Quora Answer: Would Kim Jong Un Consider an attack on ISIS-Occupied Areas?

The following is my answer to a Quora question: “Would Kim Jong Un consider an attack on ISIS occupied areas?”

No. That would be illogical.  Firstly, ISIS is not a threat to North Korea; it is a threat to the allies of her potential belligerents, the US and NATO. ISIS is useful in keeping their troops busy on the other end of the Asian continent, away from the North Korean border.  From a North Korean perspective, ISIS is a good thing.

Secondly, even if North Korea decided to fight ISIS for whatever reason, it does not have the means to deploy to the areas ISIS is active, which is South Asia, the Middle East and North Africa.  The country has a shortage of fuel and spare parts.  I do not expect the North Korean military to march all the way there, dragging all their equipment on sleds.

Quora Answer: Why is Singapore Nicknamed the Lion City?

The following is my answer to a Quora question: “Why is Singapore nicknamed Lion City?”

Singapore is from “Singa Pura”, which is Sanskrit for “Lion City”.  According to legend, Singapore was founded by a Palembang prince from the Sri Vijaya Empire, named Sang Nila Utama.  He came, slept under a tree, and was awakened when he encountered a lion.  All this, despite the fact that there is no historical or palaeozoological evidence that there ever was a species of lion on this tropical island.  I would speculate that it was the habit of the Chola and the breakaway Sri Vajaya Empires to name important cities “Naga Pura”, meaning “Dragon City”; and “Singa Pura” was a reactive name to that, denoting its political importance.

Quora Answer: Is It Illegal for Me to Use My Twin Brother's Insurance Card at the Hospital if My Insurance was Cancelled?

The following is my answer to a Quora question: “Is it illegal for me to use my twin brother’s insurance card at the hospital if my insurance was cancelled?”

You are not your twin, no matter how alike you are, even if you share identical DNA.  This is insurance fraud, and both of you can get in trouble.  If you took the card without his knowledge, then you have also committed identity theft.  Legalities aside, this complicates his medical record, and his future coverage because he might be recorded as having a pre-existing condition that is actually yours.  There might be complications in his treatment should he be taken ill in the future.

Quora Answer: What Investment Can You Do With Less Money?

The following is my answer to a Quora question: “What investment can you do with less money?”

If you are able to put aside at least $100 a month, you have the option of investing in an index fund, or if you are young enough, an investment-linked insurance plan.  There are a multitude of such collective investment schemes, with or without the insurance aspect.

If you were to look it up online, there are a lot of articles by people who are purportedly finance experts claiming this or that option does not work.  And they have some convincing data.  The problem with these investment plans is that they are not as straightforward as people imagine.  They involve some fund management skills.  Brokers, insurance agents and financial consultants may be skilled enough to sell you the investment plan.  It does not mean that they are skilled at managing it.  That is the difference between a salesman and an actual financial consultant.

My clients do not lose money over the extended investment horizon, or when the market is down, they do not lose much before bouncing back in a reasonable amount of time.  This is not rocket science.  My investment philosophy is best summed up like this: when everybody is panning for gold, there is money to be made selling the shovels and pans.

In that light, I pick funds that invest in the most fundamental things, because that market is essentially recession proof.  The most fundamental from an investment perspective is not necessarily commodities since they are extremely volatile.  For example, you could invest in a technology fund that has money in Apple and Samsung.  But we have to remember that Nokia was once very big.  These are front end products.  But if you put your money in the chips, it does not matter which company does well since they all have to buy those chips.  Whether the economy is up or down, these chip makers have business.

There is a certain skill in finding this type of value in the market and picking your funds and counters based in where you expect them to be in 15 or 20 years-time, which is the expected investment horizon.

Quora Answer: Would Singapore Maintain Its Relevance within the Asia Pacific as Neighbouring Countries Develop?

The following is my answer to a Quora question: “How could Singapore maintain its current position and relevance within Asia Pacific ,as neighbouring countries develop and catch up over time?”

You have the impression that this is some sort of zero sum where the development and advancement of one nation necessitates the decline of another.  That is not how this works.  In fact, it benefits Singapore when our neighbours are prosperous.  Prosperous nations create more value in trade and engagement.

Singapore’s value proposition is as an international centre for trade, finance and business.  It has invested in its infrastructure and human resource, it has put effort in its branding, and it has worked diligently in joining and expanding international organisations and partnerships.  It recognises its size and lack of hinterland, so it integrates itself into the larger international ecosystem.

The last point is important.  By being integral to the international order, Singapore’s relevance and importance grows as the countries around the region prosper.  There is always a need for a neutral centre for arbitration, finance and diplomacy.  Big and intermediate powers will contend with each other, but there is always a need for a neutral party to mediate contentions and deal with each other.

Quora Answer: What Situations Require Getting Insurance?

The following is my answer to a Quora question: “What situations require getting insurance?”

Insurance would be required for any situation where there is a risk that can be quantified, and you have a need to mitigate against that risk.  The primary purpose of inflation is liability protection.  It pays out upon the occurrence of the very situation you want to mitigate against.  As such, it covers a wide variety of situations, from your life, to your business to your activities.

Quora Answer: What Would You Consider an Unwise Investment at the Moment?

The following is my answer to a Quora question: “What would you consider an unwise investment at the moment?”

With regards to asset class, at this current moment, the most obvious would be cryptocurrencies.  Bitcoin, for example, is held hostage by a certain group with the most computing power controlling the ledger.  No stablecoin can justify their peg.  No cryptocurrency has a genuine secondary market at the moment.

With regards to market, I have no faith in the US economy.  It is a house of cards.  The country has outsourced its manufacturing capacity, and is in no position to bring it back.  It is overleveraged, and the only reason the American economy has not collapsed, yet is because the US dollar is the de facto reserve currency of the world.

With regards market sector, commodities are volatile and will continue to fluctuate badly due to disruptions, and slowing economic growth worldwide.

Quora Answer: What is the Biggest Payout the FDIC Ever Made to Customers of a Single Failed Bank?

The following is my answer to a Quora question: “What is the biggest payout the FDIC has ever made to customers of a single failed bank?”

Regardless of the amount the customer holds in deposits in his own name, the FDIC can only ever pay out to the limit per depositor per bank in the event of bank failure.  At the moment, that amount stands at US$250,000.

Quora Answer: What Contributes to the Soft Power of Relatively Smaller Countries Like the UK & Singapore?

The following is my answer to a Quora question: “What contributes to the soft powers of relatively smaller countries like the UK and Singapore?  Are they sustainable in your opinion?”

The term “soft power” was coined by Dr. Joseph Samuel Nye Jr., an American political scientist, in the 1990s.  He further expounded on it, in his book, “Soft Power: The Means to Success in World Politics”, published in 2004.  Nye defined it as the ability of a country to persuade others to do what it wants without force or coercion.  Interestingly, Nye is also the intellectual architect of American neoliberalism.

As per “The Soft Power 30 Report of 2018”, the United Kingdom is top of the list, and Singapore, one of the smallest nations in the world, is at number 21.  The UK has some inherent advantages, and established institutions that help it maintain its position as one of the most culturally influential nations on the world.  And this is despite the debacle of a drawn-out Brexit.  Much of her soft power lies in her cultural influence, her engagement with her former colonies, and in education.

For example, the publicly funded BBC has been instrumental in continuing to spread British influence and cultivate soft power through its cultural and educational engagement.  The BBC World Service still has a substantial global following, and is viewed as far more credible than American news outlets.  There is a flourishing arts, music, film and fashion scene, independent of the British government.  The English Premier League is still the most popular football league in the world.  These are all areas of soft power that the UK excels at.  They are not a “small nation” in the global sense.

Singapore is one of only four Asian countries in the top 30 of the global soft power index, and was just edged into 21^st place by South Korea, riding the K-Pop wave.  Regardless, it is punching way above its weight considering the fact that it is, by far, the smallest nation both in geographic size and population.  However, its footprint is large.  What Singapore lacks in cultural depth because it is a new nation that has not even reached a century, it makes up in innovation, technology, governance, and business model.  It attracts the wealthiest and the most ambitious, and is a major banking and business hub.  Singapore is the Wakanda of the world.  Singapore overcomes its limitations in engagement by the wholesale adoption of social media by the government and private sector, making it the most connected nation in the world.  Its reputation as a safe neutral venue makes it one of the few viable places to hold events such as the historic China-Taiwan summit and the US-North Korea summit.  This means that while it is not particularly visible in the popular consciousness beyond its region, it is well-known and respected in the corridors of power.

Both Singapore and the UK have been consistently ranked on the index since its inception in 2015.  What Singapore does is the result of clever positioning on the global stage.  The immense wealth that it has garnered has also allowed it to finance this successfully.  These are not options available to many small nations of similar population size.

Smaller nations come in two types: developing and poor, or immensely wealthy.  The former have no soft power because they are still grappling with issues a developing nations, such as corruption, conflict, and resource mismanagement.  Then there are nations such as Liechtenstein, Monaco and Luxembourg.  They are wealthy, but not cosmopolitan global cities.  Monaco is a tax haven and the playground of the ultra-wealthy.  Whilst there is some mystique to that, it is not as accessible.

Quora Answer: Is the Taliban as Strong as It Has Ever Been, or Can They be Stopped Anytime Soon?

The following is my answer to a Quora question: “The Taliban is as strong as it has ever been.  Can or will they be stopped any time soon?”

The Taliban is a name given to scattered groups with a loose affiliation to each other that have a nominal shared ideology based on the Deobandi-brand of Sunni Islam.  They have widespread support as defenders of the religion and the country against imperialist occupiers.  The US has lost control of the narrative.

Just as it is with previous American misadventures overseas, the US military is a sledgehammer good at demolishing infrastructure but totally unsuited for the process of nation building.  Killing more people simply creates recruits for the Taliban because the American policymakers do not understand the tribal nature of Afghan society.

To defeat any insurgency requires defeating the underlying ideology and reasons for it.  The very nature of the American occupation, and the perceived disrespect for Afghan traditions, whether Pashtun or otherwise, actually fuels the insurgency.  It would actually make more sense for the US to pull out completely, and hand power over to a local proxy.  This way, they save on manpower and deployment costs, and allow a client state to develop by bringing the Taliban into the power structure.  People who have a stake in the system have no reason to destroy it.  This is why the British were able to maintain an empire across the world for hundreds of years, and Americans are still pretending they are a benevolent sponsor for democracy.  Nobody except the American public buys that nonsense.

Quora Answer: Which is Better Life Insurance: Whole Life, Indexed Universal Life, or Variable Universal Life?

The following is my answer to a Quora question: “Which is better life insurance: whole life, indexed universal life, or variable universal life?”

Whole life policy provides coverage for your whole life, taken to be either age 100 years, or 101 years.  The sum assured is determined at inception, and is guaranteed to pay out upon your death, or if you have the riders, for disability and critical illness.  These policies have a cash value that builds up over time.  The policy is in force as long as the premiums are paid.  The coverage may be varied at the policy owner’s request, which may require further underwriting.

An indexed universal life policy allows the policy owner to allocate cash value amounts to either a fixed account, or an equity index account, the participating fund.  It is a variation of a whole life policy, and is identical in all other areas.

A variable universal life policy builds a cash value.  This cash value can be invested in a wide variety of funds, which the policy owner may choose from.  It is also known as an investment-linked plan.

A base whole life policy is the standard plan.  An indexed life policy gives you the option of building up cash value, treating the policy as a financial instrument, and not just a policy.  It is useful for varying your coverage according to your needs since some polices allow you the option of withdrawing the index fund portion, while still maintaining some level of coverage.  The investment-linked plan is useful in fund movements since you may top up, and withdraw funds, at any time.  The premiums may be more expensive than a whole life policy since there is an investment aspect to build the cash value in addition to the mortality charge.

These polices have different uses depending on the needs of the policy owner, and many people have more than one type.  The preference for these and other types of policies is dependent on many factors that the financial health review is supposed to establish, from your risk profile, to age, to coverage to investment horizon.

Quora Answer: Why Do Many People Support ISIS?

The following is my answer to a Quora question: “Why do many people support ISIS?”

The underlying ideology of ISIS is Wahhabism.  Wahhabism is a puritanical, exceptionalist, literalist heresy of Sunni Islam that arose 300 years ago.  It was founded by Muhammad ibn ‘Abd al-Wahhab an-Najdi.

From its very beginning, Wahhabism was a violent ideology that declared all Muslims to be heretics, unless they believed as the Wahhabis believe.  This takfir, declaration of apostasy, against Muslim continues to this day, with Wahhabis regularly accusing orthodox Muslims of disbelief and polytheism.  Wahhabism also calls for the violent subjugation of non-Muslims, and establishment of some sort of caliphate that they hope to grow into a global polity.

To this end, the Wahhabi sect attacked and pillaged Muslim cities, villages and nomadic tribes. They enslaved, and murdered thousands.  They desecrated graves and places of worship.  They staged mass executions and massacres.  This Wahhabi sect eventually came to rule the Hijaz and surrounding areas, and renamed the entire area Saudi Arabia.  As the ruling ideology of Saudi Arabia, Wahhabism is promoted and exported throughout the world.  It is no coincidence that 17 of the 19 hijackers were Saudis. Boko Haram, Al Qaeda, Laskar e-Taiba, Jemaah Islamiyya, and almost every single violent jihadist group is Wahhabi.

Even amongst Wahhabis who do not identify with the violence, their views are still extreme and exceptionalist.  They do not mix with non-Muslims.  They claim that celebrations such as birthdays and even secular holidays are haram.  They claim music is haram.  They have a deeply misogynistic view of society.  They are anti-intellectual, and hold literalist interpretations of scripture.  It is not a large step from suspicion of the “kuffar”, to hatred of the “kuffar”, to waging war against the “kuffar”.

As long as we have Wahhabi institutions, Wahhabi money funding mosque buildings, Wahhabi publications, Wahhabi trained preachers coming back to the country, we are indulging a fifth column that cannot be trusted, and should be viewed as a security threat.  Wahhabi groups have this modus operandi of their preachers, mostly graduates of the University of Madina, returning to their native lands and taking up positions of influence in Muslim organisations or as community leaders.  This is the source of that poison.

Quora Answer: Should Governments Accept Former Jihadists Back?

The following is my answer to a Quora question: “Should governments accept former jihadists back in?”

Back in what sense?  If you mean whether they should accept them back into the country, as opposed to stripping them of citizenship, then absolutely.  Stripping them of citizenship does not make the problem go away.  They are still in a position to plot against the country.  They should be brought back, tried and then executed.  There should be no stay of execution, no rehabilitation programme, no spectacle of a long trial.  Life imprisonment is not going to help because they will become the reason for hostage taking by other jihadists to be exchanged for.  There is also the chance that they will radicalise others behind bars. In the same manner that we kill rats so they do not breed, they should be eliminated as a pest control exercise.

Quora Answer: Is Malaysia Better under Mahathir bin Mohammed Than Singapore under Lee Kuan Yew?

The following is my answer to a Quora question: “Has Malaysia been better under Mahathir bin Mohamed than Singapore under the Lee family?”

I am not sure of your intent in asking this question, or whether you live under a rock in the middle of the Sahara.  Have you ever been to Malaysia and walked around, and then to Singapore?  The differences are very stark.  Singapore is an example of social engineering on a massive scale, of an emphasis on meritocracy and multiculturalism.  Malaysia is a pseudo-feudal apartheid state where one race and one religion is preferred over others, and the law is not applied equally.  One is a developed nation, one of the wealthiest in the world, whereas the other is stuck in developing status, suffering a shrinking economy and losing international prestige the way the Hindenburg lost hydrogen.

Quora Answer: What is Your Favourite Thing about Investing in Berkshire Hathaway for the Long Haul?

The following is my answer to a Quora question: “What is your favorite thing about investing in Berkshire Hathaway for the long haul?”

Over the last 50 years, ever since Warren Edward Buffet took control in 1965, Berkshire Hathaway stocks have given a compounded return of just over 20% annually.  To put that in perspective, if you had US$10,000 in the stock in 1965, it would be worth US$250 million now.  That alone is testament to the genius that is Warren Buffet.

Even now, Berkshire Hathaway is essentially undervalued.  Despite the US$15.4 billion write down on the value of Kraft Heinz, which cost a US$4.5 billion book loss, Berkshire Hathaway was sitting on US$120 billion in cash reserves as recently as last quarter.  They spent some of it in stock buyback, but that is a testament to the strong financial health of the company.  If you intend to have funds aside over an extended investment horizon, this stock is a must buy.

Quora Answer: Is It True You Will Never Get Rich as Long as You are in a 9-5 Grind?

The following is my answer to a Quora question: “Is that true you will never get rich as long as you are in a 9-5 grind?”

Wealth is created when you are able to set aside funds to generate passive income.  That passive income will eventually grow exponentially such that you have options in your life choices, including career opportunities.  However, in the meantime, you need that job to generate some income to life.

The investment horizon when you are starting at the bottom can be between 15 to 20 years.  As you make more, and parlay your funds into other investment options that become available, this will naturally escalate. Wealth grows exponentially.  That is why it is far easier to turn $1 million onto $10 million, than $10,000 into $100,000.

Quora Answer: Is Malaysia More Corrupt under Mahathir bin Mohammed Than Singapore under Lee Kuan Yew?

The following is my answer to a Quora question: “Is Malaysia far more corrupt under Mahathir bin Mohamed, than Singapore under the Lee family?”

We have only to look at where Singapore and Malaysia are on any index that measures corruption, and therein lies the answer.  Also, I should point out that the sons of Mahathir bin Mohamed are billionaires.  Mokhzani bin Mahathir is listed as the 14^th richest man in Malaysia.

We should also consider the legacy of both premierships.  Lee Kuan Yew, for all his authoritarianism, left a system of accountability and relative transparency.  Mahathir left his country to a kleptocracy he elevated.  Mohammad Najib bin Abdul Razak was his Defence Minister when irregularities pertaining to the purchase of submarines and the F-18 engines arose.  What does that tell you about Mahathir?

Malaysia was corrupt then, and it is corrupt now.  Nothing has changed.  Mahathir was corrupt then, and he is still corrupt now.  For all their inadequacies, that is not the Lee family legacy.

Quora Answer: Should All Returning ISIS Members be Prosecuted?

The following is my answer to a Quora question: “Given the recent trend of ISIS members returning to their home countries, I have seen some people argue that not all of them should be convicted given we cannot necessarily prove they did anything wrong while at ISIS.  Would this stand up in court?”

I am answering this strictly from a Singaporean perspective.  Firstly, being a member of a terrorist group, with the stated goal of undermining and attacking the state, is itself an offence under the Constitution and the Sedition Act, which carries the death penalty.  Singapore may also choose to detain non-combatants, such as the family members under the Internal Security Act, which allows for detention without trial for a period of two years, renewable indefinitely.

Secondly, there is nothing to be gained by the spectacle of a trial.  It serves as propaganda, and can be spun into a recruiting tool.  The best way to deal with these extremists is to consign them to ignominious oblivion.  It is not a coincidence that every Singaporean ISIS fighter subsequently ends up dead. We have learned well, from the Israelis.

The wives of ISIS fighters should be treated the same as the husbands.  If they are pregnant, let them give birth, then hang them with the rest.  It saves us the cost of housing them, feeding them and rehabilitation.  Muslim funerals are cheap.  The children should be taken away and fostered out to other families.  Children are a resource that should not be wasted.

Quora Answer: What are the Chances of Singapore Going Bankrupt?

The following is my answer to a Quora question: “What are the chances of Singapore going bankrupt?”

Singapore is a sovereign state.  Technically, it is impossible for a sovereign to go bankrupt unless the state ceases to exist, because there will always be people generating economic activity, meaning, the state will eventually be able to pay off a debt.  What you are asking is really the chances of Singapore ceasing to exist, the dissolution of the state.  In that sense, while there is that possibility due to many factors, both political and natural, it is unlikely. Singapore is well run in comparison to most nations in the world, with policies that address events decades in the future.  It has a strong military, a network of alliances and, most importantly, it is wealthy.  Money buys friends and options.

Quora Answer: Is a Trust Necessary if a Couple Has No Children?

The following is my answer to a Quora question: “Is a trust necessary if a couple has no children?  We have a will.”

A trust is useful if you have beneficiaries in mind whom you want to benefit over an extended period of time, instead of giving them their share of the estate at once.  The beneficiary need not be a natural person.  It may be a foundation, a charity, or even your pet.

Trusts are also useful for mitigating your tax liability, if you know how to manage them well.  This is especially necessary if your wealth is based largely on assets that are taxed heavily where you are a tax resident, such as property and investment portfolios.

Quora Answer: What Options are Available to a Revocable Trust Beneficiary to Compel a Trustee to Provide Required Reports?

The following is my answer to a Quora question: “What options are available to a revocable trust beneficiary to compel a trustee to provide required reports and accounting information on the trust’s financial status?”

The beneficiaries of the trust are the actual equitable owners of the trust and its assets.  The trustees are managers of the trust.  As such, the trustees are required, by law, to fulfill their fiduciary duties and provide regular reports on the state of the trust and its assets.  The beneficiaries have the right to question the trustees on their work, including asset management, compensation, and anything pertaining to the management of the trust.  In the event that the trustees fail to fulfill their duties, the beneficiaries may report to the trustees’ office, and take out a court order compelling the trustees to report on the status of the trust and its assets, and if need, be have them replaced.

Quora Answer: What Usually Happens if You Run a Country Like a Business?

The following is my answer to a Quora question: “What usually happens if you run a country like a business?”

When a country is run like a business, the closest you get is Singapore.  Singapore is sometimes referred to as Singapore Inc.  In Singapore, most parts of the government, its constituent organs of state, are cost centres with their own key performance indicators.  This means that budgets are taken seriously and there is a lot of emphasis on accountability.  This cuts down waste.

The people who attend to these organs of state are customers, and other parts of the same organisation are internal customers.  This means there is a service standard that is implemented, which includes them being unfailingly polite.  If you are in Singapore, and had the police call you to go down to the station to make a statement, you get called “Sir”, or “Madam”, and they call you within three working days to follow up – even if you are a person of interest.

Citizens are treated as stakeholders, and policy is always geared towards the long-term, so there has to be immediate profitability as well as growth down the road.  This may be good or bad, depending on your perspective.  In essence, there is an emphasis on the collective, and the needs of the majority always outweigh the needs of the few.

On the other hand, there is a lot of bureaucracy and paperwork.  This is the other side of a country run like a corporation.  Everyone is accountable to someone and something.  This means that in certain areas, such as entrepreneurship, there is this inherent discouragement for risk, unless it is calculated and quantified.  This means that Singapore is unlikely to ever have an Apple from a start-up because that involves individualistic thinking that is anathema to the system.

Quora Answer: Is Net Worth a Cumulative Measurement?

The following is my answer to a Quora question: “Is net worth a cumulative measurement?”

Your net worth is the amount by which your assets exceed your liabilities, at a specific point of time.  It is not cumulative, because you will most certainly not have all your assets and money now.  You would have disposed of some assets for liquidity, and you would certainly have spent some money.

Quora Answer: Is Getting Cheap Life Insurance in Your 60’s Impossible?

The following is my answer to a Quora question: “Is getting cheap life insurance in your 60’s impossible?”

Once you have passed the median age of life expectancy wherever you are, insurance becomes progressively more expensive.  The only way to secure cheap insurance is to secure coverage as young as possible.  The premiums are calculated based on the age at inception less from life expectancy.  As such, the younger you are, the cheaper the regular premiums will be.

An alternative to securing adequate insurance relatively cheap is to get a group health plan.  Due to portfolio pricing of the premiums, the premiums are cheaper the greater number of younger people there are.  In some places, such as Singapore, you can register a company, and as long as you have a minimum of five persons, regardless of their relationship to you, you can buy a group health policy.  The company may even be dormant, and that is irrelevant to the insurer.  In Singapore, after the first policy year, pre-existing conditions are covered.  This is an added advantage.

Quora Answer: Why Do I Need Life Insurance?

The following is my answer to a Quora question: “Why do I need life insurance?”

A life insurance policy is a financial instrument.  And like anything, it is a matter of whether you know how to use it, or you do not.  In general, the primary purpose of any life insurance policy is estate planning.  The average person has family and others who survive him, and he sets aside something so that he leaves a legacy for the living.  Even in the event that there are no benefactors, it is possible to leave money for a foundation or a cause so that our good name lives on long after we have passed.

Disability and critical illness plans pay out upon claim so that you are not a burden to others in your illness or incapacity.  Critical illness can bankrupt an entire family, because more than one breadwinner is often lost.  In addition to the claimant, it is conceivable that someone else in the family has to leave their job to take of you, even if temporarily.

Finally, medical insurance is a need in an age where medical inflation is in double digits.  You either have to be very wealthy, or deluded to not believe in the importance of a hospitalisation plan.