Is it right to put 200k of our son’s college savings all at the same time in FAMI Save and Learn Fix Bond?

October 28, 2013 | By Fitz | Filed in: Investing.

Is it right to put 200k of our son’s college savings all at the same time in FAMI Save and Learn Fix Bond? I saw that among UITF’s/MF’s bond fund, that one has the highest income. Am I missing something or is there hidden charges that is not reflected? Our son will be in college 4 years from now, so I choose Bond fund and bec I somehow read that per transaction (depends on what range of amt invested) is the way they charge the investor. That’s why I thought of 200k lumpsum.

I’m also planning to put 25k or 50k in BDO Bal Fund and fund it with 5k a month for 1-2 years. Got the courage to do this after reading your blog about this Fund. Some will be in Time/savings deposit. Also read that its good to put the savings in BPI account with insurance that is x4. Am planning to put 100k each for my husband and I. Can you please share your thought abt this plan of mine. My husband are both in our 50’s and he’s planning to resign fr work due to health reasons. That’s why I’m very eager to grow this 500k college savings of my son, to cover inflation and some of his would be-expenses in college. This is my first time to invest and planning also to enrol in COL and put some of our savings to grow. Will ask abt that next time.  Thank you so much in advance for your advice and God bless!




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One Response to “Is it right to put 200k of our son’s college savings all at the same time in FAMI Save and Learn Fix Bond?”

  1. Fitz says:

    Hi jiann,

    Looks like you have a good plan. My only advise is to calculate how much you’ll need for your son’s college fund and redeem your investments once you hit that target.

    Learn how much the tuition now is in the university where you want him to study, add 10% to that every year for 4 years, and you’ll have a good estimate how much it will cost by that time.

    Then, multiply that amount by the number of years required for the course that he might take and you’ll have your target amount.

    After that, monitor your investments, probably once every quarter, to see how it is doing. If at anytime that their paper value equals or even just comes very close to your target – redeem it without regret and put everything in a time deposit account – where it will be zero risk.

    If on the other hand, it seems that you’re not going to hit your target, then either look for extra income to augment your budget, or perhaps choose a more affordable university for your son.

    Either way, my suggestion is not to invest too much on the stock market because your time horizon is too short (less than 5 years) – I’m thinking not more than 25% of your total investments should be in equities, unless you’re willing to take the risk.

    Wishing you all the best.

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