Near Retirement: How to Lock In MPF Gains?

Near Retirement: How to Lock In MPF Gains?

AXA’s Lee Ping-hei wrote in July 2011: past 50, the pre-retirement years are critical — adjust the portfolio to lock in accrued benefits. Start at 55: cut equities to 10-20%, hold 50-60% in guaranteed and conservative funds, 20-30% in bonds.

What if markets crash mid-adjustment?

Allow plenty of time and adjust in stages — never one big switch; if equities plunge, pause and wait for calmer markets. That spreads the market risk.

What withdrawal options come at 65?

Trustees notify you with three: (1) withdraw all, (2) leave it all in a preserved account to keep investing, (3) withdraw part and preserve the rest. Before choosing, review future income, assets, inflation expectations and medical costs — how long will liquid assets last?

When to take it?

In no hurry, let it compound until you need it or prices look right. Compare MPF funds for conservative picks.