Anyone left MPF in place despite leaving HK?

[mangoprawnsalad]

Just curious if anyone left MPF in place rather than applying for early withdrawal.

Since now doesn't seem like a good time to cash out even though the HK equities have rebounded somewhat since late last year. And it is after all a tax-free account where there doesn't seem any harm to allow it to compound until retirement.

Any thoughts?

[aw451]

The only real issues I can think of are:

- forgetting about the MPF and potential issues with probate if it comes to it
- availability of lower expense funds elsewhere (MPF expenses are generally a rip-off)
- possible tax issues in your destination country if they don't recognise the MPF as a retirement scheme (less likely)

[pin]

The only real issues I can think of are:

- forgetting about the MPF and potential issues with probate if it comes to it
- availability of lower expense funds elsewhere (MPF expenses are generally a rip-off)
- possible tax issues in your destination country if they don't recognise the MPF as a retirement scheme (less likely)

- if you are BNO moving to UK

- if you know you will eventually come back to HK to work

- if you know that rather thab putting the money somewhere proper that once you actually get the money you will charter the first helicopter to Macau and spend that money on blow, hookers and the craps table in one hour.

[vmlinuz]

If, like me, you were dumb enough to withdraw, then come back to Hong Kong for another 15+ years...

At least I didn't actually pay MPF for most of that time, since I was freelancing and nobody seemed bothered when I put $0 down on my tax return for MPF payments!

[sarsi]

If you're polling.. everyone I know who left recently and had >HK$50,000 left it and didn't withdraw:

- too low(high) a sum to write off and abandon
- but not low(high) enuff, can't bear to withdraw now and take the paper loss
- all relocating or base in Asia/trip back to HK np

[shri]

- but not low(high) enuff, can't bear to withdraw now and take the paper loss

That is a weird behavioral issue. One can always take the paper loss, knowing that the equivalent ETF / fund is also at a similar loss and invest in that, or fix old mistakes and invest in a better asset class knowing that there are better prospects out there.

What pin says is very correct... if you're invested in HK sector MPF funds, 2800 is cheaper and will perform better than the funds that are simply buying 2800 and charging you a premium for it.

The only "good thing" about MPF is that it takes an effort to redeem... which prevents more behavioral mistakes like trying to time the market and trading.

[bdw]

I left early 2020 and still keep my MPF account for two main reasons. 1) Im a lazy fucker, 2) I can load up my Octopus card with $10k-$20k in consumption vouchers per year from the government. Once I withdraw MPF, the government seems to use this as an indicator to stop giving out freebies.

I've been tracking my MPF value over the last 3 years (without employment in HK so I havent added a single cent into it during this time). Now I can say the value is higher than it was pre-COVID, but not as high as it reached in 2021. Basically 2021 was an awesome year for MPF, and 2022 was a shit year:

Jan-23 $535k
Oct-22 $478k
Aug-22 $540k
Jun-22 $549k
Apr-22 $587k
Feb-22 $592k
Nov-21 $617k
Aug-21 $613k
Jun-21 $617k
Apr-21 $606k
Feb-21 $582k
Nov-20 $528k
Aug-20 $519k
Apr-20 $440k

My thinking now is basically once the freebie vouchers dry up then thats probably a good time to withdraw. Hopefully it also coincides with a recovery in the price. Jan 2023 looks good so far!

[sarsi]

That is a weird behavioral issue

Yes.. that is also 90% of adult humans I observe..

Money I don't get to access freely isn't money to me.. and since Sg CPF contri is deducted auto and it's a blackhole after that, there's always 5% in me that assumes any money taken by any govt is just them jacking the money off to blow it on hookers and all the pamphlets and statements I see are fake.. just 5% :p

[shree711]

My sister got married and left Hong Kong. She withdrew her MPF.

[mangoprawnsalad]

True.. but I do believe there is a value for most retail investors / non-finance people who are really very poor investors.. they are better off in some index-like instrument locked for the long term even if said instrument has high fees. Otherwise they would go after hot stocks or worse put in the bank.