25 Aug 2020
Prefer it to be flexible as I’m may need to withdraw money frequently to buy stock. Also any good insurance for me to buy for my kid other than hospitalisation ? Also pros n cons of bank loan VS hdb loan
In general, savings accounts have little liquidity as there is often a lock in thats required. That being said, you can look at Singlife.
If you are looking for insurance to buy for your kid, you can look at whole life insurance. If you opt for, say a 12 year premium period, by the time he reaches 14 years old, he will be insured for life. That way, you give your child a headstart and he doesnt have to expend his much resources in getting himself insured in the future.
Do consider setting a sum of money for your child's future education! Whether it's through an endowment plan etc.
If you look at bank VS HDB loan, bank loan interests are typically lower but they arent as forgiving as compared to hdb loan. And you will need to fork out a higher downpayment as compared to HDB loan. Some people choose to go with HDB loan at the start since the initial downpayment is lower and then switch it. You can switch from a HDB loan to a bank loan but not the other way round.
All in all, do consult a licensed financial advisor to explore your options. All the best!
Financial planning is an integral part of life. You can reach me here to find out more.
I would suggest to speak with a few advisors to get sensing on how you should proceed. Your situation is rather unique and manys considerations has to be thought through before to take into account of the bigger picture.
That being said, there are a few guidelines that can still be relevant:
Ensure that you have sufficient emergency funds. You may consider having 6-12 months' worth of expenditure (or more) in a savings account.
Don't invest with money you cannot afford to lose.
Know what you are (going to) investing in, and how it works for you.
Make use of grants and schemes such as the Baby Bonus Scheme/Parenthood Tax Rebate/Foreign Domestic Worker Levy Concession
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