Jan 3, 2014

My Saving Plan For Children Education Fund

Photo by: Mr. Adenan Hashim

When we talk about funding our children for their higher institution education, what normally comes in mind is PTPTN or MARA. Is there any other source besides these two?

However, both PTPTN and MARA is in a form of loans. Our children (or might be us, parents, might happen ) will have to pay back the loans after they  have graduated, except for MARA, provided that they really extremely excel in their studies like score 4 flats… huhuhu (should have faith in them).

What I am planning is actually,
on having a fund, enough for the education fees and whatever necessary related to their studying. Wow… so ambitious! Ehehe… Is it possible? For me?

Well, it never occurred in mind before, until I was introduced to a plan by my brother Razi Rithaudeen last month, in early December. It’s some sort of investment plan where you invest an amount of money or rather BUY shares at the selling price and let it rise to the amount where you can SELL the shares and profit from it. Sigh.. this is not in my field of knowlegde – don’t really know how to describe it.

However, at the time he introduced the ‘thing’, the price of the share is USD0.287 per unit. He told me that if I buy the shares for USD500 or RM1750 (as for RM3.50 per USD1), an estimated amount of profit I would get for selling the shares after 10 years is around USD216,252 or equivalent to RM690K more or less (depends on USD conversion rates to RM at that time). 

Click Image to Enlarge

Now, it is 2014 – in ten years, which is in 2024, I would have more or less RM690K for my children’s education fund. Hope, it’s enough. Thinking of the current economic conditions, with the rise of cost of living, inflation and all sort of things, it’s really hard to say, how much is enough.


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