Advise for education fund

[jujube]

My kid is 2 years old. What's the recommendation to invest for her education when she's 18-21. Thank you

Another question is how to separate my own investment and this education fund

 

[Thoreldan]

Why is there a need to separate ?
Why not just take out the amt from your investment portfolio when the time comes ?

 

[TiedInsurer]

Because some people want to take close to zero risk with certain funds to be set aside for specific purposes. If you ask me though, 16 years is too long a time horizon, and there's no need to cut your risk so aggressively yet at this point. You'll eat quite heavily into your potential gains.

Maybe start doing it when the time horizon is much shorter, like 5 years.

 

[BBCWatcher]

You can just continue with your general, long-term investment program — dollar cost averaging into a couple low cost funds, typically — but adjust the portfolio allocation percentages to a certain extent as your child approaches university age. There’s really no need to open a separate account, something that would usually involve unnecessary additional costs.

 

[jujube]

Because I'll be initially using lump sums of her red packets so I need to answer for these funds

 

[BBCWatcher]

Because I'll be initially using lump sums of her red packets so I need to answer for these funds

Sure, you can track these funds in your own spreadsheet if you wish. You can even put the spreadsheet on Google Docs (for example) so the aunts, uncles, grandparents, etc. can take a look. You then manage the funds as a subportfolio with its own allocations within your “business as usual” long-term investing.

The other choice is you take the $600 (or whatever) and put it in some separate account where fees eat up a great deal of any gains. Doesn’t the first approach make more sense?

 

[tesarise]

if you die die need the separation and don't mind a bit of extra cost, can consider to use a robo like Stashaway

 

[chienwei]

Because I'll be initially using lump sums of her red packets so I need to answer for these funds

wah, that's being very accountable....

 

[Okenba]

Because I'll be initially using lump sums of her red packets so I need to answer for these funds

What do you invest in? Just choose a separate fund for her.

So if your retirement funds are in IWDA, buy VWRA for her. or vice versa.
If you're using a Robo, set up different portfolios.
etc

 

[Midlifecrisis]

My kid is 2 years old. What's the recommendation to invest for her education when she's 18-21. Thank you

Another question is how to separate my own investment and this education fund

I bought my kids education endowment when they year 1 because i am not very discipline type when it comes to investment and I worried I may dip into their education fund when i desperate for money for other purpose. Time passes by quickly and it is close to the maturity date. It may not be the optimal return type of investment but it served my purpose well. If they need the money for education, i will take out from the endowment and if they dont need, will pass it to them for their HDB downpayment...not enough for condo..

 

[Opps-gal]

Use CPF ask them repay after graduation?