Financial Planning for Beanie

Little Beanie in the bumbo chair, happily chewing her toys.

Firstly, I think I forgot to mention that I have passed the CFA (Chartered Financial Analyst) Level 3 exam back in June 2011! To think of it, I was almost 7 months pregnant with Beanie and with that stomach, I sat through a grueling 6 hours exam. My whole body was almost cramping with pain after sitting and scribbling non-stop for that 6 hours.

Thankfully, I passed! So technically, upon application and approval from the CFA Institute, I can then rightfully add the title of "CFA" in my name card. With that qualification, I hope to either negotiate for a higher pay or find a better paying job.

Then I quit my job to become a full-time mom. (0_0")

And after reading Ting's blog about the cost of foreign tertiary education for her sons, I started punching my calculator for the amount that I need to squirrel away for my Beanie's education fund. And the amount is no joke if I were to factor in inflation and the higher cost of living in the future.

So, I assume that Beanie can study at a local university and I aim to set aside $100,000, excluding Hub's contribution. Instead of an endowment plan or saving plan, I intend to invest in equities.

I will buy minimum one lot (1000 shares) of a Singapore blue-chip company for Beanie every year, and so long Singapore prospers, that blue chip should clock in decent capital gains, as well as cumulative dividend income in 18 years time.

Since this is Beanie's education fund, I must pick a stock that has very stable recurring profits to pay recurring dividends, and yet at the same time, has the potential for growth and capital gains.

I personally will pick SPH -> Singapore Press Holdings. Why? Because:

1) To invest in SPH is to invest in Singapore, ie: the country's population growth, and the government's commitment to make Singapore a vibrant city. Thus in turn will spur growth in retail, housing, F&B, cultural activities... etc, which will ultimately increase SPH's advertisements , its main source of income. SPH basically has a monopoly control in the mass media industry in Singapore. Even in times of recession, advertisements usually remain relatively stable, so SPH should remain profitable.

2) SPH owns Paragon and the newly completed Clementi Mall. Both malls are situated in excellent locations and enjoy very good traffic. I believe in time to come, SPH will buy or build another 1 or 2 shopping malls and ultimately sells these malls to a REIT (Real Estate Investment Trust) to cash out from its investments and hopefully declare a special dividend to its shareholders!

3) SPH is also a property developer, it's newest completed property: Sky@eleven was sold out. However, as this is a non-core unit, I will not be surprise if SPH eventually carve out its property development unit and list it as a subsidiary.

4) High dividend yield. SPH has been paying about $0.25 per share of dividends for the past few years, which translate to about 5-6% yield. Most endowment or saving plans only pay about 2-4% of annual yield, and without any potential for capital gains.

So, if I were to start investing in 1 lot of SPH per year for the next 18 years, assuming a modest annual gain of 4.5% (inclusive of dividends), my 18 lots should eventually net me $99,364.

And remember that Singapore does not tax capital gains nor dividend income. ;)

Current share price of SPH: $3.66. So, by saving about $300-$400 a month, I will be able to buy a lot of SPH after a year. Of course, as the share price increases, I will have to save more in order to buy 1 lot, however the dividend will help to offset the cost.

So hopefully SPH will eventually fund Beanie's education to Harvard! ;p

Nursing Strike

In preparation for my return to office to serve the 1 month notice, I have gotten my confinement nanny back to take care of Beanie, and have also started to give her bottles of expressed breast milk while I am away.

This naughty little girl has now taken a liking to bottles and is now rejecting my boobs!

This is VERY bad news to a stay-home mom who has no help in the house. I simply do not have the time to wash, sterilize, pump and then feed her via a bottle. So now, I have to train Beanie to latch all over again.

Feeding time is now a battle of wits. Instead of letting her cry it out, I have to try all sorts of tactics to "seduce" Beanie to latch again...

Plan A

Let Beanie suckle when she is in a drowsy state, which means that I have to watch Beanie like a hawk. As soon as she is waking up from her nap, I have to immediately stuff my boob into her mouth before she realizes what exactly is going on. The challenge comes when she is hungry AND sleepy, then she will be extremely fussy and will cry and scream for the bottle. That will bring me to Plan B.

Plan B

Try to latch her while both of us are lying on the bed. I've to pretend that I'm playing peek-a-boo with her, and while she is happily laughing away, I'll stuff my boob into her mouth. Unfortunately, the success rate of Plan B is only about 15%.

Plan C

When Plan B fails, then Plan C is to fish out my iPhone, play nurseries or songs and place the phone in my bra. With the phone in my bra, Beanie will at least face my boobs and I'll then try to sneak my boob into her mouth. Once again, Plan C only works like 2% so far.

Plan D

By now, Beanie is usually VERY angry, fussy, sleepy and hungry and it is now a contest of who blinks first. I will rock her vigorously until she stops crying and most probably giddy from motion sickness until she either fall asleep and then I can proceed to Plan A, or I cave in and give her a bottle of 40 ml of breast milk (she usually drinks at least 140 ml) to pacify her.

To exercise Plan A - Plan D, 4 times a day is no joke. Yes, I am seriously considering the InfantCare 2 blocks away now! Argh!

A mother's dilemma

Ok... I take it all back. In my earlier post, I asked how do full time working moms bear to leave their babies at homes with maids or at Infantcare. Just into the first day in office, I was already re-considering the Infantcare a few blocks away, and the notion of being away from Beanie for a few hours at a time, is becoming more and more appealing... ... ...

Taking care of Beanie full time is actually much harder than my current job. Now that I'm back in office, I enjoy dressing up in the morning, chit-chatting with fellow colleagues (you can only coo at a baby for so long without feeling stupid) and shopping during lunch.

I am really enjoying my new found freedom, and that's because I have a reliable caregiver at home now. I do not have to worry about Beanie because I know that she is in good hands.

Sigh, as much as I love Beanie. I enjoy working too. Previously, I've always thought that being a SAHM is a privilege. Now I understand why being a SAHM is considered a "sacrifice" instead.

Anyway, I've already tendered and my last day will be on this friday! Woohoo!

Beanie's "Ah Goo" moments

Just when Beanie is becoming really cute and fun to play with, my 4 months of maternity leave is up and I'll be heading back to office on Monday! But as I have decided to be a SAHM (Stay-At-Home-Mom) for the next 1 year, I'll be tendering my resignation on the very first day back in office. Hmmm... I wonder how my boss and the HR department will react to that. Unless I can take a no-pay leave for the next 1 year, my resignation will be final.

Currently, I've gotten my confinement nanny back for the next 4 weeks to take care of Beanie while I'm back to work. The thought of leaving cute little Beanie at home is already making me sad. How do those full-time working moms do it? How do they bear to leave their little ones at home with maids? Even if it's my own mother taking care of Beanie, I'll also be very sad with the idea of being away from my little pumpkin for 8-10 hours a day.

Although Beanie does drive me crazy with her fussiness and cries most of the time, but as long as she flashes me her giggling smiles and "ah goos", I'll be filled with love for this little moving bug and wana drown her with kisses and protect her forever. Well.... at least until her next bouts of fussiness that drive me crazy all over again.

Dear little Beanie, you must remember that Mommy loves you very much ok?

Beanie's Closet

I made a headband and some clips for my friend's baby girl, but I can't resist getting Beanie to model for me. Haha... but my model needs more hair!

If I were to start a blogshop selling headbands and hair clips, I will brand the shop "Beanie's Closet". ;)

Something to think about!