Advertisement
I have no knowledge in investment. Should I:
(1) Top up their CPF RSTU, and bye bye the money until age 65?
(2) Do VC and transfer from OA to SA after they reach eligible age of 15 y/o? This will allow them to withdraw excess fund at age 55 after setting aside FRS.
(3) Endowus (what % of portfolio)?
(4) MoneyOwl (what % of portfolio)?
(5) i will RSP $200/mth into each kid's account. What RSP should i get?
7
Discussion (7)
Learn how to style your text
Reply
Save
Just RSTU and forget about it.
$11k is $61,781 44 years later.
That's 10.49% p.a. How you gonna beat that for investment?
When the child grows up, he will manage his own investments him or herself. It is meaningless to invest for them, they won't appreciate or understand it. They have to do their own investments or not, depending on their characters and aptitude towards investments.
Pampering them may not be the best thing.
Reply
Save
Jiayee
15 Dec 2020
Salaryman at some company
No. It's way too illiquid. Your children deserve some freedom in how they want to wield their savings.
No. For the same reasons as above.
Can but it will be under your name as they are too young to open an account. % depends on when you need the money. If they need it in 5 years, go for a lower % equities. If they need it in 20 years, feel free to go for 100% equities.
I prefer Endowus to MoneyOwl.
I've not used bank RSP but people have been mentioning FSMOne's RSP. Can check that out. As for endowment plans, better not, it's very illiquid for the first 20 years (or withdraw at a principal loss or loss taking into account inflation).
Reply
Save
Elijah Lee
15 Dec 2020
Senior Financial Services Manager at Phillip Securities (Jurong East)
Hi TANPL24,
Any CPF option selected means that your monies lose liquidity for the foreseeable future.
If you think you might need the fund for their education, then please don't put it in CPF.
For (3) and (4), these can be an option to grow their monies but you must be aware that there are risks. If the market crashes right before they need the funds, you might end up with lesser than what you put in, and worst still, forced to liquidate prior to paying their school fees.
Thus, if you do (3) and (4), aim to have the portfolio progressively stepped down in risk or even liquidated and held in cash as their university enrollment year approaches.
Reply
Save
Endowus
15 Dec 2020
1) They would only be able to indirectly access the money at 55, even though interest rates are up t...
Read 3 other comments with a Seedly account
You will also enjoy exclusive benefits and get access to members only features.
Sign up or login with an email here
Write your thoughts
Related Articles
Related Posts
Related Posts
Advertisement
You should do some research yourself and then take good decision which is better for your children. Kids are our most precious asset and we need to take decisions very carefully about their future. Well I would share some learning material for kids with all parents. These are educational activities and games and suitable for kindergarten. Here is the site https://wunderkiddy.com/worksheet/left-and-right