My kids are still pretty young, but having a friend working in a company helping teenagers select their tertiary or higher educational paths telling me the cost of going to university made me wanted to start thinking about their tuition fees. So as we head into the June holidays and enhance phase 2, here are some ideas I have on saving for their education. (Do note, there isnt alot of data driven research behind this as I just wanted to have some top line ideas and ideally wondering if anyone else have good ideas to share?
- Depositing their birthday and CNY angbao money and matching it 1 for 1 into a savings account. This is to have the kids play an active role in saving for their own education and not to be over reliant on us as parents.
- Buying an endowment plan – This can help you growth your funds or annual savings in a passive way so that you could have a lump sum when the kids head to university.
- Stock Investment – Investing in growth stocks to ride the wave and rip the results in 5-10 years, do note its important to monitor and constantly review your conviction and fundamentals for the companies you invested in to see if anything has changed.
- Overseas Real Estate Investment – Look into buying a property overseas maybe Australia or USA to help you generate income from those markets so if your kids were to go there you wouldn’t have much exchange rate risk after plus the property prices will have a high chance to appreciate.
- Cryptocurrency – Some what of a gamble, but if you hit the jackpot not only could you pay off university but might also retire. But I wouldnt be putting too much capital here, after all I still need to be sure the capital is there when I need it.
- Scholarship – Make sure your kids is good enough to get free education via a scholarship. Lots of prep work needed 🙂
Of all these few ways, I would think Stock investments would be the best choice to pick good growth stocks, dollar cost average it across time and then take out certain profits when it increases to x levels. Then moving the profits to a lower risk vehicle like bonds or real estate. Too bad for us in Singapore and Asia, we do not have a 529 plan. This 529 plan is available in the US where you can provide a lumpsum to lock in the rates today for your kids. Its an interesting idea to fight inflation.
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