How can i help grow my kid's saving ?

Thoreldan

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Hi all,

My boy is 6 this yr and has about 6k sitting in posb kids account. The money is from gifts, angbaos, coin deposits.

Eventually will pass to him when he can manage it himself. In the meantime, what are options to grow the amount + whatever accumulation in the coming years ?

Abit about myself if it helps, I'm a follower of global etf + local etf + bond component (treating my cpf as bond component).

[To add on, this amount is 'his money' so minimumly i hope to have capital guarantee. This money is not needed for his education as I have catered for it separately.]
 
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Baroness

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I'm assuming a 10-15 year time frame in this case- I'll go all out into a equity etf or single blue Chip counter even though it's not.'guaranteed'
 

luei74

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Buying a whole life limited pay for 15 or 20 years, I bought the NTuC vivolife 50K sum assured 15 years limited pay for my kid..

Sent from Xiaomi MI MAX 3 using GAGT
 
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Hi all,

My boy is 6 this yr and has about 6k sitting in posb kids account. The money is from gifts, angbaos, coin deposits.

Eventually will pass to him when he can manage it himself. In the meantime, what are options to grow the amount + whatever accumulation in the coming years ?

Abit about myself if it helps, I'm a follower of global etf + local etf + bond component (treating my cpf as bond component).

[To add on, this amount is 'his money' so minimumly i hope to have capital guarantee. This money is not needed for his education as I have catered for it separately.]

Since you like ETF so much,
throw it into ETF and return back to him after he comes out from NS.
 

xtinkz

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I'm also thinking of the same. I saw from Fundsupermart they have 0% sales charge for their RSP. So many funds to choose from, wonder which is good for the long term, ie 10-15 years.
 

tangent314

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If you really must buy a unit trust instead of an ETF, then do it through Poems or DollarDex. Like FSMOne, they have 0% sales charge. However, FSMOne charges a platform fee, while the other 2 don't.
 

henrylbh

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Throw into his cpf special or medisave account. 4%

This idea got no benefit to the child till age 65. Still care about the child's welfare when child reaches that age :s13:

Worst is what will happen if giver unfortunately need the money due to unforeseen circumstances.
 

BBCWatcher

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Throw into his cpf special or medisave account. 4%

This idea got no benefit to the child till age 65.
First of all, parents generally hope their children will live to age 65 and well beyond. Children with more financially secure elder years in their futures have that much more financial flexibility and freedom before their elder years. Second, it's highly likely more dollars will be available for withdrawal as early as age 55 with a Special Account top up, not only from age 65 onward. Third, MediSave dollars can be quite useful at any age. Fourth, CPF accounts are uniquely globally protected, and wealthy families in particular are quite happy to stuff dollars into CPF accounts, including for their children, for that reason alone.

Generally speaking I think parents can do a bit better overall with other investment vehicles for their children, but I don't think MediSave deposits (in particular) are the worst idea. Far from it, and there are much worse ideas mentioned in this thread.
 

henrylbh

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This idea got no benefit to the child till age 65. Still care about the child's welfare when child reaches that age :s13:

Worst is what will happen if giver unfortunately need the money due to unforeseen circumstances.

First of all, parents generally hope their children will live to age 65 and well beyond.

Needless to say that practically all will live beyond 65 or 55. But that doesn't justify topping up their CPF, unless the giver sees the benefit (assuming it's a good investment vehicle) of receiver's premature death :s13:

Or the receiver (when still young) can really benefit from the giver's early demise?

Children with more financially secure elder years in their futures have that much more financial flexibility and freedom before their elder years.

Still need to care about a child when he reaches 55 or 65? If he falls through the cracks before 55 or 65, the top-ups are of no bloody use at all. If giver falls through the crack due to circumstances, his money in the child CPF can help?

Second, it's highly likely more dollars will be available for withdrawal as early as age 55 with a Special Account top up, not only from age 65 onward.

Part of top-up only available at 55 if top-up is sufficiently high. But the child cannot touch it even if he desperately need it or CMI before 55. He will be agonised will money in CPF and may even curse the giver :s13:

Third, MediSave dollars can be quite useful at any age.

That's a lousy idea even if it is useful at any age. Child can use parent's MA in most cases, unless parents want to protect their MA as bequest to children.

Fourth, CPF accounts are uniquely globally protected, and wealthy families in particular are quite happy to stuff dollars into CPF accounts, including for their children, for that reason alone.

Far from it, that uniquely globally protected (for that reason alone :s22:) is NEVER the concern for those wanting to top up. It's highly irrelevant here to touch on wealthy families topping up their children's CPF.

Generally speaking I think parents can do a bit better overall with other investment vehicles for their children …..

Can agree that parents can do a bit better overall with other investment vehicles, rather than topping up children's SA, if the parents are savvy enough, but how many? Not many still doesn't justify topping up. If many, topping up would be dumb :s13:

but I don't think MediSave deposits (in particular) are the worst idea. Far from it, and there are much worse ideas mentioned in this thread.

Saying that there are much worse ideas does not justify MA deposit :s13: That's running out of idea or justification :s13:
 

romeo88

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You do know only the guaranteed column is guaranteed, every thing else is not ?

Policies carry too much risk and too much distribution costs.

Buying a whole life limited pay for 15 or 20 years, I bought the NTuC vivolife 50K sum assured 15 years limited pay for my kid..

Sent from Xiaomi MI MAX 3 using GAGT
 

BBCWatcher

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Medisave top-up to child's MA useful at any age :s22:
Yes, that's a simple fact.

Needless to say that practically all will live beyond 65 or 55. But that doesn't justify topping up their CPF, unless the giver sees the benefit (assuming it's a good investment vehicle) of receiver's premature death :s13:

Or the receiver (when still young) can really benefit from the giver's early demise?

Still need to care about a child when he reaches 55 or 65? If he falls through the cracks before 55 or 65, the top-ups are of no bloody use at all. If giver falls through the crack due to circumstances, his money in the child CPF can help?
I think you may lack the imagination to place yourself in the shoes of a genuinely wealthy parent. There are such people, and they do not have the constraints or concerns that you're describing. Or at least they don't have a reasonable basis for such concerns.

Part of top-up only available at 55 if top-up is sufficiently high.
Yes, that'd be the plan.

But the child cannot touch it even if he desperately need it or CMI before 55. He will be agonised will money in CPF and may even curse the giver :s13:
First of all, see above about genuinely wealthy parents. Second, that's just not true. CPF has a list of calamities whereupon premature withdrawals are permitted.

That's a lousy idea even if it is useful at any age. Child can use parent's MA in most cases, unless parents want to protect their MA as bequest to children.
Yes, that'd be the plan, or part of it anyway.

Far from it, that uniquely globally protected (for that reason alone :s22:) is NEVER the concern for those wanting to top up. It's highly irrelevant here to touch on wealthy families topping up their children's CPF.
Oh, we very much disagree about that. Plenty of wealthy families expend a great deal of effort to shield assets. CPF works quite well for a small portion, as many certainly understand.

Can agree that parents can do a bit better overall with other investment vehicles, rather than topping up children's SA, if the parents are savvy enough, but how many? Not many still doesn't justify topping up. If many, topping up would be dumb :s13:
Now you're arguing the other side? Or every side?

I'm not enthusiastic about this particular idea, but I understand why some parents might be more inclined than I am to do it.

Saying that there are much worse ideas does not justify MA deposit :s13: That's running out of idea or justification :s13:
No, it's an expression of priorities. I don't think MA and SA top ups for children are top priorities, but they're above average ideas, in my view.

Are you just looking for arguments in this thread, Henry?
 

MikeDirnt78

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CIMB Junior Saver account is a no frills account for the kids.

Lower interest rate at 0.8% pa but with so much liquidity than CPF.
 
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