WEALTH ACCUMULATION

Lump-Sum
Investments

Lump-Sum Investments

Having built up savings over time, the bank may not be the best place to leave it with inflation eroding your buying power over time. Historically, stock markets and funds, in particular, tend to outperform inflation and as such, it makes sense to have a proportion of your money invested to create greater returns.

The team at Platinum have access to tax-efficient solutions for all of your investment needs. Investment Linked Insurance Scheme (ILAS) solutions come with institutional discounts on funds, global share dealing facilities and all in one straightforward and competitive fee structure.

You can use your lump-sum savings to:

A client with a US$100,000 lump-sum available is looking for investment solutions on how to maximise returns without too much volatility.

US$100,000 can purchase a managed investment portfolio of funds within ILAS, and if these achieve a NET 6% per year return, in 10 years would be worth US$179,085.

If the same US$100,000 was invested into a property by using the power of leverage from a mortgage, it could actually control a US$300,000 asset. If this grew by 4% per year, the property would be worth US$444,073 in 10 years and the rental income would have repaid the cost of financing.

Assuming no debts has been repaid, our client now has property equity of US$ 244,073.

The advantage of funds is that they can be more liquid than property, so depending on the clients’ goals and objectives, we need to consider which is the best asset class for them.

As an example, if your timeframe is less than 5 years, funds may be a better solution for you due to the lower entry cost than for purchasing a property. However, if your investment time frame is longer, property may be a more attractive solution. Platinum’s sister company, Lifestyle Property, also a BCG company, can assist with all matters related to international property investments.

Naturally, there are pros and cons to both strategies, but the team at Platinum will go through your circumstances and determine the best strategy depending on your goal.

Protect Your Savings

In case of a sudden illness or accident, you don’t have to utilise your savings to pay the high price for medical treatment. Surgery and room costs in Hong Kong’s private hospitals can easily reach US$100,000 for major heart disease and cancer. This can be covered by the insurance plan, should you have coverage in place. Your savings should be used for their intended use, such as buying a home, funding your children’s education and retirement.

The cost of quality healthcare is at a premium. We have close partnerships with market-leading international healthcare insurance companies that offer sustainable products making sure that we can match the required level of cover to your budget.

We don’t charge you for our services, so premiums are the same as going directly to the insurance company. What you get is advice on the plan’s benefits and coverage limits that make sense to you and your financial situation.

Don’t leave your financial future to chance.

Contact Platinum Financial Services to help you through your financial journey.