If planning to do regular savings/investments to build a sum of money for education in 15 years time, what are the better options? FSM maps RSP? Which portfolio should I go for? Thanks!? - Seedly
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Asked 2w ago

If planning to do regular savings/investments to build a sum of money for education in 15 years time, what are the better options? FSM maps RSP? Which portfolio should I go for? Thanks!?

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Hi there!

In my humble opinion, building an education fund means you intend to liquidate your portfolio at a certain deadline (I.e. 15 years later). Since it is a time sensitive event, I would consider putting it in very low risk investment instruments, with majority of the portfolio in fixed-income (e.g. bonds) or even consider an endowment policy for it purely because when the money has to be there 15 years later, it HAS to be there.

An (aggressive) alternative would involve investing into higher risk instruments like stocks or ETFs in the first 10-12 years or so, and reallocating the entire portfolio into fixed-income closer to the 15-year deadline to preserve and protect any capital appreciation gained earlier.

Hope my thought process helps you!

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