Apr 18, 2021

Cory Diary : Growing Kiddo Wealth

One of the famous concept today movement I heard past months is 1M65. And if we are to inject 65k into our baby account and let it compound for 65 years, the account will grow to 1M. 

From Mr Loo,

"To make baby millionaires, you first need quite a sum of money: S$64,350 to be exact for each baby at birth, to be contributed into their CPF SA."

For Cory that will be 130k. Ahem ! Even for a millionaire, to cough out this sum is not like a walk in the park. This sounds more like headline grabbing rather than practicality riches of wealth. After 65 years, $1M probably be good enough after inflation, if we still have the purchasing power to pay full for a 2 room BTO if such unit still exist.

I could also use that money to pay for the down payment for another investment property increasing my alternative income. However in this environment, the idea of ABSD, TDSR... etc will kill it.

Maybe it will be way faster if I spend the money now on 1 BTC which could grow to 1M in 2 years if BTC supporters expectations are met. Or it could go to zero if the governments start to ban them. Turkey ban moves shade few percentage off BTC value just this week. Imagine this is by EU or US.

On another perspective, 1M65 looks like modern way of saving for children. If 4% compounded is not sufficient to attract my money which is almost riskless, not many investment could anyway. One thing likely could happen is my vote will be biased against any political party that try to rock my Kiddo 1M65 boat for the next 65 years. LOL.

If we take this movement as an idea, 1M is just Mr Loo idea of compounded saving. We need not necessary have to narrow the concept and kill ourselves. We can start with any amount and build it up over their years and have it topped up as kiddo grows up. For a start on accountability, after talking to my wife, we have their Ang Pao money thrown inside matched 1 to 1 by their father. It takes some work to tear up their packets .... but topping up SA for the kids are a walk in the park through PayNow. They now have 1K each.

Cory : "Honey, there is some anypao money I forgot to top up into their SA accounts. Anyway I have done 1 on 1 matching. I should keep this balances."

Bee : " What you matched is theirs. The balances is still theirs."

Cory : " ... ... ... "


Articles in this Blog is personal take and educational purposes only. Reader should seek their own professional help when making financial decision and be responsible for their decision.

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