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Mackie

27 Feb 2020

SeedlyAMA

What is the best options to help my child to invest when he is young, say 8 -10 years old?

What is the best options to help my child to invest when he is young, say 8 -10 years old? Better to open joint account to invest in those RSP or invest in their behalf in lump sum in own account first then transfer to them when they are older?

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Pang Zhe Liang

27 Feb 2020

Fee-Based Financial Advisory Manager at Financial Alliance Pte Ltd (IFA Firm)

You need to know your investment objective and the capital that is available. In case you are wondering, here is a comparison between a lump sum investment vs via dollar cost averaging: https://www.blog.pzl.sg/dollar-cost-averaging-s...

Through comprehensive financial planning, we are able to set a goal based on the budget that you have, alongside with your risk appetite. Thereafter, we will discuss on the best way to grow your money for your child by taking calculated risk.

With so many instruments available in the market, the key will be to find out the right instrument that fits your investment objective.

Besides, as we focus on growing your money for your child, don't forget to protect your wealth. For instance, what happens to the investment when you are no longer around? Does it make sense to expect the investment to grow as before?

Consequently, I will always advise my clients to set up a Trust or to draft a Will to eliminate some of these problems. Here is what a Will is: https://www.blog.pzl.sg/what-is-a-will-singapore/

Furthermore, a lot of my clients prefer to save or invest through an insurance company so as to eliminate these unnecessary complications. Therefore, do consider these instruments as part of your overall portfolio planning.

Here is everything about me and what I do best.

Lump sum investment tends to outperform statistically over a prolonged period.

Depends on your objective. If it’s just to kickstart the investment and the time horizon is 20 years, lump sum is statistically better.

If it’s to provide discipline so that they can take over once they earn money, DCA will be better.

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