Daddy’s Bank

Together with the reset of my portfolio in 2020, I decided that it is necessary to invest my children’s cash in their bank accounts, especially given the meagre interest then! The money in their bank account came from ang pows collected over the years, savings from their allowance and academic awards.

I was thinking how I should go about doing it. Should I put the money in individual counters or ES3 or SPY?

On hindsight, I should have just put in SPY but then I was still relative new to the US market and it did not come to me as a natural choice. My experience with ES3 tells me that it is not worth it unless you can buy it on the cheap during a crisis.

Buying individual counters also does not make sense to me as I would need to construct a portfolio for them and that creates extra work for myself with little incentive. So in the end I decided that I will come out with a product that no other bank can offer! Invest the money in TFI fund.

Quite good, right? If any bank can offer me the above product, I will definitely take it up!

So far so good!

Thus far, they are getting a good return for the cash injected! If I annualised the return over 3 years, it’s about 9.2%.

As for daddy, it really depends on how you see the numbers. If the return earned from the first two years were withdrawn from the fund, then it can easily cover the 3.0% payout in 2022. However, if the injected cash and return are left in the fund, then daddy is running a loss at the end of third year.

It really doesn’t matter to me. The set-up was just to inject some fun into the process which I can use to have a conversation with them in time to come.


When they start to show interest in growing their money or when they turn 20, whichever comes earlier.


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