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Newsletter

2004 3rd Edition (Other Editions)

1. How much do you know about retirement?

Do you know how much you are going to have just before your retirement? The result of a survey conducted recently shows that there are 40% people do not know how much money needed for living after retirement. If you choose to retire at age 65, and you live until age 80 (the average life expectancy), you will need to have 10 times of your final annual salary just before retirement. If you choose to retire early, you will need even more. It is easy to understand that the time for earning money is shorter while the time for spending money is longer.

Assumption: 1) Inflation rate is 3% 2) Retire at age 65 3) Live until age 80 4) Current monthly salary is HK$10,000

2. Value Investing

When investing on stocks, choose only several outstanding companies, purchase their shares at low price, hold them for a long period of time (for more than 10 years), which is called Value Investing. Here is how it works: 1) Search for companies those have stable profit growth in the past 10 years. 2) Calculate their average profit growth rate in the past 10 years. 3) Calculate the average PE in the past 10 years. 4) Multiply the earning per share of the current year with the average profit growth rate 10 times to get the earning per share (EPS) 10 years later. 5) Multiply the EPS calculated with the average PE to find the share price 10 years later. 6) Use the average profit growth rate to calculate the profit of each year for the coming 10 years. 7) Multiply EPS of each year with the Dividend Payout Ratio to find the total dividend paid for the coming 10 years and sum it up with the expected share price 10 years later. 8) Base on your required return (e.g., 10% per year), use discounting method to find the current share price. 9) Wait until the share price to reach the calculated price. 10) Buy and hold for long in order to enjoy the compound effect. Is it too complicated? Just give us a call, and we can do it for you free of charge!

3. China Assist Card

Statistical data shows that there are around one hundred and twenty thousand to one hundred and fifty thousand people going from Hong Kong to China through Lo Wu every day. There is approximately 10% Hong Kong resident purchases properties in Mainland China, mainly in Shenzhen and Guangdong. The new trend shows that more and more people are willing to go to work and spend their holiday in China. However, most of them do not realize the problem when they need medical service (especially for hospitalization case) in China. There are only two choices: 1) Go back to Hong Kong for treatment. 2) Need to pay a large amount of money for deposit before treatment. But most of us do not have enough money with us when emergency happened. Besides, we can see that most of us have greater confidence in the medical system of Hong Kong and will try our best to leave China as soon as possible.

In order to solve the above problem, our product “China Assist Card” can surely help you to pay for the medical expenses incurred: (i) It is accepted by over 100 high quality hospitals in Mainland China for Guarantee Admission Deposit Service. (ii) It also provides a protection amount of HK$250,000 medical expense reimbursement. (iii) Unlimited cover for Emergency Evacuation and Repatriation of Remains back to Hong Kong. The “China Assist Card” only costs you less than HK$2 a day!

4. Believe it or not!

Emergency Evacuation Case
Spring 2002, there was a serious car accident happened in Guangdong, more than 10 Hong Kong residents were seriously hurt. One of them was suggested by a local doctor to undergo a surgery to remove both of his legs. He spent about HK$20,000 to hire an aeroplane for transporting him back to Hong Kong for treatment. The final result was that both of his legs were cured without the excision surgery. It is a real example showing how our “China Assist Card” can give us a great help when we travel to Mainland China.