Invest in stuff we understand.

Avoid investing in stuff we can't understand.

Try to understand the business before plonking down any money in it.

"Never invest in a business you can't understand."    
- Warren Buffett.

Don't buy just because someone else is buying.

Related posts:
1. How to be "One Up On Wall Street?"
2. Journey to financial freedom needs preparation.

Get a new HEPA filter and breathe cleaner air while in bed.

I blogged about how I have a Sharp air purifier in my room even before the very bad haze experienced last year. What makes an air purifier works is really the HEPA filter that is inside.

"High-efficiency particulate air or HEPA is a type of air filter. HEPA filters are designed to target much smaller pollutants and particles." (Source: Wikipedia)

A HEPA filter.

Those who have a HEPA filter air purifier will know that the HEPA filter comes wrapped in a plastic bag and has to be installed in the machine. Once exposed to the environment, the filter has a lifespan of 2 years. It says so in the manual.

However, I have people tell me that they don't ever change the filter because the machine still works. Well, the machine could be working but the filter is probably degraded so badly that it no longer works to filter out harmful particles. In fact, it could be paying out harmful particles if it is badly degraded.

Anyway, if you own a HEPA filter air purifier and you have not changed the filter in 2 years or more, you might want to get it changed. Of course, you would have to clean the inside of the machine before installing the new filter too.

If you are still not convinced that the filter has to be changed, I changed mine today and here are the photos:

Old HEPA filter.

New HEPA filter.

The filters used to be available in Courts, Best Denki or Harvey Norman but they no longer stock them. I had to go to Sharp's Authorised Service Centre at Alexandra to get the filter. Not very convenient but it is worth the trouble to have clean air in my bedroom while I sleep:

Oh, it is cheaper to get a new HEPA filter than to buy a new air purifier, in case you are wondering. It costs just a bit more than $70 for the model of air purifier that I have.

This is not an advertorial.

This is just AK being kaypoh again.

Related post:
Protect ourselves from the haze while in bed.

Getting covered for critical illnesses.

The following is an email from a regular reader, Tree:


Hi AK,

Let me talk to myself a bit too. :)

To start with, I think it is important for readers to understand what CI coverage is for... it is actually term insurance coverage for the 30 illness, which are likely to lead to either death or TPD of some form.

A lot of people have signed up for CI coverage only to find out years later that they are not covered when they contract one of the 30 critical illnesses (mainly due to the clause, for example cancer, only end-stage [stage 4] is eligible for claim). That is where early CI coverage came in. Even then, the requirement for early CI is still quite stringent.

Understand that the coverage is very very narrowly defined within the illnesses (read: very very seriously ill).

It is thus very very important all readers, for this insurance, to go over the details of the coverage so that you do not become disillusioned, furious, shocked, dismayed, disappointed, upset etc. with the actual coverage.

So CI coverage, like term insurance, is for your family. It is to help your family cope with the bills caused by the illness if it occurs, but only the very seriously ill version.

Since you have a family and you are bread winner (I assume), you ought to get the CI coverage for your family if your family cannot cope with the bills if you *choy choy choy*.

If your family can cope with ease, it is optional.

Same reasoning with early CI.

Please note that with the coming implementation of Medishield life, there will be better coverage overall for hospitalisation and as such, the need for CI coverage decreases.

Related post: SAF Group Insurance and CI coverage.

Singapura Finance: Electronic application through ATMs.

I have participated in quite a few rights issues before and the way I do it has always been to visit a POSB or DBS ATM. However, we must not take for granted that this is always possible.

I went through the online document on Singapura Finance's rights issue and found that they will only accept electronic applications through the ATMs belonging to UOB or OCBC.

This is terribly inconvenient for me since the only bank I still keep an ATM card for is POSB. This card can be used at ATMs belonging to DBS too, of course. Combined, they have the biggest network of ATMs in Singapore. There is no reason for me to hold ATM cards belonging to UOB or OCBC. Well, not until now.

I will have to pay a visit to UOB to apply for an ATM card which would probably see only a one time usage. What a bother.

So, for anyone who is a Singapura Finance shareholder, in case you do not already know, please take note of this. Don't go to a DBS or POSB ATM on the last day for acceptance (27 November) only to be surprised.

Announcement:
RIGHTS ISSUE OF 79,342,945 NEW ORDINARY SHARES

Related post:
Singapura Finance: 1 for 1 rights issue.