Watt You Can Do To Save $$$ on your Electric Bill

First of all, let's ask ourselves why.
Why should you do it when you can 'easily' afford paying the bill?

1) Did you know that some families in Singapore could not pay their Power Supply bills and are living in darkness at night while depending on the light shining in from the HDB corridor ceiling lights?

3) Did you know that electricity comes from burning fuel in Singapore?
The more we consume electricity, the more fuel is burnt to meet that demand. Burning produces carbon dioxide and other piosonous gases too. Global warming is real and causing many weather related disasters.

3) Did you know that the millions of people are living without electricity?
South Asia 706 million
Sub-Saharan Africa 547 million
East Asia 224 million
Other 101 million ( source:www.globalissues.org )

First we need to identify the appliances in our homes that consumes more electricity and reduce it. Looking at the chart below, we should tackle the airconditioner, refrigerator, TV & video equipment, water heater and lighting ( total 76% of our total electric bill )

Let's watch a video on more energy saving ideas...

Should I Surrender My AIA Insurance Policy?

Last week, when news of the possible collapse of AIG reached Singapore, many AIA policy holders were fearful of losing their hard earned money. Despite the announcement that the US government was providing a US$85 billion (S$121.3 billion) lifeline loan to AIG in exchange for a 79.9% equity stake, many policyholders queued up to surrender their policies last week.

Now, after many assurances from AIA and MAS, many of these policyholders are re-instating their policies without penalty or cost to themselves, courtesy of AIA.

Last week, a few clients of mine called me if they should terminate their AIA life insurance policies. I advised them that they should not terminate their policies.

Why?

5 Reasons Why You Should Not Terminate Your AIA Policies

1) What was your objective of buying the policy in the first place? Has your objective been met? Is your insurance coverage still applicable to your present and future needs? If yes, keep it.

2) Are you still healthy now? Yes? Are you sure? All existing illnesses whether you know it or not will be excluded upon a claim, subject to the actual terms and condition of the new insurance policy. If you are not sure and have not done a full body medical check up, keep it.

3) Are you willing to pay higher premiums? The policy that you bought 15 years ago when you were a young adult will be a lot cheaper than if you were to buy one now at the same amount of insurance coverage. If you are not willing, keep it.

4) If you are using this "crisis" as an excuse to get rid of your policy, please reconsider as you may regret it if something unfortunate were to happen to you after you surrender your policy. If you are still the responsible adult, keep it.

5) If your policy matures next year, and you think that you have made some profit and feels that it is OK to get out now. STOP! You will lose all the "Maturity Bonus" which will kick in at the end of the policy term!!! This amount can be quite substantial, so do not be rash. If you want to reap a good return on your savings for the past 20 years, keep it.

If you are still not convinced, call me for a FREE review of your insurance policies so that I can give you a better picture of your insurance planning.

Spending On Health Care 'Bound To Go Up'

According to our Health Minister Khaw Boon Wan, he said that it was unrealistic to expect national spending on health care not to increase in the future.

He noted that Singapore has managed to cap national health-care spending at 4% of Gross Domestic Product (GDP) and still achieve high standards of health care compared with the United States, which spends 16% of its GDP on health care.

But he said that spending MUST go up, with medical advances making treatments and drugs costlier together with plans by the Health Ministry to recruit more doctors, nurses and other health-care professionals to improve standards of care.

If spending on health care reached 8 to 9% of GDP, it would mean an individual would need to use some 15% of his income on medical expenses, including health insurance premiums and co-payments.

For more info read the Straits Times Thursday 11 Sep 2008 HOME page B2...

Are you adequately insured for your own health care? Not sure, let me take a look at your health insurance policies. Your needs come first when it comes to financial planning. I separate the best from the rest for you!

Why Couples Must Be Financially Literate

In every family, many married couples divide their household chores and other family matters. The husband might prefer to do the laundry and the wife always buys the family groceries. The husband might be in control of all things car related, but the wife always do the children cloths shopping.

Handling a family's financial affairs is another one of those tasks that usually falls to husband or the wife. Sometimes there are couples who are both engaged in the family's budgeting, bill-payment, savings and investing. But in most families, these "jobs" usually fall to the husband.

If you're reading my blog, there's a good chance that you're that person in your household. Maybe you have been educated in finances, or maybe you have no choice but to be in charge of your family finances.

The key danger you run in single-handedly managing your family's financial affairs is that you could leave your spouse out of the loop. If you left the world yesterday, would he or she know how to manage the family nest egg? Even if you expect that your spouse will look for a financial adviser for help when you're gone, would he or she even know where to look for advice?

Even if you're super fit, make sure that your spouse know how to handle the following issues if something unfortunate were to happen to you.

1. Where to Find Everything
Your first step is to list what assets you have and where to find them. Even if you're not an investment junkie, you are most likely having a number of different accounts scattered across several different financial-service providers. You may have it all straight in your head, but it could seem like a confusing mess to your spouse.

Try to summarise your investment accounts as much as you possibly can. Your partner will have a far easier time managing the family nest egg when you are not aound.

It also makes sense to develop a filing system that both of you understand. Start by creating a folder for each separate account, and be very picky about what papers you keep. (Keep: Shares and unit trust statements, with trade confirmations. Throw: Annual reports, prospectuses, and marketing brochures.)

Once you've done that, list all your accounts and account numbers (remember your life-insurance policies too), the names and telephone numbers of the people you deal with at various financial institutions, and any website addresses and passwords you need to gain access to your accounts. Store this information in an safe place and let your spouse know where it is.

2. Who To Contact
Your next step in leaving your spouse well prepared is to write down a list of your important financial contacts: financial advisers, insurance agents, accountants, and lawyers. Include their names, phone numbers, and email addresses, and also write a brief description of what they have done for you, especially me.


3. Which Assets To Access First
Some of your assets can be tapped at any time, while others may carry penalties and tax implications if your spouse withdraws the money prematurely. To prevent your spouse from making a serious and costly mistake, it pays to clearly list out which of your assets are liquid and which are not. As a general rule of thumb, you'll want to keep at least six months' worth of living expenses in highly liquid financial instruments, such as money market funds and your fixed deposit accounts.

4. Where to Go for Help
If you've been an financial do-it-yourself guru but you expect your spouse to seek outside help in managing your financial affairs after you've gone, it is better to look for financial advisers who share your investing philosophy and have served clients with needs like yours. Keep in touch with me.

5. How to Learn More
Even if you expect that your spouse will consult a financial adviser after you're gone, he or she will still need a basic understanding in financial planning. A few simple investment books will impart a lot of information for your spouse. Reading my blog will also impart some knowledge about financial planning.