NTUC Income Annual Bonus Update for 2008

When I first saw the title to the document I had just received, I thought it was trying to tell me NTUC Income is going to pay more bonus for my various policies.

Guess what I read.

They are telling me that they are increasing the Special Bonuses and decreasing the Annual Bonus, leaving the TOTAL bonuses unchanged or increased MARGINALLY.

My immediate reaction is why the change then.

Why would a Cooperative spend thousands of dollars on mailing thousands of pages to hundreds of thousands of policyholders telling them nothing much change except the allocation?

The change in allocation is supposed to give them "greater investment freedom.. to invest in higher yielding assets that COULD lead to higher returns in the long run." I am old enough to know that higher return could also mean lower return.

Can insurance company unilaterally change the terms of a contract that have been in force for years? Or is it part of the contract?

Can I say NO to the change until I am sure that the change is actually beneficial to me.

What is the difference between Annual bonuses and Special bonuses?

While Annual bonuses are added yearly to the policy, Special bonuses are paid only upon death/maturity/surrender.

Limited upside of Singapore properties' prices

I was kidding with my students when I told them that White House in US is going for a song. Given the drastic contraction in housing demands, housing starts, housing prices, no. of foreclosures currently occuring in US, you may now be able to afford to buy the White House.

We were reminiscing on the Financial Crisis back in the late 1990s. I remembered a "party" I attended in KL then. A big boss of several listed companies in Malaysia was bragging away of the possibility of buying up assets in Thailand on the cheap given the collapsing baht.

A few months later, Malaysia's ringgit too went down the tube. Now in 2008, I hope the sub-prime tsunamis will be over soon.

Coming back to the title of this article - We opine that there is limited upside to Singapore property's price. Why?

Under asset allocation theory, hot monies will go to places where it can find value. Relatively speaking, the current US property market presents more opportunities. So does this explain why a middle east fund decides to drop the options (and thus dropped millions of dollars) to buy properties in Singapore?

Council of the Elders

after a glass of wine and cigar with the Council

Hi friends,

I wish to introduce you to Edgar's "Council of the Elders".

This is a group of people whom I interact regularly for discussion on issues affecting our lives.

This group has been part of my life for more than 2 decades. Their opinions and recommendations are backed by their experience in diverse industries.


In future to come, I will share with you bits and bites of the wisdom I acquire through my interaction with them.