Investment Account for Children
LIM KAH KHENG
2018-01-29
Look at the Capital In column. Total investment at (rebalanced previously) Jan 2016 to Nov 2016 was 35000, with a gain of 10.54%.
Nov 2016
We invest $800 per month on children account. In the next diagram, you see that Capital In is $35800. And for year 2016, it ends an estimated gain of 15%.
Dec 2016
Which banks pays 15% interest if you put in 35800 now ? It is just $5.5k only in absolute dollars, but in Maths we look at percentage. Alternatively did your children’s bank account earns $5.5k interest for year 2016 ?
Comparing with CPF Special account (my account)
Dec 2016 CPF Figure above
| Capital Outlay | Average Interest earned per year | Remarks | % of interest Earned over capital per year |
|---|---|---|---|
| CPF Special Account | 7306.38 | Special account is cumulative over the working years of a parent | 4-5% |
| Capital Invested Amount | 5590.17 | Children passive investments with monies from parent | 15% |
At a glance, you can see children passive investment made more than CPF special account !
2017 Moving ahead
Monthly data will be updated with real transaction figures.
Feb 24th 2017
March 24th 2017
April 18th 2017
June 19th 2017
July 21st 2017
August 17th 2017
September 21st 2017
October 25th 2017
November 25th 2017
December 31st 2017
Taking Profits OUT
Based on Dec 2017 numbers, estimated current value was $53370. Note that Original Capital investment is about $43800. From 13 Jan 2018 diagram, under Cash section, there is a $10,013, while Equities section shows $44,477.
Cash section is what we take out PROFITs. Equities section shows it is still more than $43800 which means original capital investment remains.
13 Jan 2018
CPF yearly INTEREST ($10,142) comparison with PROFITS ($10,013). Which one is better ? You judge yourself.
31st Dec 2017
Appendix
Tables generated from http://www.tablesgenerator.com/markdown_tables#