prepared to conduct a thorough fact-find and involve you in the discussion stage to understand your situation well. This will ensure that he takes into consideration your situation before recommending you an appropriate plan. The representative must have a proper system of record keeping. This is to ensure that he keeps track of the history of discussions you have had with him regarding the areas of concerns, action plans and objectives. You should feel comfortable with your representative The client adviser relationship is critical to ensure that you are able to rely on him for effective and professional advice. Achieving your financial goal is a long term process that requires constant review, good advice and strong sense of discipline. If there is too much information that you cannot divulge to your adviser because you are not comfortable, then your adviser will not be able to advise you appropriately. The rep must continuously keep himself abreast of the changes in the industry. If you sense that he is unwilling to further his education and improve his knowledge, then you may be dealing with an obsolete adviser in time to come. The representative must be serious about his career and stay in the business in the long term. Only an adviser who takes his job in personal financial advisory as a long term career can ensure that he will be there to help you achieve your objectives. If your advisers are changed too often, you will get tired of ensuring that you deal with the right person and probably waste too much time trying to go through old data too often. We thank the Association of Financial Advisers (Singapore) for their advice on choosing a financial adviser. a blog on: Financial Planning Advice - Christopher Pua

ABC to a secured Retirement: Annuity, Body & Companion

by Christopher Pua 29 July 2009

What does Retirement means to you?

Some dictionary defines retirement as follows:

re⋅tire⋅ment   [ri-tahyuhr-muhnt] Show IPA

–noun

1. the act of retiring or the state of being retired.
2. removal or withdrawal from service, office, or business.
3. the portion of a person's life during which a person is retired.
4. a pension or other income on which a retired person lives: His retirement is barely enough to pay the rent.
5. withdrawal into privacy or seclusion.

To you and me, retirement may mean one or more of the above or something totally different. Some may see retirement as a final departure from their 9 to 5 job. Another may want to continue working maybe at another capacity or in a volunteer organization, yet another may wish to spend his or her retirement years travelling with loved ones, meeting up with old friends, spending more time in their hobby or looking after their granchildren.

Whatever it is, it's entirely up to your imagination, your desire and your physical and financial ability. I remember when my father in law retired some 11 years back when he turned 55. My mother in law whom has been a housewife since she was married to my dad, could not adapt to seeing her husband lazing in the couch the whole day doing nothing. She tried her best trying to nag at him to go back to work, but he didn't budged. After about 2 years of trying, she finally gave up and resolved in her that he isn't returning to the work force. Now they have learned to live with one another, watching tv together, traveling on a bus to different parts of Singapore to explore delicacy from different hawker centers and restaurants. And once in a while pop by their sons' and daughter's home to visit their grandchildren, they are enjoying their golden years.

ABC of a secure Retirement

Research shows that when a person comes to their retirement age, there are 3 things in their life that would become more important to them:

1. To have constant streams of money during their retirement years: Annuity

2. To have a healthy lifestyle, good, mental, physical and spiritual health: Body

3. To have good relationships with their loved ones and friends: Companion

That's why I have titled this article the ABC of a secure retirement.

A for Annuity

Is money or income important during your retirement years? You bet, If you think that when the time comes, everything will take care of itself, you are in for a big surprise. Guess what if you did not plan for your retirement, and did not manage your finances well during your working years, you will have no finances to manage when you retire. And if you think your CPF will be sufficient to see you through, think twice. The new CPF Life scheme may give you a good start with your first annuity plan, it is usually not enough to see you through your monthly expenses. I heard from one of my friend who is in his senior years, he said:" when you are working, and have a family, which day of the week do you spend the most?" I said: " I guess that would be the weekend, or Sunday." Then he said to me: " When you retire, everyday is a Sunday." I thought it was quite funny but when I think harder, it is true, you will see that everyday you spend in your retirement years, you will be spending money on a daily basis, and if you have opt to stop work completely, there is no income but out expenses. So, as a financial planning, I have always advise my client to start working on their retirement planning. Be it a small plan or a big one, at least you set the ball rolling.

So, why is annuity so important when we retirement? It is important and you should make it your top priority when it comes to your asset allocation, because this financial instrument will be able to give you a lifetime monthly payout for as long as you live, let me repeat that, for as long as you live, got it? If you were to put this money into an annuity plan over 10 years before you retire, it could give you an annual payout of $6000 per year for as long as you lived from the 11 years onwards. And after you have passed on, there will still be a residual sum to be given to your loved ones.

So, the bottom line is, an Annuity plan will protect you against outliving your resources, because the drawdown monthly payout is for your lifetime. In this sense, you will be rest assured that you will be able to receive a constant stream of income during your retirement years.

B for Body

Next, your body, mind and soul would also be an important area for you to put your focus and attention on. As the proverbs says, Health is wealth. We need a healthy body, a sound mind, and a peaceful soul at all stages of our life, not just during or retirement years. But as we all know, when we age our body and mind would start to age as well. I've read an article about an interview with our Minister Mentor Lee on how he heed the sign on his aging body and begin to change his living habits, quitting smoking in his late 30's, cutting down on consumption of alcohol, going for regular jogs etc.. Likewise, we should all follow his footstep, don't stop exercising. If you can't do what you used to be doing previously, do something that you enjoy and are able to cope with. Stay active, stay engage with your friends, community, loved ones. Seek your own solace, to find inner peace thru meditation, prayer etc. Keep your mind sharp, read, engage in conversation with your friends, your children, volunteer. Whatever it is, keep yourself busy and continue to contribute in your capacity and gifts and talent that God has given you. You will become more fulfilled, happy and energetic.

C for Companion

And finally, we must not neglect our loved ones. Don't get me wrong, I'm not saying not to neglect them when you have retired, you should do that, but more so, now and everyday. Because human relationship is like a garden, we need to sow the seeds, tend to the garden, prune it once in a while, nurture it with our love and care and all this takes time, effort and sacrifices. If you are not tending to your garden right now, it may become a wilderness by the time you are looking for the garden. Tend to your garden with love. Next, start making new friends again when you reach your retirement years, because you will find that some of your old friends may meet our creator before we do, so if we do not continue to make new friends, our circle of friends will continue to shrink day by day. We are not an island, we are created to be an interactive and interconnected being, so we need friends and companionship.

Take on this new stage of your life with great enthusiasm and hope. Because many of us are always waiting for the day we retire. so, if you have planned well for it, enjoy every moment of your golden years.

I hope this ABC steps will help you in planning for your dream retirement. God bless.

a blog on: Financial Planning Advice - Christopher Pua

CPF Life: Does it payout for Life?

CPFLife payouts for life

Gan Kim Yong assures MPs:

Monthly sum will be paid despite provision in new law

By Sue-Ann Chia, Senior Political Correspondent Source Straits Times July 21, 2009
		The minister said: 'CPFLife members can rest assured they will receive payouts for as long as they live.' -- ST PHOTO: LAU FOOK KONG

MANPOWER Minister Gan Kim Yong has assured Singaporeans they will receive a monthly payout from the CPFLife annuity scheme for the rest of their lives, despite a 'disturbing' provision in the new law.

BOARD CHECKS BEFORE DISTRIBUTING CPF SAVINGS THE Central Provident Fund (CPF) Board undertakes rigorous checks and investigations to ensure that the CPF savings of deceased members will go to their spouses and children, said Manpower Minister Gan Kim Yong. He was replying to Madam Halimah Yacob (Jurong GRC), who was worried that a dead member's family might lose out because of a provision in the new CPF Act, which Parliament passed on Monday. ... more

He gave this pledge on Monday when replying to Madam Halimah Yacob (Jurong GRC) and Madam Ho Geok Choo (West Coast GRC).

They were debating a major change to the Central Provident Fund (CPF) Act that will introduce the CPFLife scheme. This will give members a steady stream of retirement income from age 65. However, both MPs were worried by the lack of guarantee on premiums and payouts in the new law, which they argued gave the Government too much discretion in deciding the amounts.

Mr Gan, in his bid to allay any fears, said it was not feasible to guarantee the amount paid. This is because the monthly sum would have to be adjusted regularly, 'taking into account interest rates and mortality experience to ensure the solvency of the Lifelong Income Fund'.

The fund, administered by the CPF Board, holds the money that members use to participate in the annuity scheme. But the minister was quick to add: 'CPFLife members can rest assured they will receive payouts for as long as they live.'

The remark was directed at Madam Halimah, chairman of the Government Parliamentary Committee for Manpower, who noted that the law allows the CPF Board to stop CPFLife payments unless the Lifelong Income Fund is solvent. 'While I can understand the legal basis for this provision, I find it quite disturbing to have it reflected in the Bill,' she said.

There are similar clauses for commercial insurance companies, she noted, but added: 'The relationship between the CPF Board and the CPF members, however, is not just a legal contract but... a social contract as the board has a social responsibility to manage CPF funds prudently in order to help Singaporeans meet their retirement needs.' She wanted to know what are the safeguards for protecting CPF members against the risk of the fund's insolvency.

In his reply, Mr Gan said CPFLife has to be self-funded and sustainable. 'The minister cannot make changes at will but must base his decisions on sound actuarial principles to ensure that fund solvency will not be compromised.'

The CPFLife scheme will be rolled out in September for those who are 55 this year - ahead of its implementation date in 2013. They can choose one of four plans that offer different amounts of payouts.

Other changes to the Act, which was passed on Monday, also help members to enjoy the benefits of CPFLife. One is the Lease Buyback Scheme for low-income senior citizens to unlock the value of their housing assets. The Housing Board buys back the tail-end of their flat's lease, leaving members with a shorter 30-year lease. Part of the sale proceeds can be used to join the CPFLife scheme, said Mr Gan.

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CPF Minimum Sum. What's it all about?

CPF Minimum Sum. What's it all about?

by Christopher Pua 29 July 2009

I have always been asked this question whenever I conduct a retirement planning workshop: "What is this minimum sum? How much must I have in the CPF? What is this CPF minimum sum all about?"

What is the Minimum Sum?

So, I thought it would be good if I could share my thoughts and views on this matter. The CPF minimum sum was initiated by the CPF board in 2003. Under this scheme, all CPF members turning 55 would have to set aside a Minimum Sum of CPF money from their Special Account(SA)and their Ordinary Account(OA) into a new Retirement Account(RA), before they could withdraw the balance from their OA.

The reasons for the implementation of this scheme are many. In my opinion, I would say that this is a fantastic system to help CPF members managed their hard earned CPF savings, and to help them to drawdown the cash from the RA for their retirement years.

Before this system was in place, we have heard many stories of how retirees CPF money was completely spent in a blink of an eye soon after they withdrew their CPF money at age 55. You may have heard this saying, that Singapore knows how to make money, but most are quite bad when it comes to managing their hard earned cash.

How much must I have in the Minimum Sum?

So, since 2003, CPF members who turned 55 have to set aside this minimum sum to the RA. When it first started, the minimum sum was $80,000. And as you may have already known, this figure will increase on a yearly basis and would also be subject to an additional adjustment to inflation. As of today, the minimum sum, for those turning 55 between 1 July 2009 to 30 June 2010, would be $117,000. for a table of projected minimum sum till Jun 2014 please visit this CPF site

So, if you have the minimum sum, all is well and good, you set aside the $117,000 or more depending on when you turn 55, then you are free to withdraw out the remaining OA balances, (btw, all you SA balances will be used to set aside for the minimum sum first, if it is insufficient, they will take the balance from the OA).

But what if you do not have enough? Does it mean that you will not be able to withdraw a single cent after you turned 55? No, there is a formula for you to work out how much money will be set aside from your SA and OA for the minimum sum.

Take for example you turn 55 this year, the new minimum sum is 117,000. However, you only have 50,000 in your OA and 40,000 in your SA. When the time comes for CPF to set aside the minimum sum, they will first calculate the total OA and SA balance, which in this case is $90,000. Then, they will apportion 60% of this total amount to the RA (90,000 x 60% = 54,000). Remember, I said earlier that they will deduct from SA first, so in this case they will move the $40,000 from your SA to RA, and another $14,000 from your OA to RA(total $40k + $14k = $54k). Then the remaining $36,000 ($50k - $14k) from your OA can be withdrawn by you.

Any subsequent contribution into you CPF account in the future will be channelled as follows: 60% to RA, and 40% to OA. I hope I have managed to explain it clearly.

What's it all about? What's the use of it?

So, now that you have set aside the minimum sum to the RA, what are you doing to do with this money? Good question! CPF gives you 4 alternatives to make use of this cash in your RA.

1. Leave it inside CPF, earn the yearly interest(currently 4%) from CPF and drawdown the money for your retirement.

2. Put this sum into a bank and drawdown the money for your retirement.

3. Buy a Private annuity take pays you a monthly income till you kick the bucket. Current annuity payout is between 3.5% to 4.2%

4. Buy into CPF life annuity that pays out a monthly coupon till you kick the bucket. Current CPF annuity payout is between 8% to 11%.

So, needless to say, you should know which is the best way to go. CPF life of course. and if you still have excess, buy another private annuity.

Why do you need so many annuity during your retirement years? That's because, by now you should have re-allocated your portfolio and ensure that in your different class of asset allocations, annuity should now occupy the centre stage, not investment, not insurance, gold or other assets classes, they will now form your satellite assets in your portfolio. Because annuity will ensure that you will have a constant stream of income until you pass on, it's a way of protecting you against depleting your resources before you die.

Hope this is helpful for all.

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Couple sue NTUC on their Reverse Mortgage

Reverse mortgage scheme suit

By Jessica Cheam source: Straits Times July 27, 2009

REVERSE mortgages - launched with much fanfare over a decade ago to help retirees unlock the cash value of their homes - will, for the first time, be at the centre of an upcoming court case.

Mr Derek Chua, 72, and his wife Madam Colleen Ng, 57, have filed a suit against insurer NTUC Income after their reverse mortgage went sour.

In the writ of summons obtained by The Straits Times, the couple claim that the reverse mortgage scheme entitled Mr Chua to live in the property until he died or sold the property.

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100,000 Women in Singapore do not have Medishield

Women need MediShield

By Mavis Toh source: Straits Times 25 July 2009

ABOUT 100,000 women in Singapore do not have MediShield insurance coverage and are at risk of being burdened with big medical bills.

They are mostly housewives with no Medisave savings.

Describing this as a significant number, NTUC deputy secretary-general Halimah Yacob said on Saturday that these women and their families would face a big burden in future.

Women live longer than men and face more years of illnesses towards the end. On average, women live up to 82 years and suffer 11 years of disability. Men on average live up to 77 years and suffer eight years of disability.

'But even as we live longer and need more healthcare, we have lesser means to pay for them,' she said at a forum organised by NTUC Women's Development Secretariat to raise health awareness among non-working women.

She noted that such women are not covered either due to 'pure ignorance' or lapses in continuing coverage with time.

NTUC intends to reach out to this group and has appointed 90 women 'MediShield ambassadors' to encourage the women to sign up.

Pamphlets, posters and a video promoting MediShield coverage through cartoons and simple narration were also launched yesterday at the NTUC Centre to help Singaporeans understand the scheme better.

Madam Halimah and guest-of-honour Health Minister Khaw Boon Wan also urged husbands to pay the MediShield premiums of their non-working wives.

They can top up their wives' Medisave accounts to pay for MediShield or sign them up under MediShield if they are not yet registered.

Parkinson's Law of Finance

Parkinson's Law

By: Brian Tracy

Source: www.briantracy.com 27 Feb 2009

Why People Succeed or Fail

Parkinson's Law is one of the best known and the most important laws of money and wealth accumulation. It was developed by English writer C. Northcote Parkinson many years ago and it explains why most people retire poor.

The Way the Law Works

This law says that, no matter how much money people earn, they tend to spend the entire amount and a little bit more besides. Their expenses rise in lockstep with their earnings. Many people are earning today several times what they were earning at their first jobs. But somehow, they seem to need every single penny to maintain their current lifestyles. No matter how much they make, there never seems to be enough.

The Key to Financial Success

The first corollary of Parkinson's Law says: "Financial independence comes from violating Parkinson's Law."

Parkinson's Law explains the trap that most people fall into. This is the reason for debt, money worries and financial frustration. It is only when you develop sufficient willpower to resist the powerful urge to spend everything you make that you begin to accumulate money and move ahead of the crowd.

Slow Down Your Spending

The second corollary of Parkinson's Law is: "If you allow your expenses to increase at a slower rate than your earnings, and you save or invest the difference, you will become financially independent in your working lifetime."

This is the key. I call it the "wedge." If you can drive a wedge between your increasing earnings and the increasing costs of your lifestyle, and then save and invest the difference, you can continue to improve your lifestyle as you make more money. By consciously violating Parkinson's Law, you will eventually become financially independent.

Action Exercises

Here are two things you can do to apply this law immediately:

First, imagine that your financial life is like a failing company that you have taken over. Institute an immediate financial freeze. Halt all non-essential expenses. Draw up a budget of your fixed, unavoidable costs per month and resolve to limit your expenditures temporarily to these amounts.

Carefully examine every expense. Question it as though you were analyzing someone else's expenses. Look for ways to economize or cut back. Aim for a minimum of a 10 percent reduction in your living costs over the next three months.

Second, resolve to save and invest 50 percent of any increase you receive in your earnings from any source. Learn to live on the rest. This still leaves you the other 50 percent to do with as you desire. Do this for the rest of your career.

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