Urgent MPF & ORSO advice please

I'm going on to a local contract and need to sign up - ideally by Monday! - but I don't know anything about MPF & ORSO, except that all the high, medium and low risk return level funds in the list I have been given to look at by my new company look pretty bleak. I guess they all do right now...


I don't expect to receive free advice on how to run an MPF & ORSO portfolio for free via this site, but could anyone suggest a professional I should try to see or can someone point the way to information I can read so that I (who knows absolutely nothing about this sort of thing) can obtain clear, objective advice on the best way to go forward?


Many thanks if you can help.

Well you're lucky having access to an ORSO arrangement and you should definitely go for that. Is your employer making a contribution or matching your contribution?


If you are able to make additional voluntary contributions into it then you should do so as there really is no better structure to hold pension/savings in, in Hong Kong, other than an ORSO scheme.


You ideally want to make use of the ORSO scheme as much as possible as indvidual savings plans that you might currently use tend to be very poor, restrictive and expensive.


What fund choice do you have access to? if it is limited don't worry too much as the structure of the scheme and the security it affords to your savings is the most crucial element of ORSO.


You can also pay in 15% of your total emoluments tax free via an employer contribution and this tax relief is vested over a 10 year period.

qpzmgh,

"You can also pay in 15% of your total emoluments tax free via an employer contribution and this tax relief is vested over a 10 year period."


Can you clarify how the 15% of total emoluments is tax free in HK for ORSO? IRD has been taxing on the entire amount, and only allowing the standard $12,000 deduction. Any pointers on where to look for the official details. thnx!

'Salary sacrifice' is what qpzmgh is referring to. You ask your employer to reduce your salary by X and pay X into your fund on your behalf. You didn't earn X and so don't get taxed on it as income. However, leave early (before 10 years) and tax can come back into play. The MPFA website has fairly good info on how the system works.