Hong Kong's Best Savings Plan – How it Works

Hong Kong International investment advisor

A good savings plan, at a minimum, has the following features:

  1. Secure, automated handling of regular monthly contributions
  2. Allocation of those contributions to an appropriate balance of stocks and bonds to grow those savings at a rate of 4 – 12% per year, on average
  3. Flexibility to withdraw funds or increase contributions at any time with no lock-ups or penalties
  4. Full transparency on fees and holdings, so that you know what you own and what you pay
  5. For non-local savers, the ability to hedge your savings into your home currency (e.g. dollars, euros, or pounds)

We are confident that we run the best savings plan in Hong Kong partly because we deliver on all fiveย of the above features with a level of service bigger firms or less flexible plans simply can’t or don’t offer.

Savers who set up automatic monthly contributions have the usual minimum account balances waived, but may still see some fees from Interactive Brokers before their account balance exceeds HK$80,000. ย Our management fee starts as low as HK$5/month for every HK$5,000 contribution, and accounts are eligible for discounts and additional services upon reaching certain goals.

Some math on what saving $5,000/month adds up to over time:

  • After 10 years, this grows to $800,000 @4%, $1,000,000 @8%, and $1,200,000 @12%
  • After 20 years, the plan has $1,900,000 @4%, $3,000,000 @8% and $4,900,000 @12%
  • After 30 years, this plan would have accumulated $3,500,000 @4%, $7,400,000 @8% and a staggering $16,200,000 if you could sustain 12% per year for 30 years

These numbers are easy to glaze over, but hopefully illustrate the power of setting up a savings plan to be early, easy and automatic. ย If you have questions, feel free to contact us through the form below: