Investment Advice

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  1. #11

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    If you bank with HSBC you may want to give them a ring and ask if they can arrange for a financial advisor to sit down for a free chat.


  2. #12

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    nah...i bank with citibank

    they offer something of the sort.,.....but everytime i try to schedule something online for it...it cuts off


  3. #13

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    Quote Originally Posted by mattstewart:
    nah...i bank with citibank

    they offer something of the sort.,.....but everytime i try to schedule something online for it...it cuts off
    Not sure how it works with Citibank (maybe they are only online), but you might try to use something called a telephone ....if you fail online each time...

  4. #14

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    I think if you don't know anything about the market, and don't want to learn, but do want to invest in stocks, then take Buffet and Graham's advice and just buy an index fund. You'll perform better than most managed funds.

    Just put aside a certain amount each month e.g. 30k, buy 30k worth of the index fund and forget about it. I think you can even set this up to be done automatically for you with HSBC.

    Although if you're in Hong Kong for the long term, and have enough cash on hand, then perhaps getting a mortgage is another option for a simple (hehe I know it ain't that simple lol) investment.

    BTW I am not a financial advisor and this email should not be taken to construe any form of financial advice or recommendation.


  5. #15

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    I would have to agree that for most people who know anything about the financial markets, a financial advisor is a complete waste of time and money. However, we often forgot that many people are simply intimidated by the financial language and often have no concept of even some basic things like Time Value of Money or can tell the difference between Real Interest Rate vs. Effective Interest Rate. An honest financial advisor (I know, I know....another oxymoron) could be helful in holding novice investors by the hand and helping them get started.

    Now having said that, before choosing to invest, you really have to sit down and decide what you are trying to achive with your investment. Is it a short term goal, such as saving for a purchase of an asset, or is it a longer goal (such as Retirement). If it is the later..(and as you mentioned U.S. Tax implications, I assume you plan to retire in US) perhaps a Roth IRA account may be a good option for you. Roth IRA allows you to invest after-tax earnings into a wide array of instruments from as Risky as Individual Equity Shares to Mutual Funds and finally to the safety of the US Government bonds.

    I have seen that Fidelity has offices in Hong Kong. They may be a good option to set-up an account. I'm not sure how integrated they are with the U.S. counterparts, but they may help you through the set-up and suggest various investment options. Try to buy (no-load) mutual funds which will be independently managed.

    Good Luck.

    Just rememeber, markets fluctuate up and down...keep an eye on the long term and don't look at it every day and you should be fine....


  6. #16

    I charge for 30% if you ask me.


  7. #17

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    If you meet with a financial advisor at your bank, they will most likely ask you a few questions about your risk tolerance and short-term/long-term spending needs. Then they will suggest certain mutual funds or life insurance plans that will cost you a significant amount in fees. They will say that the initial charge can be discounted from 5% to 2%, as if this is a great attraction.

    Assuming that you are a long-term investor and want exposure to the stock market, you may be better off investing on a regular basis in a variety of index funds or exchange traded funds (ETFs). These are baskets of stocks that simply track a broader index (eg, S&P 500, Hang Seng), so the fees are much lower than with actively managed funds (eg, 0.2% vs. 1.5%). With ETFs, there are no sales charges involved. What's more, the majority of managed funds actually perform worse than their index, so IMO there is no reason to buy a managed fund unless you've done a good deal of research and are convinced that the fund you are buying will be a stellar performer--or meet some particular investment requirement that can't be achieved otherwise.

    There are some ETFs traded on the HK exchange, but a far better variety traded in the US. You can open an Etrade of Schwab account and just get started within a couple days. Schwab charges higher fees (US$12.99 per trade vs. $9.99 per trade) but they have a physical office in Central with a staff of investment advisors.

    Last edited by c1000; 04-04-2007 at 12:50 PM.

  8. #18

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    two words: asset allocation
    going off climber07's post on your retirement goals,
    a general rule of thumb is the farther you're away from retirement the more funds you should have allocated to greater return instruments (albeit greater risk)- essentially more equity (stocks) vs. bonds, treasury bills, etc. with the assumption that you have more time to weather the ups and downs of the market for the long term. then you can change your allocation as you get older or your financial circumstances/objectives change. if you are a newbie to investing and prefer an easier approach on your part to management of your equity investments, mutual funds or index funds may be more attractive for you. talking with a financial advisor may help you clarify your objectives and determine your optimal portfolio.
    as previously suggested, watch out for fees. try to get no load funds or ones with expense ratios no more than 1%. if you go with Fidelity, as mentioned, they have a number of their own no load high return funds, such as their 4-in-1 index fund, etc. although we all try in the short term, long term average stats have shown that it really is hard to beat the index in the long run...
    the OP didn't mention if he has a US employer with a 401k program but should also take advantage of that especially if there is employer matching and is pre-tax contributions, meaning it will benefit your tax situation. remember that while roth iras are after-tax, contributions are also tax deductible.

    also many places such as ING, E-trade, Emigrant, Citibank, etc. offer high-yield online money market accounts (4.75%-5.75% average) for your short-term savings needs. it's wise to try to keep a several month (usually 2-3) cushion in these accounts in "case of emergency".
    a good online source that dishes out good financial help in basic beginner layman's terms is CNNMoney- you should check it out. it covers topics from basic savings to online investing.
    btw has anyone with US employers begun contributing to the newly established Roth401k program- my company just very recently started theirs and i'm trying to decide how much to contribute, in addition to the regular 401k and traditional ira (can't do roth)


  9. #19

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    Quote Originally Posted by bli:
    btw has anyone with US employers begun contributing to the newly established Roth401k program- my company just very recently started theirs and i'm trying to decide how much to contribute, in addition to the regular 401k and traditional ira (can't do roth)
    Well if I understand the Roth401k is an after-tax program (similar to a Roth IRA). Personally, I would jump on this opportunity if this was offerred in my company! As I can't participate in a Roth IRA, Roth401k would be a perfect alternative. First, you can contribute up to $15,500USD (not counting the Company match) for 2007 (between your regular 401k and Roth401K, unlike the maximum of only $4,000 allowed under the Roth IRA). Second, why not let your money grow Tax-free???? This will = to huge savings down the line. In my opinion for a younger employee, if offered with Roth401(k) its almost a must.

    Obviously, everything depends on your budget as it is after-tax $$$.

  10. #20

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    Quote Originally Posted by climber07:
    Well if I understand the Roth401k is an after-tax program (similar to a Roth IRA). Personally, I would jump on this opportunity if this was offerred in my company! As I can't participate in a Roth IRA, Roth401k would be a perfect alternative. First, you can contribute up to $15,500USD (not counting the Company match) for 2007 (between your regular 401k and Roth401K, unlike the maximum of only $4,000 allowed under the Roth IRA). Second, why not let your money grow Tax-free???? This will = to huge savings down the line. In my opinion for a younger employee, if offered with Roth401(k) its almost a must.

    Obviously, everything depends on your budget as it is after-tax $$$.
    yeah that's pretty much what i was expecting- we just got it like last week so need to change my monthly contributions soon.
    unfortunately my company doesn't match but it will still be a good deal in the long run. just running some home made models (yes i am a dork) to see how i should split the 15,500 between the two and where i come out in the long run.
    i'm not eligible to participate in the regular roth ira either so finallly glad they got this new tax-free option!

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