How effective is your plan for children higher education?
Happy Mother's Day!
Being a mom is never easy. She is the major pillar of any family. It's a 24x7 job, but one without any wages or compensation. Yet, she continues to love, to give, to contribute without fail! That's what a mother is and we need to honor them everyday!
While we talk about how mothers sacrifice selflessly for their children, as a parent, let's also be realistic and ask what we have prepared for their future coming! Education costs are rising, for those fortunate few, it will be much cheaper to study in a local institution or university. But for the majority of others, what choice do they have?
Kid's savings plan? Not bad, some may earn you up to 4% a year. But is that enough?
Insurance endowment plan? Most of the plans nowadays are investment-linked, so essentially they are investing in some market segments that are more conservative. With all administrative overheads factored in and the fact that most insurance investment-linked plans end up making only mediocre gains if not a loss, it would seem too good to be true if you could even achieve single-digit capital gain a year! Ask around and you will hear a lot from people who have gone that route.
Trust funds perhaps? Only selected few if you know how to invest in them actually make close to double-digit profit annually over a long period of time. Most of the trust funds either lose money or make hardly enough to pay for the fund management and agent fees.
Buying a property? Most incurs huge capital outlay, not to mention the trouble in managing them. Yes, with rental yield and capital appreciation, you may end up with more than 10% gain a year over a long period of time, but that's excluding intangible costs of owning a property!
To finance a child's higher education in private institutions, 200K - 1M fund size is an understatement!
So what now?
Rather than buying an insurance plan that invests in some kind of stock or capital markets anyway, yet not generating the gain you want, why not saving for your children's education by buying fundamentally strong stocks yourself instead? In the long term, a 20% capital gain a year is highly achievable.
Give your children the best gift of their lives! Learn how to afford their higher education by registering to this stock investment and trading workshop FREE!
Seats are limited. Enroll now! I can assure you this will be the most beneficial and insightful 3 hours you have ever spent!
Share & forward to all parents who deserve to know about this. Preparation should start as early as possible so help spread the words ok?
I look forward to meeting you personally in the event soon!
Alvin Tung
Full-Time Trader & Investment Coach
MoneySmart Academy
MoneySmart Traders | Trading Mastery
+(60) 12 409 3893 | [email protected]