Lik

How is that different from 401(k) and HSA
快樂牛郎 發表於 2009-10-21 22:55

Biggest difference is, compared to HK, US has a much higher tax rate, and both 401k and HSA are registered tax shelters, thereby providing both instant and longer term financial incentives to the plan contributer. Furthermore, Americans can choose to opt out of either plan if they wish.

I'm not 100% certain on this, but I think in Hong Kong, both 強績金 and the proposed (but failed) 強醫金 are mandatory. Furthermore, since most people do not end up paying any income tax anyway, 強績金 and 強醫金 don't offer any tax incentives to the contributor. In fact, by taking the money away from the worker now, the funds are actually hurting the current financial status of the worker.

For 強績金, I think the sum of money is either inaccessible until the contributor turns 65, or extremely difficult to dip your hands into. With 401k, I think you just pay for the tax penalty if you want to retrieve the $$. (But I am not 100% certain on this.) Withdrawing funds form HSA for medical purposes does not incur any penalty. I don't remember the accessibility rules for the 強醫金 proposal, but I think the funds are inaccessible until 65 as well.

At any rate, the biggest differences are the tax shelter incentive and the optional aspect of the plan.

-Lik

peter236

都係金融海嘯之前發生既事啦~
小弟覺得應該唔關印銀紙事woh.

美金係咁跌, 我銀包入面d 港紙都不斷貶值中. 不如比d 過你駛下啦~
mcjohnjohn 發表於 2009-10-22 00:29

It is happening right now.

peter236

Biggest difference is, compared to HK, US has a much higher tax rate, and both 401k and HSA are registered tax shelters, thereby providing both instant and longer term financial incentives to the pla ...
Lik 發表於 2009-10-22 00:32

Your campbell soup government is going to squeeze you dry with the HST. If the US/Canada want to provide a tax shelter, why don't they just reduce the tax rates now, instead of implementing high tax rates and then give you a little tax shelter? The complicated tax system here is very inefficient. Here you still have the CPP.

Hong Kong's system is actually very good for the long term planning of the retirement of the aging population. It is good for people who work for small companies that do not have company sponsored pension schemes. It is also tax deductible, unlike what you claimed.

Please see:
http://www.mpfa.org.hk/english/abt_mpfs/abt_mpfs_fms/abt_mpfs_fms_tc/abt_mpfs_fms_tc.html

Lik

I am not even gonna bother replying to idiotic posts. Think a little before you spew your crap la.

-Lik

peter236

I am not even gonna bother replying to idiotic posts. Think a little before you spew your crap la.

-Lik
Lik 發表於 2009-10-22 01:03

Know-it-all Lik, it is you who was spewing crap again, and of course, got embarrassed again, by your own Hong Kong bashing.

Lik

How is that different from 401(k) and HSA
快樂牛郎 發表於 2009-10-21 22:55

I should add that from an employee's perspective, 401k's are generally inferior to a defined pension plan. Studies have shown that for most recent-ish retirees (those retired in the last 10 years), they will almost always be better off (receive higher payment amounts) in their retirement if they a defined pension plan instead of a mere 401k.

Of course, to the employer, proper pension plans are a lot more expensive than 401k's. So in the interest of their balance sheets, 401k's are a lot more attractive than pensions.

-Lik

mcjohnjohn

力兄, 小弟覺得近排Peter 仔既討論已經比以前理性左好多, 絕對係一個進步! 就好似見到中國改革開放成功一樣!
希望Peter 仔再會進步多d, 不過呢d 都係慢慢黎唔急得, 就好似中國既民主步伐一樣, 都要從序漸進啦~ 唔知LYK有冇咁長命呢?

快樂牛郎

I should add that from an employee's perspective, 401k's are generally inferior to a defined pension plan. Studies have shown that for most recent-ish retirees (those retired in the last 10 years), t ...
Lik 發表於 2009/10/22 00:17

That's only if you set your pension benefits at unsustainable levels.
Money doesn't come from nowhere.

Defined benefits is history.  It's a crime to even mention it.

快樂牛郎

Biggest difference is, compared to HK, US has a much higher tax rate, and both 401k and HSA are registered tax shelters, thereby providing both instant and longer term financial incentives to the pla ...
Lik 發表於 2009/10/21 23:32

I think you are right, but most people just put a fixed % of money into their 401(k) anyway.
All these are scams, but I am not complaining since they keep the stocks market floating.

peter236

I should add that from an employee's perspective, 401k's are generally inferior to a defined pension plan. Studies have shown that for most recent-ish retirees (those retired in the last 10 years), t ...
Lik 發表於 2009-10-22 01:17

The US is bankrupt anyway, they have huge unfunded liabilities.