The Problem: Born Into a "Perfect or Nothing" World
My two sons—adorable, bright, and full of potential—are growing up in an era where being good isn’t enough. Society demands perfection. I’m not a wealthy man, so they weren’t born into privilege. But one thing keeps haunting me:
"I don’t want them to make choices out of necessity, like I did."
When I was younger, I pursued my degree not out of passion, but because it was the only option available at NTU. What if I had $100K at age 21? Would I have taken a riskier path—started a business, invested early, or chased a dream instead of a "safe" career?
I’ll never know. But I can ensure my sons have real choices by the time they’re adults.
My Simple Strategy: Let Their Money Grow Without Touching It
Since I don’t need their baby bonuses or ang bao money to cope with their cost of living, I invest it all in safe, low-yield instruments (e.g., Singapore Government Bonds, SSBs) earning 2–3% annually.
Here’s why this works (sample calculation only):
Government Baby Bonus: ~$8,000 per child (cash portion).
Ang Bao Money: ~$1,000/year from birthdays & CNY.
Time Horizon: 21 years of compounding.
How Much Will They Have at 21?
Case 1: Just Baby Bonus + Ang Bao (3% Return)
Baby Bonus (Lump Sum): $8,000 × (1.03)^21 ≈ $14,800
Ang Bao (Annual $1,000): $1,000 × [(1.03^21 – 1)/0.03] ≈ $29,200
Total ≈ $44,000 per child
Case 2: Extra $100/Month Contribution (3% Return)
Additional $1,200/year: $1,200 × [(1.03^21 – 1)/0.03] ≈ $35,000
Total ≈ $79,000 per child
What If Returns Were Higher (5% in ETFs?)
Baby Bonus: $8,000 × (1.05)^21 ≈ $22,300
Ang Bao: $1,000 × [(1.05^21 – 1)/0.05] ≈ $38,500
Total ≈ $60,800 (without extra contributions)
With $100/month: $96,000+
Why This Matters
Freedom to Choose: At $44K–$96K, they can start a business, or invest further—without being forced into a "safe" job.
Avoiding Lifestyle Inflation: Since this money is theirs, not mine, they won’t grow up entitled—just empowered.
Final Thought
I’ll never know if my younger self would’ve succeeded with $100K. But I do know this: My sons won’t have to wonder—they’ll have the means to try.
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