I am visiting SGX to open a share account for my family members. I will transfer some of my shares to them. The cost of transfer is $10 per account per family member. I will transfer some shares initially, and additional shares at a later date.
This will give my family members the experience of owning shares, receiving the annual report and dividend of the investee company. They can also attend the annual general meeting.
Later, they can buy their own shares, from their savings. This gives them a chance to learn about their own investments, instead of investing through a high cost life insurance policy.
I wish to post this suggestion, so that other parents who have shares accumulated during their working life, can consider to transfer some shares to their grown up children.
I am happy to note that you are giving your family members an alternative of investing through shares,"instead of investing through a high cost life insurance policy."
ReplyDeleteI have always believed that the long time commitment that insurance policies require,for the lowly returns/yields one gets,it is much better-off to invest the extra money elsewhere, after putting aside some money for basic insurance.
However,I have also found that a lot of people are very risk averse, even those who are highly educated.They are happy to put their money in low-yield insurance policies or let their savings sit idly in the banks, rather than seek better returns by investing in other ways.
We should really start our young early with financial education, so that they realize the importance of investing and start investing as soon as possible.Then they will have a long time horizon to ride out the market uncertainties investing in equities with potentially much higher returns than insurance policies.
You mentioned transfer of shares for family member is done at $10 per account. May I ask if the cost is the same if it is not for a family member? I am asking if happen you know the answer.
ReplyDeleteThanks
hongjun