A New Stock Purchase - Ascott Residence Trust

Just a few days ago, I made a new stock purchase into Ascott Residence Trust at a price of $1.065. Adding this stock into my portfolio, I would have 16 stocks now. Previously I bought on Saizen REIT which was already being acquired and most of the cash has been given out. I wrote that I was seeking to find another company which can potentially replace the lost income from Saizen REIT. Ascott REIT was what I found.

About Ascott Residence Trust - Profits and Assets

Ascott Residence Trust was established with the objective of investing primarily in real estate and real estate-related assets which are income-producing and which are used or predominantly used, as serviced residences, rental housing properties and other hospitality assets. Saizen REIT was a company which has rental properties while Ascott REIT has serviced residences. Although not really the same, there are some similarities shared too. I believe this is also a stable income producing asset which is my objective for investing in it.

Unlike Saizen which has all its properties in Japan, Ascott REIT has its properties in 14 different countries. To me, this is quite a diversified portfolio. It has a total of 89 properties currently. Most of its gross profit is generated from Japan at $34.2 Million followed by France at $32.4 Million and UK at $26.7 Million. In terms of assets in its portfolio, China is the largest at 17% followed by Japan at 15.8% and Singapore at 13.3%.

From the information on its gross profit and total assets breakdown, I would be able to see how its profit or asset value would be affected. I like the fact that its profit from Japan contributes to a big part of its portfolio as rental yield in Japan is certainly going up as in my analysis for Saizen. The risks is we have seen that the QE being done in Japan has not worked out as well as what we thought it would be but the government relentless pursuit to revive back inflation in its economy is certainly sending asset and rental prices up. This is a good thing for Ascott. Another risk is 17% of its total assets are from China. If China would to have a property market correction, it would definitely affect the asset value of its portfolio when revaluation comes.

In its latest financial result, portfolio value was up by 15%  mainly due to properties acquired in 2H 2015 as well as higher valuation of properties in Japan, France and United Kingdom. However, portfolio value from properties in Australia went down. The NAV increased from $1.37 to $1.41 currently. The latest share price is trading at around $1.06. This represents a discount of 24.8% to its NAV. Distribution per unit (DPU) was 7.99 cents in 2015. Taking the current stock price of $1.06, this represents a dividend yield of about 7.5% which I think is quite attractive.


Stability of Income?

If we're investing for income, we have to ask ourselves will the DPU be stable? What will affect the profit and thus the DPU given out? Occupancy rates, currency movements and rental rates are some of the factors which will affect their DPU.

For occupancy rates, Ascott REIT focuses on long stay segments to provide stability in income. 23% of its properties are rented out for more than 12 months contract with the average length of stay about 4 months. In addition, 46% of the Group’s gross profit for FY 2015 is contributed by master leases and management contracts with minimum guaranteed income.

For currency movement,  Ascott REIT entered into foreign currency forward contracts to hedge distribution income derived in EUR, GBP and JPY. On a portfolio basis, 40% of FY 2015 foreign currency distribution income had been hedged. This is a good strategy as most of its profits comes from Japan, UK and France. All 3 different currencies from these countries are hedged. However, DPU will still be affected such as the AUD and MYR declining substantially against the SGD in FY 2015.


Debt Profile & Valuations

On its debt profile, gearing is at 39.3% with 79% of its loans on fixed rates as at 31 December 2015. Total debt is at $1815 Million while cash and cash equivalents are at 220.5 Million. 14% of its loans will mature in 2016 where they will refinance it into fixed rates loans. Another 10% will mature in 2017 and 12% in 2018. Weighted Average Debt to Maturity is 4.6 Years.

To me, I believe the DPU should remain stable at least for the next few years. With most of its profits coming from Japan where I believe rental rates will continue to be stable and even pick up, this will be good for the REIT as a whole. Occupancy for rental housing in Japan is 98% in 4Q 2015. Rental housing in Japan is in demand due to the high cost of owning a home in Japan. 

At the current valuation, this represents a discount to NAV where dividend yield is fairly attractive at 7.5%. I am primarily invested in this for the yield for income. Investing into it now doesn't mean the price would not go lower. It only means I think the company is at a good value now and if it were to go down further, I will definitely accumulate more.

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The Silent Killer Of Successful Investments

When I first started investing, I thought about how good it would turn out, how investing can be the answer to a better life. I went for seminars where the speakers promised good returns if you learn it correctly. With much hope and expectations of a good outcome, I started investing.

10%, 20% returns were easy at first. Maybe it was beginner's luck, I made over $1K in a short period of 3 months with just only $5K. That was 20% return on investment. If you ask me what was the factor behind the success that time, I would have told you it was because I expected it. However, I was totally wrong. The reason why many people fail in their investments is not just because of a lack of knowledge or luck, it is having the wrong expectations.


Expectations

Fast forward to one year later, I lost everything and more. In fact, I lost half of my savings which I painstakingly saved through my allowances during my school days, the many part time jobs I worked while still studying and the little NS allowance I got. The savings were built up a dollar at a time and I saved so hard by working part time. All the savings for 5 years were wiped out in just a few months. I had many sleepless nights due to insomnia, I didn't know what to do and was totally lost that time.

All these taught me to have a more realistic expectation for investments. In fact, not only just investments but it taught and humbled me on the expectations of life. Sometimes, we have so much expectations that it makes us unhappy when those expectations go unmet, it strains relationships too. For investing, it caused me to lose the hard earned money I saved up. This was a lesson that will not be forgotten.


There is no easy money

If you're thinking investing will be your easy way out in life to give you more money, you may have the wrong expectations. There are people who believe that they can double or triple their money easily through the stock market or think that trading is an easy way to make money so you don't have to work. All these are easy money thinking. Be careful of this as it may land you into trouble with the stock market.

Wanting to make more money from the stock market will indirectly cause you to take on more risk. In the pursuit for more money, people get into speculation to pick the next hot stock. "This stock may be the next big thing and will go up 10 times!!" If this is what you heard, its speculation. Yes it may go up 10 times but what if it went down and worse still collapse instead? We may lose a lot of our money or even everything.


Reality isn't all that bad

Even though there are no easy money, reality isn't all that bad either. Growing our wealth through investing is still important. As we all know, the purpose of investing is not only to preserve wealth but to build up our wealth for retirement. If we do not invest, our wealth will deplete over the years due to inflation.

I have not been good at Maths since primary school. I was careless with numbers and always make silly mistakes during my mathematics exams and tests. To grow our wealth, we need to have plans and see it happen in the future. Fortunately, even for people like me who are not good with numbers, there is an easy way to see how our money will grow in the future.

The rule of 72 is the easiest way to see how much our money would grow. At 7.2% investment return annually, our money would double every 10 years. How you get this number is take 72 divided by 7.2 and you get 10 years. If we have 10% annual investment return, our money would double every 7.2 years. You can just take 72 divided by the annual investment return and you will know how long your money will take to double.

With the rule of 72, I can plan for my future easier. If I want to double my money 3 times in 30 years, I would have to achieve 7.2% ROI every year. $200,000 would become $800,000 30 years from now using this calculation. This is assuming we have $200,000 and stop saving money now and just grow our money through investments.

One lesson from this is the more we save earlier, the faster it is to reach our financial targets later.

This was an example I read before on 2 person, Ben and Arthur.  At age 19, Ben decided to invest $2,000 every year for eight years. He picked investment funds that averaged a 12% interest rate. Then, at age 26, Ben stopped putting money into his investments. So he put a total of $16,000 into his investment funds.

Now Arthur didn't start investing until age 27. Just like Ben, he put $2,000 into his investment funds every year until he turned 65. He got the same 12% interest rate as Ben, but he invested 23 more years than Ben did. So Arthur invested a total of $78,000 over 39 years.

When both Ben and Arthur turned 65, they decided to compare their investment accounts. Who do you think had more? Ben, with his total of $16,000 invested over eight years, or Arthur, who invested $78,000 over 39 years?

The result above shows the stark difference and the power of compounding. Ben just saves earlier at age 19 and stops saving at age 26 but in the end he has more money than Arthur who saves and invest from age 27 to 65. Just that 7 years difference makes a very big difference because of the power of compounding.

Expectations kills successful investments but the reality isn't that bad either. The road to wealth building is easy: save early, invest early and let the power of compounding take effect. There is no shortcut to wealth building. Expecting that investing will make you rich in a short time is a dream but getting back to reality that the effects of compounding has on the long term will create successful investments for us.

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Eight Benefits of Living in a Community Housing

Buying a house is a massive investment any person can make. When purchasing your dream home, you should consider many factors. These can include price, location, size, floor plan, and house type, among others. Gambling with your future is not something you want to try. You have to go for the best housing project available. To save yourself from these conundrums you can opt for community housing. It's unique, unlike the traditional neighborhoods. A Community has areas designed to suit the needs of the residents. The benefits of finding a home in a community include:

You Stand out from the Rest

In the past, architects constructed most homes with the neighborhood concept. But, this has changed in modern times. Current developments are set up with the surrounding area in mind. It means that social amenities such as schools, parks, hospitals, banking, and other facilities are developed around them. Also, restaurants, grocery stores, schools, and entertainment facilities are developed along the community housing. In most cases, any community planning focuses on important details to include all the primary necessities. Most communities are centered on a particular theme such as lakes, tennis facilities, golf, or any other interactive feature. What makes the neighborhood unique is the fact that developers consider everything first before setting it up.

Exceptional Landscaping

Who doesn’t want to live in a community with beautifully trimmed lawns and easily accessible areas? You can reap many benefits by using sites like Property Guru to search for community housing ventures like Desa park city — meticulous landscaping is one of these features. What more the communities provide you with an area to jog, biking, and playgrounds. The pricing is competitive because the communities are all similar in their floor plan.

Don’t Worry About Devaluation 

An exceptional feature of the community housing is that the pricing remains steady. The owners of these houses keep the property in good condition throughout. Your dreams will come true when you settle in the park. The owners use top-notch contractors with years of experience to develop the property so you will get the best talent working on it in the market. Quality construction is beneficial because you don’t have to worry about repairs, you can just maintain the house in its current condition.

Space Brings Creativity 

As expert developers build homes, you will have more space inside and outside. Unlike the traditional neighborhood areas, a community housing will give you ample space for use. You can convert the outside space to be a patio or anything that suits your needs. You will enjoy a wide array of advantages from these homes. The materials used in the construction of the house are top quality, and residents benefit from the convenience of having all the facilities within the area. If you are into arts or any outdoor activity, then community housing is the best option for you.

It's a Proven Model

When investing for your future, you wouldn’t want to gamble your hard-earned cash. Invest in a proven model. AV homes website indicates there is significant growth in community housing. The model has received accolades for being one of the most practical designs. You can live comfortably knowing that the neighborhood is safe. Many have realized the benefits of community housing, and they are buying or renting such properties in large numbers.

You Get Full Value for Your Money

Investing in a home is not something you rush into and make a purchase. When you are looking for a solid housing investment, community housing is the best option. You get full value for your money as you can leverage on different forms of funding. Also, you can use it to borrow against property this allows you to improve your financial position with ease.

Flexibility Factor

Flexibility is the main factor people consider when looking for housing, and community housing will give you the ultimate experience. The housing cost is low, and you can enjoy the freedom of funding through shared equity. This kind of flexibility has made the community model better placed and specialized to address complex housing needs. You can easily fund the housing as Richmond American suggests.

Independent and Responsive 

Community housing is created with the needs of the occupant at hand. Not only will you get a quality house but also a dynamic environment that will suit your needs. The developers put the needs of the occupant in mind when developing the housing and suit your independent lifestyle. You can take a long-term approach to investing in your dream home and customize it to suit your preferences according to Connerton builders.

In conclusion, community housing provides total flexibility, comfort, and adequate space where you can bring your ideas to life. Do not invest in non-proven models, always go for time-tested models when so much money is involved, and it will bring satisfaction to all your housing needs.

Saizen REIT - The Final Closure Of My Biggest Stock Holding

Saizen REIT has been a good investment and this stock is finally coming to a close after it announced that it will be acquired in November last year. I invested in Saizen REIT as early as end 2013. It has been more than 2 years now. Over the years, I added to my position in this REIT and it became my largest stock holding in my portfolio. It is a final closure now and most of the cash will be paid out on 29th March this month.

Since this has been a relatively successful investment, it would be good to understand what are the factors that make it an attractive investment? Let me share the rationale on why I invested it in the first place and what we can learn from this.

1. Macroeconomic Factors in Japan

The first reason why I decided to invest in Saizen REIT was due to the macroeconomic factors in Japan at that time. 3 years back while I was taking my part time degree in Economics, I heard about the QE that Japan was going to embark on. I understand that the QE in US and Europe were roads to easy money which actually brought US out of a recession from the 2007 sub prime mortgage crisis and the EU also averted a major sovereign debt crisis.

In 2013, I wrote this in a blog post:

Japan's real estate prices were rising tremendously from 1986 to 1991. This formed an asset price bubble and the bubble burst in 1991 sending real estate prices down into negative territory. Japanese Yen was appreciating a lot due to the Plaza Accord. This was an agreement to depreciate the US dollar in relation to Japanese Yen and German Deutsche Mark. Both these 2 events lead to the Japanese economy suffering and ended up in deflation. I will leave out the finer details of what happened exactly but i hope you got a rough idea. 

Japan's government has set an inflation target of 2% to reach by 2015. Prior to that, Japan has been in a deflation state for many years. As prices keep dropping, Japanese people defer their buying in the hopes that they can buy it at a cheaper price later. This is completely opposite from our current state in Singapore where people rush to buy properties because they are afraid that prices will keep going up. It's the thought that if i don't buy it now, it's going to get more expensive.

With this inflation target, asset prices in Japan are sure going to go up. With QE, money flow in Japan's economy will be expanded. Interest rates go down, asset prices goes up. This was definitely going to be beneficial for Saizen Reit which owns properties in Japan. 

2. Saizen REIT has stable income from residential properties

Saizen Reit has a portfolio of income producing real estate. These properties are mostly residential properties. As home ownership is low at about 60% in Japan, rental properties are still in strong demand there. Rental prices are set to rise as the Japan's economy recover. mid market rents in the 23 ward area of Tokyo showed an increase of 1.1% from the year 2013. This was very attractive to me as Saizen REIT offers about 6%+ in dividend yield at the price which I bought. 

3. Attractive valuation

Saizen REIT stock price has been low for quite some time. In fact, it didn't really move even though it was trading at a discount to NAV of 23.7%. Gearing level was around 34% which I thought was quite ok. Of course, we can't just look at NAV alone to determine if the stock is attractively valued. Some REITs overvalue their properties which make their NAV seem higher. However, for Saizen REIT, I do know that they value their properties conservatively as there were a few times they manage to sell their properties at above valuation. 

With rising property prices, rental prices and stock trading at a discount to NAV, I believed this was a good investment. 

4. Good risk management 

Interest rates are sensitive for REITs. 88% of its debt are on fixed interest and all its debt is long term in nature. The nearest loan maturity it has is in March 2020. Although Saizen REIT could have benefited if they are on floating interest rates instead as interest rates in Japan were low but that's any issue for now. 

The Japanese Yen was also declining against the SGD which means it could affect the dividend distribution to shareholders in Singapore. I liked they have hedged their currency risks in view of the falling JPY which means dividend yield will be more or less stable moving forward. 

Its time to bid farewell to Saizen REIT from now onwards. Now, I'll have to find another stock which can replace the income I get from Saizen. I have identified another stock which is quite similar to Saizen REIT and am still looking at it. Will blog more about it later on. 

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Related Posts:

1. The Japan story - Croesus retail trust and Saizen Reit
2. Looking to invest in Japan's real estate

3. Saizen REIT - Income from Japanese residential properties?

PPF vs KVP vs Post Office vs Senior citizen Savings

PPF, KVP, Post Office, Senior citizen savings, Sukanya Samriddhi Interest Rate

Interest rate on Public Provident Fund (#PPF) scheme will be cut to 8.1 per cent for the period April 1 to June 30, from 8.7 per cent, at present.

Interest rate on #KVP will be cut to 7.8 per cent from 8.7 per cent, according to a Finance Ministry order.

Interest rate on Post Office savings has been retained at 4 per cent, the same for term deposits of one to five years has been cut.

Five-year National Savings Certificates will earn an interest rate of 8.1 per cent from April 1 as against 8.5 per cent, at present.

Kisan Vikas Patra or #KVP that currently provides for doubling of principal in 100 months (8 years and 4 months) will now be doubled in 110 months (9 years and 2 months) after the interest rate revision.

A five-year Monthly Income Account will fetch 7.8 per cent as opposed to 8.4 per cent now. Girl-child saving scheme, Sukanya Samriddhi Account will see interest rate of 8.6 per cent as against 9.2 per cent.

Senior citizen savings scheme of five-year would earn 8.6 per cent interest compared with 9.3 per cent.

Post Office term deposits of one, two and three years command an interest rate of 8.4 per cent but from April 1, a 1-year time deposit will get 7.1 per cent, 2-year time deposit will earn 7.2 per cent and 3-Year time deposit will attract interest of 7.4 per cent. Five-year time deposit will fetch 7.9 per cent interest in the first quarter as against 8.5 per cent while the same on five-year recurring deposit has been slashed to 7.4 per cent from 8.4 per cent.

My First Investment Into Crowdfunding For SMEs

Just a few days ago, I made my first investment into something which I have been looking closely at for quite some time now. I decided to get into it because I believe it is safe enough and the returns are relatively good at 13.5%.

In just 26 hours, $1 million was actually raised by this particular company. They are going to raise another $1 Million so investors still have a chance to invest in it. What exactly is this investment on?

Here are the details:

Issuer Summary

Date of Listing: March 17, 2016
Amount: S$500,000
Tenor: 12 months
Repayment Type: Callable
Repayment Term: Quarterly
Target Interest Rate: 13.50% p.a.
Purpose: Asset Purchase

About the company: 

The Company is a well-known brand started in early 2002 by a very experienced entrepreneur with over 25 years of experience in the IT industry. It was established with the objective to be a one-stop digital lifestyle store by offering a comprehensive suite of digital lifestyle products and high quality pre- and post-sale services.

Revenue Source: 

The Company generates revenue through a multi-channel point-of-sales strategy using both offline (retail) and online (e-commerce) channels to transact physical merchandise. Their products consist of a wide range of exclusive computing and mobile equipment (such as laptops, tablets, smartphones, accessories, cases, headphones, and stylus) from top IT brands and the Company's private label.

Purpose:

The purpose of this funding is to finance the purchase of inventory as well as for general working capital.

Corporate Guarantor: 

Her parent company (an SGX-listed company) will provide a corporate guarantee for the notes.


This investment is brought to you by Moolahsense. They got the company on board their platform where the company started this funding campaign to raise cash. When we invest in this company, we are actually lending money to the company to expand their business in return for interest.


Risks of this investment:

Many of you might be worried about the risk involved when investing through crowdfunding platforms. While risks are always present in every investment, we can reduce it by doing our homework. The risk of notes/bonds investment is when the company defaults on its payment. Looking at its financials, the company has a operating profit of $330K and cashflow from operations of $5.1 Million in the current financial year. It also has an average cash balance of $1.4 Million. This particular investment is also guaranteed by the parent company which is a SGX listed company.

I am sure the company name is familiar to most people here in Singapore but due to some confidentiality, I will not be able to mention the name of this company in this post. If you are interested to find out about the investment, you will need to sign up for an account with Moolahsense and view the opportunity in their platform. If you already have an account with Moolahsense, you can login to view this opportunity straight away.


WHAT IS A CALLABLE NOTE? 

This particular investment is a callable note. In a Callable note, an issuer has an option to early redeem the note on a quarterly basis. If the note is not early redeemed, the issuer pays a quarterly interest. The principal will be fully repaid on the quarter that the redemption is early called or at the maturity date.

SAMPLE Scenario (only intended for illustration). 

Assume that you invested $10k in a campaign at a final note rate of 13.5% p.a. in a Callable note.

This is a short term investment which I have also participated in. I believe it is a good opportunity with decent returns for the short term.

To invest in this short term note, check out the investment opportunity on their website here.

P.S: There have been comments on concerns regarding the investments. I have gathered the facts as below:

1. For a company which is 100% owned by a Holding company, no Director will provide the Guarantee

2. Investors need to understand, this is Credit Line to the borrower and not an Equity investment where repayments happen base on cash flows generated by operations in the borrower company

3. Corporate Guarantee of a listed company certainly has some meaning. Even today the company has a market capitalization of 16 mil

Some further facts:
1) Grp Equity is 5 mil as per latest SGX filing

2)  Company is making operating profit in FY15

3) For Parent company, majority revenues comes from borrower. As the borrower financial profile has certainly shown improvement over the last FY, dividends shall accrue back to parent company.

4) about RTO being a red flag >>> not so relevant for a 12 month credit investment (vs an equity investment)

Hope this clarifies. While i understand there are still risks involved, I calculated and invested base on the risk i would be willing to take. Readers are advised not to invest more than what they can lose in any investments.

Disclaimer: This article is not to endorse any products or investments or to give any advise on any investment matters. I have written base on my experience and what I have done. Readers are strongly 
advised to do their own due dillengence before investing. 

This article is written in collaboration with Moolahsense. All ideas portrayed are independent by SG Young Investment.

For parents and supervisors

For parents and supervisors
When your son or daughter is learning to drive, they’ll need someone to be their practice supervisor.

The road rules and the way we teach driving skills have probably changed quite a bit since you learned to drive. Here are some tips to help you get started on becoming a great driving practice supervisor.

Who can be a supervisor

To be a practice supervisor you must have a full licence, which you’ve held for at least two years.

It also helps if you:

are patient and good at explaining things
give clear instructions
know the road code
can spend a lot of time with your learner in the car
stay calm under pressure
are willing to support a carefully planned learning programme
You could even book yourself a refresher lesson with an AA instructor to ensure you’re on the right track before you start helping your learner.

A learning programme that works


You, your learner driver and an AA driving instructor will make a great team.

Your instructor will put together a learning programme that works for your learner driver. Each lesson will have clear goals. At the end of each one, your instructor will sit down with you and your learner to review the lesson and explain what you should practise together before next time. You’ll get a proven, personalised programme of learning and practising, learning and practising.

You're welcome to sit in the back seat during your learner's early lessons with the AA.

For most learners, it pays to start out with a couple of lessons a week and plenty of practice in between each one. There’s a lot to learn in the early stages and it’s important to create a good foundation. From there it’s about building experience with a lot of supervised practice in a variety of conditions. Regular instructor lessons through this time will help prevent bad habits creeping in and give you and your learner fresh things to focus on.

Your instructor will let you know when your learner seems ready to pass their test, and a few final practice sessions around the testing area will help ensure success.

AA Ignition: the learn-to-drive special offer

We want to make it easier, safer and more affordable for your learner to become a great driver, so we’re offering three free lessons with an AA driving instructor. Your learner can grab this offer if they’ve had their learner licence for two months or less.

Combining AA Ignition with a couple of extra paid lessons and plenty of practice will help keep your learner safe and confident.

Planning time to practise

Life can be busy and sometimes it’s difficult to find time to practise driving together. It’s a good idea to plan regular practice sessions well in advance, and agree to make them a priority.

Tips

Think about opportunities when your learner driver can practise their driving on a trip you have already planned
Consider who could share the role of supervisor with you, to provide more opportunities for your learner driver to practise
On journeys where you are driving, you could ask your learner to practise describing the hazards they observe and what actions they would take in response
If you sometimes have to work late and that could prevent a planned evening session, let your employer know ahead of time that you’re making a commitment to be a driver supervisor at set times and ask for their support

Creating good practice sessions


Your learner will need to practise new skills and manoeuvres over and over again before they become second nature. They also need to become really good at spotting possible hazards and responding quickly and safely to unexpected hazards. Learning things in the right order, building slowly and mastering each stage before moving on will save a lot of stress for everyone.

Tips

Before you start driving, sit in the stationary car and check your learner has mastered the controls, mirrors and switches.

Find a place where there is no traffic, such as an unused car parking area, and practice moving off, stopping and turning. Then move onto a planned and familiar route with little or no traffic.

Once your learner is controlling the vehicle well in easy road conditions, start to introduce more challenging, complex driving conditions. This will improve their observation, reactions and thinking skills. For example:

keep varying your routes
drive to different places
drive longer distances
drive in different weather conditions
drive at busier times of the day
drive in the day and evening to introduce different lighting conditions
take different passengers with you
practise vehicle manoeuvres
Ask your learner to describe out loud the hazards they observe and what actions they are taking to respond safely.

As a supervisor you should also be driving the car, in your mind, from the passenger seat. Look well ahead and use your experience to coach your learner driver on potential hazards and the correct action to take if you think they have not recognised it.

At the end of each practice session, spend some time reviewing what went well, what didn’t go so well and what to include in the next session. Try and keep your feedback relaxed, maybe at dinner later that day.

Supervised practice checklist


Here’s a handy checklist to help you get the most out of your practice sessions. Feel free to add to it if you wish.

Driving School

Learn to drive the AA way

Learning to drive is a journey with a lot of different skills that take time to master.
When you choose the AA Driving School, we make sure you don’t get stuck: you'll get the expert instruction, helpful guidance and accurate information you need.
                                        
                                         

THE JOURNEY

                    Use our roadmap to see how we can help you

                                                   

Where do I start?
If you’re just starting the journey, it’s good to understand the whole process so you can make smart choices – like practising for your theory test or signing up for a driving lesson.

Getting your learner licence
Facts, tips, practise tests and other useful stuff to help you get your learner licence. You can access useful resources and find out about any AA special offers.

Getting your restricted licence
Information, ideas and good advice to smooth the way to your restricted licence, including how an AA Defensive Driving Course can make you a safer driver and get you closer to your final test .

Getting your full licence
A complete guide to achieving your full licence, including what you can and can’t do on a restricted licence and preparing for your test.

For experienced drivers
Learning to drive doesn’t stop with your full licence. You can add to your on-road skills, get another type of licence or even make driving your profession.

Car theft

Car theft

If you've ever suffered the misfortune of having your car stolen or broken into, you'll be all too aware that car theft is a big problem in New Zealand.
In 2006 more than 36,000 vehicles were stolen, mainly by joy riders or professional car thieves who target desirable cars to modify and sell, or dismantle for parts. It's not only the owners of stolen cars that suffer. All motorists end up paying higher insurance premiums to cover the cost. Valuable Police resources also get tied up tracking down thieves.

Encouragingly, car manufacturers and the government are now doing more to tackle the problem. Of special interest to motorists are two security measures that are becoming increasingly common - whole of vehicle marking (sometimes called "microdots") and vehicle immobilisers.

Whole of Vehicle Marking (WOVM) 

WOVM involves spraying tiny microdots containing an identification number throughout the vehicle. This reduces opportunities for car thieves to steal vehicles and conceal their true identity. WOVM also limits the market for stolen car parts.

Some manufacturers already apply microdots and owners of other car makes can voluntarily have the technique applied by security specialists. Legislation making WOVM mandatory in 2009 was repealed following industry concerns that the costs would be too high.

Vehicle immobilisers

Engine immobilisers make it extremely difficult to hotwire or start a car without the correct key, which contains an electronic code. Immobilisers reduce opportunistic car theft. The government is considering introducing legislation making it compulsory for immobilisers to be fitted to all new or late-model used imports before they enter the fleet.

Owners of older vehicles and cars imported before the regulations come into effect can voluntarily have immobilisers fitted by automotive electricians.

AA speaking up for motorists 

Conditional support for vehicle marking and immobilisers

The AA supports the use of whole of vehicle marking and vehicle immobilisers, which have the potential to reduce the need for many of the security devices motorists currently use.

We support compulsory application of anti-theft technologies to vehicles at import if the costs to motorists are reasonable. If the costs are low, reduced insurance premiums for motorists will result in only a minimal overall cost increase. However, if the cost to fit these security measures is too high, we prefer a targeted approach where only high-risk cars (as identified by the insurance industry) have these technologies applied.

We prefer it to remain optional for owners of vehicles that are already registered to apply microdots or install an immobiliser, as there is no need for compulsory retro-fitting.

What AA Members are saying

There is general support among AA Members for introducing compulsory immobilisers (65%) and whole of vehicle marking (73%) on new and used imports, with little opposition (17% and 7%, respectively).

However, the level of support from AA Members is cost sensitive. The survey was based on a government estimated cost of $350 for an immobiliser and $100 for microdots in a March 2005 Survey.

What to do if you're in a car accident

What to do if you're in a car accident

If you happen to be in an accident your insurer is there to help you, no matter who’s at fault.

It’s important to remember that you should not admit liability or try to settle a claim. This limits how your insurance company can sort things out with anyone else involved – and it may cancel out your claim.

If you’re pressed, say: “I need to talk with my insurance company. They’ll know what to do.”

If you're in an accident

Stop and give assistance. If anyone is injured, dial 111 for ambulance and police assistance.

Exchange details with other drivers, owners or witnesses such as:

Names
Addresses
Phone numbers
Car registration
Insurance company details
If an uninsured driver hits your car, it's important that you also identify:

The driver (by licence number if possible)
The car and licence number
Witnesses and their contact details
The Police Officer contact details (if applicable)

Third Party car insurance

Third Party car insurance

AA Insurance third party car insurance May 2013
Third Party insurance is not about protecting your car. It's about protecting yourself in case you accidently damage someone else's car or property.

You can also choose to extend your cover to Third Party, Fire & Theft to protect your own vehicle if it's stolen or damaged through fire or theft.

Key benefits
Legal liability cover

If you are responsible for damage to someone else's vehicle or property we'll protect you against any claim they may make, up to $20 million

Uninsured driver protection

If there's an accident and you weren't at fault but you can identify who was and they're uninsured, we'll pay up to $4,000 to repair your car.

Agreed Value

If you have a Third Party, Fire & Theft policy, together we work out what your vehicle is worth so you know exactly what we'll pay if it's written off in a fire or stolen - no haggling, no hassles.

Car & vehicle insurance

Car & vehicle insurance
At AA Insurance, we understand what motorists need.

That’s why we offer three different levels of car insurance to choose from, so you can select the one that best fits your needs - and your pocket. If you’re an AA Member, you’ll receive AA Member Discounts on selected policies based on how long you’ve been a Member.

Plus, purchase more than one policy with us and you’ll automatically qualify for our Multi Policy Discount.

We’re also proud to be the current winner of Canstar Blue’s most satisfied customer awards for both car insurance, and home and contents insurance.

Life Insurance.

The goal of life insurance is to provide a measure of financial security for your family after you die. So, before purchasing a life insurance policy, you should consider your financial situation and the standard of living you want to maintain for your dependents or survivors.

Life insurance provides protection against the loss of income that would result if the insured passed away. The named beneficiary receives the proceeds and is thereby safeguarded from the financial impact of the death of the insured.

When using the site to quote your insurance needs, we make it easy for you to view life insurance options available for purchase in a package designed to meet all your insurance needs.
Term life insurance

Term life insurance is the most basic form of life insurance. It provides coverage for a specified period of time (e.g. 1, 5, 10, 15, 20, 25, or 30 years) in exchange for a specified premium. If the death of the insured individual occurs within this period of time or term period, the insurance company will pay the death benefit. If the term period expires while the insured individual is still living, the policy terminates and no death benefit will be paid.

The two main types of term life insurance policies are level premium term life insurance and yearly renewable term life insurance.

Whole LifeIn this more traditional life insurance policy, the premiums stay the same over the life of the policy, which stays in effect until your death, even after you’ve paid all the premiums. A cash reserve is built up, but you have no control over how it’s invested.

Universal LifeYou can vary the amount of your premium with Universal life insurance policies by using part of your accumulated earnings to cover part of the premium cost. You can also vary the amount of the death benefit. For this flexibility, you’ll pay higher administrative fees.

Variable LifeVariable life polices build up a cash reserve that you can invest in any of the choices offered by the insurance company. The value of your cash reserve depends on how well those investments are doing.

Business-to-Business

Marx Layne & Company is skilled in devising concise communications that reach prospects in meaningful, direct and resourceful ways. These ongoing business-to-business communications include “personalized” database marketing to prospects, communications to stakeholders and response marketing to existing customers.

Healthcare

Our healthcare group provides communication and marketing support for pharmaceutical companies, healthcare facilities and medical groups by applying an array of image-building tools and extensive experience.

Our experienced account team includes executives with extensive healthcare marketing backgrounds. We work regularly with trade, print and broadcast journalists covering a broad array of health issues on a national, regional and statewide basis.

Among our clients are the state’s largest hospice, a global pharmaceutical manufacturer, a statewide coalition of healthcare professionals, medical practice groups and individual physicians.

We position our healthcare clients before numerous targeted audiences through these services:

News releases and press conferences to announce expansion programs, specialized services or address timely issues. We are adept at positioning executives, physicians and other healthcare professionals as experts for newscasts or print coverage on topics drawing public attention – such as health risks, insurance changes, new diets and legislative and regulatory proposals.

Graphically pleasing and informative brochures, newsletters and other marketing materials.

Ghost writing and placement of bylined articles or commentaries on topics that position our healthcare clients as leaders in their field.

Speech texts and conference presentations on healthcare policies, regulatory proposals, suggested reforms, senior citizens’ services or other topics in consultation with clients.

Sophisticated web sites that we design, fill with authoritative content and maintain with regular updating.

Identity packages that create a consistent brand image through all materials, including logos, letterheads, ads, newsletters, videos, PowerPoints and signage.

Together with our Public Affairs practice, our Healthcare group is knowledgeable about consumer concerns and public policy discussions involving senior care issues, health insurance benefits, prescription costs and importation, home care, Medicare and Medicaid strains and other high-impact subjects.

Only a handful of issues are as important as healthcare to reporters and the public. At Marx Layne, we can leverage that concern into awareness and support for virtually any business in healthcare and related fields.

Marx Layne

Reputation insurance: Are you covered?

If you own a business, chances are you’re insured for major catastrophes like fires and floods, product liability and professional malpractice. What you are far less likely to have insured is your good name, even though damage to your reputation can be every bit as costly as any other disaster.

A story in Bloomberg stated that 75 percent of a company’s value is tied up in its reputation.

Yet, there has never been a bigger threat to your respectability than there is right now. Thanks to the immediacy of news and social media­—and citizen journalists with smartphone cameras—it’s become commonplace for incidents involving disgruntled employees, or the occasional rogue or incompetent manager, to be recorded and posted online even before the incident is considered newsworthy, and far before the first news crew arrives on the scene at your company.

The fallout can cause irreparable damage to your brand equity and shareholder value. It’s a disaster for which few business owners are prepared.

In Deloitte’s 2014 global survey, Reputation@Risk, executives reported feeling most prepared for risks that are within their controls, such as employee misconduct. But even then, they admit that they don’t feel adequately ready to respond to incidents that have the potential to damage their reputations; only 68 percent said they were prepared.

Further, London-based casualty insurer Ace European Group surveyed executives in 2013, and more than 90 percent responded that damage to reputation is more difficult to manage than any other specific risk category. More than half stated that social media has greatly increased exposure, and two-thirds reported feeling inadequately covered from an insurance perspective.

Because of the risk involved, it’s surprising that insurance companies—which are already accustomed to selling policies to nonprofits, privately and publicly held entities and governments—do not offer more policies to cover the costs incurred by such incidents.

There are a few insurance carriers offering reputation protection and crisis management policies to cover those costs incurred involved with media monitoring, social media strategy and media outreach. Managing the crisis can also include communicating with internal audiences such as staff and management, government and public authorities, civic leaders, donors, shareholders, customers and vendors.

The costs almost always include working with the organization and its attorneys to develop messaging related to the crisis. They may include interaction with municipal officials and police. The public relations agency must also serve as an intermediary between the company and the throngs of media aggressively seeking information. The agency may identify and media-training a spokesperson, or in some cases, a public relations professional will serve as the client’s spokesperson.

The best-known insurance providers that cover communications services are DeWitt Stern’s Reputation Risk Insurance, AIG’s Reputation Guard, Zurich’s Brand Assurance and Munich Re’s Reputation Insurance.

But those policies can be expensive. For example, Zurich Financial Services offers a policy that costs $5 million a year, and will cover up to $100 million for public relations, brand monitoring, communications and media relations services.

Keep in mind when you are shopping for insurance, these reputation-related catastrophes can happen to any company, and they can happen with no warning. As you have insurance to cover other disasters and the associated legal fees, property damage and cleanup, it’s crucial to ask your insurance broker about policies to ensure you’re protected and have coverage to cover the complex process of rebuilding trust in the aftermath of an incident that tarnishes your reputation.

Though coverage is somewhat uncommon now, it won’t be—and shouldn’t be—for much longer, as long as social media and cell phone cameras are not going away.

Most colonoscopies should be covered 100% by your insurance

The Affordable Care Act (ACA) requires that insurance companies cover 100 percent of the cost of preventive colonoscopies for adults older than age 50. Of course you’ll need to see a provider who is part of your plan’s provider network.

However, despite this new reform, we do hear consumers who’ve had a routine preventive colonoscopy only to have their insurer process their claim as “cost-shared diagnostic care,” which is subject to their annual deductible and coinsurance.

We also sometimes hear from consumers who receive a substantial surgical bill when a polyp is discovered and removed during a preventive colonoscopy. The Affordable Care Act and other federal guidelines protect consumers from extra charges for polyp removal during a preventive colonoscopy. If you receive a bill for polyp removal, you should file a complaint with us and we’ll help you get those charges reversed.

If you are diagnosed with colon cancer, any previous related symptoms may result in your provider processing the cancer screening as diagnostic and not preventive. In that case, your treatment would not be covered as preventive care and you’ll likely have additional costs. If you have any questions, check with your doctor.

Be aware that if a procedure or treatment is not a recommended preventive service, it may be subject to your plan’s deductible and cost-sharing. Also, if a medical recommendation or guideline regarding a preventive service does not specify the frequency, method, treatment, or setting for that service, your insurer may limit your coverage.
Here are some important tips to remember:

• If you have any questions, first talk to your doctor or medical provider and your insurance company. 
• Read more about which health benefits are required under the ACA.
• If you receive a bill from your insurance company that you disagree with, request an appeal.
• In addition, file a complaint with us.

Protect yourself from Medicare fraud

The Insurance Commissioner’s Statewide Health Insurance Benefits Advisors (SHIBA) program is Washington state’s Senior Medicare Patrol (SMP). A federally funded and volunteer-based program, SHIBA/SMP volunteers provide education on how to prevent, detect and report Medicare fraud.

Medicare is the national health care plan for all U.S. citizens age 65 and older. It also covers people younger than age 65 who receive Social Security Disability Income and people who are diagnosed with certain medical conditions.

In Washington state, SHIBA/SMP volunteers help protect seniors and fight health care fraud, leaving more money in the system for everyone. Our state’s volunteers educate beneficiaries on how to avoid becoming victims of health care fraud, and how to report abuse or fraud, related to their Medicare benefits.

We all pay a price for Medicare fraud, waste and abuse, which contributes significantly to rising health care costs. There are three things you can do to help fight Medicare fraud:

1. Know your rights. As a person with Medicare, you have certain rights and protections designed to help protect you and make sure you get the health care services the law says you can get.
2. Protect your identity. Identity theft happens when someone uses your personal information without your consent to commit fraud or other crimes. Keep this personal information safe:
• Your name.
• Your Social Security Number (SSN).
• Your Medicare number (or your membership card if you’re in a Medicare Advantage or other Medicare health plan).
• Your credit card and bank account numbers.
3. Get involved with other seniors with the Senior Medicare Patrol (SMP). The SMP educates and empowers people with Medicare to take an active role in detecting and preventing health care fraud and abuse.

You can find more Medicare fraud tips on our website. If you suspect Medicare fraud or have questions about your bill:

• Call OIC’s Statewide Health Benefits Insurance Advisors (SHIBA) at 1-800-562-6900 or email us at shibahelpline@oic.wa.gov.
• Contact your local SHIBA office.

Have a quick question? Try our new live chat

This week is National Consumer Protection Week and the OIC is one of the many government agencies that helps protect consumers from financial harm.

A huge part of the work we do is helping and educating consumers about all things insurance, from answering questions to looking into complaints against insurance companies, providing help with filing appeals for claim and coverage denials and everything in between.

We recently launched a live chat feature to help consumers get answers to their quick questions about insurance and their rights. Consumers can chat with one of our consumer advocates Monday through Friday from 10 a.m. to noon and from 2 p.m. to 4 p.m. If your question needs more attention, we will direct you to the right place to get the help you need.

Consumers can reach us:

• By phone at 1-800-562-6900
• Online
• Through our social media channels 
• File a complaint against an insurance company or professional. Our complaint system is optimized for mobile devices.  

The Opportunity To Invest In SMEs in Singapore

Did you know that we can actually invest in SMEs (small-to-medium enterprises) in Singapore? This allows individual investors to earn attractive returns while supporting the growth of local businesses. We can invest in SMEs through debt-based crowdfunding platforms. This is where SMEs can issue bonds and everyday investors can buy the bonds and get returns on their investments.

Here's an example of a campaign that local crowdfunding platform, MoolahSense, had previously:

This was the first campaign listed under MoolahSense platform. It has paid out successfully to all investors at a rate of 9.9%. The target amount of the company was initially only $100,000 but due to popular demand, offers went up as high as $207,000.

Company: SMATHS

Smaths Consulting Pte Ltd is a boutique education centre that tailors solutions and learning needs in Mathematics, Physics, Chemistry, Biology and Economics, with additional activity streams in adult and continuing education.

They have four upmarket, mixed use education centres by end of 2014, targeting affluent customers who are quality sensitive, staffed by the best qualified, most motivated tutors in the business.

Programmes are free to try, backed up by money-back and results guarantees.

History:

• Founded 2010, first learning centre opened 2011
• Second centre opened 2011
• Third centre 2013
• Fourth centre (and our second in Bukit Timah) by end of 2014
• Projected ten centres by end of 2015

Issuer Summary:

• Date of Listing: November 5, 2014
• Amount:S$100,000
• Tenor:12 months
• Repayment Type:Equal Instalment
• Repayment Term:Monthly
• Target Interest Rate:18.00% p.a.
• Purpose:Business Expansion / Growth Capital

Use of funds:

• Development of additional education hubs during first quarter of 2015
• This will increase the usable space for learners and expand the number of educators available
• Will allow us to continue to grow the range of subjects on offer
• Expected to form a base to increase Smaths revenues substantially and free cash flows by over 100% within one year

Before investing, it is prudent to do our own due diligence to know the financial health of the company. For investment like this, which is similar to bond investing, there is always risk where the company goes bankrupt and default on their payments. In the case of SME investment, the bonds will have guarantors. For SMATHS's case, the guarantor of the bond is the Group Chief Executive of the company itself. 

Under Moolahsense platform, it has a section called MoolahCore, which shows the financial strength of the company. Here's a screenshot of it:

Click to enlarge

Under this section, you will see the turnover of the company, profitability, current ratio, debt/equity ratio, interest coverage ratio, cash flow from operations and the average cash balance of the company.

You can also ask any questions before investing, through an internal forum – MoolahPost. Moolahsense also organises info sessions for investors to meet the business owners personally for you to understand more before investing.

Investing in SMEs have its risk and thus the returns are higher than the average retail bonds out there. Investing in SMEs through Moolahsense allows you to reap an average of 11-12% p.a. on your investment. Most notes are only for 1 year period with some less than a year.

I have an account with Moolahsense and am looking out to invest part of my money into SMEs which I think is worth investing. You can check out their website and sign up for a free account to try out their crowdlending platform. Who knows you may just find a good company to invest in and at the same time get good returns on your money.

For local SMEs owners, this could be an interesting alternative financing option as well.

Click here to visit MoolahSense Website.

This article is written in collaboration with Moolahsense. All ideas portrayed are independent by SG Young Investment.