Funding your child's university education.

Hello AK,

I've been following your blog closely for up to 3 years now. Your philosophy to investing has helped to influence mine from investing purely for growth to one that invests for income as well. I would like to seek your insights on something that might be beneficial for young parents.

I have an 18 months old daughter and have been considering saving up for her university education. I would like to explore using a monthly savings plan in the STI ETF to achieve this. Using the financial data available, we can calculate the CAGR from its inception in 2009 to 2016 to be approximately 11 percent. But I know that this does not apply for a monthly savings plan. Any idea how I can do that?

Thanks and Best Regards,

R

Source: ASSI

Hi R,

11% is in retrospect. It is unlikely that STI ETF will deliver that kind of performance in future. It is likely to be much lower. Remember that Singapore recovered sharply from a deep recession in 2009.

This option should still do reasonably well and is probably less costly compared to getting an endowment plan from an insurance company.

I don't know how to calculate base on a monthly savings plan but it shouldn't matter. Over a very long term, it is about smoothening performance over time.

Best wishes,
AK

Parents should read this post too:
How to have enough to fund a university education?

Another fantastic buy! Don't say AK bo jio! (Buy potato chips or blue chips when marked down.)

UPDATE (7 SEP 17):
I simply love dark chocolate.

Made in Belgium.

It is super smooth and tastes soooo good.

Price: $1.00 per bar. 

Yup. This makes it taste even better!

Where to get this? 

Scroll to the end of this blog for the address.

Don't say AK bo jio. 




----------
Many know that I have a weakness for chocolates and ice cream. Without chocolates and ice cream, I think life is not worth living. To me, they are like an essential food group.

There is something else that I like but not to as big a degree. Potato chips. Specifically, Pringles potato chips.

Some might remember how I would eat Pringles potato chips with baked beans, eating them like horderves.

OK, if you must be very French about it, hors d'oeuvre). 

As I have been avoiding beans in my diet in recent months, I eat potato chips with fried eggs or tuna flakes these days. Yup horderves again.

When I went to Japan for vacations, I would buy their Pringles potato chips because they taste better than the ones we have here. The texture is smoother and the taste is less salty.

They are also available here in Isetan, Meidi-ya and some specialty shops but they are pretty pricey, as you can imagine.

Recently, however, I discovered that I could buy them really cheaply somewhere in Singapore and what did I do?

Price?

50 cents per can.  

Really?

Really!

Not joking?

Nope.

Where to buy this?

They are selling fast and I am wondering if I should buy more.

If you want to get some, better be fast hands, fast legs. OK, you better be faster than AK.

What? Where exactly in Bedok?

Er...

OK, I tell you (reluctantly):

Don't say AK bo jio. 




---------------------------------------------------
Update 4 Aug 16, 10.45AM.

Cepat!

Related posts:
1. How AK saved 32.7% + 9% in a supermarket?
2. Cheap cheap chocolates!