The link is shown below.
How to plan for your baby's future?
Some of my points are not published at CPF website. This is the complete version.
CPF Medisave account (MA) has 5% interest (cap at the first S$60,000 and 4% thereafter). Use all your
(2) Buy Whole Life Insurance while he/she was 1 day old.
S$500,000 sum assured whole life insurance with 5 years payout period cost me total S$33,010. Good money spent! My child does not need to purchase whole life insurance when he starts to work. If he wants more coverage, he can buy himself.
CPF Special account (SA) has 5% interest (cap at the first S$60,000 and 4% thereafter). This can be your child’s Chinese New Year red packets. This is to help to build a strong head start for your kid in CPF accumulation. His/Her full retirement sum (
For me, it would be S$250,000, 18 years from now (year 2035).
(4) Buy Investment-Linked Plan (ILP)
Many people do not like whole life insurance, investment-linked plan and endowment plan.
This is something extra I did for my little one. I bought one ILP, monthly payment of $100 (S$1,200 per year) into Singapore Growth Fund and Emerging Market Fund (50% allocations each). As ILP has a 7 years break-even threshold, he has all the time to witness the compound growth of the surrender values. This is one good retirement income for him especially Singapore and emerging countries will do great in the next 20, 50 years.
I have not done that just yet for the little one but I will do so by Q1 next year :)
In fact, I invested equities for myself for income through SRS account and cash.
For child, we should buy solid blue chip counters only, DBS, OCBC, ST Engineering, SPH, SINGTEL or even REITs, CapitaLand Mall Trust, Cache Logistics Trust, SUNTEC REIT, etc. We buy the shares, frame the stock purchase certificates and hang them nicely at his/her bedroom. I read this idea from magazine. It is a pretty cool thought. :)
We can witness the capital appreciation of the good stocks, at the same time, enjoy the stable fat dividend payouts. Such dividend yield is easily in the range from 3.5% (stocks) to 8% (REITs).
Raising kids in Singapore is fun. It shall never be a burden or pressure for the parents. Enjoy the process and be happy. God blessed and good luck!