Look at the chart below. This fund was incepted more than 12 years ago. In all time periods whether it is 12 years, 5 years, 3 years or 1 year period, it underperformed the benchmark (which is MSCI Europe). While I do not advocate frequent trading, it is important to monitor the performance of the fund. The performance of the fund and index is converted to Singapore dollar.

Question: Wilfred, if I pass always without writing a Will, is it confirmed that all my assets will be distributed according to Intestate Succession Act? I believe under the Act, my wife gets 50% and my children gets 50%

Some lawyers have started to cap their legal fees by agreeing to a pre-negotiated fixed fee. Usually, legal fees are billable by the hour. The introduction of negotiated fixed fee is good for clients because the cost of legal service is known upfront. However, such pre-negotiated fee is only applicable when the exact scope of work is known right from the beginning.  Will this be applicable in the financial sector?

Here is a history of rebates in the life insurance industry.

Prior to 2002, life insurance agents were prohibited from rebating commissions to their clients.

In 2002, MAS lifted the ban in rebating commissions. The rationale was because of new rules recommended by Committee on Efficient Distribution of Life Insurance (CEDLI) and the upcoming Financial Advisers Act which imposed on agents to make recommendations that are suitable.

On 8 August 2002, LIA made its stand that it does not condone the use of rebates by advisers to induce clients to accept their recommendations.

Fundsupermart now sells insurance from Manulife, NTUC Income and Tokio Marine. Who knows, more may come on board. What is unusual is that it is not an online self-direct purchase. This is not a 'web aggregator' which MAS wanted (which is for self-directed persons to compare different products online). It is the traditional one-one advisory approach. They promise to rebate 50% of the commission. They are also not solely selling term insurance as they can sell whole life as shown in this latest article: HERE

I think this is the start of the price war for insurance where rebate of commissions become more rampant.

On 11 April 2013, Straits Times reported that SMU interviewed 100% of its student applicants because it felt that grades do not tell everything about these candidates. SMU was looking for the ‘X-factor’. They call it the ‘X-factor’, I call it the qualitative aspect. Grades to me is the ‘quantitative’ aspect. The importance of a person having strengths in quantitative and qualitative aspects cannot be over emphasized.

Question: Wilfred, I asked a lawyer to write a Will for me so that I can bequeath 90% of my estate to my wife and the remaining equally among my children but he charges me at a price that is too expensive. I am a Muslim. Can you help me?

Answer:

Recently, 4 young children - ages from three to 13 - lost both of their parents in just two months. The deaths of both of their parents were unrelated.

According to the articles 4 kids lose mum to cancer, dad in crash and She's 13, and mum and dad to siblings, their mother Madam Wang Shu Rong died of colon cancer when she was just 29 years old. Two months later, their father Lim Guang Chin died in a vehicle accident. He was just 34 years old.

Accountants in Singapore have their professional image raised to the next level this July 2013. A new mandatory accountancy post-graduate qualification programme will be launched in July. They will be called Chartered Accountant of Singapore. As Chartered Accountant, they will be internationally recognized and thus allowing them to work abroad. But what interest me is the highly structured scheme. Besides the usual academic requirements, aspiring accountants should also:

• Go through a 6 modules post-graduate studies known as the Professional Program.
• They are also required to have at least 3 years (or exactly 450 days) of relevant practical experience mentored by one of the accredited employers.
• And it is likely the trainee is paid during the practicum.

By the way, the Singapore QP Panel is made up of a large group of committee members who are mostly professional accountants themselves.

This is not unique to accountants. 

Question: I have been approached to buy a Universal Life (UL) product for legacy planning. Do you think I should buy the UL?

Answer: Actually you have been approached to buy an insurance product and has nothing to do with legacy planning. Another word for legacy planning is estate planning. Estate planning is not about buying a product. Many salespersons use the excuse of ‘legacy planning’ to push products to their clients without determining whether is it suitable or not.

I saw a marketing / educational video HERE, on the topic "Why do you NOT want to get a Life Insurance Policy?" Basically the video literally gave no answer to the question. It was a poorly developed video. For those who are frustrated after watching the video and felt that it is another gimmick, here are my answers to the question:

Question: My wife does not work and she does not have her own CPF money. I make regular contribution to my spouse’s CPF account using the CPF Minimum Sum Scheme Top-up every year to save on taxes. Can I assume that if she makes a CPF Nomination, all her CPF money will go to whoever she nominates?

I watched with great interest from this video http://www.international-adviser.com/video/ia-videos/international-insight/The-road-to-fee-based-advice-in-Singapore-and-the- in which that company said that the demographic of its 8 fee-based cases tend to be more mature clients and with some lump sum money to invest.