Saving for child’s education

Dear all, I have a sum of money that I have inherited and would like to use this for my child’s education - approx. 20 yr runway and one time injection.

I’m considering between an Endowment plan (relatively lower returns but guaranteed returns) vs. Index funds (eg. STI/S&P500 with more attractive returns, but with higher risks). Can I ask if there are other alternatives that I should consider for this purpose as well? Thanks!

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1M45

01 Jun 2021

Split your $ between 2?

Endowment approx. 2% guaranteed?
S&P500 approx 8% (conservatively)?

Split 50 - 50: (2 + 8)/2 ~ 5% p.a.

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PolicyWoke

01 Jun 2021

Turbo-charge Your Savings with REPs at PolicyWoke

Hi Anonymous,

An alternative you can consider, would be resale endowment plans via a resale broker. Resale endowment plans are those which were sold by original owners to resale brokers, and are then put up for resale. Typically those plans will mature between 5 and 15 years inclusive, and the projected IRR is between 3.6% and 4.6% inclusive.

Clients who have bought endowment plans from us are mostly those who are:looking for shorter-term ones for:

whatever financial objectives they have (e.g. retirement), and/or
saving up for their children's education expenses

Disclaimer: PolicyWoke is a resale endowment plans broker

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