Dear Mr. Tan,
I have two boys. Since birth, I have been depositing their ang baos into their saving accounts. I was wondering if there are any better way of growing their money (in a long term) so that they can use it for their education in future.
REPLY
I hope that, in the near future, there will be low cost investment funds. If you are investing for the long term, the risk is reduced considerably and you will get a much higher return.
For the time being, it appears that the saving account is the best way to keep the savings.
Read this FAQ:
http://www.tankinlian.com/faq/savings.html
If you save a dollar a day since your child is a baby and invest in an instrument that returns 10% by the time he or she is 60 years he or she is a millionaire.
ReplyDeleteMy baby's ang pao totalled about $360 .. is there anywhere to put this to earn 10% p.a.?
ReplyDeletePut it into a regular saving and investing plan.Look for one with low
ReplyDeletecharges. It is offered by the banks and other FA firms. If you are thinking of NTUC please be careful. NTUC offers 2 plans, ID2 and ID7.
Go for ID7 and is offered by the business centre only. Remember ID7 becuase you can be highjacked by insurance salesman who would make you buy ID2 with high charges.
All the best.
Better to invest in a low expense ratio fund like Infinity Global then invest with ID7. Although ID7 is probably the best regular premium ILP in the market, it has a policy fee of $4 a month. This will erode away your earnings.
ReplyDeleteFurthermore if you scrutinize the Growth fund carefully, you will realize part of it is invested in Singapore equities which is simply invested into the StreetTracks ETF. May as well buy your own ETF and save on the management fee.
And of course, Income agents will persuade you to take up ID2. Be careful.
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