do u invest ur child saving?

[mummy1234]

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 think about 10 years already and child 12 years old, got not much returns but more like forced automatic savings for me.

Prudential plan is Prusmart lady.

 

[nautilus]

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

You can also top up MA for them. The interest for both MA and SA are the same but you are able to touch MA in case of emergency and you happen to be in the dumps.

 

[nautilus]

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

I would bet on the insurance company to go bust first before the Singapore government.

 

[nautilus]

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.

I used to pay $200 per month for each of my son for a Prudential insurance/ investment plan. This is for coverage until 65 and no guaranteed returns. Terminated both and dumped in money into their MA and bought term insurance till 65 for both of them. It works out so well that the 5% interest on the first $10k in MA is sufficient to pay for their term insurance until 65, with the rest of the interest above it as real returns.

 

[akwl88]

I used to pay $200 per month for each of my son for a Prudential insurance/ investment plan. This is for coverage until 65 and no guaranteed returns. Terminated both and dumped in money into their MA and bought term insurance till 65 for both of them. It works out so well that the 5% interest on the first $10k in MA is sufficient to pay for their term insurance until 65, with the rest of the interest above it as real returns.

Good for u!

Never mix insurance with investment!

 

[mummy1234]

I used to pay $200 per month for each of my son for a Prudential insurance/ investment plan. This is for coverage until 65 and no guaranteed returns. Terminated both and dumped in money into their MA and bought term insurance till 65 for both of them. It works out so well that the 5% interest on the first $10k in MA is sufficient to pay for their term insurance until 65, with the rest of the interest above it as real returns.

I am more concerned about their Uni funds so don't want to lock up in CPF and term insurance not necessary for them yet since they have no dependents...

 

[orange_sky]

You can also top up MA for them. The interest for both MA and SA are the same but you are able to touch MA in case of emergency and you happen to be in the dumps.

Good idea. Thanks

 

[orange_sky]

I only saw option to top up SA for loved ones. How do you top up your children's MA?

 

[nautilus]

I only saw option to top up SA for loved ones. How do you top up your children's MA?

Go to CPF website, ecashier, enter your child's birth certificate number, select member, select contribute to own medisave (tax deductible). Of course there is no tax to deduct as your child isn't working yet. Then pay with your own bank account. Wait 1 working day and you can view the balance in your child's CPF statement.

 

[nautilus]

I am more concerned about their Uni funds so don't want to lock up in CPF and term insurance not necessary for them yet since they have no dependents...

That's what the CDA cum PSEA account is for. They earn 2% interest until 12 then 2.5% onwards, risk free, capital guaranteed, guaranteed returns.

Term insurance is definitely required as they may have pre- existing condition when they grow up which will prevent them from buying any sort of insurance.

 

[orange_sky]

Go to CPF website, ecashier, enter your child's birth certificate number, select member, select contribute to own medisave (tax deductible). Of course there is no tax to deduct as your child isn't working yet. Then pay with your own bank account. Wait 1 working day and you can view the balance in your child's CPF statement.

So select to pay to your own medisave but enter child's IC?

 

[nautilus]

So select to pay to your own medisave but enter child's IC?

That's right. Enter your child's nric on The first page.

 

[iamveryguailan]

Is it a good idea to contribute the min sum (the 160k+) to the kid CPF as a gift when he or she is born? Any negative repurcussions?

 

[orange_sky]

Is it a good idea to contribute the min sum (the 160k+) to the kid CPF as a gift when he or she is born? Any negative repurcussions?

Upside: that amount will compound to 1m upon 55 years old without him working assuming nothing changes

Downsides
It's only for retirement if you place into SA
It's a huge commitment from parents, especially if you have a few children

 

[BBCWatcher]

Any negative repurcussions?

I can't think of anything negative beyond the fact it costs $166K (or whatever the top-up amount is; that's the 2017 maximum figure). Note that you can also top-up a child's (or anybody's really) Medisave Account, up to $52,000 this year (2017).

It's really a question of what that money would/could otherwise be doing. Especially in today's low yield environment, CPF yields look pretty attractive. The counter argument is that a newborn child has as long a time horizon as anybody, and it's possible to choose something more aggressive (but low cost) and dollar cost average into that, seeking higher yields. Dollar cost averaging into a low cost global equities index fund, for example. Something like SWDA traded on the London Stock Exchange, to pick a notable example.

You can do some of both. For example, you can top up the child's MA and SA to $60K (combined balances), which qualifies for 5% interest on that $60K. Probably leaning a bit in favor of MA, but some into SA in order to get to $60K total for the bonus interest. Then dollar cost average into SWDA via a low cost broker.

 

[cscs3]

I am more concerned about their Uni funds so don't want to lock up in CPF and term insurance not necessary for them yet since they have no dependents...

I dont see this as a lock up as they can use it to pay housing loan, some medical and may be education in future. The interest rate is substantial as it is compounded over years when they need it.
How to find this kind of risk free investment?

 

[orange_sky]

That's right. Enter your child's nric on The first page.

I can't change my IC number into my children's. You sure you did it?

 

[nautilus]

I can't change my IC number into my children's. You sure you did it?

Yes, for both of my sons, every month without issues.

In e-cashier, enter your child's birth certificate number as the payer's CPF account number/ nric, select member , contribute to medisave (tax deductible).

 

[SBC]

Can top up via Diners CC ?

 

[beautyseek]

I dont see this as a lock up as they can use it to pay housing loan, some medical and may be education in future. The interest rate is substantial as it is compounded over years when they need it.
How to find this kind of risk free investment?

I thought SA is locked until 55 yrs old for the kid? MA cannot withdraw at all till death? MA can only use for hospitalisation and medical purpose?

I am considering putting money into children's accts but will likely do so if the monies can be used to fund education. After reading cpf website only OA cn be used to pay for education?