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RESP Investment

RESP Investment Planning

My brother recently had a baby and we have been discussing what type of investments he should have for his RESP. There is literally an 18 year timeframe for the investments to grow before you start withdrawing. He had a look at my current holdings for my kids RESP and noticed it was all high paying dividend stocks with minimum growth potential. What I have in my RESP portfolio are the results of a late switch out of mutual funds and 12 years of investing in it. I have to admit that I have not been able to maximize my contributions all the time. As much as I wanted to contribute, I did not prioritize RESP over RRSP for the simple reason that RESP is not the only way to fund a school education. RESP Facts There are many points around RESP that you will need to get familiar with but the main RESP ...
How To Buy Bonds

RESP Strategy

Planning a RESP strategy is similar to planning your retirement (including RRSP)but your timeline is shorter and the adjustment happens much earlier and it may not be enough time to be aggressive depending on your risk appetite. I have now sold all my mutual funds from my RESP account and moved it all over to my discount broker – RBC Direct Investing. Previous RESP Strategy (or Lack of a Strategy) I had everything in a few mutual funds:67% in a dividend income fund (Yeah, I was dividend focus from an early age just not in stocks) 20% in Canadian equity 13% in bond fundThe 8% yield I was getting out of the dividend income mutual fund was keeping me away from making major changes until now. Everything has now been transfered in my RBC Direct Investing account and I have been planning ...
RESP Investment

RESP or No RESP?

Deciding on funding an RESP is usually based on the desire to provide the best for your children through higher education. Banks or advisors will bring it forward and highlight the 20% contribution from the government in the form of a CESG grant and the tax free growth. They want you to buy their products. It’s not relevant to them where you put the money but if they can get you to open an account with a monthly contribution, that’s a monthly fee in their pocket. What I am referring here is to the advertisement that surround us and often promote products that might or might not be in our best interest. In a previous RESP post (RESP Explained), I had a very good question from a reader about the drawbacks of a RESP. The drawback is only apparent when you consider what you will do ...
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