Mistakes In Insurance

There is an insurance company in Asia that is Great. It is located in the Eastern part of Asia. When I had started working, I bought a life insurance with investment from it. In the printout, the cash value when the insured reached an age of 65 years old was indicated as S$322,917. In a recent insurance statement reflecting the expected cash value as at 65 years old was indicated as S$171,889. The statement was given 15 years from commencement as part of government requirements for insurance companies to show the expected value of the insurance, it was not shown earlier. The expected cash is lowered by $151,028 which is negative deviation of 87.9%.

I was Greatly disappointed by the tremendous drop in the expected payout when I reach 65 years old. Previous statements had not indicated this expected payout. Obviously, I had written to the company asking for explanation. The reason given was that the expected payout was not guaranteed and that due to the low interest rate environment, the bonus rates were revised downwards in 1996 and 2001. Similarly, my other policies with this company were affected.

The financial implication is that I have to work much longer before retirement and that insurance investment is still not a good tool for saving for retirement. I would urge you to check your insurance on your coverage to ensure that they are worthy of supporting your retirement plans. Caveat emptor shall apply.

Formula Singapore

"With Formula 1 coming to Singapore for five years, there will be an impact where the younger generation or aspiring drivers want to become full-fledged F1 racers, I dont see why there cannot be a time when we can produce our own driver in F1." ........ Senior Parliamentary Secretary, MCYS/MOT

I am seriously skeptical on this statement made, unless of course he meant a FT. The nation has been known for recuiting overseas sportsman who for the sake of financial gain becomes Singapore citizens.

Why do I have doubt? It is the system not in place.

(1) Education system - No parents would want their child to be a racer. Children are directed to excel academically.

(2) Racing culture - None presence. While race track is being built, the details have not been revealed. Traditionally, F1 racers were trained in go-cart before proceeding to professional racing. Such go cart events are currently limited in Singapore.

(3) Cars - Singapore registered cars are not supposed to be modified beyond the specifications given by car manufacturers. If there is no tradition to tune the car for performance, how would potential racer be able to challenge the limits, understand the mechanism and the constant feedback and change required for setting up a racing car. The knowledge database will be passed on from one skilled technician to the next. A racer can't be racing in a stock car even with an Evolution while all competitors have better gears.

What I hope to see:-

(1) Ability to own a car for racing without heavy tax burden, these cars can be parked in the future circuit for use only on tracks, the cars would not be allowed on roads in order not to compromise the safety. The running cost of maintaining a second car for racing must be kept low, eg, petrol, parking, insurance etc.

(2) Relaxed regulation - To allow cars to be modified at least for circuit cars.

(3) Funding - Support from local companies to promote the sport.

Having said that, it does not mean that racing ace can be produced immediately, the system will need to be changed in tandem. Out of many fans and wannabe racer, there may be a genius out there.

F1 - Singapore 28 Sep 2008

First time Singapore is holding F1 race under night condition. Lights were installed to illuminate the track. The street was said to be bumpy and challenging due to its 26 number of turns per lap. 61 Laps of 5.067km track.

First: Fernando Alonso (Renault)

Second: Nico Rosberg (Williams)

Third: Lewis Hamilton (Mercedes McLaren)

Astronomy

When I was young, I wanted to be a astronomer/scientist. The heavens and stars have always attracted me. I have been interested mainly due to astronomer Carl Sagan (1934 - 1996). I have also read book written by Stephen Hawkings which explained the current physics of astronomy in simple terms. Among theories I could still remember include:-

(i) The relationship between mass and velocity. It is not possible for a matter to reach the velocity of light because the mass would be altered to almost infinity.

(ii) Time can be slowed if a mass is travelling at velocity close to velocity of light. But it did not say time can be reversed.

(iii) Theory of big bang. But what comes before big bang??? Scientist tries to explain that time come into play only when big bang occurs. Time is man made. Dispelling the concept of time, but what will be the space before big bang?

(iv) 3 dimension can be twisted by phenomenon known as black hole where even light cannot escape the gravity pulled.

(v) Expanding universe may come to an end due to gravity which pull the universe back to a collapse point when another big bang may occur again.

(vi) It had not explained why matter had existed in the first place.

(vii) Earth may one day be gobbled by the Sun when it aged.

Astronomy has always been historically filled with errors, eg Earth is the centre of Sun and inadequacy of theory, eg Newton laws. Perhaps, 1 day, there will be a new theory to dis-proof the above.

(Note: The photograph shows the stars above Tioman Island. Taken in RAW and subsequently adjusted for brightness. ISO 800 on cloudy night. The brightest body is likely a planet).

PST

I did not purchase the preferential offering issued by Pacific Shipping Trust (PST). Main reason is that PST price has been falling since its initial public offer of US$0.45. While I purchase the equity (in small amount) below the intial price, the return has been dismal considering the fact that the US dollar has also been depreciating.

Financial Nightmare

These recent weeks were financial nightmares for those who had investments. No one is able to escape the clutch of falling markets. 90% of my investments were in the red. The few exceptions were Johnson & Johnson and SMRT. Some equity prices were very much lower than their net asset value. This is the abnormality of investment.

This is the risk of investments. Risk and returns are proportion. Without risk, the return would be low and may not cover inflation growth.

Some points to note:-

(i) Lehman long term debt under moody rating was A1 in March 2008. That was considered "upper-medium grade and are subject to low credit risk."

(ii) Nick Leeson said: 'For my role in the collapse of Barings I was pursued around the world, and ended up being sentenced to six and half years in a Singaporean jail. Who is going to go after the reckless individuals responsible for this financial catastrophe? Apparently no one.' ... (from The Newpaper article dated 23 Sep 08)

(iii) The financial world is intertwined. It is like domino cards, one fall leads to another. First, it was the sub-prime, then this was followed by the banks, private investment companies. So what's next?

(iv) Great investor such as Warren Buffet is buying when everyone is selling (Purchase of Goldman Sach). This is his guts against the odds. Success will be sweet. It is in periods of turmoil and uncertainty where true profits are generated. Part of contrarian investment strategy.

(v) It is important to hold on to value stock and to have sufficient backup (in savings) to sail through the storm. Just like the technology hype was temporary, so will be the current financial nightmare. The trick is to stay afloat and question the fundamental credibility of the companies before investment.

(vi) The situation is a paradox. Deflation in the equity markers and inflation in the real market.

(vii) This is American year of presidential election. Firstly, it symbolises the complete failure of President Bush policy over the years of governing. Secondly, the debt that was generated over the years through Bush's administration will pass on to the next President. Thirdly, the American public who is picking up the bill for bailing out these banks will certainly be unhappy with the current administration and the republicans.... Change it will be.

Photographer

The cameraman is always being looked upon as a social intruder to the everyday calm and tranquility of life. Because why on earth was this guy carrying a lens/camera walking around trying to capture something so routine, like the stars and faces on people. There will be stares of disbelief. While trying to perform time photography of the stars, someone ask me whether I am looking for UFO? This is the predicament of a photographer. He/she must be psych correctly before taking the task.

Tioman VIII - Thoughts

Thoughts:-

Cloudy day and night Many years ago, when I first visited Tioman (end of 90s), the sky was so clear that the stars has enchanted me.

It was not so clear this time due mainly to the weather.

The moon has a strange glow, something like a halo.

The air was fresh as ever.

The coral close to the island was partially destroyed and the colour of the coral was not fantastic (black and white) probably due to human activities and pollution (could see a layer of oil floating around)

Memorable - Fishes swimming around me just like I am part of them while snorkeling. The place we went was Marine Conservation Park and next to Coral Island. The most important thing was this time my vision was 6/6 and I could see the fishes clearly through the snorkeling mask. To pay for Lasik S$3000, to see fishes clearly without the need for glasses, priceless.... Unfortunate, I did not have an underwater camera.The mask that was rented was not good as it allowed water to seep through the nose piece disturbing the snorkeling.

Regrettable - After snorkeling for an hour at the marine conservative park, the boat brought us to the open sea next to coral island to continue to snorkel. Obviously, I was not as energetic as the first hour, but still found it interesting to snorkel to look at the corals. Being in the open sea the current was stonger and the waves created by passing boat pushed the participants away. Secondly, the boat which was supposed to tied to a stationary point had drifted away. We were then told to swim back to the boat which was a tremendous task due to the strong current and the further distance. I was not wearing a flipper and was totally exhausted. For the first time, I felt what was like to be lost in the sea. Fortunately, the boat turned on its engine and came back to fetch us.

Tioman VII - Paya Beach Resort

Bad Points:-

• Internal was quite shabby
• Air-con not cold enough even though thermostat was set to the minimum temperature.
• Nuisance: Lizards + Mosquito + Morning be prepared to be awaken by the playful monkeys

Tioman VI - Paya Beach Resort

Good points on the resort:-

• The place was quite nicely decorated at least from the external.
• Supporting activities were available from learning to dive, snorkeling, jungle treking, banana boat ride, canoeing etc.
• Food could be purchased from eateries (malay and chinese food).
• There were provision shops near the resort.
• Ramly burger was only RM$3 and with cheese RM$4.
• Beach volleyball was available.
• Heard that the resort would be rebuilt in 2 years time (2010).
• Breakfast was reasonable for the price paid.
• Beer was duty free RM$10 for 3 cans.
• Internet access at RM$10/hour.
• Best Time to Visit: February to October.
• Avoid the monsoon and the peak holidays season.

Tioman V - Wildlife

I have seen the following:-

1) Monkeys - The dominant male wanted to attack me (within 1 m away) probably because I have stepped into his territory. The photograph has 5 monkeys in it, just outside the room I was staying. See if you can count them.

2) Squirrel

3) Monitor Lizard

Tioman IV - Flora of the Island

Tioman III - Path To Darkness

This is one of my favourite photo taken from Tioman. The photo was taken without pre-plans as I was on the berth taking photographs of the stars (which was almost a failure). It was a sudden turn of head that I noticed that the end of the berth was without a soul. Usually, there were a few people arriving back from night dive. So I just turned the camera and took a shot. It was taken on a manfrotto tripod, hence the sharpness was there. Best of all, it was taken by my 28-80mm lens. While the flare was there because of the strong light, it did add flavour to the picture in contrast to the complete darkness of the surrounding. Things may just happen when you least expected.

Tioman II

During low tide the island was accessible

You would not want to be trapped during high tide, the island was separated

Clear shallow water (during low tide) facing tropical trees

Fishes found at the site

There is a beach in front of the resort which is in relatively good condition for swimming or snorkeling. However, I walked further north (about 100m away), there was a small island where during low tide, the island was accessible by foot and the water was below kneel level for quite a distance out. Low tide in the evening was between 5pm to about 6:30pm (September). That was a good place during low tide because the water was clear and fishes would be swimming around hunting for food. The view was good with a nice tropical forest and a setting sun. The only thing to consider was to choose the right position because certain part was full of rocks and senditments that could hurt your hand and feet. Of course the other thing was to watch the tide. It was memorable for me as fishes swam underneath the arches formed by my legs while seating down and watching them swam by.

Tioman I ~ 13 to 15 Sep 2008

I visited Tioman over the weekend. This is the second time I had visited the island on the east coast of Malaysia (About 1.5 hours trip from Land by speed boat). This time I stayed at Paya Beach Resort and set off at Tanjong Gemuk (in Pahang State) instead of Mersing (Johor). Tanjong Gemuk is about half an hour futher north than Mersing. The trip costed me S$225 (excluding personal expenditure). The photograph shows the setting sun on Tioman with a fishing boat anchoring near some rocks. Will be sharing more.

Mid Autumn Festival

中秋節

What Is Not Value?

When part of the price paid goes to tax. It can be value added tax, import tax, consumption tax, foreign goods tax..... This makes the product more costly than the cost of manufacturing the product. When a country imposes substantial tax, then the hard earned money goes to a third party and that money does not contribute to the satisfaction out of the product.

Value is also not present when the sum of its components is less than its price, with due recognition given to the services rendered to create that component.

Money for Love

I was in Chinatown recently and bumped into a couple holding hands. To an unassuming reader, this doesn't seem to be a problem, except that the gentleman was more than 80 years old with a bent back and the lady was a foreigner, probably age about 40 years old. She was chubby. There was nothing wrong, the man got what he wanted from the transaction; companionship, reduce loneliness and proabably some last minutes fun before grave time. The lady on the other hand also received what she wanted, financial dependency. More to come from inheritance. If she was younger and less abundant in physical shape, her market value would be higher. But age and figure finally discounted that. As the society aged, this would be a common sight and a living proof of disparity in income.

Discipline & Confidence

Mercedes W211

I sat on a Merz E class (W211) taxi today. My feel is that it is not as comfortable and spacious as its predecesor (W210). The W210 suspension was able to take undulating roads and could make the passenger feel smooth throughout its journey. The space in W210 seems more spacious(internal). Technical specification may be different from my opinion. In addition, the diesel engine sound was coarse. In the W211, I felt like travelling in an ordinary car. Perhaps, the taxi suspension had worn off due to wear and tear.

7 Sep 2008

Happy Birthday!

Manfrotto Tripod

Bought Manfrotto 190XproB tripod and Manfrotto 488RC2 ball head today.
Initial feel: Heavy but stable
Reason for purchase: Need a stable tripod to prevent vibration during long exposure / Able to hold heavier lens

Ascott Reit

Bought some Ascott Reit today. NAV is $1.57/unit. Price over NAV is 0.54. This is the herd effect on Reits. Investors are throwing away equity with a reasonable NAV. Even when adjustment is made to a lower property price, the current price is overly discounted. May consider to buy more if price continues to fall. Caveat Emptor shall apply.

Catholic High (Primary)

These were the buildings housing my Primary School from 1976 to 1981 at Queen Street. It is currently used as an Art Museum. The facade of the building remains the same. What I could remember:-

(i) General office was at the ground floor.

(ii) Music lesson was at the top most floor.

(iii) On one of the first few days of school, I rushed out of the classroom onto the parapet attracted by the noise of the lion dance. I was subsequently reprimanded by the teacher. Well nobody told me that I couldn't go out of a classroom and had to seek permission.

(iv) Basketball post was lower than standard. No school field so that basketball courts were the only playground we had.

(v) Toilet was rumoured to be haunted

(vi) School canteen had a rear door where students could slip out to visit book stores at Bras Basah. The rear door was no more present in the new structure. What a waste.

(vii) Primary 5 was at the block adjacent to the church. SJI was next door.

(viii) I was a Class Monitor.

(ix) Represented the School for musical assemble. Playing a recorder (a flute like musical instrument). We won some awards.

(x) Bullied girls from St Nic and Raffles.

(xi) Catching spiders for fighting. Spiders were found in the huge field now occupied in SMU.