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Investing for income has been very rewarding for me and it has helped me tremendously in my quest to achieve financial freedom.
Some of my investments have been with me for years and in some instances I even "forget" that I have them.
I received a little reminder recently in the form of a letter to thank me for investing in Income. I rather enjoy the pun.
I pay NTUC Income regularly for a couple of insurance policies. NTUC Income make some money from me but because I am a shareholder, I get a share of their earnings.
It creates a feeling that the insurance coverage I receive from NTUC Income is "free". Nice.
Wait a minute. Didn't I say that my H&S insurance is free from the government before? Alamak, I am confusing myself.
Anyway, jokes aside, it takes time to create an abundance of passive income and it doesn't always have to be through investment in equities. Bonds and bond-like instruments could help us meet some of our expenses in life too.
That is what passive income is for at the most basic level, to help pay some of our bills.
Remember, having passive income will help to reduce our reliance on earned income. It is the best form of insurance we can have.
Of course, all in good time.
Updated on 31 May 2016:
Another reminder arrived in the mail today:
Q: Can non-policyholders apply for the shares?
A:
No, non-policyholders cannot apply for the shares. Only life policyholders of NTUC Income are eligible to subscribe to Income shares. This is a benefit given to them to enjoy attractive returns on a long term investment.
Q: How can policyholders subscribe to Income shares?
A:
Applications for Income shares have been closed since Dec 2004.
We are currently maintaining a waiting list for life policyholders who wish to subscribe to Income shares. We offer the shares which are redeemed by existing shareholders to the persons on the waitlist on a first come first served basis.
Life policyholders who are keen to be on the waiting list may send an email to ms@income.com.sg with their full name and NRIC number. We will contact the persons on the wait list when we are able to process their applications.
Source: NTUC Income FAQs
http://www.income.com.sg/NTUCIncome/CMSTemplates/PrintFaqs.aspx?pId=7099
Related posts:
1. How to get free medical insurance in Singapore?
2. Investing for income: An important element.
3. Building an income portfolio is like building a house.
4. Best insurance to have in life.
5. FCL's 7 year 3.65% bond: Who should buy?
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21 comments:
Hello AK,
I agree with your statements that the passive income we create is to essentially help to pay some of our bills. If not why would a constant stream of passive income receive so much love right? ;)
On a separate note, how did you manage to receive free H&S insurance from the government? Never heard of it, care to enlighten? :)
Hi LOL,
Passive income is very comforting and, I would say, necessary. :)
You want to get free H&S too? Please see related post number 1. ;)
Can we actively buy NTUC income shares? I thot they allot to NTUC membership but only in smal quantities..
Andrew
Hi Andrew,
I think you might have confused NTUC Fairprice shares with NTUC Income shares. I have both. ;p
If you are interested in NTUC Income shares, you will have to join a very long queue now, I was told. Only if existing shareholders sell, then, there is a chance to buy. Each shareholder is allowed a maximum investment of $50,000, if I remember correctly.
Ah, I see, indeed. Didn't know NTUC Income shares are "buyable", thanks AK.
Hi Wee Ee,
Unfortunately, no. These shares are not publicly traded.
Hi AK,
May I know how much the income shares are worth? I got a letter from UOB and it states that I have NTUC Income shares under (IN-Income). There is no valuation to them and it just states that the total cost is 36k. I really don't quite get what 'cost' is.
Must I proceed to the bank/CPF to find out its valuation? I have tried googling but have not found an answer.
Thank you and sorry for the inconvenience.
Ho SC,
These are co-op shares and they are like fixed deposits. You put in $36K and if you should terminate, you get back $36K. There is no capital gain or loss.
Celine Leow:
Hello, how do you become a Fairprice shareholder without becoming a union member? Thanks!
AK:
I got it when I bought an NTUC Income insurance policy. I am also an NTUC Income shareholder. :p
NTUC Income to convert itself from an insurance co-operative to a corporate entity.
https://www.income.com.sg/corporatisation/faq
Shares to be re-rated from $10 to $39.wow.
Hi John,
I am not ever going to sell my shares.
So, just paper gain. :)
I have some shares in this as well, shares getting re-rated in the AGM was stated to be in the range of $22-54
Hi FF,
Very nice paper gain. :)
Are u planning to sell some shares?
Hi FF,
Not unless I need the money. ;)
Just want to check if you have attended the AGM this year and can share what's the update on this, not able to find why they sent a cheque to me and it's for capital reduction, which is quite scary
Hi FF,
Capital reduction isn't a bad thing.
It is just the company returning excess capital to shareholders. :)
But they are not paying out any dividends this year, is that a cause for concern?
How much do u plan to sell them for?
Hi FF,
Really? I didn't know they are not paying dividends this year.
I am not all that concerned if it just for a year.
No plan to sell. :)
Hi FF,
I did some detective work.
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Why is Income Insurance not declaring and paying dividend for 2022, the first year that it corporatised?
The decision on whether dividends will be paid, and if so, the amount of such dividends, would largely depend on the business performance of the insurance business and whether there are sufficient distributable profits and is independent of the corporatisation exercise.
The 2022 business performance comprised the performance of NTUC Income Co-operative Limited, which operated from 1 January to 31 August 2022 and Income Insurance Limited, which operated from 1 September to 31 December 2022.
For 2022, due to investment market volatilities that adversely impacted the industry at large, Income Insurance and NTUC Income both recorded unaudited net losses before tax and levy, mainly attributed to unrealised market fair value losses in the investment portfolio.
We prefer not to provide the specific unaudited financial no. as the company’s financial period has not closed.
As companies and co-operatives in Singapore can only pay dividends out of profits or net surplus respectively, Income Insurance and NTUC Income have not declared and will not be declaring any dividend for 2022.
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What is the impact of capital reduction on Income Insurance’s capital adequacy or solvency ratio?
The one-off capital reduction is only possible because of the company’s strong capital position.
The company does not expect the one-off capital draw down to have any material impact on its capital adequacy or solvency position which remains well above the minimum regulatory requirements post capital reduction.
https://www.income.com.sg/corporatisation
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