Most Hong Kong people work hard to accumulate wealth for a carefree retired life with their better half, whereas parents would do and give their best to protect their children’s future.
Nevertheless, life is full of uncertainties and the economic environment has been fluctuating due to political, pandemic and various other issues. For these reasons, many of us look for low-risk wealth management solutions to hedge against market volatility and maintain long-term wealth growth.
Some believe in “value preservation of property” and focus on property investment, while some choose to purchase precious metals to offset investment risks. Are you one of these people? In this episode of Finance Wiz@Daniel, we will talk about some robust solutions to manage your wealth other than buying flats or gold, and prepare for wealth succession.
Are property and gold guaranteed to preserve value?
Since childhood, many of us were told property is value-preserving and that buying property is the most secure investment of all. You can live in the flat you bought or lease it out, or even pass it down to your children as a gift of your greatest kindness.
In an era where prices are ever-inflating, property does act as a financial haven for our next generation who can be freed from paying rentals or mortgage. However, the value of a property is variable as long as it is not cashed out, and no equitable distribution can be attained. Other issues to consider include the property’s age, deterioration and maintenance. It is questionable whether your children can sell it at their expected price in the future.
In fact, “property is value-preserving” is hardly guaranteed if you check the recent trends in the property market. It’s on the news that some owners had to cut the price to sell their flats or even suffered losses. To offer your children an actual token of gratitude, you need some wealth management tools of greater flexibility.
Apart from property, quite a few people love to buy precious metals, gold in particular, as a relatively conservative and safe solution. It is not easy to get a good grasp of the market trends, however, which can be affected by various factors, from political to economic. If you have clear and long-term goals of growing your wealth, think of something else than buying gold.
Asset risks are ever-increasing
Up till now, you may ask me: Would it be safe and sound to put my money in the bank instead?
I would like you to understand that nowadays our asset risks are ever-increasing. Traps are everywhere on the internet and we receive more and more phone calls from unknown sources, and all of these could cause you to lose money - avoiding high-risk investments does not necessarily mean secure assets.
In addition, dementia is another risk to the middle and old-aged. They might gradually lose their self-care and analytical abilities, and it will be too late to do asset planning when their minds are not functioning as well.
As a result, succession disputes may occur among family members. This is why you should consider allocating part of your assets to a life insurance plan that offers higher guaranteed returns and flexibility while locking in your gains. What’s more, it would be more secure if the plan allows you to change the insured an unlimited number of times or transfer part of the value of your policy to another insured.
Insure your wealth, protect your gains
With all the aforementioned risks and market conditions, you may want to insure your wealth - AXA Max Wealth Insurance Plan has an exceedingly short premium payment term of 2 years with a lump sum payment arrangement that offers you a guaranteed breakeven time as short as 5 years*, and the guaranteed cash value will keep growing throughout the policy years!
Therefore, you have a greater chance of accumulating higher returns by allocating part of your assets to this plan. As your medium to long-term plan, you can also make the most of its lock-in option to seize every opportunity and gain derives, allowing your hard-earned money to grow in the long run and benefit your next generations.
Watch the clip and learn more about the tactics to build wealth steadily.
*It is projected based on the assumed guaranteed preferential interest rate of 4% p.a. and will vary by change in the guaranteed preferential interest rate. The interest rate offered by the Company may be changed from time to time at its absolute discretion. Once your policy application is approved, such interest rate shall be fixed and not subject to change.
The above content is reviewed by Mr Daniel Lau - Head of Investment Proposition of AXA Hong Kong and Macau.
No warranty or responsibility is assumed by AXA Hong Kong and our related or holding companies regarding non-infringement, security, accuracy, completeness, adequacy, reasonableness, fitness for a purpose or free from computer viruses in connection with the information and materials provided. AXA Hong Kong and our related companies and holding companies do not accept any liability for any loss, damage, cost or other expense, whether wholly or partially, directly or indirectly, arising from any error, inaccuracy or omission of the information and materials to the extent that such liability is not excluded by law.
To grow and nurture your wealth, having a strategy is everything. Beyond a convenient 2-year premium payment term with lump sum payment arrangement and a high-speed timeframe to break even, Max Wealth Insurance Plan (“Max Wealth”) is a participating life insurance plan that gives you the strategy you need to fast-build your wealth.