Landbanking, is it a scam?
by Wendy Kwek
I have been offered by landbanking companies to ‘market’ the deals in UK, US, Canada and they offered me VERY HIGH commission but I have rejected them as I have one key objective in my mind. That is to help our investor group make money.
One of the landbanking companies’ CEO even shared with me how much I can make as their ‘Marketing Consultant’. He was a top executive of the ‘Well Known’ landbanking company and he started his own now. After I pressed him to share with me honestly when the land that he structured is likely to be converted or sold off with profits, he shared that it is very unlikely that the land would yield anything within the next 10-15 years. But, they told the marketing agents to sell it as a 5 year exit plan with capital protection. He went on to share how they would use the money to roll and invest elsewhere for 5 years or more and if there investors who complain or want their money back, they would pay back without the interest! I was told that after a long time, most of these investors would be happy just to get back their capital and not make a case out of it. I was very disgusted and left. There are many such scams around.
It is sometimes not the Marketing Agents fault that they are selling landbanking because they were painted a beautiful picture by the MANAGEMENT and given convincing marketing materials to sell. They too could have been conned. The companies would teach them how to sell and HOW TO PULL IN BIG NAMES LIKE THE BIG AUDITING COMPANIES OR PUBLIC LISTED COMPANIES WHO INVESTED etc. You must remember that Enron and many other big companies whom have questionable acctg also uses BIG auditing companies.
So like I have shared. Thanks to Google Earth and loads of info on internet. You can check the exact location and check the growth path of a land before buying. Pls do not think that $0.60psf is cheap. They could have bought it for only $0.01centpsf. that is 6000% markup. If you want to know the truth, ask the company to furnish you the documents of HOW MUCH THEY REALLY BOUGHT THE LAND initially. They bought it at wholesale, subdivide and sell you at retail. I dare to bet my last dollar that they will not show you the price they bought the land nor tell you the truth about how many times they mark up. It is the same piece of land with no valued added done to the land but sold out at different pricing.
If any company can offer VERY GOOD commission, you must know that the money eventually comes from investors. So, are they acting in your best interest or their own?
You must understand that there are many land parcels selling for a few thousand dollars per acre. When they subdivide it to psf, it is really very cheap. People in SG and Hong Kong are the two main countries where they solicit funds from as to us SG n HK look at land as PSF whereas land US, UK, Australia are sold on PER ACRE or even PER HECTARE basis.
One of the CEOs of a large REAL ESTATE agency was the first to represent the ‘Well Known’ landbanking company here and he stopped marketing it after realizing that it was mainly a scam. The landbanking companies can afford to use the tons of money raised to buy out and PAY OUT TO SMALL SAMPLING OF THE INVESTORS to make it look very profitable. When a small percentage of the investors were paid the profits, they leverage and SPREAD THE NEWS THAT INVESTORS HAVE MADE MONEY to draw in new blood. Some of these investors who exited with profits were convinced and plow in more money and even become agents to help the company bring in more funds.
I was told that the typical mark up price of land banking is at least 500% to 10,000% of original price.
I wish you all good luck with your investments…More feedback n sharing from those with experience in this welcomed.
Wendy Kwek
Terminating your insurance policy-freelook
Terminating your insurance policy
A life insurance policy sold in Singapore comes with a 14 day free look period. It allows the policyholder to cancel the policy within 14 days and get a full refund of the premium that has been paid.
If this is an ordinary life insurance policy, the premium has to be paid in full. If this is an investment linked policy, the policyholder will have to suffer any loss due to a change in the market value of the units. However, there should be no deduction for agent's commission or other expenses.
If you wish to cancel the policy, you have to notify the insurance company directly. Do not go through the agent, as the agent may not submit this request to the insurance company.
If you have bought a life insurance policy recently, and you are not told about the free look period, you should lodge a complaint to the regulator (MAS) that the insurance company is not complying with this requirement.
If you are not satisfied with the decision of the insurance company, you can also approach FIDREC(Financial Industry Dispute Resolution Centre). The decision by FIDREC will be binding on the insurance company.
If you are not getting a refund according to my understanding, as set out above, you can bring the matter to my attention. I will see if there is any change in practice that is different from my undrestanding.
A life insurance policy sold in Singapore comes with a 14 day free look period. It allows the policyholder to cancel the policy within 14 days and get a full refund of the premium that has been paid.
If this is an ordinary life insurance policy, the premium has to be paid in full. If this is an investment linked policy, the policyholder will have to suffer any loss due to a change in the market value of the units. However, there should be no deduction for agent's commission or other expenses.
If you wish to cancel the policy, you have to notify the insurance company directly. Do not go through the agent, as the agent may not submit this request to the insurance company.
If you have bought a life insurance policy recently, and you are not told about the free look period, you should lodge a complaint to the regulator (MAS) that the insurance company is not complying with this requirement.
If you are not satisfied with the decision of the insurance company, you can also approach FIDREC(Financial Industry Dispute Resolution Centre). The decision by FIDREC will be binding on the insurance company.
If you are not getting a refund according to my understanding, as set out above, you can bring the matter to my attention. I will see if there is any change in practice that is different from my undrestanding.
Understanding Option Trading
Understanding Option Trading
Option trading is one method of trading that you can partake in. But, in order to take advantage of it, you need to find out just what it is and how it works. This will help you to make decisions that will affect you throughout your trading experience. Here is some basic information about option trading to help you.
What Is An Option?
Your basic question of what an option is can be answered like this. It is a contract that allows two parties to come to an agreement that the buyer will have the right to buy or sell a parcel of the shares. It is set at a predetermined price and at a predetermined date. The buyer does not have to take the option though. He has the right but not the obligation to do so. To get this right, the buyer will provide a premium to the seller.
Call Options
There are two types of option trading that you need to know about. In a call option, the buyer has the right to buy underlying shares of a stock. It is set at a predetermined price and also a predetermined date. Again, the buyer has the right but not the obligation to do this.
Put Option
The second type of option is the put option in option trading. In this type of option, the taker has the same fundamentals but is selling underlying shares. He has the same set up of having the right to do so but not the obligation to do it. Also, the same standards of the predetermined price and date also apply. The buyer of a put option is required to deliver the underlying shares only if they exercise the option.
If you would like to learn more about option trading, you simply need to contact your financial advisor and find out how it can serve your needs.
Option trading is one method of trading that you can partake in. But, in order to take advantage of it, you need to find out just what it is and how it works. This will help you to make decisions that will affect you throughout your trading experience. Here is some basic information about option trading to help you.
What Is An Option?
Your basic question of what an option is can be answered like this. It is a contract that allows two parties to come to an agreement that the buyer will have the right to buy or sell a parcel of the shares. It is set at a predetermined price and at a predetermined date. The buyer does not have to take the option though. He has the right but not the obligation to do so. To get this right, the buyer will provide a premium to the seller.
Call Options
There are two types of option trading that you need to know about. In a call option, the buyer has the right to buy underlying shares of a stock. It is set at a predetermined price and also a predetermined date. Again, the buyer has the right but not the obligation to do this.
Put Option
The second type of option is the put option in option trading. In this type of option, the taker has the same fundamentals but is selling underlying shares. He has the same set up of having the right to do so but not the obligation to do it. Also, the same standards of the predetermined price and date also apply. The buyer of a put option is required to deliver the underlying shares only if they exercise the option.
If you would like to learn more about option trading, you simply need to contact your financial advisor and find out how it can serve your needs.
Online Insurance Quotes Are The Smartest Way to Shop
Online Insurance Quotes Are The Smartest Way to Shop
In today's world there is an increasing demand on our time by work, family and recreation. Because time is such a valued asset, it has become increasingly popular for people to find insurance online. People prefer to shop for insurance online for several reasons. If speed, convenience and affordability are your priorities, then online insurance quotes are the smartest way to shop.
Speed - The process of getting an insurance quote from an agent over the phone is tedious, frustrating and time consuming. Getting more than one quote means you will be calling one insurer after the other answering the same questions or filling out long application forms for a simple quote. This can take you up to half an hour for each quote. The average online insurance quote can be completed in about five minutes. After you fill in a simple form, you can receive your quote immediately and make a decision on the policy. Shopping for online insurance can save you hours of frustration.
Convenience - You can literally buy insurance online 24/7 from the comfort and convenience of your home or office. No more scheduling of appointments with agents or brokers, no more long telephone conversations or being put on hold, you don't even need to leave your home. Everything is at your fingertips and getting insured is just a mouse click away. Many online insurance service providers have teamed up with multiple insurance companies to offer a number of quotes from just one form. This makes it easy to compare and select the best quotes.
Affordable - Online insurance is arguably the most competitive industry in the world because almost every company has their own online quoting system, or at least are linked to other service providers that supply multiple quotes. High competition means that insurance companies lower their rates to remain competitive which leads to savings for the consumer. If you compare traditional quotes to insurance online you will notice the difference in pricing.
Compare - It is often difficult to compare insurance quotes received through traditional means because coverage and features are so varied. By contrast, online insurance quotes, especially from service providers that supply multiple quotes will provide prices for similar or identical coverage, features and deductibles. This consistency allows you to quickly compare and choose the best policy.
PSG Online insurance offers a range of short term and long term insurance products from different insurance companies to suit your insurance needs.
Article Source: http://EzineArticles.com/?expert=Mari_Papg
In today's world there is an increasing demand on our time by work, family and recreation. Because time is such a valued asset, it has become increasingly popular for people to find insurance online. People prefer to shop for insurance online for several reasons. If speed, convenience and affordability are your priorities, then online insurance quotes are the smartest way to shop.
Speed - The process of getting an insurance quote from an agent over the phone is tedious, frustrating and time consuming. Getting more than one quote means you will be calling one insurer after the other answering the same questions or filling out long application forms for a simple quote. This can take you up to half an hour for each quote. The average online insurance quote can be completed in about five minutes. After you fill in a simple form, you can receive your quote immediately and make a decision on the policy. Shopping for online insurance can save you hours of frustration.
Convenience - You can literally buy insurance online 24/7 from the comfort and convenience of your home or office. No more scheduling of appointments with agents or brokers, no more long telephone conversations or being put on hold, you don't even need to leave your home. Everything is at your fingertips and getting insured is just a mouse click away. Many online insurance service providers have teamed up with multiple insurance companies to offer a number of quotes from just one form. This makes it easy to compare and select the best quotes.
Affordable - Online insurance is arguably the most competitive industry in the world because almost every company has their own online quoting system, or at least are linked to other service providers that supply multiple quotes. High competition means that insurance companies lower their rates to remain competitive which leads to savings for the consumer. If you compare traditional quotes to insurance online you will notice the difference in pricing.
Compare - It is often difficult to compare insurance quotes received through traditional means because coverage and features are so varied. By contrast, online insurance quotes, especially from service providers that supply multiple quotes will provide prices for similar or identical coverage, features and deductibles. This consistency allows you to quickly compare and choose the best policy.
PSG Online insurance offers a range of short term and long term insurance products from different insurance companies to suit your insurance needs.
Article Source: http://EzineArticles.com/?expert=Mari_Papg
SIX STEPS and the IRREFUTABLE LAWS of the MARKET Every Investor and Trader MUST KNOW to Succeed
SIX STEPS and the IRREFUTABLE LAWS of the MARKET Every Investor and Trader MUST KNOW to Succeed
Step 1:
A move begins with the sponsors (smart traders) who have insider knowledge as it relates to a particular stock or market. This information will move a market up or down depending on the insiders' information. These buyers are smart, very smart, and recognize trading/investment opportunities very early in the markup cycle.
Step 2:
Days, weeks, or sometimes months after a move has started, there is a brief mention in the electronic media (radio, cable, TV) or on one of the internet chat boards that a market has moved. The public hears for the first time and begins to get interested, but does not buy.
Step 3:
A blurb of information appears in print media. The move also begins getting more exposure on blogs and internet message boards. The public starts paying a little more attention, and will buy a little bit.
Step 4:
Wall Street and LaSalle Street brokers go into full hype mode and hawk the market to their customers. The public begins buying in greater volume.
Step 5:
A full-blown front-page article appears about the particular stock or market in one of the major financial newspapers, magazines, or financial websites. This is often six months after the fact and after a market has shown its greatest appreciation. There is often heavy public buying, even a possible frenzy, as all media, brokers, and so-called "gurus" start to tout the market.
Step 6:
As step 5 gets underway, the sponsors or smart traders begin to move out of the market and take their profits off the table.
The finale: The move ends, the market falls, and investors lose money.
Step 1:
A move begins with the sponsors (smart traders) who have insider knowledge as it relates to a particular stock or market. This information will move a market up or down depending on the insiders' information. These buyers are smart, very smart, and recognize trading/investment opportunities very early in the markup cycle.
Step 2:
Days, weeks, or sometimes months after a move has started, there is a brief mention in the electronic media (radio, cable, TV) or on one of the internet chat boards that a market has moved. The public hears for the first time and begins to get interested, but does not buy.
Step 3:
A blurb of information appears in print media. The move also begins getting more exposure on blogs and internet message boards. The public starts paying a little more attention, and will buy a little bit.
Step 4:
Wall Street and LaSalle Street brokers go into full hype mode and hawk the market to their customers. The public begins buying in greater volume.
Step 5:
A full-blown front-page article appears about the particular stock or market in one of the major financial newspapers, magazines, or financial websites. This is often six months after the fact and after a market has shown its greatest appreciation. There is often heavy public buying, even a possible frenzy, as all media, brokers, and so-called "gurus" start to tout the market.
Step 6:
As step 5 gets underway, the sponsors or smart traders begin to move out of the market and take their profits off the table.
The finale: The move ends, the market falls, and investors lose money.
When to sell penny stocks?
When to sell penny stocks?
Penny Stocks can be a very effective way to provide you with a secondary income. They can be used to create passive income because they do not require you to be constantly watching over them. The problem that most people have when it comes to stocks is - not knowing the right time to sell.
Penny Stocks can rise very quickly but they can also fall quickly too. The reason that most investors hold onto a stock is because the fail to separate their emotions from their actions.
All of your penny stocks buying and selling should, of course, be based on sound research both of the market and the companies’ recent history. How the company is doing in terms of profitability, whether they are just about to, or have just announced profits, losses or new patents, discoveries and products, can all affect your decision on whether, or not, to buy.
Knowing the right time to sell your penny stocks however can sometimes seem, as much an art as a science, although getting it wrong can be fatal. Many people seem to put all their research efforts into knowing what penny stocks to buy and when to buy them.
Investors seem to forget about researching to sell stocks. Instead, they let their emotions take control and sell at the wrong time. Investors selling at the “wrong time” fall into two categories. These categories are, The Runners and The Sitters.
The Runners like to take profit way too early. They see their Penny Stocks rise a little and sell because they don’t want to “risk too much”. I’ve seen it time and time again; these people set out to earn a 25% Return on Investment and end up taking profit at 1%. Someone who takes profit twice at 25% earns a lot more than someone who takes profit twice at 1%. Usually, as soon as they sell a penny stock, it will rise even further and they’ll be wondering why they sold so early.
The Sitters are the heavily emotionally involved in their penny stocks. They are gamblers at heart and just do not want to let go of a losing position because “it could bounce back any day now”. When they do let go of their Penny Stocks - there is virtually nothing left. The sitters like to sit on a losing position. They like buying but dislike selling.
Do you want to be a Runner or a Sitter? Well, I hope you are neither. You want to be a winner. A winner will separate their emotions from their investment thinking and will also research when buying and also when selling. They will buy and they are not afraid of selling.
There is great deal of profit to be made from trading in Penny Stocks. But you have to know not only what to buy but also how long to keep it and when the best time to sell. The answer, as with most things in the world of finance, is good information and research. But that doesn’t end when you buy. Find out why your penny stocks are rising and this will put you in a much better position to know when to sell.
Penny Stocks can be a very effective way to provide you with a secondary income. They can be used to create passive income because they do not require you to be constantly watching over them. The problem that most people have when it comes to stocks is - not knowing the right time to sell.
Penny Stocks can rise very quickly but they can also fall quickly too. The reason that most investors hold onto a stock is because the fail to separate their emotions from their actions.
All of your penny stocks buying and selling should, of course, be based on sound research both of the market and the companies’ recent history. How the company is doing in terms of profitability, whether they are just about to, or have just announced profits, losses or new patents, discoveries and products, can all affect your decision on whether, or not, to buy.
Knowing the right time to sell your penny stocks however can sometimes seem, as much an art as a science, although getting it wrong can be fatal. Many people seem to put all their research efforts into knowing what penny stocks to buy and when to buy them.
Investors seem to forget about researching to sell stocks. Instead, they let their emotions take control and sell at the wrong time. Investors selling at the “wrong time” fall into two categories. These categories are, The Runners and The Sitters.
The Runners like to take profit way too early. They see their Penny Stocks rise a little and sell because they don’t want to “risk too much”. I’ve seen it time and time again; these people set out to earn a 25% Return on Investment and end up taking profit at 1%. Someone who takes profit twice at 25% earns a lot more than someone who takes profit twice at 1%. Usually, as soon as they sell a penny stock, it will rise even further and they’ll be wondering why they sold so early.
The Sitters are the heavily emotionally involved in their penny stocks. They are gamblers at heart and just do not want to let go of a losing position because “it could bounce back any day now”. When they do let go of their Penny Stocks - there is virtually nothing left. The sitters like to sit on a losing position. They like buying but dislike selling.
Do you want to be a Runner or a Sitter? Well, I hope you are neither. You want to be a winner. A winner will separate their emotions from their investment thinking and will also research when buying and also when selling. They will buy and they are not afraid of selling.
There is great deal of profit to be made from trading in Penny Stocks. But you have to know not only what to buy but also how long to keep it and when the best time to sell. The answer, as with most things in the world of finance, is good information and research. But that doesn’t end when you buy. Find out why your penny stocks are rising and this will put you in a much better position to know when to sell.
Effects of deductions Vs Cost of Distribution
Effects of deductions Vs Cost of Distribution
When an insurance agent try to sell you a policy, he/she will have to show you the benefit illustration(BI). Both effect of deductions and cost of distribution figures should and must be found and accurately depicted in the BI.
Most agents do not wish to talk about effects of deductions as it will always paint a very bleak picture about the real cost of the insurance policy. Most agents prefer to illustrate about cost of distribution when questioned by their potential clients.
Cost of distribution covers:
- the total commission paid out for the policy to the agent and his agency for the next 5 years(depending on commission structure)
- the underwriting and administative fees to underwrite and prepare the policy
Effects of deductions covers:
- cost of distribution(as above)
- mortality charges and generally charges for your insurance coverage
- sales charge for ILP funds(for ILP only)
- annual management fees for ILP funds(For ILP only)
- any other fees payable on annual or monthly basis (For ILP only)
- also take into account the opportunity cost of the funds you could have grown if you leave it in an investment with the same growth minus the cost
You should now be able to realise that effect of deductions is an extremely important factor to look at when you are choosing between Investmet Linked Policies(ILP).
Some are against the use of effects of deductions as it also takes into account the opportunity cost of the fees paid and year-on-year appreciation. Some financial consultants are of the views that it makes the figures seems inflated.
My viewof the matter is that what you save on should be included as it will help you accumulate wealth. That is essentially what time value of money is about.
That being said, I would not advise comparing ILP with traditional policies as ILP will look unfairly expensive.
There is extra annual management fees and sales charge from the underlying funds but at the same time, there is much more upside potential in comparision. In deciding between a traditional and an ILP, one should not use effects of deductions or cost of distribution but instead look at the product features.
In short:
- If you are only looking at investment, go into shares directly or Unit Trusts if you do not have much funds.Senseless to go into ILP and let insurers earn the insurance coverage and be serviced by agent who are better in insurance than investment.
However, if I am buying an insurance for my retirement and protection, I would choose an ILP over a traditional plan.
- Flexibility to withdraw from cash value if need to
- If we look at a time frame of 20 years for any period, the stock market will definitely perform better than 3-4% of a traditional policy.
So personally, I would
-use term insurance to cover my protection needs until I am 65 or when my dependents become financially independent
- ILP for disciplined savings and to grow money for my retirement needs more than 20 years later. For the last 5-10 years, I will switch to less aggressive funds and at least 50% in bonds and fixed income.
A final word of caution: Some insurers charge zero sales charge but significantly higher anuual management fees than market to distract and confuse consumers. However if you are looking at effects of deductions, all are taken into consideration and you can compare costs effectively and accurately
When an insurance agent try to sell you a policy, he/she will have to show you the benefit illustration(BI). Both effect of deductions and cost of distribution figures should and must be found and accurately depicted in the BI.
Most agents do not wish to talk about effects of deductions as it will always paint a very bleak picture about the real cost of the insurance policy. Most agents prefer to illustrate about cost of distribution when questioned by their potential clients.
Cost of distribution covers:
- the total commission paid out for the policy to the agent and his agency for the next 5 years(depending on commission structure)
- the underwriting and administative fees to underwrite and prepare the policy
Effects of deductions covers:
- cost of distribution(as above)
- mortality charges and generally charges for your insurance coverage
- sales charge for ILP funds(for ILP only)
- annual management fees for ILP funds(For ILP only)
- any other fees payable on annual or monthly basis (For ILP only)
- also take into account the opportunity cost of the funds you could have grown if you leave it in an investment with the same growth minus the cost
You should now be able to realise that effect of deductions is an extremely important factor to look at when you are choosing between Investmet Linked Policies(ILP).
Some are against the use of effects of deductions as it also takes into account the opportunity cost of the fees paid and year-on-year appreciation. Some financial consultants are of the views that it makes the figures seems inflated.
My viewof the matter is that what you save on should be included as it will help you accumulate wealth. That is essentially what time value of money is about.
That being said, I would not advise comparing ILP with traditional policies as ILP will look unfairly expensive.
There is extra annual management fees and sales charge from the underlying funds but at the same time, there is much more upside potential in comparision. In deciding between a traditional and an ILP, one should not use effects of deductions or cost of distribution but instead look at the product features.
In short:
- If you are only looking at investment, go into shares directly or Unit Trusts if you do not have much funds.Senseless to go into ILP and let insurers earn the insurance coverage and be serviced by agent who are better in insurance than investment.
However, if I am buying an insurance for my retirement and protection, I would choose an ILP over a traditional plan.
- Flexibility to withdraw from cash value if need to
- If we look at a time frame of 20 years for any period, the stock market will definitely perform better than 3-4% of a traditional policy.
So personally, I would
-use term insurance to cover my protection needs until I am 65 or when my dependents become financially independent
- ILP for disciplined savings and to grow money for my retirement needs more than 20 years later. For the last 5-10 years, I will switch to less aggressive funds and at least 50% in bonds and fixed income.
A final word of caution: Some insurers charge zero sales charge but significantly higher anuual management fees than market to distract and confuse consumers. However if you are looking at effects of deductions, all are taken into consideration and you can compare costs effectively and accurately
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