RESP - Just had baby
RESP question - which ones would you recommend and is RESP a must? What happens if the kid decides not to go to university or goes overseas or something?
*Faux transparency / censorship warning for RFD*
Sep 26th, 2017 11:38 am
Sep 26th, 2017 12:42 pm
Sep 26th, 2017 12:53 pm
Sep 27th, 2017 1:47 pm
Sep 28th, 2017 12:34 pm
Sep 28th, 2017 4:58 pm
Sep 28th, 2017 7:57 pm
Sep 29th, 2017 6:46 pm
Sep 29th, 2017 10:09 pm
i6s1 wrote: ↑Sep 28th, 2017 7:57 pmI opened one with Questrade since I already had accounts there. They don't charge a fee for self directed accounts.
I put in $100 every payday in order to max out the 20% government match. 50% TSE60 EFT, 30% S+P 500 hedged to Canadian$, 20% MSCI World EFT hedged to Canadian$.
If the kid doesn't want to go to school, just have him register, withdraw the money, and never attend classes. Some time before 35 or whenever the max age is.
Unless you are planning on putting a lump sum down, the sooner the better. We just throw $210 each month of our Child benefit money into that account so it makes it a little easier.
Sep 29th, 2017 11:22 pm
The money that was contributed by the sponsor can be withdrawn without tax.Evil Baby wrote: ↑Sep 29th, 2017 10:09 pmThere are rules around how much can be withdrawn in a given semester, so it's not as easy as registering for classes and trying to take all the money out. I haven't read over all the rules regarding how much you can take out yet since I have a long while before my kid will use his RESP but I know they exist.
Sep 29th, 2017 11:42 pm
If you have $2500, you should open it before year-end to max out this year's grant so you get an extra year of earnings.
Sep 29th, 2017 11:44 pm
Thanks for clearing that up.i6s1 wrote: ↑Sep 29th, 2017 11:22 pmThe money that was contributed by the sponsor can be withdrawn without tax.
For the non contribution amount (government, grants, stock growth, dividends, interest and etc portion), it's 5000 for the first 13 weeks then no limit. And withdrawals can be made up to 6 months after the end of school.
Not that I plan on doing this.
Even if you want to stay legit, If there's a lot of money in there, it might be a no-brainer for the kid to just go to school for a semester to two, rather than give all that money back.
Sep 30th, 2017 12:59 pm
Congrats and welcome to the sleep deprived days. They were tough. If you have a choice between sleeping a few extra hours or rushing to get your resp done, choose sleep for now. You can always catch up later. If miss the contribution for this year, you can double up in 2018 and still get the grants. My kids were born in dec, and I was so sleep deprived For the first 4 months. I didn't contribute the year they were born, and just did it the following year. No worries and not much doffer nice.
Sep 30th, 2017 1:54 pm
Oct 2nd, 2017 1:06 pm