My 20-Year Investment Plan for My Two Sons

For a little background, I've never touched my sons' Baby Bonus cash gifts or their ang bao money. Instead, I've invested everything for their future.

In the beginning, I kept things very conservative by putting the money into T-bills and bonds. Looking back, I think I was being a little too cautious. While those are safe instruments, my sons have an investment horizon of well over a decade, so taking on more equity exposure makes sense.

Many people would immediately choose the S&P 500, and I agree it's an excellent long-term investment. However, after weighing the pros and cons, I believe that, as a Singaporean, investing in the STI ETF is a sensible choice for my children's core portfolio.

The S&P 500 has historically delivered stronger returns, but investing in companies listed in our home market and denominated in Singapore dollars gives me greater peace of mind. These are businesses I'm more familiar with, and there's no currency risk to worry about. For me, it's about finding the right balance between growth and risk rather than chasing the highest possible returns.

So how are they doing so far?

I only started buying the STI ETF for them this year (2026). My sons are currently 3 years old and 1 year old. So far, I've invested a total of S$34,000, accumulating 7,101 units of the STI ETF.

The plan is simple: their six monthly Baby Bonus cash gifts, ang bao money, and all dividends received will be reinvested. I don't intend to trade or time the market. The goal is to let compounding do the heavy lifting over the next 15–20 years.

I'm curious to see where their portfolios will eventually end up. Hopefully, by the time they're old enough to understand investing, they'll not only have a meaningful nest egg but also appreciate the value of patience, consistency, and long-term investing.

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