Tuesday, April 28, 2015

Child Portfolio - "Apr 15 - SG Transactions & Portfolio Update"

I haven't been doing this for a really long time since my son was born and turned a month's old.

Some of you might remember that I had used some of the "angbao" money given to him back then to purchase some stocks in the market for the long term. My wife and I topped up the majority of the part of course. You can view the original article here.




Our idea back then was to instill a habit and teach him the importance of investing from young which we will be grooming him as he gets older. Since it is evident that his time horizon is longer than us and it is his money that we are helping to invest, we think that it makes sense that the investment is made towards a blue chip stock. After all, when he gets older and started to understand basic things about investing, it's probably more prudent to start with blue chips than small caps. At least, when things get tough, we have a powerful backing behind some of these selected blue chips.

Anyway, my son just turned 1 year old this month and I decide to do the same for him to make this a regular annual exercise. Combining all his "angbao" received from his grandparents and family members, we decide to top up the rest by purchasing another lot of ST Engineering


Child Portfolio

No.
Counters
No. of Shares
Market Price (SGD)
Total Value (SGD) based on market price
Allocation %
1.
ST Engineering
3,000
3.58
10,740.00
100.0%



The "purchase" was rather unique because it actually didn't quite involved purchasing from the open market. The move was made by transferring one lot of what I currently have in my portfolio to his. As a result of this move, I now own a lot lesser than what I had previously had in my current portfolio. The reason why I chose it this way is because I want to have more cash available in hand, which has now increased to above the 42% level.

In any case, I'll update the portfolio for the purpose of my own tracking for now and the future.


15 comments:

  1. This comment has been removed by the author.

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  2. Hi,

    It is indeed a good plan to start your child's investment journey. This will gives him annual dividends and help him to build his/her own capital for the next investment.

    Thumbs up

    ReplyDelete
    Replies
    1. Hi James

      Thanks for your comment.

      Most of the amount still comes from us so its more like a discipline for us too to segregate the money that can be used for his university education in the future.

      Delete
  3. Why not just get the STI ETF for your child?

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    Replies
    1. Hi Anonymous

      That's another thought which I will implement moving forward.

      Delete
  4. Hi B

    I am thinking of doing the same but my child angbao only have $408. Lol. This is the first time I know a child can get almost $7k angbao during cny. Your relatives are very generous :)

    ReplyDelete
    Replies
    1. Hi Anonymous

      It's actually not just during cny, it's mostly coming from the day he was born or turned 1 months old. Still most of the amount came from us too so it's a parents top up for the majority part.

      Delete
  5. Groom the kid at young age toward investment is a great idea. Although, I'd suggest teaching math before getting him all worried about he ups and downs of the market. :) I was telling my friend today that I learned to hustle when I was 6 or 7 years old, trading comic books, cards and marbles. So, the whole concept of trading stock can be fully understood at 10-12? Perhaps?

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    Replies
    1. Hi Vivianne

      I think basic savings and spendings would be my priority in teaching the kids. Investment can come at a much later stage. As far as maths is concerned im sure the school would hv more than sufficient to teach him what I can't ;)

      Delete
  6. Replies
    1. Hi Felix

      Thanks. It's a ground work up.

      Delete
  7. I like this idea. My ex boss bought the Uob gold saving account for his God daughter but I prefer this idea.

    ReplyDelete
    Replies
    1. Hi Joyce

      The gold savings account seem like a good way as well but they hv lost out recently due to equity outperformance. But we'll never know what the future is going to hold ;)

      Delete
  8. Hi B,

    It a great way to save for for the kids. On paper these 3 lots belong to your child. In actual, they are under your name only? Or it is already a child trading account whereby you have to transfer to him when comes of age?

    David

    ReplyDelete
  9. The government will create a medisave account for babies and credit S$3,000 in two tranches spaced a year apart. By that extension, the other two accounts will be created too. Why not contribute money into your child's CPF account starting with Medisave or Special Accounts?

    I plan to do that for my nephews and my kids in the future.

    ReplyDelete

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