也談投資－夢想出走、夢想吾撈、夢想美食

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Hubby and I are investment idiots, we only invest in blue chips such as HSBC and we, just like most HKers, trust any big companies, including banks (who would calculate whether you bank has cheated on you on interest) and most investment funds.

Today, hubby suddenly told me that assuming that your mpf had a very steady growth and using their annual rate (2% ANNUALLY!!!) as the basis, if you got $3 million when you retired, you would have paid $1 million to the MPF company

o下, o甘即是同佢分身家

Of course, if you are so lucky that the value of your fund surges only in the last year before you retire (the MPF could only get 2% of the big surge for 1 year), for example, your $3million become $6 million in just one year - then the total you have paid to MPF company (still assuming steady growth in previous N years) would only be $1.12 million (vs. $1 million in our previously quoted case).

I was outraged with the above figures. I hence support the suggestion made by the new MPF Chairman/ Director?? 范鴻齡 that employers should have real choices in picking their retirement fund.

Before employers could have such choice, I would urge my friends not to top up their MPF investment but just keep to the required min amount (5% of salary or $1000, whichever is lower)

and use the money to buy stocks - HSBC, or even tracker fund