Author Topic: RESP and investments  (Read 3576 times)

Islander

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RESP and investments
« on: March 25, 2017, 10:24:08 PM »
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?

joonifloofeefloo

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Re: RESP and investments
« Reply #1 on: March 26, 2017, 02:14:44 AM »
Hi KatieKatie,

This thread posted twice again. You can ask a mod to delete one.

Same info as we gave you for all investing:

Canadian Couch Potato Model Portfolio
ETF version preferably.

If TD is still ripping off lower-income families by prohibiting low-fee index investing and only allowing the grants and bonds into their high-fee accounts, take it to RBC direct investing.

Islander

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Re: RESP and investments
« Reply #2 on: March 26, 2017, 03:27:53 AM »
Thx Pencil stash, I will look into RBC direct investing since that is the case with TD.

Do you know the name of a mod? I wasn't able to delete the extra threads :( still learning to navigate this forum.

joonifloofeefloo

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Re: RESP and investments
« Reply #3 on: March 26, 2017, 10:56:25 AM »
Hey KatieKatie,

Took me a while to find where the active mods are highlighted.

If you go to the forum's home page here: https://forum.mrmoneymustache.com/index.php , at the bottom you will see names of all of us online right now. Inside that mass is always a coloured name. Right now it's swick, in blue. You can PM her with any mod needs. Sometimes a mod name is in red.

Highlighted name is variable, according to who is on when.

And, I think this thread actually posted three times total, so you can ask them to remove two :)

NorthernDreamer

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Re: RESP and investments
« Reply #4 on: March 27, 2017, 10:56:18 AM »
We do all our investing via Questrade, an online brokerage, and do it all ourselves. Our kids' RESP funds are invested CCP style - 50% in VXC, 25% VAB, 25% VCN. Much lower MERs so more money for our kids in the future!

Islander

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Re: RESP and investments
« Reply #5 on: March 28, 2017, 05:30:15 AM »
Northerndreamer, thanks for the response. With Questrde are you able to collect all the grants, bonds, and adddional bonds as well? I think with TD they don't allow you to collect bonds in there resp investment acct.

rae

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Re: RESP and investments
« Reply #6 on: March 28, 2017, 06:40:10 AM »

If TD is still ripping off lower-income families by prohibiting low-fee index investing and only allowing the grants and bonds into their high-fee accounts, take it to RBC direct investing.

I was planning on going with TD Direct Investing. From what I understand from their website, they allow the federal grants for RESPs. I don't see anything about restricting buying bonds or their e-series index funds.

jambongris

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Re: RESP and investments
« Reply #7 on: March 28, 2017, 07:03:44 AM »

If TD is still ripping off lower-income families by prohibiting low-fee index investing and only allowing the grants and bonds into their high-fee accounts, take it to RBC direct investing.

I was planning on going with TD Direct Investing. From what I understand from their website, they allow the federal grants for RESPs. I don't see anything about restricting buying bonds or their e-series index funds.

Maybe I'm misunderstanding jooniperberries but we currently have a no-fee self-directed RESP at TD Waterhouse invested in their e-series funds and we receive the CESG no problem.

I'm not sure if it's different for the other grants that are available to low income families in addition to the CESG as we don't currently qualify for them. 

joonifloofeefloo

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Re: RESP and investments
« Reply #8 on: March 28, 2017, 07:51:46 AM »
^ One poster thought TD may have repaired this policy. I'm still issuing this warning until we know for sure (re: all grants, not only CESG).

Rae, by bond I mean the free "learning bond" money for low-income families.

The longer story: When I tried to move mine to low-fee index, TD direct investing got me all set up then explained it would not receive the free money (not sure if grants and bonds at that time, or just the bond for low-income). They said that needed to be in-branch. In-branch told me I would have to be in their highest-fee account for TD to allow all free money.

Another poster subsequently found the same.

Again, since then one poster thought TD may have repaired this policy (just in the last few months possibily). So, anyone eligible for anything, check before commiting.

RBC direct investing has all the same CCP options as TD-DI and allows all the money, as they did when I was first aiming to move it (late 2015 or early 2016).

jambongris

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Re: RESP and investments
« Reply #9 on: March 28, 2017, 10:40:02 AM »
^ One poster thought TD may have repaired this policy. I'm still issuing this warning until we know for sure (re: all grants, not only CESG).

Rae, by bond I mean the free "learning bond" money for low-income families.

The longer story: When I tried to move mine to low-fee index, TD direct investing got me all set up then explained it would not receive the free money (not sure if grants and bonds at that time, or just the bond for low-income). They said that needed to be in-branch. In-branch told me I would have to be in their highest-fee account for TD to allow all free money.

Another poster subsequently found the same.

Again, since then one poster thought TD may have repaired this policy (just in the last few months possibily). So, anyone eligible for anything, check before commiting.

RBC direct investing has all the same CCP options as TD-DI and allows all the money, as they did when I was first aiming to move it (late 2015 or early 2016).

Are the TD e-series funds available for purchase through RBC? I've never tried but the CCP website says that they're only available through TD and TD-DI:

Quote
Option 2: TD e-Series Funds

TD’s e-Series funds have lower fees than the Tangerine funds, and you can customize your portfolio with any asset allocation. They are an ideal alternative to ETFs for investors who want more convenience at only slightly higher cost. Unfortunately, the e-Series funds are only available through an online account with TD Canada Trust or (preferably) a TD Direct Investing discount brokerage account.

joonifloofeefloo

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Re: RESP and investments
« Reply #10 on: March 28, 2017, 11:07:44 AM »
^ I would believe the CCP website.

I implement CCP's third option of ETFs. This is cheaper yet, just as simple, available at my preferred firms (didn't want to do Questrade), and resolves a T3 issue for me at tax return time.

Goldielocks

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Re: RESP and investments
« Reply #11 on: April 01, 2017, 11:54:04 AM »
Just a note...

If the market is up and you are within 5 years of pulling out some of the money, start transferring it to fixed income, or low volatile or cash basis.   

I am starting to do this with my oldest going to university in the fall.   We are at 40% pulled out of the equity ETFs.  I realized that I would be more upset at a 20% decline (and missing the target amount we wanted to give her), than missing a potential 20% gain....

I've had to pull money that was in a loss condition in 2009/ 2010, even after waiting more than a year for recovery, and it really, really sucked.

joonifloofeefloo

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Re: RESP and investments
« Reply #12 on: April 01, 2017, 12:37:09 PM »
^ Adding this tip to my Google calendar, starting January 2018 and repeating annually after that :)    Thanks, goldielocks!

My plan is really to leave it all in much, much longer, but I'll adjust the plan as life dictates.

NorthernDreamer

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Re: RESP and investments
« Reply #13 on: April 03, 2017, 10:34:43 AM »
Northerndreamer, thanks for the response. With Questrde are you able to collect all the grants, bonds, and adddional bonds as well? I think with TD they don't allow you to collect bonds in there resp investment acct.

Sorry, I was off the forums for a few days. I know that I can get the government matching. Not sure about the low-income government grant you're talking about, I do not think we would qualify. I found Questrade to have great customer service when setting up, so you could give them a call or email and they can answer all your questions directly. I have found they have less shenanigans than the banks have...

Prairie Stash

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Re: RESP and investments
« Reply #14 on: April 03, 2017, 12:33:41 PM »
B.C., Quebec, and Saskatchewan have additional grants that require you to invest with certain institutions to qualify. Do you live in one of those 3 provinces?


Islander

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Re: RESP and investments
« Reply #15 on: April 04, 2017, 10:27:08 AM »
Prairie stash, I live in BC.

Prairie Stash

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Re: RESP and investments
« Reply #16 on: April 04, 2017, 12:16:12 PM »
Prairie stash, I live in BC.
http://www2.gov.bc.ca/gov/content/education-training/k-12/support/bc-training-and-education-savings-grant

The website has a list of providers. TD is not the same as TD Direct, legally its two different companies and the investment choices are different; Royal Bank (high fee mutual funds) and RBC Direct (low fee ETF) are also separate. To get the grant you need an RESP with one of the listed institutions, luckily you can also have your main RESP at a second place. So you can have the BC grant at TD and the rest at Questrade (or wherever).


"Contact your financial institution to see if they are offering the B.C. Training and Education Savings Grant, and if so, when their application forms will be available. More financial institutions will be offering the grant in the months to come.

You may shop around to find a RESP provider that does not require any contributions to open the RESP.  Make sure the RESP you are opening qualifies for the BCTESG.

If the child has already been named to a RESP, make sure the RESP provider offers the grant.  If not, you may open another RESP at a participating provider in order to receive the grant.

If the child has not yet been named to a RESP, choose the RESP provider that best suits your needs and ask if they offer RESPs with the option for the BCTESG.

To be eligible to receive the BCTESG, the RESP must be an individual (non-family) plan or a family plan in which all beneficiaries are siblings."

Islander

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Re: RESP and investments
« Reply #17 on: April 06, 2017, 10:14:55 AM »
Thanks prairie stash!