15 key questions to ask the adviser before you say ‘yes’ to buying a product:

1 Why do you say this product is suitable for me? Are you getting high commission from this policy?

2 What type of product is this? For example, is it a life insurance policy, unit trust or structured
deposit or ILP? Is it primarily for savings, investment or insurance protection.

3 What benefits does it offer? Which ones are guaranteed and which are not? Ask him about all the disadvantages and advantages of the product.

4 What instruments does the product invest in? How risky are these underlying instruments?

5 Is this product suitable for individuals with low, medium or high risk tolerance levels?

6 What is my risk profile? Even if it fits my profile, can I afford to take the risk and do I need to?

7 How much do I need to commit to this product? Is it a limited payment term, lump sum payment or regular
payments? What happens if I subsequently find that I am unable to make the payment?

8 How long must I stay invested? What are the penalties, restrictions and procedures if I liquidate
some or all of my investments earlier?

9 What are the various fees and charges? Does the product provider have the discretion to
change the fees and charges at any time or is there a cap?

10 If the adviser recommends investing with Central Provident Fund (CPF) money, ask him how
the returns offered by the product compare with interest rates earned by money in the different
CPF accounts.

11 What alternative products offer similar benefits? How does the recommended product
compare with alternative products?

12 If I were to buy the recommended product, how can I monitor the performance of my
investment? What reports and updates will I get? And what is the frequency of these reports?

13 What if I find, after my purchase, that the investment product is unsuitable? Can I return the
product and get my money back? If so, how soon must I inform the adviser of my decision to
return the product? Are there any fees and charges?

14 Do you offer products from one or several companies? (This can be an indication that the
adviser’s product range might be limited. Also, you can suss out if he is subjective in his product
recommendation.)

15 Is the financial firm that you represent and is the product provider for the recommended
product regulated by the MAS? What are the names, business addresses and permitted activities
of the firm and the product provider?

Once your adviser is able to answer all these questions, you are ready to pruchase the policy from him. Basically in my opinion, i feel that the most important thing in an adviser is honesty. If in any point of time where you find him being dishonest, please kindly avoid dealing with him. It’s because there is a problem with his character. We do business based on trust hence any mistakes that betrays trust is unacceptable.

Many at times, people are troubled about how they should plan for their child education in the future. This is especially true for those parents who are looking at sending their children for a oversea education. With inflation going as high as 6.6%, the risk for not planning is way too high for people to handle.

With that in mind, parent should really start to plan how they are going to solve this problem. It’s better to do it now than keep holding back because the longer they wait, the more they need to set aside every month for the same amount.

Here are some ways to fund your child’s education:

1. Endowment plans. These are regular saving insurance policies with a fixed maturity date. The returns are higher than bank savings account, and therefore can provide a good chance to finance the child’s entire education. That is, however, if you do not terminate earlier than the maturity date. Some plans also allow you to withdraw some emergency fund if necessary.

2. Unit trusts. A diversified good portfolio can ensure returns higher than endowment plans, but they are much more risky. Also, it does not come with insurance, unlike an endowment plan. Regular investment takes advantage of the dollar cost averaging strategy and it can generate returns between 5%-12% over long period of time.

3. Central Provident Fund (CPF) Education scheme. The maximum amount that can be loaned is 40% of the Ordinary Account. Repayment starts after graduation or leaving from course of study, at an interest of 2.5%, over a maximum of 12 years. For the Ordinary Account fund, most would be used for housing purposes and therefore not many people may have enough to set aside for education.

4. Bank loans. Education loan is one of them. It is a way to loan whatever you need after calculating your available funds. Take note this is an expensive loan with interest rates as high as 6% and a processing fee of 3%. You may only borrow 6 to 8 times your monthly salary, up to a cap of $150,000.

Tuition fee loan (Bank) allows the student to borrow up to 90% of the course of study. This is after the subsidy for local students by the Ministry of Education. This loan is interest-free during the course of study. The only requirement is that you need to have a guarantor above the age of 21.

Overseas Student Program is another type of bank loan, reserved for students of local universities who are taking an overseas student program as part of their course. Application for this program requires the approval of the student’s university. It is also interest free in the course of study and has a rate capped ay 4.75% per annum, just lie the Tuition Fee Loan.

5. Scholarships may cover 80% to 100% of tuition fees. However this scheme is only available to very few students, and may depend on their course of study. There are some scholarships that also provide for hostel stay and other living expenses.

6. Bursaries are grants for needy students. In Singapore, the amount ranges from $750 to $6,000 and application are considered on a case-by-case basis.

This list is not exhaustive. In fact, how you want to fund education can only be limited by your own creativity.