do u invest ur child saving?

[nahbehism]

just wondering... does any parents invest their child saving? i.e. on sgs bond?

 

[liemsc]

I've been thinking about this recently too. Currently the savings is just earning almost no interest in the savings account. Wondering where to better put it, assuming i will need to use it in 8 years time?

 

[nahbehism]

ya.. i am thinking of ssb.. but my kid cannot have own cdp account due to age

 

[dendii]

Why not just invest under your own name? Just need to monitor and know what you have set aside thats all.

 

[nahbehism]

ya.. but abit troublesome.. any other better methods?

 

[SBC]

Top up cash into kids' CPF account. No income rebate though.

 

[cscs3]

just wondering... does any parents invest their child saving? i.e. on sgs bond?

I did. But best place is in their CPF account. You can get much higher interest rate with no risk.

 

[mummy1234]

Top up cash into kids' CPF account. No income rebate though.

Are we allowed to no matter which year they are born? Thought it is only allowed for certain children born after a certain year..

 

[soneat]

Are we allowed to no matter which year they are born? Thought it is only allowed for certain children born after a certain year..

I called CPF previously and understand there's no restriction/age limit. You can top up (and hence their accts will be created) anytime.

 

[mummy1234]

I called CPF previously and understand there's no restriction/age limit. You can top up (and hence their accts will be created) anytime.

So are there many people topping up? But to OA or SA?

 

[Pesantkie]

I am 17, I have about $3k in POSB account with my mum.

She feels reluctant to even put that amount to SGS bond :/

Feels bad as I am not allowed to touch that amount of cash in the account

 

[nautilus]

Put the matching amount in cash in their CDA account to earn 2% pa risk free until 12 years old where it will be transferred to PSEA which will earn 2.5% pa. Do not touch CDA for anything unless absolutely necessary. PSEA can be used for tertiary education if required. If not it will be transferred to OA at 30. It's a good short/medium term savings plan for the kids.

For long term savings, dump it into MA to earn 5% a year. It helps them in their retirement as well, as this means that they will hit their MA limit faster when they start working, which will overflow their monthly contributions into their SA.

 

[mummy1234]

Put the matching amount in cash in their CDA account to earn 2% pa risk free until 12 years old where it will be transferred to PSEA which will earn 2.5% pa. Do not touch CDA for anything unless absolutely necessary. PSEA can be used for tertiary education if required. If not it will be transferred to OA at 30. It's a good short/medium term savings plan for the kids.

For long term savings, dump it into MA to earn 5% a year. It helps them in their retirement as well, as this means that they will hit their MA limit faster when they start working, which will overflow their monthly contributions into their SA.

Isn't MA 4%?

 

[nautilus]

Isn't MA 4%?

4% + 1% on first 60k of combined balances.

 

[mummy1234]

4% + 1% on first 60k of combined balances.

The extra 1% is for OA and SA I thought?

 

[mummy1234]

I buy an Ideal plan from NTUC for my elder child which is like unit trusts with a bit of insurance for S$180 per month. And a Prudential endowment for my younger child. Hope they come in useful for their future Uni studies.

 

[orange_sky]

So are there many people topping up? But to OA or SA?

It's either SA or all three accounts. I started last year by topping up my children's SA

 

[mummy1234]

It's either SA or all three accounts. I started last year by topping up my children's SA

Only problem is I am losing faith in our government...so don't dare to lock up too much money in CPF...

 

[dendii]

Ideal Plan is an Investment-Linked Plan. How long are you into the plan already and how old is your elder child?

If you are using this as a mean of funding your children's university education, I am afraid that it may not give you that high a return.

What is the name of your Prudential endowment? Check on your Guaranteed Amount to make sure it is higher than the amount you have put in.

Based on my experience so far, I assume it is Pru Flexicash

I buy an Ideal plan from NTUC for my elder child which is like unit trusts with a bit of insurance for S$180 per month. And a Prudential endowment for my younger child. Hope they come in useful for their future Uni studies.

 

[dendii]

Hmm if you are doing your own investment, it shouldn't be that troublesome?

Eg.
- Invest on my own $500 into STI ETF initially.
- Child birth, Invest $700 into STI ETF now.

ya.. but abit troublesome.. any other better methods?