OCBC BANK’S SURVEY SHOWS THAT SINGAPOREANS ARE TAKING A STEP BACK FROM PERSONAL LUXURIES TO RECONNECT WITH THE BASICS OF HOME AND FAMILY
While most respondents do not think that the economic recession will derail progression in achieving their financial goals, nearly half of them believe it will take a longer time to realistically achieve their goals
Singapore, 9 January 2009 – Oversea-Chinese Banking Corporation Limited (“OCBC Bank”) today unveiled the findings of its second survey on “Top 10 Singaporean Dreams” which indicate that in a climate of global uncertainty, priorities have shifted from being focused on personal luxuries and ambitions to more intrinsic issues such as home, relationship and family.
This year, the top three Singaporean dreams include:
1. Starting a family;
2. Settling down (getting married or finding a life partner); and
3. House and home.
Travel, which was the top priority for Singaporeans in 2008, has dropped to sixth position and four out of ten respondents indicated that they will cut down on spending. There are clear indications that luxuries and non-appreciating assets have now taken a back seat. For more details on the OCBC survey, please go to this link:
http://www.ocbc.com.sg/download/media_releases/2009/Jan/090109_(website)Media%20Release%20-%20Revamped%20Ask%20OCBC%20(final%20draft).pdf
Monday, January 12, 2009
Thursday, January 1, 2009
Means Testing Starts On Jan 1 2009
PATIENTS warded in B2 and C class wards in public hospitals from today will be means-tested to determine the level of subsidy they will get. They will be asked upon admission to give their signed consent to grant hospitals permission to check their income.
Details of how much they earn, however, will not be disclosed to counter staff, who will know only the subsidy band into which patients fall.
A Health Ministry spokesman said hospital admission systems will be linked to the Central Provident Fund Board and to the Inland Revenue Authority of Singapore so the subsidy level can be calculated and bill estimates presented to patients.
Patients may refuse to have their incomes checked. But this will mean they will automatically get the smallest subsidy - 50 per cent for treatment in a B2 ward and 65 per cent in a C-class ward.
Up till yesterday, B2 and C-class patients got their respective flat subsidy rates. From today, patients in these two ward classes will fall into one of 16 subsidy levels.
Those earning $38,400 or less a year will continue getting the full 80 per cent subsidy in C class and 65 per cent in B2 class. People with annual incomes of $62,412 or more will get the minimum subsidy of 65 per cent in C class and 50 per cent in B2 class.
People with no income, such as retirees or housewives, will have their subsidy rate pegged to the value of their homes. If their homes are valued at $11,000 or more, they will get the minimum subsidy. About a fifth of all homes fall into this category.
All unemployed residents of HDB flats - excluding those in executive condominiums - will be entitled to full subsidy.
Following a policy started two years ago to put citizens above non-citizens in health benefits, permanent residents will receive 10 percentage points less subsidy than citizens with the same income.
A permanent resident in a C-class ward, for example, will get a subsidy ranging from 55 per cent to 70 per cent.
Although today is the start date for means testing, patients who will be admitted for treatment later this month but who have already done their pre-admission registration will continue to be subsidised at the old rate regardless of their incomes or house type.
The same applies to patients already in hospital by yesterday.
Member of Parliament Josephine Teo, who is on the Government Parliamentary Committee for Health, said that when the introduction of means testing was debated, 'no one could have foreseen the dramatic change in economic conditions'.
She suggested that 'the assessment of means must look to the future even though we use past income as a gauge'.
Fellow GPC member Lam Pin Min, however, argued that the means testing system is 'dynamic' - it will accommodate a patient who has taken a pay cut by bumping up his subsidy accordingly.
But he urged the Government to show compassion, especially when assessing older patients' eligibility for subsidies.
Health Minister Khaw Boon Wan yesterday promised to do so. He told The Straits Times: 'We have and will always be sympathetic to those in financial difficulties. That is why we have significantly ramped up Medifund disbursements this year and the next.
'If the patient's employment condition has changed from the historical record in CPF, we will certainly take that into account.'
But some retirees are not taking chances. A former teacher who lives in a terrace house said he plans to start declaring an income of a few hundred dollars a month for giving tuition.
This way, he can continue getting the full subsidy if he is hospitalised, even though he lives in a relatively expensive house.
Details of how much they earn, however, will not be disclosed to counter staff, who will know only the subsidy band into which patients fall.
A Health Ministry spokesman said hospital admission systems will be linked to the Central Provident Fund Board and to the Inland Revenue Authority of Singapore so the subsidy level can be calculated and bill estimates presented to patients.
Patients may refuse to have their incomes checked. But this will mean they will automatically get the smallest subsidy - 50 per cent for treatment in a B2 ward and 65 per cent in a C-class ward.
Up till yesterday, B2 and C-class patients got their respective flat subsidy rates. From today, patients in these two ward classes will fall into one of 16 subsidy levels.
Those earning $38,400 or less a year will continue getting the full 80 per cent subsidy in C class and 65 per cent in B2 class. People with annual incomes of $62,412 or more will get the minimum subsidy of 65 per cent in C class and 50 per cent in B2 class.
People with no income, such as retirees or housewives, will have their subsidy rate pegged to the value of their homes. If their homes are valued at $11,000 or more, they will get the minimum subsidy. About a fifth of all homes fall into this category.
All unemployed residents of HDB flats - excluding those in executive condominiums - will be entitled to full subsidy.
Following a policy started two years ago to put citizens above non-citizens in health benefits, permanent residents will receive 10 percentage points less subsidy than citizens with the same income.
A permanent resident in a C-class ward, for example, will get a subsidy ranging from 55 per cent to 70 per cent.
Although today is the start date for means testing, patients who will be admitted for treatment later this month but who have already done their pre-admission registration will continue to be subsidised at the old rate regardless of their incomes or house type.
The same applies to patients already in hospital by yesterday.
Member of Parliament Josephine Teo, who is on the Government Parliamentary Committee for Health, said that when the introduction of means testing was debated, 'no one could have foreseen the dramatic change in economic conditions'.
She suggested that 'the assessment of means must look to the future even though we use past income as a gauge'.
Fellow GPC member Lam Pin Min, however, argued that the means testing system is 'dynamic' - it will accommodate a patient who has taken a pay cut by bumping up his subsidy accordingly.
But he urged the Government to show compassion, especially when assessing older patients' eligibility for subsidies.
Health Minister Khaw Boon Wan yesterday promised to do so. He told The Straits Times: 'We have and will always be sympathetic to those in financial difficulties. That is why we have significantly ramped up Medifund disbursements this year and the next.
'If the patient's employment condition has changed from the historical record in CPF, we will certainly take that into account.'
But some retirees are not taking chances. A former teacher who lives in a terrace house said he plans to start declaring an income of a few hundred dollars a month for giving tuition.
This way, he can continue getting the full subsidy if he is hospitalised, even though he lives in a relatively expensive house.
The Power of Goals Setting
Goals, particularly those that are written down, possess an explosive power to bring dreams to life.
Nowhere was this better illustrated than among students at Yale University in Connecticut, USA during the early fifties. At the request of their governing body, the students were invited to fill in a survey that stretched to well over 200 pages.
Redefining the word ‘exhaustive’, the survey covered everything from their views on education to political attitudes. About the only it didn’t cover was sex. Hidden away in an unobtrusive corner of the survey was a segment on goals. No one paid much attention to it at the time. The seemingly innocuous section simply asked whether each candidate had:
1. Set out goals for their future
2. Written them down
And that was that. The questionnaires went back into a cupboard for 25 years and gather dust on some very large shelves. In the mid-seventies, someone at Yale remembered the survey. For the sake of completion, the governing body commissioned a follow-up report, contacting the (now middle-aged) students to see how they had got on. The results had the force of a nuclear explosion.
Analyst found that the 10% of students who had set goals for themselves were more financially successful than the other 90% put together.
Then came the real revelation. Only 3% of the students had written their goals down. This tiny minority had acquired TEN TIMES greater wealth than the other 97% put together. These same students were also healthier, happier and far more fulfilled in their relationship with their partners.
And you are still wondering why you should set goals!!!
Nowhere was this better illustrated than among students at Yale University in Connecticut, USA during the early fifties. At the request of their governing body, the students were invited to fill in a survey that stretched to well over 200 pages.
Redefining the word ‘exhaustive’, the survey covered everything from their views on education to political attitudes. About the only it didn’t cover was sex. Hidden away in an unobtrusive corner of the survey was a segment on goals. No one paid much attention to it at the time. The seemingly innocuous section simply asked whether each candidate had:
1. Set out goals for their future
2. Written them down
And that was that. The questionnaires went back into a cupboard for 25 years and gather dust on some very large shelves. In the mid-seventies, someone at Yale remembered the survey. For the sake of completion, the governing body commissioned a follow-up report, contacting the (now middle-aged) students to see how they had got on. The results had the force of a nuclear explosion.
Analyst found that the 10% of students who had set goals for themselves were more financially successful than the other 90% put together.
Then came the real revelation. Only 3% of the students had written their goals down. This tiny minority had acquired TEN TIMES greater wealth than the other 97% put together. These same students were also healthier, happier and far more fulfilled in their relationship with their partners.
And you are still wondering why you should set goals!!!
Monday, December 29, 2008
Savings in CPF Funds Hit
Investments of retirement savings in stocks and units trusts made under the Central Provident Fund Investment Scheme (CPFIS) have taken quite a hammering in the global market meltdown.
Nearly half of all CPFIS investors who sold their Ordinary Account investments in the year ended Sept 30 - 440,000 CPF members, or 49 per cent - have lost money, up from 43 per cent a year earlier.
One such investor, school teacher Ms Catherine Lee, 40, got cold feet after her CPFIS investment lost 30 per cent. She could not stomach any more losses. 'I made a loss of $10,000 after selling off my unit trust investment in September. The market was very volatile. I preferred to bite the bullet and realise the loss rather than to wait and see.'
Another 279,000 or 31 per cent of OA investors made modest profits but would have been better off, or done just as well, leaving the cash to earn the Ordinary Account 2.5 per cent interest rate. This was up from 29 per cent a year earlier.
Only about 174,000 members, or 20 per cent - down from 28 per cent - made profits from their CPF savings over and above the 2.5 per cent they could have earned anyway.
For everyone else, who left their investments in place rather than sell, the picture was also quite bleak.
Overall, CPFIS investments in stocks, units trusts and property funds were well in the red, on paper. Only bonds, as well as gold, were in the black.
The CPF board attributed the poor performance to the financial meltdown which has hurt investment returns.
'The market has turned sharply from the bull market in 2007 to a bear market this year. Well-known financial institutions taking massive write-down coupled with a series of collapses such as Bear Stearns, Fannie Mae, Freddie Mae, Lehman Brothers and AIG injected much panic and volatility in the market,' it said.
Straits Times 22 Dec 2008
Nearly half of all CPFIS investors who sold their Ordinary Account investments in the year ended Sept 30 - 440,000 CPF members, or 49 per cent - have lost money, up from 43 per cent a year earlier.
One such investor, school teacher Ms Catherine Lee, 40, got cold feet after her CPFIS investment lost 30 per cent. She could not stomach any more losses. 'I made a loss of $10,000 after selling off my unit trust investment in September. The market was very volatile. I preferred to bite the bullet and realise the loss rather than to wait and see.'
Another 279,000 or 31 per cent of OA investors made modest profits but would have been better off, or done just as well, leaving the cash to earn the Ordinary Account 2.5 per cent interest rate. This was up from 29 per cent a year earlier.
Only about 174,000 members, or 20 per cent - down from 28 per cent - made profits from their CPF savings over and above the 2.5 per cent they could have earned anyway.
For everyone else, who left their investments in place rather than sell, the picture was also quite bleak.
Overall, CPFIS investments in stocks, units trusts and property funds were well in the red, on paper. Only bonds, as well as gold, were in the black.
The CPF board attributed the poor performance to the financial meltdown which has hurt investment returns.
'The market has turned sharply from the bull market in 2007 to a bear market this year. Well-known financial institutions taking massive write-down coupled with a series of collapses such as Bear Stearns, Fannie Mae, Freddie Mae, Lehman Brothers and AIG injected much panic and volatility in the market,' it said.
Straits Times 22 Dec 2008
Saturday, December 27, 2008
The Concerns of the Prospective Agent
“You can make more than $100,000 in your first year of work.” “There is no limit to your income, and if you work hard, you can make millions by the time you retire.” “Nobody determines or stop you from making all the money you wish to have unlike a salaried job.”
Why do these recruitment pitches ring hollow in today’s increasing sophisticated labor force? It may work many years ago, but it is no longer effective in attracting candidates to the life insurance industry. People generally know that if you succeed in life insurance sales you can make plenty of money…but the big question is can they make it. If you can’t do the job successfully, the promise of riches carries little promise for them.
Don’t for a moment forget that persuading people to start a career that pays solely on commission is asking them to take great leap of faith, particularly if they already have a decent job even though it may not the most satisfying one. So your first task as a recruiter is to address their deepest concerns in taking up this new challenging career. Starting a new career is momentous decision, one that is not reached until all questions, doubts and uncertainties are cleared or clarified. This is not to say that all risks have to be eliminated. People understand that there are risks involved in any career change but they need to understand the risks involved and how they can mitigate them.
When recruiting fresh candidates (those who have never been in insurance/investment sales or have less than 1 year of experience), the 3 primary concerns of the candidate are:
1. Can I do it? What are the skills and knowledge I need to succeed? Do I have the aptitude to do well in this business?
2. Can you help me succeed? What kind of training and support do I get to help me succeed? What’s your track record of helping new agents succeed? What’s the reputation of your company in the industry?
3. Is it worth doing? If I am reasonably satisfied that I can succeed (by you addressing point 1&2), should I embark on this career change? How would my family, relatives and friend perceive my career change? What’s my career path or direction? How would I be remunerated (yes, money is still important, albeit it is one of the many concerns)? What are the non-monetary perks and incentives?
Address these 3 concerns effectively, you are more than half-way there! Hey who say recruitment is easy!
Why do these recruitment pitches ring hollow in today’s increasing sophisticated labor force? It may work many years ago, but it is no longer effective in attracting candidates to the life insurance industry. People generally know that if you succeed in life insurance sales you can make plenty of money…but the big question is can they make it. If you can’t do the job successfully, the promise of riches carries little promise for them.
Don’t for a moment forget that persuading people to start a career that pays solely on commission is asking them to take great leap of faith, particularly if they already have a decent job even though it may not the most satisfying one. So your first task as a recruiter is to address their deepest concerns in taking up this new challenging career. Starting a new career is momentous decision, one that is not reached until all questions, doubts and uncertainties are cleared or clarified. This is not to say that all risks have to be eliminated. People understand that there are risks involved in any career change but they need to understand the risks involved and how they can mitigate them.
When recruiting fresh candidates (those who have never been in insurance/investment sales or have less than 1 year of experience), the 3 primary concerns of the candidate are:
1. Can I do it? What are the skills and knowledge I need to succeed? Do I have the aptitude to do well in this business?
2. Can you help me succeed? What kind of training and support do I get to help me succeed? What’s your track record of helping new agents succeed? What’s the reputation of your company in the industry?
3. Is it worth doing? If I am reasonably satisfied that I can succeed (by you addressing point 1&2), should I embark on this career change? How would my family, relatives and friend perceive my career change? What’s my career path or direction? How would I be remunerated (yes, money is still important, albeit it is one of the many concerns)? What are the non-monetary perks and incentives?
Address these 3 concerns effectively, you are more than half-way there! Hey who say recruitment is easy!
The Age of the Digital Native
Sooner or later, the financial services representative has to deal with this coming generation of consumers, the tech savvy generation.
Actually, there are about 200 million reasons to believe it. That's the rough number of kids around the world that currently have Internet access. Marc Prensky, a writer and video-game developer, coined the term "digital native" to describe the cohorts that are coming of age in the Internet era. The rest of us he aptly identifies as “digital immigrants." Like most immigrants, we often struggle to understand the incomprehensible customs of the natives.
Reared on social media, always on Internet connections, cell-phone cameras, Facebook, and YouTube, digital natives live on the same planet as digital immigrants, but inhabit a very different universe. They can concentrate on multiple projects simultaneously, they collaborate seamlessly and spontaneously with people they've never met, and most important, they create media with the same avidity that previous generations consumed it. This is the net generation, a demographic perfectly adapted to a future in which online communities will supplant the conventional corporation.
How do you, the financial services representative, relate to this group of people, how do you communicate and collaborate with them will be the new challenge for prospecting in the digital age.
Actually, there are about 200 million reasons to believe it. That's the rough number of kids around the world that currently have Internet access. Marc Prensky, a writer and video-game developer, coined the term "digital native" to describe the cohorts that are coming of age in the Internet era. The rest of us he aptly identifies as “digital immigrants." Like most immigrants, we often struggle to understand the incomprehensible customs of the natives.
Reared on social media, always on Internet connections, cell-phone cameras, Facebook, and YouTube, digital natives live on the same planet as digital immigrants, but inhabit a very different universe. They can concentrate on multiple projects simultaneously, they collaborate seamlessly and spontaneously with people they've never met, and most important, they create media with the same avidity that previous generations consumed it. This is the net generation, a demographic perfectly adapted to a future in which online communities will supplant the conventional corporation.
How do you, the financial services representative, relate to this group of people, how do you communicate and collaborate with them will be the new challenge for prospecting in the digital age.
SMART Goals
Each goal you create should be SMART: Specific, Measurable, Attainable, Relevant, and Timed with a deadline. Let’s clarify the concept of a SMAR'T goal.
Specific. The goal must be clearly defined with parameters that state who, what, when, where, and how. Specific goals help you stay focused on one thing at a time. For example, stating that you want to become a member of a networking group is fine, but you can define your goal more clearly by saying that you want to become a member of a specific chamber or a particular association.
Measurable. The goal must include a way of measuring the results. This typically means that there is a number associated with the goal, such as how many or what percentage—some quantifiable way to measure progress toward the goal. Stating that you want to receive more referrals this year is neither specific nor measurable; it’s more useful to say specifically that you want a 30 percent increase to your referral business from a networking group.
Attainable. Each goal that you create must be within reach. It should not be so far-fetched that it’s out of your vision. To determine whether a goal is attainable, consider what you accomplish this year. Then consider what you have coming up next year that may either impede or improve your ability to meet a specific goal. Finally consider everything that needs to be done to accomplish your goal. When all is said and done, do you honestly feel that with hard work, dedication, and focus, you can meet this goal. If so, write it down and commit to achieving it..
Relevant. The goal must have relevance and meaning for you; otherwise, you will not be motivated to accomplish it. What will be the outcome if you meet a particular goal? Will you make more money? Will you have a higher quality of life? Will you be able to save for retirement more comfortably? Will you get a promotion or a raise? Will you save time in the long run? Whatever your personal motivation, ensure that your goals tap into it. Doing so will inspire you every day to keep striving toward the finish line.
Timed. Speaking of a finish line, the goal must have a deadline or completion date assigned to it. Without one, You will lose your focus and your desire to meet your goal in a timely manner. Our human competitive nature draws us to the finish line. We need to aim for a target. For example, stating that you want a 30 percent increase in your referral business from your participation in a networking group is indeed specific and measurable, but how long will it take, and when will you measure it? Stating that you want a 30 percent increase in your annual referral business from the association by December 31 will be much more effective, because it contains a deadline.
When you put all of these elements together, you might end up with a goal statement that looks like one of these:
I will become a member of the ABC Chamber by June 30
I will achieve a 30 percent increase in my annual referral business from networking in (a certain networking group by December 31).
Specific. The goal must be clearly defined with parameters that state who, what, when, where, and how. Specific goals help you stay focused on one thing at a time. For example, stating that you want to become a member of a networking group is fine, but you can define your goal more clearly by saying that you want to become a member of a specific chamber or a particular association.
Measurable. The goal must include a way of measuring the results. This typically means that there is a number associated with the goal, such as how many or what percentage—some quantifiable way to measure progress toward the goal. Stating that you want to receive more referrals this year is neither specific nor measurable; it’s more useful to say specifically that you want a 30 percent increase to your referral business from a networking group.
Attainable. Each goal that you create must be within reach. It should not be so far-fetched that it’s out of your vision. To determine whether a goal is attainable, consider what you accomplish this year. Then consider what you have coming up next year that may either impede or improve your ability to meet a specific goal. Finally consider everything that needs to be done to accomplish your goal. When all is said and done, do you honestly feel that with hard work, dedication, and focus, you can meet this goal. If so, write it down and commit to achieving it..
Relevant. The goal must have relevance and meaning for you; otherwise, you will not be motivated to accomplish it. What will be the outcome if you meet a particular goal? Will you make more money? Will you have a higher quality of life? Will you be able to save for retirement more comfortably? Will you get a promotion or a raise? Will you save time in the long run? Whatever your personal motivation, ensure that your goals tap into it. Doing so will inspire you every day to keep striving toward the finish line.
Timed. Speaking of a finish line, the goal must have a deadline or completion date assigned to it. Without one, You will lose your focus and your desire to meet your goal in a timely manner. Our human competitive nature draws us to the finish line. We need to aim for a target. For example, stating that you want a 30 percent increase in your referral business from your participation in a networking group is indeed specific and measurable, but how long will it take, and when will you measure it? Stating that you want a 30 percent increase in your annual referral business from the association by December 31 will be much more effective, because it contains a deadline.
When you put all of these elements together, you might end up with a goal statement that looks like one of these:
I will become a member of the ABC Chamber by June 30
I will achieve a 30 percent increase in my annual referral business from networking in (a certain networking group by December 31).
Subscribe to:
Posts (Atom)