Author Topic: RESP: Questrade ETF or TD e-series?  (Read 2518 times)

FrugalFan

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RESP: Questrade ETF or TD e-series?
« on: June 08, 2015, 08:33:58 AM »
What do you think is the best strategy for RESP's? We have a family RESP plan (two kids under 3) currently with our Adviser, and I plan to move it out and invest ourselves. From books and reading online, I think the two best options would be TD e-series index funds, or Questrade ETFs. We are already saving the $416 per month in a high interest savings account. With our Adviser, we would usually give him a lump sum once a year, but we could conceivably invest monthly. The issue is with managing all of our other accounts, I would like to keep this one simple.

It is my understanding that with the TD e-series funds, I could set up a pre-authorized monthly withdrawal that would automatically top up each account. Is that right? And the CESG would get deposited in a money market account and I could use it to balance my allocations? How much paperwork does this require? I've also read that setting up the TD e-series fund for RESP's can be a PITA. The two main options I read about are to open a TD mutual fund account and convert to a e-series RESP, or open a TD Direct Investing account and open an RESP from there. Does anyone have experience with either of these options? Is getting the CESG just as easy with either option?

I think a Questrade ETF account could work as well, but it would be more work to manage as I would have to do the trades myself. I suppose I could do them quarterly instead of monthly to save a bit of work. Not sure how the CESG works with Questrade. Anyone with any experience?


KMMK

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Re: RESP: Questrade ETF or TD e-series?
« Reply #1 on: June 08, 2015, 11:07:31 AM »
According to this chart http://www.esdc.gc.ca/en/student_loans/resp/promoters_list.page TD might not offer the additional income-related government amounts for lower income people so I'd try to verify that before using TD, unless your income is too high to qualify for these.
I researched and wrote about RESPs recently on my money website if you are interested (see my signature - the article links will be on the main page) but I don't need RESPs myself and haven't used Questrade yet so hopefully someone else will help you with those details. I do have TD e-series for other registered accounts and it works really well for me.

FrugalFan

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Re: RESP: Questrade ETF or TD e-series?
« Reply #2 on: June 08, 2015, 12:52:16 PM »
According to this chart http://www.esdc.gc.ca/en/student_loans/resp/promoters_list.page TD might not offer the additional income-related government amounts for lower income people so I'd try to verify that before using TD, unless your income is too high to qualify for these.
I researched and wrote about RESPs recently on my money website if you are interested (see my signature - the article links will be on the main page) but I don't need RESPs myself and haven't used Questrade yet so hopefully someone else will help you with those details. I do have TD e-series for other registered accounts and it works really well for me.

Thanks! We don't qualify for the other grants, so that is not a concern. How did you open your e-series? Was it complex?

KMMK

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Re: RESP: Questrade ETF or TD e-series?
« Reply #3 on: June 08, 2015, 02:28:10 PM »
According to this chart http://www.esdc.gc.ca/en/student_loans/resp/promoters_list.page TD might not offer the additional income-related government amounts for lower income people so I'd try to verify that before using TD, unless your income is too high to qualify for these.
I researched and wrote about RESPs recently on my money website if you are interested (see my signature - the article links will be on the main page) but I don't need RESPs myself and haven't used Questrade yet so hopefully someone else will help you with those details. I do have TD e-series for other registered accounts and it works really well for me.

Thanks! We don't qualify for the other grants, so that is not a concern. How did you open your e-series? Was it complex?

Nope. I'm not a TD client, so I just made an appointment with the closest branch to see an investment person. And I made it really clear I just wanted the self-directed RRSP account, strictly for online investing, just a cash account - nothing fancy at all. I just waited while he did a bunch of paperwork.

Then there's a bit of a wait and they mail you information. I can't remember if I had to do some other step - sometimes you have to convert to a different account type. It's been a while now.

So you get your log-in information and it took me a little bit to get used to their interface, but it's like any online banking - easy enough unless you're horrible with technology. I use the bill payment feature from my other bank to transfer money over, as my amounts are variable. It goes into the cash account area, then you log in and buy the specific e-series funds you want.

I've also had very good experiences whenever I've had to call the help centre #.

I think it depends who you talk to. There's at least one forum member who's had nothing but trouble with TD, but that hasn't been my experience at all.