Gilt Yields

[tomhutch]

As most of you guys have probably seen in the news, pension yields are extremely low right now. This means that as an expat, you can secure your UK pension at the highest possible value. To not do so runs the risk of your pension fund shrinking - have a look at TataSteel & BHS!

For those of you who are new to Hong Kong, there really is no better time to look into your options. Please don't hesitate to get in touch for more information!

[shri]

Let me guess - you're an IFA trying to drum up some business instead of actually posting the information here?

[tomhutch]

Just trying to make people aware of the fact that now is a good time to look into these things With regards to information there is A LOT out there. If you want a specific bit of information posted: UK gilt yields are below 1% (0.95 right now) for the first time ever.

If people already know someone then great - go speak to them and make sure their money is safe!

[shri]

Might just be better to admit that you're an IFA, have some info and post the info rather than "Please do not hesitate to get in touch" also admit upfront how much commission you make on that product and if you're a really good IFA, package another low cost product that you can switch people to.

Post information that actually helps people understand what you do and start a public conversation - build some trust and credibility.

Just saying, I am usually extremely suspicious of IFA - good or bad, the industry has far too many clowns out there just trying to sell an EXPENSIVE insurance policy or two in the guise of investments.

You may be different - but nothing in your posts suggests otherwise. Dozens of similar posts get reported / deleted every month.

Just saying.. far to easy to randomly post vague / anonymous stuff around the interwebs, without any desire to engage or build a proper online reputation.

[TheBrit]

Umm, the exact opposite is true. If you want to buy a pension, you want gilt prices to be low and gilt yields to be high.

Low yields are a disaster for anyone looking to convert their pension investments into an annuity or bond like income.

[Nep]

May I be the first to suggest that you get lost and try to steal people's money somewhere else?

[tomhutch]

You're exactly right, if you are looking to buy an annuity then of course you want gilt yields to be high.

But when referring to defined benefit pensions - where firms are promising you an annual income - the cash equivalent of that annual income will be higher due to the lower expected returns because of lower gilt yields.

[TheBrit]

Everyone with a defined benefit pension scheme in Hong Kong please raise your hands.

Nobody?

[tomhutch]

Thanks for the great feedback, I am very new to this industry.

I have only been out here for a while, and am aware of many people's perception of IFAs. Would it be better for people like yourself if I just posted links to articles that might be useful for people to read etc?

I'm still working out what's best from people, it's great to hear feedback from people like yourself who are suspicious of what we do. In my short time here I have found it is extremely hard to convince people that I am not trying to (as Nep says) "steal your money". Trust is key and once again I appreciate your feedback.

[tomhutch]

You'd be surprised how many there are! Whilst they are a dying breed (many companies just can't handle the cost of them), lots of expats who have moved from the UK to Hong Kong may well find out they had one at a previous employer.