RESP and investments

[Islander]

I currently have $7500 in a RESP at TD bank.

How should I invest this?

Where is everyone holding there RESP accounts and what investment do you have in there?

[Goldielocks]

Depends on how long you want to hold it in there for.

This is enough $ to put into a Vanguard fund rather than a TD Series, as the $10 trading fee is tiny compared to $7500, but huge compared to $200 per month contributions where e-series makes sense.   If you plan to drip in the money or add small amounts each month, look at the e-series funds.

Guideline--  (There are TD E-series equivalents of all of these that has a slightly higher MER but still low)

If you have 10 or more years, I would look at equity ETFs, like a Total Stock Market fund.  (VUN, VSX, or even VCN)
If you have less than 5 years, then put it into something conservative, like VAB (bond fund).

In between -- set up half and half.

[Islander]

Thanks! I have a 2 year old and a 5 month old. So a long time horizon.

[Harvestqueen]

I use the TD e series for my son's RESP and keep the asset allocation at 25% for each fund. (Can, US, Int, Bonds)   My son is 2.

[Ottawa]

Another thread on RESP from a while back here

I haven't read this topic for some time...here is our update on the steady power of investing $2,500 plus the $500 match.  Since 2010 we have put in $38,000 and the match has been $5,000.  Note from the thread above that we optimized by front loading.  Attached is the return graph since inception.