One of the well known, unguarded secrets is the usage of Rule of 72.

The ‘Rule of 72′ is a simplified way to determine how long your investment will take to DOUBLE, given a fixed annual rate of interest.

Example if you have $10,000 now, given an investment return of 10%/year, how long will it takes your money to turn $20,000?

@20%/year, how long will it takes your money to to turn $20,000?

The formula is simple. Divide 72 by the annual rate of return (example 10 or 20), you can get an estimate of how many years it will take for your initial investment to DOUBLE.

So…..Investment annual return of 10%, it will take about 7.2 years for your money to DOUBLE….

Investment annual return of 20%, it will take about 3.6 years for your money to DOUBLE….

From the table, you can see, the higher your rate of return, the faster, your money will DOUBLE! 

If you will like to know of instruments that can help your money to double, do not hesitate to call me. Thanks!

My other related posts that may interest you:

• NTUC Income Ideal Plan: Just Some Questions And Answers
• Investment That Can Give ROI of More Than 1000%
• Some Questions & Answers On NTUC Income Flexi-Cash

Some of you, may have a manageable 3 or 4 policies. While some, have more than 10. My question to you right now is,”Do you know EXACTLY what you are having?”

Do you know, when you can claim and when you cant from your insurance policies?

Do you know, whether if your critical illness coverage is enough and what is the shortfall?

Do you know, how much you need for your retirement, child’s education and the shortfall/excess that you have?

…or simply put across, do you know, what is the PURPOSE of you getting the policies that you currently have???

The only solution to these, is having YEARLY FINANCIAL REVIEWS.

In a span of 2 weeks, I met 2 clients with tragic stories…

1)  Father In Law Cannot Claim Hospitalisation Insurance plan

I did a financial review for my client just now.  She also brought her father’s in law policy from a different company, for my interpretation.

She asked me, “My father in law going for heart by pass surgery next week. I check with the claim’s department of X company…They say cannot claim…Can you interpret the policy document for me?”

I interpret for her, realising while the policy owner of the hospitalisation plan is her father in law, the insured is her MOTHER IN LAW… Her father in law does not have any hospitalisation coverage.

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2) Client and his family think he got a death coverage of $300,000

Last week, I met my prospect at his home and he get hospitalisation plans for himself and his family.

I enquired him on his coverage, in case, death, total and permanent disability or critical illness were to strike. How much will his wife, 2 sons and 1 daughter get?

He looked at me confidently and said, “No worries.  Anything happen to me, my family will get $300,000…”

I felt relieved, because, as he is earning a takehome pay of $2,500/mth, $300,000 will be adequate. Nevertheless, I asked for all his policy documents for me to help him “refresh” on the existing plans he has.

To my surprise, I realised he only have $30,000 of coverage in case of death. His family will only get $300,000 if he DIED DUE TO ACCIDENT…

You can imagine, the look at his face…For many years, he has been telling his wife, in case of death, “you will get $300,000″….

I am slowing calling my clients, one by one now, to do a policy consolidation and financial review for them….All my clients’ are also entitled to Berita Harian financial columnist, Abang Abu’s financial test worth $19.90…. I will collate it during the review.

If you will like me to help you in reviewing your existing policies (from any insurance companies) and at the same time get Abang Abu’s financial test worth $19.90 for FREE, do call me up at 96520134.

Call me up at 96520134. Let me help you to help yourself…Insya’allah…

My other related posts that may interest you:

• Why You Must Get Your Hospitalisation Insurance Plan COMPLETE With The Rider….
• How Exactly Does Hospitalisation Insurance Works?
• Top 5 Reasons Why You Must Have Insurance

I went to Abang Abu’s (Founder and CEO of Now Asia) office just now, to get business tips and see on how we can work things out together in the upcoming future.

If you are my client, I have GOOD NEWS for you.

I want, you to check your letter-box in 3 days time. There is something specially prepared for you. It is worth $20, but because Abang Abu is my good friend, he allows me to give to you, ONLY MY CLIENTS for FREE….

So….If you are my clients, check your letter box in 3 days time….

My other related posts that may interest you:

• Why Yearly Financial Review Is Very Important???
• Technical Recession Is Here? Should We Slow Down?
• Guys, Do Post Some Comments In My Blog…

My other related posts that may interest you:

• Technical Recession Is Here? Should We Slow Down?
• HelmiHakim.com Logo Is Finally Out!
• Strategies To Get Yourself Out Of Debt

This is my first time, I pay tax to the government…. and due to my hectic schedule (going for seminars, doing roadshows and meeting clients), I “forget” to make the payment.

They send me a letter, saying that I will be fined extra $28.10. However, because this is the first time, I am paying tax, they will waive it for me if I make the payment  by 9 July 2009.

I did it on that very day, using AXS machine. (Victory Sign)

Btw, I’ve been brainstorming ideas, ways and methodologies where YOU CAN REDUCE YOUR TAX PAYABLE OR PAY 0% TAX IN SINGAPORE LEGALLY!!! (evil but innocent smile..hehe)

Note: The strategies that I am going to share with you is purely legal and ethical.

Strategy #1) If you are employee,sole proprietor or in partnership, you just need to ensure that your chargeable income (income that is liable for tax) is less than $20,000, and you DONT HAVE to pay any taxes.

Chargeable Income = Total Income – Tax Allowable Expenses – Tax Reliefs

In Singapore, an average Singaporean brings home, disposable income (money that go inside your pocket) of about $5,000/mth or $60,000/year.

So, the first method is quite difficult to apply. Yet , YOU CAN ALWAYS REDUCE YOUR CHARGEABLE INCOME, by documenting  and declaring your tax allowable expenses.

Tax allowable expenses are expenses incurred in order to GENERATE income.

Example, if you are a financial consultant like me. Document your roadshow costs, cost for printing namecards, cost for knowledge upgrading like going for seminars and other expenses related to helping you GENERATE your income.

When your chargeable income is lower, you pay lower tax, or no tax if your chargeable income is less than $20,000.

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Strategy #2) Claim as much “reliefs” as you can.

The first relief that every working Singaporean has is Earned Income Relief.

Earned Income Relief reduces the amount of Chargable Income, thus reducing the amount to be taxed.

Below 55 years of age $1,000, 55 to 59 years of age $3,000, 60 years of age onwards $4,000

You can visit http://www.iras.gov.sg to check what other reliefs applicable to you.

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Strategy #3) Contributions to CPF helps you to save tax

When you contribute your CPF, you can also reduce your tax.

Right now, you are required to contribute 20% of your salary to CPF and your employer pay 14.5%.

You can only get the money when you reached age of 55.

Example if, you earn $2000/mth.

$400 of your pay is going to CPF. You take home only $1600. You only need to pay tax for your take home pay of $1600. Money that goes to CPF is not taxable.

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Strategy #4) Supplementary Retirement Scheme (SRS)

This is my favourite…

Supplementary Retirement Scheme is a savings plan that you can sign up when you reach 21 years old.

You can contribute up to 15% of your income. You can use this money to offset your total income, thus reducing your chargeable income.

(Btw, if you already have an SRS account, I can help you get BETTER returns, then leaving it there. Call me for appt! ).

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Strategy #5) Capital Allowances

The assets you buy for your business operations can be used to reduce your tax.

The assets you buy, depreciates in value every single year. Depreciation is an expense and thus tax deductible. The $$$ that you can use to write off differs than accounting term.

Accounting depreciation, takes into account the life of the assets you buy till it become scrap or ready to be disposed.

Depreciation or capital allowance for tax purpose is STANDARDISED!

Example: Computers, hardwares and printers, take 1 year to write off
Plant and Machinery, take 3 years to write off.
Commercial vehicles, take 6 years to write off

Example, for me, I buy laptop, printers etc2 for my business operations..If my laptop and printer cost, example $3000, I can just classify $3000 as my capital allowance and deduct it from my total income, thus reducing my chargeable income.

There are really many ways (like donations to approved charities, paying insurance premium etc2), that you can use LEGALLY, to reduce your tax. It requires planning and continual education.

Hope the above information helps!!!

My other related posts that may interest you:

• 8 Financial Ratios That You Can Use If You Have Learnt How To Create Your Own Personal Cashflow and NetWorth Statement
• Passive Income: Weapon Of The Rich
• Step By Step, Practical Strategies You Can Use Immediately To Be Financially Rich!