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ROI from MPF

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  1. #11

    Join Date
    Feb 2019
    Posts
    2,566
    Quote Originally Posted by Nicolaas20:
    I am considering the YF Life MassMutual (MASS) - US Equity Fund.
    If you are *not* interested in having some Hong Kong exposure, this could be sensible.

    If you *do* want HK exposure, I think it makes more sense to get the HSI tracker in your MPF and get your US/global exposure through ETFs like VOO and QQQ with a broker like IB.

    MPF is terribly expensive for everything, but pricing seems to be least terrible for HSI - or at least that was the case with HSBC when I last checked.

  2. #12

    Join Date
    Nov 2017
    Posts
    107
    Original Post Deleted
    Im trying to figure out what would be the best way to make the most money. But I cant make up my mind about which way to go lol. If overthinking was a super power then I woulda been so badass

  3. #13

    How much money do you need to make in order to benefit from the TVC?


  4. #14

    Join Date
    May 2019
    Posts
    783
    Quote Originally Posted by GentleGeorge:
    If you are *not* interested in having some Hong Kong exposure, this could be sensible.

    If you *do* want HK exposure, I think it makes more sense to get the HSI tracker in your MPF and get your US/global exposure through ETFs like VOO and QQQ with a broker like IB.

    MPF is terribly expensive for everything, but pricing seems to be least terrible for HSI - or at least that was the case with HSBC when I last checked.
    FWIW, they have a SP500 fund now in the same price bracket. Value Choice US Equity (or something like that).
    GentleGeorge, shri and AsianXpat0 like this.

  5. #15

    Join Date
    Feb 2019
    Posts
    2,566
    Quote Originally Posted by Kowloon72:
    FWIW, they have a SP500 fund now in the same price bracket. Value Choice US Equity (or something like that).
    Awesome intel, thanks - will have a look.

  6. #16

    Join Date
    Feb 2012
    Location
    Park Island, Hong Kong
    Posts
    366
    Quote Originally Posted by periphery831:
    How much money do you need to make in order to benefit from the TVC?
    It depends. It's best to use the IRD's tax calculators to figure out if at least some if not more than 60,000HKD of your HK taxable income is hit with the 17% standard tax rate.

    Check out the IRD calculators at https://www.gov.hk/en/residents/taxe...omputation.htm

    The calculator can't make the best TVC decision for you but it can do the math required based on your inputs. As for future actual returns with specific funds, you'll just have to use your preferred crystal ball for that.
    periphery831 likes this.

  7. #17

    Join Date
    Feb 2009
    Posts
    7,539
    Quote Originally Posted by periphery831:
    How much money do you need to make in order to benefit from the TVC?
    You pay 17% tax on taxable income over $200,000 (taxable income is income less deductions such as married person allowance, children allowance, etc). So if your taxable income over $200k, then the TVC benefits you. This is quite a low threshold, benefitting the masses.

    If you are planing to live in HK your whole life, then there might be a bit of hesitation whether to do or not, since the money will be locked up until retirement. But if you are an expat planning to leave HK at some point in the not too distant future, you can redraw it when you leave HK to start your next adventure, thus making it a completely no brainer decision for most expats.

    There is a clear loophole here for expats to save on tax. Any expat not taking out TVC should be ashamed of themselves for not saving tax and punishing the government for creating stupid systems with stupid loopholes.
    periphery831 and GentleGeorge like this.

  8. #18

    Join Date
    Feb 2009
    Posts
    7,539

    The $60k TVC which I took out with AIA on 4th December last year and saved me $10k in taxes, is today worth $59,940.83. Given all the shit of the last 6 months, I cannot complain about this. I wish all my other investments were worth what they were last December too .

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    periphery831 likes this.

  9. #19
    Quote Originally Posted by bdw:
    The $60k TVC which I took out with AIA on 4th December last year and saved me $10k in taxes, is today worth $59,940.83. Given all the shit of the last 6 months, I cannot complain about this. I wish all my other investments were worth what they were last December too .

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    Thanks, everyone.

    What MPF fund did you put it in?

    The DIS fund seems decent with the lowest mgt fee of 0.75%. Since 2018, I've had a return of 8%.

    Either that of go with healthcare and tech based North American funds despite the higher mgt fees.

  10. #20

    Join Date
    Feb 2012
    Location
    Park Island, Hong Kong
    Posts
    366
    Quote Originally Posted by periphery831:
    What MPF fund did you put it in?
    I looked for the lowest expense ratio one that tracked the HSI. Thus, I choose BEA's 0.72% FER BEA Hong Kong Tracker Fund in their BEA (MPF) Value Scheme. I would have picked HSBC (even though their HSI tracker has an FER of 0.79%) because I already have all my MPF money with them, a credit card with them, and a joint account, but alas they don't allow U.S. citizens to open up a TVC account with them. So I found BEA. However, others might suit your needs/wants better.

    I assume you've already played around with MPFA's comparison tool at https://mfp.mpfa.org.hk/eng/mpp_list.jsp

    As for which provider will currently offer the best TVC sign-up bonus, you'll have to shop around as I only recall the deals that applied in the 2019/2020 tax year.
    periphery831 and GentleGeorge like this.

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