As we conclude the festivities of the new year, an intriguing question has been raised by many of my clients: What should be done with children’s Ang Bao Monies? Our recommendation? Invest it. And for those without children, consider investing for your own future if you haven’t already done so.
Benefit 1: Providing a Head Start
One of the greatest advantages our children possess is time, and investing their Ang Bao or birthday money could prove to be one of the most prudent decisions. While money can be replenished, time is finite. Albert Einstein famously remarked, “Compound interest is the eighth wonder of the world.” By initiating investments at an early age, there is the potential to significantly augment their wealth. Even with conservative estimates, the power of compounding over time can yield substantial returns.
Benefit 2: Fostering Financial Literacy and Exposure to Market Dynamics
Financial markets are inherently volatile. Introducing children to investment early on exposes them to the realities of market fluctuations, instilling in them the understanding that the path to financial growth is seldom linear. This exposure cultivates resilience and equips them with the mindset to make informed, rational decisions, devoid of emotional biases. Moreover, discussions surrounding investments open avenues to explore various businesses and industries, igniting curiosity and potentially uncovering their passions.
Benefit 3: Cultivating a Positive Relationship with Wealth
For many children, money is synonymous with immediate gratification – a means to acquire possessions or experiences. By introducing the concept of investment, we shift the paradigm from scarcity to abundance. Through prudent financial decisions, we demonstrate the potential for sustainable growth and the ability to create value not just for oneself, but for others as well.
If you wish to find out more about starting an investment account for your children (or for yourself if you haven’t), do drop me a whatsapp/email.
Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek independent financial advice that is customised to their specific financial objectives, situations & needs. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.
I believe that “Worrying is not planning and Hope is not a good strategy”, and that the purpose of Financial Planning is to allow us to lead fulfilling lives while being financially wise.
As such, my role as a Certified Financial Planner CFP® is to help my clients build those sound financial strategies and design action plans that put them on track to their financial goals so that they can live the best possible life for themselves.
This is done via a systematic approach of ongoing cash flow management & asset allocation, as well as investment management, estate planning, and tax optimization.
I also ascertain that I stay up-to-date with industry trends and policies changes to ensure that my clients benefit from the latest strategies and opportunities available.
Over the years, I have developed a specialty in comprehensive financial planning for busy legal professionals & educators. I also particularly like assisting working mothers & young families to achieve their long term financial goals. Working with the largest independent financial advisory (IFA) firm in Singapore also frees me from product pressures and allows me to only recommend solutions that suit my client’s needs. And client’s interest, is always the core of my FA business.
Being a wealth planner is my dream career and this is what I hope to do for a long time.
Other than financial planning & investment, I love to travel, read, bake and I am an adrenaline enthusiast. I am most looking forward to the day my children join me on my adventures.
