Work permit and M.E visa to non b

[DocTom]

Please forgive me if I am going over old ground, but searches did not get me very useful stuff.

I seek advice regarding possible investment or savings vehicles in which I can place some money for my Thai grandchildren, such that they can receive it at their 18th (say) birthdays.

A primary requirement is that the money should be completely safe, further that it can be redeemed and received here in Thailand by individuals and family who know little about finance. I expect to be dead, and my immediate farang friends may not be around to help. Some growth, at least to keep up with inflation, is also highly desireable. The period will be about 8 years and 15 years or so for two children.

Being nervous about local advisors and institutions, I will favour products from internationally-known, reliable providers, if any such exist (Fidelity?)

Can anyone help with any suggestions or contacts please?

DocTom.

[fletchsmile]

DocTom,

Someone opened a similar thread a couple of years back on a similar topic of investing for their own kids. Sorry couldn't find it though, as I can only go back to about late 2010 on my own posts, and like you didn't have much joy with the search function.

Firstly no investment or savings is ever completely safe.

Below is an old post I made on what we did for children's bank accounts/ savings accounts with Standard Chartered Bank Sathorn (Head Office), where someone also wanted access by ATM

For investments, we have done a similar thing on mutual funds. We opened an account in the "child's name by parent" with Standard Chartered Bank. The mutual funds include those from reputable international firms like Aberdeen or ING which have local entities here. You could also go direct to Aberdeen or ING rather than thru a bank. Each has its own advantages and disadvantages. A couple of advantages of going thru the bank are the single point of contact:

- you have a single point of contact for both your savings accounts and investments accounts

- on the investments you can choose funds from multiple different fund managers eg ING, Aberdeen, KTAM, with the bank as the overall coordinator

Standard Chartered's platform is quite weak, so can't be done online. But for someone who prefers dealing face to face, has little knowledge of how to do online, and prefers paper trails it may be more suitable. They are also mainly only in Greater Bangkok and not very useful for other locations. Other banks like Bangkok Bank, SCB or Kasikorn may be more suitable for up country Thais

A few links:

http://www.aberdeen-...istoricalprices

http://www.ingfunds.co.th/EN/index.asp

http://www.standardc...nt-services/en/

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We've opened savings accounts for our "little Smiles" - 2 each in fact - one with the child by father, and one with child by mother. The accounts are in the name/format of "child's name by Fletchsmile" (child by father) and "child's name by MrsSmile" (child by mother)

As the little ones are too small to sign themselves, I'm the signatory on one account and my wife on the other. They did not get ATM cards though.

So in addition I also set up internet banking for them - again 2 IDs each - as the names on the accounts differ and one is by father and one by mother, so they have a different customer ID tagged to them. This was a bit of a hassle to set up, but once in place I can move their money between the various accounts, as well as our own accounts very easily. This solves the ATM problem too as we can use our credit cards or ATM and do a transfer from their account. This is useful when people give them money say for presents. Effectively it's as easy to use their accounts as our own.

Now say if I die, the internet banking is still in play. So it would be quite easy to transfer from the account by me to the account by the wife, and carry on using.

Alternatives including opening an account in your name, and specifying it / leaving it to them in a will. This is not really their account tho' but you could get an ATM and let them use it.

I like the solution we have. It also has other advantages too. eg next year when deposit insurance falls to THB 1mio per person per bank, we can spread up to THB 4mio in a bank. If you are from the UK and subject to inheritance tax there's a few obvious ways this could be used to your advantage too....

They also have mutual fund investments done this way too, and I actually did these before doing the cash savings, and saving a small amount each month since birth

Edited July 27, 2012 by fletchsmile

[fletchsmile]

BTW My mother - children's grandmother, recently gave us some money to be given to each of the girls when they are 18. Her thinking, like you was that this is some way off, and she may not be around. Because we had already set up investment accounts for them as above, it was easy to just buy some more funds.

I will look after the money in the funds and allow them access when they are 18. In the event I die as well, my wife could just go into the bank and ask them about it, and they would help her sort out. Statements are sent every month from the asset management company so it's not as if it would get forgotten or overlooked. Even if we both died, it would be pretty obvious to the children's guardians on opening the statement in the mail, that there is something to follow up, as companies like Aberdeen send statements showing both Thai and English language.

Edited July 27, 2012 by fletchsmile

[givenall]

I decided to open an education fund in US that allows to invest in Mutual funds. It is safer and better managed than Thailand

[TommoPhysicist]

Buy them a house or land.

They can't sell or borrow against it until they are 20.

[fletchsmile]

I decided to open an education fund in US that allows to invest in Mutual funds. It is safer and better managed than Thailand

Curious. In what way would you say it is better managed?

What are fees on it BTW

[DocTom]

Guys : very many thanks for your inputs.

I do understand that there are no safe investments; I used the term in a relative sense, to imply that I am seeking a product at the safer-end of the risk spectrum.

I have looked at and considered your suggestions. Some of them have attractive features but I have still not found quite what seek, and so I shall continue searching. I will post any new information that I may find.

Once again, many thanks to you all.

DocTom.