In light of the recent Malaysian 2012 Budget, this article is relevant not only for consideration of private pension planners but also to the Malaysian Government Pension Department (Bahagian Pasca Perkhidmatan JPA). Defined Benefit plans give pensioners guarantees of income during retirement until death but the ability to pay depends on mortality and investment return.
The market swoon in last month didn’t just hurt your portfolio, it also clobbered corporate pensions. The total deficit of U.S. pension liabilities increased by $134 billion to $512 billion as of September 30, according to worldwide HR consulting firm Mercer. The reported deficit compares pension liabilities to assets in pension trusts for defined benefit retirement plans sponsored by S&P 1500 companies. The increase in the deficit results from a combination of stock market declines and decreases in yields on high-quality corporate bonds during the month. (Pension liabilities rise when interest rates fall, due to reduced expectations for future investment earnings).
Read more: http://moneywatch.bnet.com/retirement-planning/blog/money-life/pension-funding-deficit-reaches-50-year-high-should-you-be-worried/5407/#ixzz1aLgta0JB
Monday, October 10, 2011
Friday, September 30, 2011
A 4D windfall, then a death
This news has been reported in many local newspapers. The gamblers who won decided to enjoy by drinking and getting themselves drunk. In the end, a tragedy resulted and I consider this as a way for Allah to remind people not to participate in gambling activities.
Alcoholic drinks and gambling are two very serious crimes in Islam and thus no one should even try to get near them. However there are many schemes that are not considered gambling but seems like gambling. I, personally consider that any scheme where you are entitled to get a substantial amount of money or can make huge monetary gains through a lucky draw should be regarded as gambling and there are many such schemes being run. Islamic scholars should study the issues of gambling very seriously and then alert Muslims to stay away from such practices.
BUTTERWORTH: An outing by five friends to celebrate their 4-digit winnings ended in tragedy when the car they were in plunged into the sea near the Bagan Dalam wharf early yesterday.
Four of them swam to safety, but the 24-year-old driver is believed to have drowned in the 12.45am incident.
His body has yet to be recovered as it is believed to have been swept away by strong currents.
It is learnt that the five -- aged between 24 and 53 -- from Tikam Batu, Kedah, had spent the evening at a nightspot in Bukit Mertajam before the accident occurred.
Deputy Seberang Prai Utara police chief Superintendent Mohd Shukri Awang said initial investigations showed the group had partied at the nightspot after two of them had a windfall in a 4D draw.
Read more: A 4D windfall, then a death http://www.nst.com.my/nst/articles//14rakans/Article/#ixzz1ZQATWnOX
Alcoholic drinks and gambling are two very serious crimes in Islam and thus no one should even try to get near them. However there are many schemes that are not considered gambling but seems like gambling. I, personally consider that any scheme where you are entitled to get a substantial amount of money or can make huge monetary gains through a lucky draw should be regarded as gambling and there are many such schemes being run. Islamic scholars should study the issues of gambling very seriously and then alert Muslims to stay away from such practices.
BUTTERWORTH: An outing by five friends to celebrate their 4-digit winnings ended in tragedy when the car they were in plunged into the sea near the Bagan Dalam wharf early yesterday.
Four of them swam to safety, but the 24-year-old driver is believed to have drowned in the 12.45am incident.
His body has yet to be recovered as it is believed to have been swept away by strong currents.
It is learnt that the five -- aged between 24 and 53 -- from Tikam Batu, Kedah, had spent the evening at a nightspot in Bukit Mertajam before the accident occurred.
Deputy Seberang Prai Utara police chief Superintendent Mohd Shukri Awang said initial investigations showed the group had partied at the nightspot after two of them had a windfall in a 4D draw.
Read more: A 4D windfall, then a death http://www.nst.com.my/nst/articles//14rakans/Article/#ixzz1ZQATWnOX
Thursday, September 29, 2011
Retirement Income Using the 4% Rule
I recently stumbled on this rule and found out that the idea has been discussed in quite a lot of articles. This should be an area that actuarial science students can explore.
How much can I safely withdraw from my retirement funds?
Simple – use the 4% rule. This will give you a great chance of not running out of your money and it’s valid for 25+ year periods. If you are at an advanced life stage where 25 years is a dream then the 4% can be adjusted upwards.
The way the 4% rule works is that you start by taking 4% out of your portfolio in the first year – this includes dividends, interest, withdrawals. The next year you take out the same figure you took out the first year plus inflation. So if you start by taking $40,000 out and then inflation is 3% then the second year you take out $40,000 + 3% ($1200) = $41,200. Every year after that you adjust the previous year’s withdrawal amount by the inflation rate.
... Read more here and this article The 4% Rule—At What Price? by
Jason S. Scott, William F. Sharpe, and John G. Watson
April 2008
How much can I safely withdraw from my retirement funds?
Simple – use the 4% rule. This will give you a great chance of not running out of your money and it’s valid for 25+ year periods. If you are at an advanced life stage where 25 years is a dream then the 4% can be adjusted upwards.
The way the 4% rule works is that you start by taking 4% out of your portfolio in the first year – this includes dividends, interest, withdrawals. The next year you take out the same figure you took out the first year plus inflation. So if you start by taking $40,000 out and then inflation is 3% then the second year you take out $40,000 + 3% ($1200) = $41,200. Every year after that you adjust the previous year’s withdrawal amount by the inflation rate.
... Read more here and this article The 4% Rule—At What Price? by
Jason S. Scott, William F. Sharpe, and John G. Watson
April 2008
Wednesday, September 28, 2011
Kweko Adoboli and the UBS Fiasco
By CARRICK MOLLENKAMP, PAUL SONNE and DEBORAH BALL
LONDON—An alleged trading scheme at UBS AG went undetected for three years before it was finally discovered, triggering a $2 billion loss, U.K. authorities indicated Friday as they charged a 31-year-old trader at the Swiss bank with fraud.
Read more here
LONDON—An alleged trading scheme at UBS AG went undetected for three years before it was finally discovered, triggering a $2 billion loss, U.K. authorities indicated Friday as they charged a 31-year-old trader at the Swiss bank with fraud.
Read more here
The shit waiting in the derivatives market: After UBS, who could be next
The article contains a lot of information useful to students who are analyzing the derivatives market. My apologies for the crude title but I suppose it attracts attention.
Monday, September 5, 2011
Noramfaizul 'was insured'
The news article mentioned that "all Bernama employees were covered by term life and personal accident insurance policies which were applicable worldwide". This would mean that Allahyarham Noramfaizul was covered by term life and personal accident insurance policies. I hope the term insurance policy does not have an exclusion clause for death by shooting in a war zone which normally is included in most policies. Also can this death be considered as death due to an accident? If the said exclusion clause is included in the term life policy and the death is not considered as an accident, then the family of the deceased will not be able to claim any benefit from both the policies mentioned. So it is necessary that other forms of compensation be considered. SOCSO should provide compensation for death while in the course of employment. Other than that, BERNAMA itself must provide some form of compensation. If the compensations provided are not enough, Malaysians need to pitch in and donate to provide much needed finance for the wife and children of the deceased Allahyarham Noramfaizul. The need is a long-term one and must be looked into immediately.
Sunday, July 25, 2010
New Semester
The new semester has started at USIM and this time I will be busier than before. There are ten students who will be doing their project papers under me with titles from mortality rates for diabetes to designing syariah-compliant life annuities. The students presented their proposals last Friday and I have asked each of them to present a more detailed proposal next Friday.
What strikes me most last Friday was that the students kept pronouncing the word "determine" as "deter" and "mine", and not "deter" and "min" as I learned in school before. I wonder where they got this pronunciation from. It is not specific to the current group of senior students. Previous students also used the same pronunciation. I would be very pleased if others can comment on this.
What strikes me most last Friday was that the students kept pronouncing the word "determine" as "deter" and "mine", and not "deter" and "min" as I learned in school before. I wonder where they got this pronunciation from. It is not specific to the current group of senior students. Previous students also used the same pronunciation. I would be very pleased if others can comment on this.
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