Investing money for kids

[Zizou]

suppose a couple has S$150k and 4 kids below 10 now, and hoping by the time the kids reach 18, to have saved at least 120k per kid for their uni education....if the kids decide to pursue such a path... (else the couple promise themselves to blow it on a fast car then).

 

what would be a safe option for the couple?

 

they would NOT like to consider the following:

 

stocks - they have a reverse midas touch

property - their view is its not the right time now as its peaking

 

all suggestions are appreciated. Thank you

 

 

[Spring]

  On 11/16/2014 at 12:37 AM, Zizou said:

suppose a couple has S$150k and 4 kids below 10 now, and hoping by the time the kids reach 18, to have saved at least 120k per kid for their uni education....if the kids decide to pursue such a path... (else the couple promise themselves to blow it on a fast car then).

 

what would be a safe option for the couple?

 

they would NOT like to consider the following:

 

stocks - they have a reverse midas touch

property - their view is its not the right time now as its peaking

 

all suggestions are appreciated. Thank you

 

 

Sorry me not expert in investment but I would thought investing in a child's insurance policy with investment would be a good bet. Firstly it's for long term so you should be getting higher returns since

the timeline is at least 10 years and secondly as it's in insurance, some coverage be it death or accident will be covered unlike normal investments.

 

So IMO, it covers insurance with an investment element to grow the money meanwhile.

 

Hope this helps!

[Enye]

150k to 480k in 20years?

 

Unlikely unless you continue to save monthly as well

 

Half into protection and half into target date funds

[Vid]

  On 11/16/2014 at 1:58 AM, Enye said:

150k to 480k in 20years?

 

Unlikely unless you continue to save monthly as well

 

Half into protection and half into target date funds

 

Not 20 years. Seems like 10+ years.

[Vid]

  On 11/16/2014 at 12:37 AM, Zizou said:

suppose a couple has S$150k and 4 kids below 10 now, and hoping by the time the kids reach 18, to have saved at least 120k per kid for their uni education....if the kids decide to pursue such a path... (else the couple promise themselves to blow it on a fast car then).

 

what would be a safe option for the couple?

 

they would NOT like to consider the following:

 

stocks - they have a reverse midas touch

property - their view is its not the right time now as its peaking

 

all suggestions are appreciated. Thank you

 

 

 

What is your monthly savings going to be for the 4 kids? Each to have 120k is a big sum. Unless you go for high risk investments, you are not going to see that amount.

[Ktglfc]

If you are risk averse, and without considering any stocks options, perhaps the safer bet is to just deposit into Fixed Deposit.

Perhaps FD into Bank Of China (BOC)...

 

Still FD may not be a higher interest bet, maybe you can buy some REITS , but again this is also stock which may move depending on market condition...

 

Hope the above help in some way... It's your money, so you have to decide carefully...

[Enye]

  On 11/16/2014 at 2:11 AM, Vid said:

 

What is your monthly savings going to be for the 4 kids? Each to have 120k is a big sum. Unless you go for high risk investments, you are not going to see that amount.

I reckon 500 per kid monthly for 15 years doable since already have 150k

[Vid]

  On 11/16/2014 at 2:18 AM, Enye said:

I reckon 500 per kid monthly for 15 years doable since already have 150k

 

It all depends on how much TS can save per month. Expenditure with 4 kids is definitely not cheap. With house, maybe car, education, food, transport, etc... Saving $2k per month is not an easy task.

[Jman888]

Question is do you want to give to the child who can further study? Or just divided equally to every child?

[GLZT]

Very tough, its like asking how to get more than 3 fold in 10 years. Even if you invest 120k into a high yield reit of say 8%(which at this point of time, I'm not sure if there are any) and considering that the capital is not subjected to risk or appreciation. You can only get 80% using straight line appreciation.

 

Without taking risk its very difficult. Perhaps they can wait for market to bottom and all in (be greedy when others is fearful by warren buffett) But it takes alot of courage to part away with a huge sum of savings during times of certainty.

 

Or the lower risk method is to live a frugal life and work hard and hopefully income would increase.

[Mcf777]

For me, I bought Insurance endowment policy for 18yrs plan.

 

Per Year S$3000+ per person.

By the time policy mature, should be around S$100K per person.

[Lala81]

Safe = match or lose to inflation.

 

Even most dividend stocks in SG are giving u 3-5% yield at current prices.

 

The easiest way is to all in when stock market corrects during recession. But even then that's a "risky" situation. You have to take into account when liquidating whether the market is in a down or up cycle which could take years to reverse.

 

I'm anti-funds. unless its index funds. I think i can lose my money better than they can ...

[Sabian]

No investment into equity, property, or the like?

 

Then start a religion and grow its congregation as fast as you can.

 

ps: 5% monthly subscription is a must. Not 10%. Might get you unwanted attention.

 

If not, a mobile handphone shop after the coming Ricky saga does down.

 

Seriously, target the local banks since SGX is reducing board lots sizes at the retail level. That's keeping as close as possible to your investment mandate.

[Chucky2007]

If you already have $150k now, find an investment that pays 4%pa return, 10 years time will be 222k. So you will save another 25k each year for next 10 years, so that's another 250k, excluding any investment return from this 25k per year. If conservative, go find a 10-15 year tenure insurance endowment, that should pay 2.5% per annum return on this 25k per year, which will work out to be 280k in 10 years time.

 

If you are adventurous, can consider buying 25k worth of blue chip annually and should have higher return over 10 years time, but when you need to use the $, the risk is what's the market price of the shares.

 

Whatever you buy, don't buy products that are not approved by MAS... And also investment linked I surance products over a tenure of 10 years.

[Lala81]

  On 11/16/2014 at 10:45 AM, Sabian said:

Seriously, target the local banks since SGX is reducing board lots sizes at the retail level. That's keeping as close as possible to your investment mandate.

 

Why u rec banks alone?

[Neutrino]

  On 11/16/2014 at 12:14 PM, Chucky2007 said:

If you already have $150k now, find an investment that pays 4%pa return,

 

Can you suggest any.

I'd be interested.

[Chucky2007]

  On 11/16/2014 at 12:25 PM, Neutrino said:

 

Can you suggest any.

I'd be interested.

some non rated bonds can get that's. Are you open to buying AUD or USD?sell SGD buy USD, buy Bank of America. Or buy HKD buy Bank of China. USD moving up, plus interest rate moving up good for bank shares.

 

Else, sell SGD buy AUD now around 1.115 level, put one year AUD FD at 3.2% interest.. Long term aUD interest rate maybe 3.2 & above to 5% level.. Then maybe 10 year later, AUd move down against SGD, then take the cumulative interest and send kids to Australia study. AUD move up to 1.3, then collect 10 years of 3-5% interest per year and capital appreciation.

 

If no want FX exposure, buy SGD shares.. I like consumers so will go for Thai Bev or Breadtalk. But if got USD, can consider Hutchison port trust now..

 

Else long term can look into performing Unit trust like First State Bridge,

 

Just my own view on what I will do with my $$.. But I will sell off anytime when timing not right.. But right now I holding huge portion in cash.. Not really invested in equities. I have quite an amount of USD and AUD.

Edited November 16, 2014 by Chucky2007

[Thaiyotakamli]

10 years ago a diploma will do

 

 

Now a degree is a must

 

 

10 years later a master is a need