childrens money

[w1rbelw1nd]

I will agree with BBC if the medisave account is a fixed term, fixed interest bond equivalent, but ultimately medisave interest is subjected to regulatory risk, and the capital pumped into kid's CPF may have higher opportunity cost when economic conditions change.

Besides, money in medisave is practically locked in indefinitely. I would suggest only putting a sum of money that your kid will never ever ever ever want to even use. Good luck if ur kids want to have a overseas education and you are not obscenely rich...

Personally I will hold off the decision until I have greater clarity of my own future earning potential and my kids aspirations.

 

[peterchan75]

Since children have plenty of time ahead of them. Teach them how to save and invest. Let compounding does its job.
Based on past experience, it was bank($4k in 1984 becomes $80+k including bonus shares + dividend). Don't know it will be in the future. STI ETF is a broader bet.

 

[dork32]

Each newborn SG citizen already gets $4k in the medisave account (wef 1 Jan 2015). So the Medishield premiums, additional vaccinations, etc are already covered for their first 10 years at least. No need for additional top up for that purpose.

my kids were borned before that. they dont have the 4000. but still, i think my ma is enough to cover for medishield.

 

[anfielder]

my kids were borned before that. they dont have the 4000. but still, i think my ma is enough to cover for medishield.

yes, I believe those born before 26 Aug 2012 do not have any such grant.

 

[peacefulday]

If parents already maxed out their MA, it is really not making sense to top up their children MA.

My children's money is in CIMB.

Agreed and I'll prioritize to max out my SA and MA, thereafter pool into my spouse's account. For those who are capable to meet the minimum cpf sum and had neared 10yrs+/- to reach 55, it should be more worthily to go ahead max it cpf then subscribed to the SSB.

The future bequest for our CPF beneficiaries will then go to children account as a 'gift' for them and much better than current kid's cash saving locked for 50yrs in cpf?

 

[dork32]

The future bequest for our CPF beneficiaries will then go to children account as a 'gift' for them and much better than current kid's cash saving locked for 50yrs in cpf?

some people mentality is like that:

you bequest your cpf to your kids. this sum of money cannot earn 5% already. it is already in their pocket. but if it is in your kid's cpf, it can continue to earn the 5% many years after your demise.

 

[Yachtmaster]

Why? Be specific.


Again, what's with the "50 years"? It's Medisave. It's every year, at $130/year minimum outflow.

Tell us what alternative you suggest that's yielding at least 5%, guaranteed.

bbcwatcher it's beyond your level to understand and my post was actually not for you, nobody ever needs MORE medisave already

so much for your lust for guaranteed 5%pa and endless long essays, not impressed

 

[dork32]

Forum Nuisance (trolling, impersonation, troublemaker, clone accounts, etc.)

both my kids are in the top class in their school. both are in their cca school team. both have won medals for the school. they study hard for the lessons and train hard for their sports. both of them won the edusave merit scholarship which they receive $350 from the mp at the community centre

they are never given a lot of money to go to school. they know the value of money and do not any how spend. if they want to buy something, they are taught to save for it.

i believe they will turn out fine if this continues.

i think it is very low class to make unsubstantiated remarks like that.

 

[LiteHouse]

it is not about retirement or medical care. some of us do struggle to make ends meet. we need money now. if i cant survive now, who cares about 50 years later.

why do old uncle and aunty go cpf and withdraw 5k when they have so little? 5k is a lot to them.

My parents withdrew $5k immediately the moment they could at 55 years old even though their minimum sums are pathetic. I feel sad that I don't earn enough to provide much more allowances to them so that they can stop working. I still have my own family to take care.

 

[dork32]

My parents withdrew $5k immediately the moment they could at 55 years old even though their minimum sums are pathetic. I feel sad that I don't earn enough to provide much more allowances to them so that they can stop working. I still have my own family to take care.

i do empathize your situation. i knew people that are in this situation.

but you may want to advise your parents this way.

if they are drawing their money because they want to go for some holiday and spend on some big ticket item which they always wanted, i think it is ok. they deserve this after working hard for so many years.

another good reason for withdrawal is to pay off debts that they have incurred.

but if they are withdrawing just to keep it in the posb, they might as well as stagger their withdrawal. i think this is allowed. some old people do not know how to control such a large sum of money. before they knew it, the whole sum is gone. also after 55, cpf is like a very high interest bank account. no point transferring it to the posb.

 

[BBCWatcher]

Each newborn SG citizen already gets $4k in the medisave account (wef 1 Jan 2015).

I don't think we can assume the original poster's children are all barely 2 or younger.