Independent Financial Adviser
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Independent Financial Adviser
Can anyone recommend a reputable Independent Financial Adviser in Hong Kong, with whom you have had a good working relationship and found competent and impartial in their advice?
Mrs. Busbatics doesn't want me buying toys anymore, I'm being forced to put that hard earned cash to some use...
Thanks.
(PM me if you prefer)
Mrs. Busbatics doesn't want me buying toys anymore, I'm being forced to put that hard earned cash to some use...
Thanks.
(PM me if you prefer)
Reputable Financial Advisers in Hong Kong are as scarce as rocking horse sh1t.
Even in the best case they will charge you an arm and a leg by taking a percentage cut of your hard earned investments each and every year on a continuous basis.
Once I was in your exact position in CX wondering what I should do. I ended up attending lectures (with other CX pilots) that were given by an employee of Dr Doom (Marc Faber). This particular employee and gentleman was an ex-Ghurka Officer who had turned financial guru when he left the British Army. His stated mission was to educate pilots on how to invest by starting us with basic school economics and advancing through to stock assessment, warrants etc. For some reason, as an ex-military officer he felt a close affiliation with pilots that exhibited the discipline demanded by their profession, but did not have the time or inclination be become financially street-smart.
From time to time a student might ask if he could recommend a good Broker or financial adviser in Hong Hong. He would say Goddamn it man! You do not need one of these. What I am teaching you will allow you to advise yourself. It is that simple!
Over the course of the lectures we learned some very basic rules. These may not be verbatim, but pay attention anyway:
1. There are only four things that you can invest in; Cash (or cash like things such as bonds etc), Equities (shares etc), Property (or property like things) and Commodities (such as precious metals, works of art etc).
2. All of your long term investments should be in your end-user currency (ie if you are Aussie, your investment should be in Aussie dollars such as Aussie stocks or property if you intend to retire in Aus). This is because the exchange rate risk will prove to be too high in the long term.
3. If you want to play with the commodities, don't buy them, such as real gold etc. Instead buy shares in companies that produce gold etc. These companies are by definition experts in their products and have a much better chance of getting it right than you do.
4. Invest in bluechip stocks (top 100 stocks by size). Diversify and pick 10-20 of these stocks to spread your risk. This will save your ar$e if one company goes bad (eg Enron or AMP).
5. If you can't resist the urge to speculate or trade in speculative stocks, don't put more than a total of 5% of your portfolio into such ventures. In general you will lose 9 times out of 10.
6. Don't worry about the ups and downs of the market or try to pick the peaks or troughs to buy in or sell. Invest on a regular basis every month. The long term market outcome averages about 15% growth a year over the long term (plus dividends).
7. Invest in some property (private or commercial rental or whatever) to balance your shares portfolio. Typically when stocks are bad, property is good and vice versa.
If you must seek financial advice, go to an adviser in your home town or country. Many banks provide this service essentially free. You can try a range of them and cross-check the advice for consistency or otherwise. DO NOT use Hong Kong Advisers whatever you do!
Investing in stocks in your home country from anywhere you might be in the world is as easy as clicking a computer mouse. You DON'T need to follow the stock market if you have invested in a range of blue chip stocks. They will take care of themselves over the long run. This is a perfect strategy for pilots.
This advice turned me from a financially-dumb professional pilot relying on a wage and being economically-conscripted to work for a ethically suspect management, into a financially independent and very happy person. (Thank you Pat, wherever you are!).
Even in the best case they will charge you an arm and a leg by taking a percentage cut of your hard earned investments each and every year on a continuous basis.
Once I was in your exact position in CX wondering what I should do. I ended up attending lectures (with other CX pilots) that were given by an employee of Dr Doom (Marc Faber). This particular employee and gentleman was an ex-Ghurka Officer who had turned financial guru when he left the British Army. His stated mission was to educate pilots on how to invest by starting us with basic school economics and advancing through to stock assessment, warrants etc. For some reason, as an ex-military officer he felt a close affiliation with pilots that exhibited the discipline demanded by their profession, but did not have the time or inclination be become financially street-smart.
From time to time a student might ask if he could recommend a good Broker or financial adviser in Hong Hong. He would say Goddamn it man! You do not need one of these. What I am teaching you will allow you to advise yourself. It is that simple!
Over the course of the lectures we learned some very basic rules. These may not be verbatim, but pay attention anyway:
1. There are only four things that you can invest in; Cash (or cash like things such as bonds etc), Equities (shares etc), Property (or property like things) and Commodities (such as precious metals, works of art etc).
2. All of your long term investments should be in your end-user currency (ie if you are Aussie, your investment should be in Aussie dollars such as Aussie stocks or property if you intend to retire in Aus). This is because the exchange rate risk will prove to be too high in the long term.
3. If you want to play with the commodities, don't buy them, such as real gold etc. Instead buy shares in companies that produce gold etc. These companies are by definition experts in their products and have a much better chance of getting it right than you do.
4. Invest in bluechip stocks (top 100 stocks by size). Diversify and pick 10-20 of these stocks to spread your risk. This will save your ar$e if one company goes bad (eg Enron or AMP).
5. If you can't resist the urge to speculate or trade in speculative stocks, don't put more than a total of 5% of your portfolio into such ventures. In general you will lose 9 times out of 10.
6. Don't worry about the ups and downs of the market or try to pick the peaks or troughs to buy in or sell. Invest on a regular basis every month. The long term market outcome averages about 15% growth a year over the long term (plus dividends).
7. Invest in some property (private or commercial rental or whatever) to balance your shares portfolio. Typically when stocks are bad, property is good and vice versa.
If you must seek financial advice, go to an adviser in your home town or country. Many banks provide this service essentially free. You can try a range of them and cross-check the advice for consistency or otherwise. DO NOT use Hong Kong Advisers whatever you do!
Investing in stocks in your home country from anywhere you might be in the world is as easy as clicking a computer mouse. You DON'T need to follow the stock market if you have invested in a range of blue chip stocks. They will take care of themselves over the long run. This is a perfect strategy for pilots.
This advice turned me from a financially-dumb professional pilot relying on a wage and being economically-conscripted to work for a ethically suspect management, into a financially independent and very happy person. (Thank you Pat, wherever you are!).
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That is fantastic advice.
I have found that most "financial advisors" in HK are simply people trying to skim easy money off unsuspecting investors. I recently met with one in central who assured me that I should set up an account through them in the Isle of Mann (which is ridiculous to me since HK is essentiallly a tax free port), for which they would charge me 5% of my invested money. Through this account, I could invest in a myriad of hedge funds that aren't available to me in HK. The company would charge me 5% to buy each fund, plus management fees of 2.5% a year (oh, but these would be invisible to me since they would be built into the net asset value of the funds...!). Then, if these funds did particularly well, the fund managers would keep a few percent more for their excellent stock picking.
I also have friends who have dealt with gweilo advisors who specialize in expat situations who put my friends in high-risk hedge funds that turned out to be frauds!
As Flex says, better to be diversified across commodity equities, other equities, real estate, and cash/bonds. Use discount brokers to buy blue chip stocks (www.etrade.com.hk is one, so is www.boom.com.hk), and don't let other people manage your money, 'cause no one else has your best interests at heart!
I have found that most "financial advisors" in HK are simply people trying to skim easy money off unsuspecting investors. I recently met with one in central who assured me that I should set up an account through them in the Isle of Mann (which is ridiculous to me since HK is essentiallly a tax free port), for which they would charge me 5% of my invested money. Through this account, I could invest in a myriad of hedge funds that aren't available to me in HK. The company would charge me 5% to buy each fund, plus management fees of 2.5% a year (oh, but these would be invisible to me since they would be built into the net asset value of the funds...!). Then, if these funds did particularly well, the fund managers would keep a few percent more for their excellent stock picking.
I also have friends who have dealt with gweilo advisors who specialize in expat situations who put my friends in high-risk hedge funds that turned out to be frauds!
As Flex says, better to be diversified across commodity equities, other equities, real estate, and cash/bonds. Use discount brokers to buy blue chip stocks (www.etrade.com.hk is one, so is www.boom.com.hk), and don't let other people manage your money, 'cause no one else has your best interests at heart!
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Betaboy - I'm guessing it was a Wrapper - its so you wont pay excess tax if you return to Europe. If you won't return they maybe you needed to be clearer as to your requirements
Re your money - I'd suggest you get professional advice (it is almost always free then you can decide)
Its like asking Journalists what they think of a Flying incident
Re your money - I'd suggest you get professional advice (it is almost always free then you can decide)
Its like asking Journalists what they think of a Flying incident
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Thank you very much for your advice Flex, and thank you too Beta for your input.
I am aware the most so called IFAs are affiliated with some of the insurance companies and push only for the product that gives them the highest comission, not the product that would suit best the needs of the customer.
I know some on a personal level, most do not have any sort of background or training in Finance (even know an ex-model cum IFA), they just found an easy way of making a buck as an intermediary. The companies that they work for tell them to push to sell a certain plan and that is what they do. More of a salesperson than an actual advisor.
I too wouldn't go to one of these for biased advice nor would I let them manage (skim) my money....The reason I was asking is because I was looking to do one of those retirement plans for expats in the Isle of Man (Hansard, Royal Skandia, etc) which, I believe, are not bad, but unfortunately they have to be setup through a financial intermediary or institution, they can't be done directly. I was just looking for a reputable intermediary who would limit to getting his/her commission from the plan provider and not try to charge me a percentage of my investment.
These kind of jobs are what I like to call the Parasite Professions, they don't actually produce anything, they just like to live off what others produce...
CORRECTION - Mrs. Busbatics reminds me that it is now no further called MY money, it is now known as OUR money...
Thanks guys!
I am aware the most so called IFAs are affiliated with some of the insurance companies and push only for the product that gives them the highest comission, not the product that would suit best the needs of the customer.
I know some on a personal level, most do not have any sort of background or training in Finance (even know an ex-model cum IFA), they just found an easy way of making a buck as an intermediary. The companies that they work for tell them to push to sell a certain plan and that is what they do. More of a salesperson than an actual advisor.
I too wouldn't go to one of these for biased advice nor would I let them manage (skim) my money....The reason I was asking is because I was looking to do one of those retirement plans for expats in the Isle of Man (Hansard, Royal Skandia, etc) which, I believe, are not bad, but unfortunately they have to be setup through a financial intermediary or institution, they can't be done directly. I was just looking for a reputable intermediary who would limit to getting his/her commission from the plan provider and not try to charge me a percentage of my investment.
These kind of jobs are what I like to call the Parasite Professions, they don't actually produce anything, they just like to live off what others produce...
CORRECTION - Mrs. Busbatics reminds me that it is now no further called MY money, it is now known as OUR money...
Thanks guys!
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Try
Financial Partners International Ltd
Kevin McGlynn
3708 The Center
99 Queens Road Central
HK
+852 2827 1199
His PA Desiree Smirke is always keen to help and make an appointment.
He has a number of Cathay Pilots on his books. Good for wealth management and insurance purposes. Check out his Loss of Income protection.
My friends and I are very happy with what he has done for us.
Good luck
Financial Partners International Ltd
Kevin McGlynn
3708 The Center
99 Queens Road Central
HK
+852 2827 1199
His PA Desiree Smirke is always keen to help and make an appointment.
He has a number of Cathay Pilots on his books. Good for wealth management and insurance purposes. Check out his Loss of Income protection.
My friends and I are very happy with what he has done for us.
Good luck
airbusbatics,
There are lots of sharks out there just circling around waiting to gobble up pilots that might appear on the fringe of the circle.
But don't let the negative hype scare you into in-action. That is, not to invest your savings. That would be a very, very bad outcome.
For a start, try smallish sums of money invested directly into bluechip shares in the stock market of your country of retirement through a discount on-line broker. That investment will give you the experience and confidence to know what to do next.
It is normally free to join any discount online broker (Oz = https://www.comsec.com.au/ and other countries just check via google). You can run ghost portfolios on them in which you can simulate investments in shares. But there is nothing like putting your own cash on the line to focus your attention.
If that sound too hard, go down to the HSBC and start a share account and buy some HK bluechips. The local HSBC girl will fall over herself to help you. Invest say HK$20-40,000 in maybe 3 or 4 bluechip companies and sit back and watch the SCMP business pages.
Over the long term, a diversified investment in a stockmarket WILL make you a lot of money.
Financial advisers get to play and gamble with your money. And with that they try to build their own reputations. They don't care about you or your money except how it might affect their reputation and fees. They might win with your money sometimes, but even if they lose they still take a set percentage of your total invested funds each and every year, even if you are losing capital. What a job!
Learn and follow the Golden Rules of investing and you can advise yourself.
There are lots of sharks out there just circling around waiting to gobble up pilots that might appear on the fringe of the circle.
But don't let the negative hype scare you into in-action. That is, not to invest your savings. That would be a very, very bad outcome.
For a start, try smallish sums of money invested directly into bluechip shares in the stock market of your country of retirement through a discount on-line broker. That investment will give you the experience and confidence to know what to do next.
It is normally free to join any discount online broker (Oz = https://www.comsec.com.au/ and other countries just check via google). You can run ghost portfolios on them in which you can simulate investments in shares. But there is nothing like putting your own cash on the line to focus your attention.
If that sound too hard, go down to the HSBC and start a share account and buy some HK bluechips. The local HSBC girl will fall over herself to help you. Invest say HK$20-40,000 in maybe 3 or 4 bluechip companies and sit back and watch the SCMP business pages.
Over the long term, a diversified investment in a stockmarket WILL make you a lot of money.
Financial advisers get to play and gamble with your money. And with that they try to build their own reputations. They don't care about you or your money except how it might affect their reputation and fees. They might win with your money sometimes, but even if they lose they still take a set percentage of your total invested funds each and every year, even if you are losing capital. What a job!
Learn and follow the Golden Rules of investing and you can advise yourself.
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Thanks for the information Two Cocks.
Flex, I do have some investments running already, precisely with online brokers (lowest commission charge and the flexibility to manage my investments from the computer, sitting at home ).
But I would be interested in those lecturers you mentioned, any idea if that organization or the individual mentioned still does any?
Thanks,
Airbusbatics
Flex, I do have some investments running already, precisely with online brokers (lowest commission charge and the flexibility to manage my investments from the computer, sitting at home ).
But I would be interested in those lecturers you mentioned, any idea if that organization or the individual mentioned still does any?
Thanks,
Airbusbatics
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Royal Skandia
Airbusbatics,
seeing that you mentioned Royal Skandia earlier, I have a 25 yr plan with them set up through "The Henley Group" here in HKG. They are based in 9 Queens Road Central. This plan has done very well for me in recent years, and is intended to be one of my main sources of retirement income (apart from the houses! and UK state pension!) You need to contact a guy called Alex on 28241890. He is very helpful and has a regular 6 month review with you if you need it, more frequently if you request. They do not take any money from you, but get it in commission from Skandia, so for the pessimists amongst the community, I guess you pay in the end, but in reality, nothings for free...
Happy investing...
seeing that you mentioned Royal Skandia earlier, I have a 25 yr plan with them set up through "The Henley Group" here in HKG. They are based in 9 Queens Road Central. This plan has done very well for me in recent years, and is intended to be one of my main sources of retirement income (apart from the houses! and UK state pension!) You need to contact a guy called Alex on 28241890. He is very helpful and has a regular 6 month review with you if you need it, more frequently if you request. They do not take any money from you, but get it in commission from Skandia, so for the pessimists amongst the community, I guess you pay in the end, but in reality, nothings for free...
Happy investing...
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http://www.efficientfrontier.com/
Some good stuff on investing and portfolio management. Maybe not as accessible as a set of lectures - but if you've got the chops to be a pilot, you've got the chops to be a DIY investor like FlexibleResponse.
Some good stuff on investing and portfolio management. Maybe not as accessible as a set of lectures - but if you've got the chops to be a pilot, you've got the chops to be a DIY investor like FlexibleResponse.
airbusbatics,
Great to hear you are already online in investing. Get a subscription to a Shares/Investor/ETC monthly magazine from your home country. This will give you enough information to establish who the blue chips are and which are doing the best. Ignore the new startups and speculative stocks and invest in the big guys.
The lectures I mentioned fizzled after about a dozen lessons due to the difficulty of crew getting to attend them regularly with rosters as they were and still are. These lectures were about 15 years ago!
The company still exists in Hong Kong and Dr Doom is quite high profile. So that tells me you are not reading SCMP Business Section every day or watching the business news on TV closely! Get a subscription to the SCMP and start today!
To most pilots, business is boring as batsh!t. But you must learn what is going on in the business world so that you can advise yourself. It is not difficult, but does take some personal discipline.
If you don't take the time to learn, someone in Hong Kong (or maybe from your home country) will most assuredly take your hard-earned money off you! I guarantee it!
Great to hear you are already online in investing. Get a subscription to a Shares/Investor/ETC monthly magazine from your home country. This will give you enough information to establish who the blue chips are and which are doing the best. Ignore the new startups and speculative stocks and invest in the big guys.
The lectures I mentioned fizzled after about a dozen lessons due to the difficulty of crew getting to attend them regularly with rosters as they were and still are. These lectures were about 15 years ago!
The company still exists in Hong Kong and Dr Doom is quite high profile. So that tells me you are not reading SCMP Business Section every day or watching the business news on TV closely! Get a subscription to the SCMP and start today!
To most pilots, business is boring as batsh!t. But you must learn what is going on in the business world so that you can advise yourself. It is not difficult, but does take some personal discipline.
If you don't take the time to learn, someone in Hong Kong (or maybe from your home country) will most assuredly take your hard-earned money off you! I guarantee it!
Having worked for an airline previously in Oz, these "wise" investments were doing the rounds at one stage:
Olive trees
Gum trees
Ostrich eggs
Ostrich farms
Pine trees
Deer farms
Unfortunately
my timing was off and I missed all of these.
b.
Olive trees
Gum trees
Ostrich eggs
Ostrich farms
Pine trees
Deer farms
Unfortunately
my timing was off and I missed all of these.b.
Unfortunately, my timing was off and I missed all of these.
AVOID get-rich-quick schemes like the plague (especially if they are run by aircrew or your friends). They have too much associated RISK and will almost certainly make you get-poor-quick (and lose your friends).
Stick to INVESTING in blue-chip shares. They WILL make you rich! But you be patient and allow time for your investment to work its magic via the rules of cost averaging and compound interest.
Sow the seeds of your blue-chip INVESTMENT now, add a little more INVESTMENT fertiliser on a regular basis, and sit back and enjoy your aviation career.
Remember, "Patience Glasshopper!" When your flying days are done, you will reap more than you can spend.
Those who don't heed and take action on wise investing now will be economically doomed to fly the freighter in their later years until they expire alone in some dingy crew hotel bed...
If you don't believe me, ask some of the poor old suckerss why they are still flying and then sift through the BS in their answers to find the painful truth.
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For free advice on the Dow 30 check here:
http://www.valueline.com/dow30/index.aspx
You can also pay a few hundred dollars a year for the full set of reports (1500?) which is worth it in my opinion is you're looking to find +20% returns in a diversified portfolio.
Note that there are always only a few very attractive stocks out there so don't diversify too far or you'll be forced some stocks that aren't as much of a bargain. Perhaps 10 stocks is enough to stomach so long as you stick to quality companies are looking at the long term.
Just in the Dow 30 there are a few quality companies at cheap prices at the moment:
General Electric:
http://www.valueline.com/dow30/f3807.pdf
Home Depot:
http://www.valueline.com/dow30/f4402.pdf
American International Group:
http://www.valueline.com/dow30/f465.pdf
No need for luck in the long-term!
Good luck!
MrS
(p.s. this is all very easy if you stick to the basics, my mates in the city with maths and physics degrees are bored stupid, they're just doing basic arithmetic.)
http://www.valueline.com/dow30/index.aspx
You can also pay a few hundred dollars a year for the full set of reports (1500?) which is worth it in my opinion is you're looking to find +20% returns in a diversified portfolio.
Note that there are always only a few very attractive stocks out there so don't diversify too far or you'll be forced some stocks that aren't as much of a bargain. Perhaps 10 stocks is enough to stomach so long as you stick to quality companies are looking at the long term.
Just in the Dow 30 there are a few quality companies at cheap prices at the moment:
General Electric:
http://www.valueline.com/dow30/f3807.pdf
Home Depot:
http://www.valueline.com/dow30/f4402.pdf
American International Group:
http://www.valueline.com/dow30/f465.pdf
No need for luck in the long-term!
Good luck!
MrS
(p.s. this is all very easy if you stick to the basics, my mates in the city with maths and physics degrees are bored stupid, they're just doing basic arithmetic.)
Perhaps 10 stocks is enough to stomach so long as you stick to quality companies (and) are looking at the long term.
No need for luck in the long-term!