Considering locking up some money for about 20 years eventually to distribute for my family. I currently personally use HSBC Jade and Cit Private Client. The advice I got from the latter put me off. My RM suggested purchasing one of those AIA insurance / savings plans with have a 20 year IRR of about 4%, not guaranteed. The guaranteed IRR is something sub 2%. This just struct me as terrible advice for the time horizon. Are we really looking at 20 year equities being worse than 4% a year? There's minimal effort at this level to understand my financial goals, my cash flow, etc. When they make recommendations I feel like it's without consideration to those factors. I realise they earn fat commissions on these products and it got me thinking of looking for another entity for financial guidance.
The amount is between USD 5m - 10m, so qualifies for some private banking minimums, but given the service I've experienced at lower tiers, I'm skeptical that the private banking divisions of the same banks would be much better? Plus I'm skeptical of granting an entity that potentially earns commissions on products a discretionary investment mandate. This thread here where someones BEA was churned for fees comes to mind.
To be honest, I'm much more comfortable with a custody fee (provided it's low enough) than I am knowing that they would also generate commissions on certain products they enter in my account.
Does anyone have recommendations of what sort of entity am I looking for? Is it an independent financial advisor? Planner? Is this a thing in Hong Kong? A fee based fiduciary advisor? I would ideally love to surrender the management of this portfolio to someone such that my involvement and maintenance would be minimal. Possibly quarterly performance monitoring, but not too much by way of investment decisions.
My alternative for low maintenance management would just be to have the portfolio in a brokerage and rebalancing to some set targets quarterly and not think about it. This just feels like a bit of a blunt instrument and I don't know what the best target allocation for my case would be. So it's likely I would still seek guidance on the target allocations.
- VXUS: 40% (Expense Ratio: 0.08% ) (Global Stocks - Ex-US)
- VOO: 25% (Expense Ratio: 0.03% ) (US Large and Midcap Stocks)
- VGT: 20% (Expense Ratio: 0.10% ) (tech stocks)
- VNQ: 5% (Expense Ratio: 0.12% ) (Real-Estate)
- AGG: 2.5% (Expense Ratio: 0.04% ) (US Aggregate Bonds, Investment Grade)
- BND 2.5% (Expense Ratio: 0.04% ) (Total Bond Market)
- EMB 2.5% (Expense Ratio: 0.39% ) (Emerging Market Us Dollar Denominated Sovereign Bonds)
- IAU 2.5% (Expense Ratio: 0.25% ) (Gold)
What am I looking for here? Does anyone have any recommends or good experiences? If it complicates things further, the assets are currently held by a BVI entity.
Edit: This isn't my money. This is my families money, hence the desire surrender it to another party to manage so we can avoid too many conversations about the money for a period of time. None of the family needs urgently it and I think we're all comfortable locking it up for 20 years. It would be nice to have another party be responsible for the allocation decision so nobody (specifically me) gets flak for any mishaps in performance as the other members of the family are more passive about the management of the money.