Update on (Future) Kids' Education Fund

This post is dedicated to all responsible parents-wannabes who want to provide the best education to their future kids. 


I'm 25 years old now and I have always dreamed of becoming a parent to 3 boys. We'll play basketball, I'll teach them how to load a gun and fire (yeah my dad taught how to. He's a retired military man), we'll catch chickens at the farm. I want my future hubby to bring them to school, to teach them good manners as their mommy will teach them the bully side of life LOL just kidding. I dream of becoming a cool mom someday. I'll teach them how to trade stocks too! And maybe, they can also be a better banker than I am.


Kids nowadays are learning from social media networks, online games (well research says it's good for sort of visual training and discipline) and technologies like gadgets and applications. All the current trends surrounding us, enticing us to buy and consume and get entertained. Still the traditional education is often missed out in one's financial plan. And that is the education fund. You've probably heard about rising tuition fees and never ending projects in college. Well, you've got to act now and plan it over, especially if you have more than 1 kid.





Gone are the days when people complain about CAP or so-called defunct pre-need companies which defaulted after they could not commit to the agreed education coverage. Today, the education plan we can get from insurance companies (like Manulife, for instance) is an educational plan only if you have a kid already (so if you are planning to "advance" the planning on this, you might not be able to get a direct plan specific to education with all those "graduation gifts" and "thesis requirements cash allowance" embedded to it). Aside from the kid requirement, there is already a fixed amount of education plan (versus the plan before which is covering whatever tuition fee of the university at the time of policy delivery). 

morningtonkids.com.au

Well, I tried asking Manulife, Insular Life and Cocolife before if a kid isn't really a mandatory requirement (since I am single with no kids but I just want an educational plan added to my portfolio). But they all turned me down. Haha. Hard policy it is. 


So I chose to form our own educational plan portfolio (me and my boyfriend are establishing this) which comprises of the following products:

ATR Kim-Eng Equity Fund

BPI Equity Fund

Sunlife Equity Fund

Citiseconline Stocks 

Cocolife Fixed Income Fund

Manulife Freedom 20 Plan

*endowment after 20 years

If you notice, the above funds are mainly equity funds (since our "future" kids will get into college after 20-21 years, fund would have been ready by then). I only alloted 1 mutual fund which is a fixed income fund as balancer, in case the equity market isn't performing well. The insurance-endowment plan gives some buffer as well since it is a fixed amount (only dividends would vary). In terms of composition: 

12.5% ATR Kim-Eng Equity Fund

12.5% BPI Equity Fund

12.5% Sunlife Equity Fund

25% Citiseconline Stocks 

12.5% Cocolife Fixed Income Fund

25% Manulife Freedom 20 Plan

If you ask my suggestion if you can mimic the above portfolio, I would say wait for the dips to buy the mutual funds unit. It's not good to catch units now as they are running high. I would say you can begin opening a stock account too for your future kids (don't buy yet, just open), and getting the insurance. Having a little start is the way to your dream education fund. Be worry-free for your kids' education. Time is your friend. 

I guess from time to time, I need to update and increase the portion of these funds in my portfolio. I would not know how many kids we would have in the future (but we only plan 3 kids, 3 cute kids). And I want my kids to enjoy life and not experience the life I experienced before. But I know too that life is the best teacher, and I want to give them the best life they could have through education. 


"The past cannot be changed. The future is yet in your power." - Hugh White


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krissy