Wednesday, February 8, 2017

Child Portfolio - "Feb 17 - SG Transactions & Portfolio Update"

I usually try to update this twice a year - one after the Chinese new year and another during their birthday month.

I also try to make this update as consistent as possible every year to discipline myself of the intention I had from the start because I know this could easily be brushed aside once more important things came up and took over. It has obviously less importance at this stage but it could have a big impact to how the funds are going to shape up over the years.

For readers who are new to the blog, my intention is to compound these money for the children received from special events such as the Chinese New Year or birthday and have them invested in companies that I thought will do decent over the long run. These funds will continue to go under my cdp account for now but these will be meant to fund their future education and to give them a head start when they graduate from school (hopefully there are still something left). I also tried my best to pick companies which I thought will yield greater returns in a much longer span and if there are unfortunate circumstances that will make the portfolio lose the money, it will be on me so I'll make it up for it.

As they grow older, I will impart the value of saving and investing slowly so that they can see the fruits of their labor when they are independent on their own.





Child Portfolio 1 (Age: 2 years and 10 months)

No.
 Counters
No. of Shares
Market Price (SGD)
Total Value (SGD) based on market price
Allocation %
1.
ST Engineering
3,000
3.37
10,110.00
93.0%
2.
Singtel
200
3.82
     764.00
  7.0%
Total SGD
10,874.00
100.00%

For my elder son, he receives red packets amounting to $540 during the cny from relatives, parents, grandparents and friends. I topped up $228 a little more for him to make the grand total $768 on his behalf. I then bought 200 shares of Singtel for him at a price of $3.82 on his behalf.


Child Portfolio 2 (Age: 1 week)

No.
 Counters
No. of Shares
Market Price (SGD)
Total Value (SGD) based on market price
Allocation %
1.
Singtel
800
3.82
3,056.00
100.0%
Total SGD
3,056.00
100.00%


For my newborn son, he receives red packets amounting to $2,230 mainly from parents, grandparents and relatives. I topped up $828 a little more for him to make the grand total $3,058 on his behalf. I then bought 800 shares of Singtel for him at a price of $3.82 on his behalf.


Final Thoughts

This is the 3rd year I am doing this and is more a reference to me than anything else.

I hope by the time they are independent on their own, they are able to take over this on their own and is money rightfully theirs which I only help them to manage.


17 comments:

  1. Nice! These are solid blue chips that should continue to do well in the future. The compounding effect would be amazing considering the time horizon is very very long.

    Do you mind adding me to your blog list? =)

    Thank you.

    ReplyDelete
    Replies
    1. Hi MIM

      Thank you, I've seen your portfolio as well and commented there too. It's a solid mixed of dividend and growth companies.

      I've also added you to the blog list :)

      Delete
    2. Thanks B!

      I have been thinking of doing something similar for sometime.. maybe i should stop procrastinating and start one now.

      Delete
    3. Looking forward to see how you would have done differently :)

      Delete
  2. Hi B,
    Good to see that !! Wow ,,, keeping both S-class blue chip for long term..for me ,, I am buying " Cambridge " for both of my daughters ,,, collecting dividend for them every quarter .. :-) for past 7 years ...
    Cheers !!

    ReplyDelete
    Replies
    1. Hi STE

      Ah interesting to see you buy Cambridge reits for them.

      The reason why I wanted to avoid Reits is it becomes more complicated with the rights if there are, and could end up in odd lots, so I generally tend to go more for blue chip counters.

      Delete
  3. Hi, your use your own account to buy the shares? Or infant can have account?

    ReplyDelete
    Replies
    1. Hi AhJohn

      For CDP account, the incumbent needs to be at least 18 years old to open the account on their own. I've used my own account to buy their shares thus far.

      Delete
  4. I bought Sats, Sembcorp STE, Singtel, DBS,ocbc , Singpost for my 2 year old. He richer than i was when i was 25 years old!

    ReplyDelete
    Replies
    1. Hi Sgdividends

      Wow, you buy so many stuff for your 2 years old, that's incredible.

      Delete
  5. Hi B,

    Some opened CPF accounts for their children and top-up with cash. Maybe you already considered since you are financial savvy. Thought I share below for those who may be interested in other options for anypow money.

    http://www.youngparents.com.sg/family/why-you-should-set-cpf-account-your-newborn

    Cheers.

    ReplyDelete
    Replies
    1. Hi JC

      Thanks for sharing.

      It's a very good alternative and I've shown to my colleagues on the article you shared and it definitely appeals to someone who are more risk averse.

      Delete
  6. My wife and I split those received for them both into SingTel, Capitaland and OCBC, 40/30/30 split. Instead of topping up, I rounded up the purchase to the next 1000 units. In this method, I use up all their AB money and an additional gift from us. I would like to ask, do you time your purchase or you simply key in your orders and let it execute at the price of that time/day?

    ReplyDelete
    Replies
    1. Hi Scopion

      Wow, you rounded it up to the next 1000 units, that's huge yah :D

      I try to time my purchase, so when I have these funds for them, I try to look for undervalued companies instead of relying dca specifically on a few fixed counters.

      Delete
    2. Ya... Initially my wife and I sweat a bit then we think we spend too much on their holdings but we sat down and asked ourselves, if our parents were in our shoes, would they do the same? As they say, a parent's worry is never ending. So take it as my gift to them when they arrive at 18. Hopefully they are financially literate enough to know what we have given them.

      Delete
  7. Congratulation of your 2nd baby. I understand your excitement. To compute and manage another 2 table, will this create more works :) ? Why not just increase your current holding weight with longer term stocks instead.

    hahha lazy me

    ReplyDelete
    Replies
    1. Hi Cory

      Hahaha, yeah could have added into my own portfolio but after a few years, I'd be confused how much organically it belongs to mine and theirs, though left pocket right pocket, it doesn't really matter in the end :)

      Delete

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