Bro , I really like your this post ! Thumbs Up MAN ! , wondering if nowadays parent can think wisely like you, but not just send their children to university blindly for giving them the higher education(in parent opinion), but which is some of teenagers loathed of it...

higher education is good but I think the mind thinking of their teenagers are more important than the education. They just throw few thousand K of RM for just a degree course which is locate at Malaysia's University/College . but just 10 out of 1 ppl can make the bigger value than those fees after graduated .

Parent should give what their children really desire on.. but not what the parent's hope..
Just my opinion about nowadays society, no offence. =D

I will want my kid to take up some professional program and work along the way. (CIMA, ACCA, CFA, CIM MAICSA etc)

This way I believe he/she can be exposed to the intricacy of working life as early as possible.

And if he/she is up to it, then can apply to do masters after a few year of working to enhance his/her marketability.

I do not wish for my child to be all academic but do not have real life experience as evidently many Masters holder nowadays.

Xuzen

education may not cost a single money at all if your kids can harness his talent and skill deep down in him.

life is not just about career and eduation.

Please watch this movie " Up in the Air". Many employees just work 20-30 years and still stuck with the job security and promises.

just let your child cruise along with his life , he could be the best in sports or anything that shake him up early as 6am in the morning.

Hi,

My name is Merlyn. Im an AIA financial consultant agent. How about consider a long term child education saving plan? By the way, how old are you now and what job you are working as? I can prepare a proposal for you.

Thanks.

Merlyn

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Added on March 4, 2010, 7:41 pmHi,

** In addition, what is your budget?

Thanks.

Merlyn

This post has been edited by m2chew: Mar 4 2010, 07:41 PM

for me long term education is not even possible , looking at the current salary scale and credit card debts, loans etc.

i don't why so many bankers don't listen and open up their mind.

They keep going after the average and middle income earners who are now living in debt mostly. Pls be more realistic lah. Now how many of you got good bonus at the end of the year. What did u do with the bonus at the end of the year.

Children education fees is not even the future stuff. its now.

Bankers , give me RM 300K now and i repay back slowly till i die. Can they do that?

i did a comparison of junior savings accounts by commercial banks in the market recently.

you can check the info here.

Hi,

Just thought of sharing with the rest.

My wife gave birth to my 1st child recently and I am already thinking for her future.

As I am not a person discipline enough to save at my own will, I have recently bought a saving plan for her after going through the options available in the market.

What I like about the plan is the short commitment of only 6 years, as compared to those edu/insinvestment plan of 20 years or more.

Though the premium is different, it is the feeling of committed to something for years that turn me off. Offcourse this is not applicable when I signed the marriage cert with my wife. Haha.

I am free to do what I want with the extra money after 6 year, what i deem best at that moment.

here is how the plan look like.

If you put in 10K each year for 6 years (Total saving 60K)
Calculation based on life assured whom is healthy 30 years old.
It is a 30 years plan, but these is what you will get if you decided to surrender the plan early.

This is what you will get. Guaranteed.
At 18 years: Min 88088, Max 115036
At 20 years: Min 94537, Max 127988
At 30 years: Min 132188, Max 216187

Normally you will get something in between.

You have the option of withdrawing your income and cash dividend out at the end of 1st year without surrendering your policy.
This plan is covered by PIDM as well.

Cheers.

Good idea but the growth %pa compounded is less than 5%pa compounded, on average, from your data and my calc.
It barely stays ahead of inflation, thus may not be the only vehicle one wants to use to get there. Perhaps in combination with equity, bonds and REITs/property, heck, even perhaps commodities/metals.

Note: I'm also a father of a 5 year old little girl thus based on my extrapolation, i'll need like RM400K to RM500K in future value of $ by 2023 for her college/Uni (2+1 AU), based on 6%pa average inflation per year and 2009's cost of 2+1 programs.

Just a thought.

This post has been edited by wongmunkeong: Sep 15 2011, 10:23 AM

Strongly agree with you.

We should always have a mixture in our portfolio, some with high return with high risk, some with low risk and reasonable return.
With the amount I saved and quoted in the calculation, it is definitely not enough for her furture/education.

But nevertheless, we have to start somewhere, start early, and according to our affordability.

That is why I think 6 years is reasonable, after that I can commit into other plan or do other investments with my extra money.

It is little difference with
6 years commitment vs 20 years commitment.

6 years one, you pay it more advance, hence premium is about 3x higher than the 20 years premium.

Both lock in period is roughly the same and inflexibility is roughly the same.
You still cannot touch those money even you are starving to death now or no money to buy a packet of foods, despite having millions on saving plan.

You only get those money and expected pathetic return after maturity.

But what I know, a lot of agent push more harder for 6 years one....

Bad lar U bro Cherroy, straight for the jugular

Firstly, CONGRATULATIONS! Welcome to the world of parenting!
When my boy was a baby, i just couldn't wait for him to talk, walk and go biking with me. The years just flew by and now he's a fine young man of 17 with his own interests and friends. Enjoy your baby girl while it lasts.

I had the same plans for my child and back then I bought a policy from AIA to ensure when he's 18, there's plenty of money for his higher education. Unfortunately, I could not continue paying midway and lost it all as I went through a bad patch for a number of years.

Today, I thank God for Genneva Gold Savings Plan based on Syariah Principles where I hold physical gold and receive assured monthly Hibah which I put aside solely for my son's education. You may like to do the same. Do read my Welcome Message to learn more.

Cheers and selamat menyambut Hari Malaysia!

I bought some props during these few years most of them are for investments however Plan to give one or two for my children's education if they are not capable or getting any scholarships in the future ..

Teach them the art of investment and how to make money work for them is my long term education Plan...

This post has been edited by keithcky: Sep 16 2011, 02:37 PM

education plan at http://www.pk31-edu.blogspot.com

I'm also planning for this. Seems savings plan are just to 'force' people to save but I wonder if the cost of withdrawing early is worth it or not. Isn't unit trust better or is it because it is more risky that's why people prefer savings plan? At least unit trust can stop payment anytime am I right?

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Added on September 18, 2011, 8:33 amIs it because agents only get commision for 6 years of the policy? This would make sense why they pushed more for 6 year policies since it will benefit themselves more since every year a larger deposit is made. Not sure if savings plan also same like unit trusts in terms of comissions.

This post has been edited by Skidd Chung: Sep 18 2011, 08:34 AM

Saving plan is about protection.
If you die pre-maturely before the saving plan matured, you get the full sum of sum assured, even you just pay RM1000 on the premium on the first year, which can mean your beneficiary get the full sum assured which can mean a couple of ten K.

If nothing happens until maturity then you get back the your premium paid + roughly comparable to FD rate.

Saving plan is not for one to chase after the return, as its return won't be higher much than FD rate, while very high inflexibility due to long term commitment.

No, the commssions are diff.

both has pros and cons.

saving plan (insurance)
- more on health protection
- cannot stop halfway
- conservative on investment preservation.

unit trust,
- more on investment.
- hv free ins. (if any for certain funds)
- can stop halfway.
- preservation depends on type of risk factor. higher the risk, lesser the preservation.
- optional to swtich funds to lock profits and max the returns.

unit trsut can give higher return than ins saving plan over the time.

everybody should hv ins and unt trust seperatly.

if u interested on UT, u can PM me at kparam77@yahoo.com for more detail. pls read my blog on education plan http://www.pk31-edu.blogspot.com

you can invest on epf of your/ur husband's parents , to be safe (if they r still here, i'm sorry if they're not),

i'm sure by the time your child grows up and needs that amount of money, it will be ready for them for your/your partner's parents would be over 60 by then.

education insurance is considerable too, try consulting etiqa or other banks offering that insurance

i would say buy a house/property which would be as time goes by will fetch higher value(depending on locations) and if not the place for the kids to stay next time

Agree with what you said. But again whether a plan is good or not does not fall purely on its return alone. Furthermore we can't guaranteed that the current FD rate will remain the same for the next 10-20 years. It may go down or up.

A good plan is when it meets our requirement/needs. There are certain people whom actually bought certain plan not because of its return, but because it is able to meet that person's needs.

One man's food may be another man's poison.

But off course if everyone is good in investment like our bros and seniors here, by all mean, invest!!! as the returns will be much much higher than these saving plans. Having say that, not many are gifted like our seniors or gurus here, otherwise everyone will be successful.

Just my 1 cent opinion. Cheers and happy investing/saving.