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Old Yesterday, 08:55 AM   #1
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Investing for my Children

Hi
Am thinking of starting investments for my kids ( below 18) savings account given that itís sitting in low % deposit account now.
Prefer to be able to use their own name ( with Joint w me ) rather than use my own trading account so easier to separate and track.

1. Which platform allows for joint names with Children ?
2. Which platform ahas lowest fees ?

Thinking of investing either in specific stocks ( which kids are familiar ) so easier to explain investing to them or invest in low cost ETFs.

Any advice appreciated.
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Old Yesterday, 10:50 AM   #2
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Am thinking of starting investments for my kids ( below 18) savings account given that it’s sitting in low % deposit account now.
Prefer to be able to use their own name ( with Joint w me ) rather than use my own trading account so easier to separate and track.
You could do that, but it’s nearly always more expensive. All fixed commission elements are effectively doubled. For example, instead of one buy of VWRA or IWDA per month, you have two: double the commission. There are also potential negative consequences involving need-based calculations. For example, if your child ends up attending a U.S. university the child’s tuition bill could be much higher since standard U.S. financial calculations weigh the child’s assets much more heavily than even parental assets.

So, don’t do that. Just continue saving and accumulating wealth, then transfer a portion of the assets, in kind, to your child when he/she reaches adulthood (and clear of adverse financial calculations for government and university benefits). You don’t have to track this separately in a formal way. (Paper and pencil, or spreadsheet, or free app, sure, if you like.) Just include your child in your total financial planning, including in age appropriate investment discussions.

As for day to day cash, once your child reaches age 18 Standard Chartered has a pretty good account (JumpStart), below age 26 and $20,000. Singlife also has a good offer right now below $10,000, for any adult age. That’s today, though. These offers could change at any time.

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Old Yesterday, 11:19 AM   #3
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Hi
Am thinking of starting investments for my kids ( below 18) savings account given that itís sitting in low % deposit account now.
Prefer to be able to use their own name ( with Joint w me ) rather than use my own trading account so easier to separate and track.

1. Which platform allows for joint names with Children ?
2. Which platform ahas lowest fees ?

Thinking of investing either in specific stocks ( which kids are familiar ) so easier to explain investing to them or invest in low cost ETFs.

Any advice appreciated.
Actually why is there a need to track unless you plan to distribute it unevenly?

Economies of scale if you just lump all investment under 1 roof, and when you eventually pass on, they can just get their portions transferred to them?

If you want them to have the ability to manage their own investment, you can also transfer to them when they reach certain age.
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Old Yesterday, 11:56 AM   #4
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I was thinking about investing my son's $ too when I was going through my own financial update. He currently has some income from his occasional freelance gigs. The money goes into our joint acct earning miserable interest. He will be going NS sometime after Jun 2021, so between now and then he would probably get more jobs once COVID restriction is lifted. I'm thinking if I should start him on some low risk investment and let him learn to manage it himself. Hope to hear some views / recommendations on it.

@BBC Thank you for the Jumpstart acct recommendation, really seems to be a good acct at 2%.
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Old Yesterday, 01:19 PM   #5
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Money is fungible. Your money can also be your children's money. Invest for yourself and take it from there to give or spend on them. No need to be so complicated. The only exception is perhaps topping up their cpf SA or ma...
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Old Yesterday, 03:12 PM   #6
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Top up some money into their CPF MA acct. Earns 5%. They will need to get Integrated Shield Plans soon.
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Old Yesterday, 05:25 PM   #7
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Top up some money into their CPF MA acct. Earns 5%. They will need to get Integrated Shield Plans soon.
This one is a decent idea, to a degree. Children will also have CareShield Life premiums to pay starting at age 30.

Money is fungible. Your money can also be your children's money. Invest for yourself and take it from there to give or spend on them. No need to be so complicated.
I'm in broad agreement. One pass through commissions is better than two. You can simply tweak the household portfolio allocations to reflect the fact your child has a longer time horizon than you have.

Once your child starts receiving a substantial income of his/her own (income from a first job, typically) then at that point you could transfer assets in-kind (if possible). I should point out that Interactive Brokers charges a lower (US$3) monthly minimum commission when an account holder is under age 26, so that's a nice account for the usual/typical global stock index fund dollar cost averaging. And if you're kick starting the child's long-term investment career with an asset transfer, great. But for the reasons I mentioned it's best to do this when the child is beyond university and government benefit interference.

What about insurance? What does a child need? Well, a basic public hospital B1 ward plan with lowest cost rider makes some sense, I'd say. Yes, I know there's decent medical coverage for active NSmen, but the B1 level is a little nicer (air conditioned), and there'll be no preexisting condition exclusions except those that existed prior to enrollment. Disability Income Insurance (DII)? Well, if it's possible to get, great. I think it certainly is via Aviva's MINDEF/MHA group DII rider if nothing else.
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