Applying Insu-Value Knowledge to Client Objectives:

   
Multidimensional Planning Mover of Roadblocks
You Are Never Too Young or Too Old The Day We Retire
Roadblocks to Retirement Saving  
   

Mandatory Pension Fund Voluntary Planning
   

Multidimensional Planning

Topics to be discussed for well-being of Retirement Planning

  • Employer-Provided Retirement Plans
  • Social Security
  • Income Tax Issues
  • Insurance Coverage
  • Investments
  • Long-Term Care Options
  • Retirement Communities
  • Wellness
  • Nutrition
  • Lifestyle Choices
  • Affordability
You Are Never Too Young or Too Old
Retirement Planning takes on different characteristics for different age groups. Be realistic to look at lifestyle that must be affordable. Changing retirement expectation is desirable if final goal meets.
  • Starting early can mean all the difference in the world, but over-emphasis will bring adverse effects towards current standard of living, career planning and family establishment. A step by step is cardinally important.
  • Postponing retirement to lengthen the accumulation period & shorten the retirement period is financially desirable for shortage of retirement fund when approaching Retirement.
Roadblocks to Retirement Saving
  • Tendency to spend all income
  • Unexpected expenses
  • Divorce
  • Frequent employment changes
  • Other accumulation needs
Mover of Roadblocks
  • The biggest asset is the ability to get up every day and earn a living.  Keep doing it, a fortune will be earned. 
  • It won’t matter how much we earned, what will matter is how much we saved when we retire.  By setting money aside on a regular basis, a sizeable pool of capital can be built.
  • Aggressive investment planning sometimes kills fortune.  Be alert to the change of financial environment if aggressive investment strategy dominates the plan.
  • Initiating a right plan of action achieves the cumulative results.
  • Planning should be reviewed and updated on regular basis.
  • Reliance on professionals is definitely helpful to the healthy of Planning.
The Day We Retire
The day we Retire

Mandatory Pension Fund

Introduction

In 1994, the World Bank published the report "Averting the Old-Age Crisis: Policies to Protect the Old and Promote Growth", in which a three-pillar approach to protect the aged.

The three pillars were:

  • A publicly managed, tax-financed social safety net;
  • A mandatory, privately managed, fully funded contribution scheme; and
  • Voluntary personal savings and insurance.

The MPF System in Hong Kong was designed to form the second pillar of this approach for retirement protection. The MPF System was launched in December 2000.

Managing MPF scheme

MPF is part of your asset. It is worth spending your time and effort to look after your asset.
You should know

You can also Contact Us for details about your MPF scheme.

Know Your needs

  • Set clear investment goals
  • Assess your own risk tolerance level
  • Estimate your investment horizon
  • Adjust your investment portfolio at different life stages

Know Your funds 

  • Understand the fund's investment objectives and instruments
  • Assess investment risks
  • Know the fund's features
  • Take note of fees and charges

Know Relevant information 

Fund's information

  • Fund size
  • Launch date
  • Investment objectives
  • Portfolio allocation
  • Top 10 portfolio holdings
  • Fund performance information
  • Fund risk indicators
  • Fund’s fee
    • Joining fee and annual fee
    • Transaction fees and charges
    • Fund operating charges
    • Fees and charges of underlying funds
    • Fees and charges for additional services

Market for MPF

Voluntary Planning
Creation of Wealth by Insurance Policy

Fund Enhancement by Annuities

  • Annuity liquidates a principal sum with interest accumulation during the lifetime.
  • A stream of monthly income pays out as if receiving monthly working compensation.
  • Comforts & Peace kicks out the insecurity feeling of loss of income at retirement age.
  • Fund shelter to the aged who owns a cash cow uses Annuity to hedge against the volatility of financial environment.

    Types of Annuity

    (1) Immediate annuity:

    • Purchased with a single payment
    • Annuity benefit payments begin one annuity period immediately

    (2) Deferred annuity:

    • Annuity benefit payments begin at some specified time or specified age of the annuitant.

    Variations

    • An annuity certain:
      Annuity benefit payments for a fixed number of years only
    • A life annuity:
      Annuity benefit payments for the lifetime of the annuitant
    • Guaranteed annuity:
      Life income annuity benefits payments for a specified number of years, whether death occurs or not, and for life if the annuitant survives that period.

Market

Choices are limited due to immaturity. In general, products are mostly targeted to the elderly who have substantial cash.  The annuity is incorporated in the settlement options of Life Insurance Policy that enhances the flexibility to the beneficiary for management of insurance proceed. Thorough consideration is extremely important in purchase of annuity in existing market.