2025-01-20
8 Mins Read
Soaring living costs, stagnant wages, and inflation outpacing income growth are challenges many Hong Kong residents face. With these pressures mounting, more people are diligently saving while actively exploring ways to grow their wealth. In recent years, the term ‘wealth growth’ has become increasingly popular. But what does it actually mean, and how can we successfully achieve it?
As we step into a new year, let’s explore practical ways to grow wealth for ourselves and our families, paving the way for a future with less anxiety and more ease.
AXA's Savings Plans
AXA's savings plans offer sustainable wealth growth to save for your future while giving you protection.
What are wealth building tools?
The right wealth building tools can generate returns over time without demanding excessive effort or time commitment. In other words, rather than working long hours every day, these methods allow your money to ‘work for you.’
Examples of wealth building tools include:
For instance, stocks or funds you invest in may pay dividends, allowing you to earn income without investing daily time and effort. Similarly, savings insurance is a lower-risk wealth building tool that helps grow capital while providing protection.
Why should you understand wealth building strategies early?
Under the pressure of inflation, money loses value over time. Therefore, beyond simply saving for the future, it is essential to manage your existing funds effectively and enhance the growth potential of your savings to combat ongoing inflation, maintaining or even increasing your purchasing power.
Wealth building methods, such as investing in stocks or savings insurance, often offer long-term potential for value appreciation. Over time, you can benefit from the power of compound interest, further strengthening your wealth growth. For instance, the bonuses from savings insurance gradually accumulate as the policy duration increases, helping to achieve wealth growth. These significant returns provide you with greater choices in the future, enabling you to fulfil dreams or enjoy a higher quality of life, such as travelling, learning new skills, starting a business, or pursuing aspirations. Additionally, they can help you achieve long-term financial goals, such as retirement funds, children's education expenses, and wealth inheritance.
AXA's Savings Plans
AXA's savings plans offer sustainable wealth growth to save for your future while giving you protection.
Comparing wealth building strategies: choosing the right financial approach for you
1. Risk tolerance
When it comes to saving and investing, risk and return are closely linked. High-risk strategies may offer higher returns but come with greater uncertainty. In contrast, low-risk strategies provide more predictable returns but with lower growth potential.
2. Returns and goals
When selecting a wealth building method, it’s essential to ask yourself, ‘What is the purpose of this money?’ The answer will guide your decision.
Actually, we do not choose a single wealth building method and diversifying risks is essential. The most important thing when making decisions is to find a balance between returns and risks.
3. Capital Requirements
Different saving and investment methods come with varying initial capital requirements.
4. Time commitment
Wealth building tools are not automatic wealth generators; some may require significant time for maintenance and management. For instance, real estate investors need to regularly carry out property repairs and manage buying and selling issues, while stock traders must closely monitor market conditions to adjust their strategies. In contrast, some wealth building tools demand less maintenance, such as savings insurance. With savings insurance, you simply need to pay premiums regularly, allowing you to focus more on your family and work.
AXA's Savings Plans
AXA's savings plans offer sustainable wealth growth to save for your future while giving you protection.
How can savings insurance help you grow your wealth?
What is savings insurance?
Looking to grow your wealth in the long term while enjoying life insurance protection? Savings insurance is a financial product that combines protection with savings features. It not only provides life protection but also serves as a tool to enhance wealth, allowing policyholders to gradually accumulate capital and returns. Its key components include:
Advantages of savings insurance as a wealth building tool
1. A long-term, low-risk option
One of the primary benefits of savings insurance is its potential for steady returns. Throughout the policy term, the insurer employs flexible investment strategies across a broad range of asset classes, considering factors such as market conditions and fund surpluses. Investment strategies are adjusted as needed to ensure guaranteed benefits and maintain overall return potential, supporting the distribution of non-guaranteed bonuses.
AXA's Savings Plans
AXA's savings plans offer sustainable wealth growth to save for your future while giving you protection.
2. Suitable for different life stages
Another significant advantage of savings insurance is its versatility for investors at different stages of life. Whether you’re a young adult starting your savings journey or a parent planning for your child’s future, you can select a plan that fits your financial needs and life aspirations.
For young professionals, establishing financial planning early is crucial. While higher-yield investments may seem more attractive, the stability and compound growth of savings insurance can help secure wealth growth without taking on excessive risks, ensuring quality of life after retirement.
Parents naturally want the best for their children. With rising education costs, particularly for those considering overseas education, financial pressure can be significant. To ensure children have access to quality education and better opportunities in the future, having a clear savings goal and an effective plan is essential.
As children grow, the flexibility of savings insurance becomes increasingly valuable. For example, parents can withdraw part of the cash value from their policy to cover tuition fees while the remaining cash value continues to grow, supporting future needs. When parents pass on, the policy can serve as a tool for wealth transfer.
How to choose savings insurance
When selecting a savings insurance plan, consider the following key factors:
Start now: Achieve wealth growth with savings insurance!
Looking ahead to 2025 and beyond, with the ongoing global economic uncertainty and rising living costs, wealth growth will be crucial to securing financial stability. Whether you are preparing for retirement, increasing your life coverage, or achieving other financial goals, choosing the right wealth growth tool can help you stay composed in an ever-changing economic landscape.
In this process, savings insurance is undoubtedly an effective tool worth considering. It not only offers predictable returns but can also be optimised based on your needs and life stage. Therefore, regardless of which phase of life you are in, savings insurance can be a valuable method for growing your wealth. As the saying goes, ‘If you ignore your finances, they will ignore you.’ Start today by establishing the right financial plan and lay a solid foundation for your future!
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AXA's Savings Plans
AXA's savings plans offer sustainable wealth growth to save for your future while giving you protection.