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Sr. Member
Jan 8, 2006
970 posts
231 upvotes
jimprdx wrote:
Sep 30th, 2017 1:54 pm
if you just have one kid at the moment opt for a family plan so if you have more than one kid it only takes one of them to go to university to keep the grants, and
I was under impression that one can always convert individual RESP to family but not other way around. Family RESP has expire date 31 years from the day of opening. So isn't good idea to open individual first than convert or open another individual RESP?

http://blog.modernadvisor.ca/resps-indi ... mily-plan/

OP try to get copy of Saving for Schools by Gail Vaz-Oxldae it has some good information. It's a small book and quick read with good information.
[OP]
Penalty Box
Mar 23, 2016
775 posts
210 upvotes
Thanks, to think he will be oldish one day !
"Obama is the quintessence of all that is wrong with America today.. people looking at the superficial which is skin color and ignoring idiotic behavior." - the poster AndySixx 😲 :facepalm:

*Faux transparency / censorship warning for RFD*
Member
Jul 30, 2016
220 posts
44 upvotes
Hi Gurus,

My baby girl borned Aug 2015, i didnt contributed RESP. She just turned 2 and this is end of the year.

1. Can i contribute from her day 1 to until today as a lumsum, is it a good idea or not.

2. We may move back to india in 5 to 10 yrs, is she eligible to go to university there with this RESP money or is it eligible only in Canada.

3. We are expexting a new born next month, should i go to RESP immediately after baby is born.

Kindly advise me on this.

Thanks for ur help
Deal Addict
Sep 10, 2010
1635 posts
327 upvotes
Ottawa
do they have to go to university to use the money? what about college? I went to university myself, but later realized i could have went to college and some programs are made for college.
Sr. Member
Mar 10, 2010
899 posts
102 upvotes
College is fine and a most apprenticeship style systems are also OK.
eugene188 wrote:
Oct 22nd, 2017 1:10 pm
do they have to go to university to use the money? what about college? I went to university myself, but later realized i could have went to college and some programs are made for college.
Deal Guru
Aug 2, 2001
14159 posts
4628 upvotes
eugene188 wrote:
Oct 22nd, 2017 1:10 pm
do they have to go to university to use the money? what about college? I went to university myself, but later realized i could have went to college and some programs are made for college.
Qualifying educational program

A qualifying educational program is an educational program at post-secondary school level, that lasts at least three consecutive weeks, and that requires a student to spend no less than 10 hours per week on courses or work in the program.

https://www.canada.ca/en/revenue-agency ... geducation

In short, yes, typical college programs would count. The link above may also answer your other questions.


Edit: Actually the parent link was better:
A qualifying educational program is an educational program at post-secondary school level, that lasts at least three consecutive weeks, and that requires a student to spend no less than 10 hours per-week on courses or work in the program.

A specified educational program is a program at post-secondary school level that lasts at least three consecutive weeks, and that requires a student to spend no less than 12 hours per-month on courses in the program.

A post-secondary educational institution includes:

a university, college, or other designated educational institution in Canada;
an educational institution in Canada certified by Employment and Social Development Canada (ESDC) as offering non-credit courses that develop or improve skills in an occupation;
a university outside Canada that has courses at the post-secondary school level at which the beneficiary was enrolled on a full-time basis in a course of not less than three consecutive weeks; and

a university, college or other educational institution outside Canada that has courses at post-secondary school level at which a beneficiary was enrolled in a course of not less than 13 consecutive weeks.

https://www.canada.ca/en/revenue-agency ... -eaps.html
Newbie
Jun 10, 2013
88 posts
22 upvotes
College is included as well, so long as it's an accredited one and not a private fly-by-night operation.

I opened my RESP at Questrade. I'm happy with it. At the time they didn't have fees, but I think there might be some admin fee if your total assets aren't 15k - though if someone doesn't have 15k in investible assets, contributing to an RESP might be contentious (they say your retirement security comes first). Opening an RESP at a discount broker is your best bet since you can access low cost investing options. It might be worth reviewing how their service is (some people may not care how you use the money, some people might be more restrictive) - entities that hold your RESPs are called promoters. CIBC used to be fee free but not sure about now, regardless you'd pay 6.95 per trade, not bad, but hard to beat Questrade's free ETF accumulation (though you'd pay a few pennies for ECN fees).

Whatever you do, just don't go with a scholarship fund - they are usually highly restrictive and come with lots of fees. It's best to manage the money yourself.

This is a good resource: http://www.moneysmartsblog.com/resp-reference/
I believe the blog owner wrote a book that you can read in 2 hours (I'm an incredibly slow reader)

You can probably (verify, I'm not 100% sure) delay contributing up to when they're 10 and still receive the government benefits (20%) but you'll miss out on the investment compounding (which is the whole point) and you'll be packing 5k per year from 10 years old instead of 2.5k if you just started earlier.

In any case everyone with kids should have an RESP open because even if someone is dirt poor, they can still benefit from Canadian Learning Bonds.
Sr. Member
Oct 11, 2010
907 posts
271 upvotes
Charlottetown
If you do anything it should be an RESP. Take advantage of the 20% match, you will not get a 20% guaranteed return on anything else.

don't feel the need to rush it, many people don't open them for years after their kids are born and you can catch up on grants etc.

Don't over complicate it, main thing is to get it opened and maybe do a simple couch potato etf portfolio or low fee diversified mutual fund in it. I put 2.5k in my daughters RESP initially then I contribute $100 monthly, reinvest dividends and grant money. I'm doing an aggressive couch potato portfolio and when it gets closer to my daughter going to school (many years away) I will dial it back to a more conservative portfolio. My daughter is a little over 2 years old and I all ready her RESP is >5k
Deal Addict
User avatar
Sep 19, 2005
2543 posts
1138 upvotes
Calgaryish
springdays wrote:
Sep 29th, 2017 6:46 pm
Thank you.

We are completely sleep deprived - does it matter when we open it i.e. should we prioritize this?
Open it as soon as you can and start making pre-authorized payments every month. This is the way to ensure that it's as painless as possible.

The first year of parenting is exhausting, so I recommend opting for something that requires little or no ongoing attention. Wealthsimple offers RESP investment and their portfolios (a) have low expense ratios and (b) are automatically rebalanced so you don't have to spend time managing your child's account.
Member
Dec 28, 2010
347 posts
32 upvotes
Mississauga, Ontario
Congrats on the baby, enjoy the parenthood!
RESP is nice and a logical step towards looking after your kids' education and future.
I started for all of my kids as soon as I could and am with my bank, can control contributions myself but rarely go into my online banking to mess with it. Feels safer and legit to be working with the bank.
Deal Fanatic
User avatar
Jun 26, 2005
7295 posts
149 upvotes
Keep it simple, do it yourself. Then you won't have the rules and penalties that come with them.

As someone already pointed out, open a Questrade RESP account, make whatever deposit you can every year/month. try to max it.

Then, simply buy the indexes like S&P, Dow Jones, Nasdaq. ETFs. SPY, DIA, QQQ but these are USD, which you can convert in Questrade,

If you don't want to convert, you can also buy the CAD equivalent ETFs. Like for Nasdaq: ZQQ

If it was me, I'd buy ZQQ because technology is growing super fast right now, Google, Apple, Amazon, etc. in 10-20 yrs when you baby grows up, tech will be even more amazing than now.

Done
Deal Addict
User avatar
Jan 2, 2012
2664 posts
621 upvotes
NORTH YORK
i6s1 wrote:
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.
Just to clarify, there is no rush to open by year end. You can always contribute 1 previous year at any given time. So even if they get the RESP account opened in January 2018, then can then immediately contribute the 2500 for 2017 and a new 2500 for 2018.

My own kid was born in December, so it was February of the next year by the time I got the RESP opened. By then I had 2 years of contribution room to work with so I just put $5000 in immediately to cover the 2 calendar years.
Deal Fanatic
User avatar
Jun 26, 2005
7295 posts
149 upvotes
Case in point, when I mentioned QQQ back on

Oct 23, 2017: $ 148
Oct 27, 2017: $ 151.24
A 2% gain already. Hehe.

rfdrfd wrote:
Oct 23rd, 2017 4:22 pm
Keep it simple, do it yourself. Then you won't have the rules and penalties that come with them.

As someone already pointed out, open a Questrade RESP account, make whatever deposit you can every year/month. try to max it.

Then, simply buy the indexes like S&P, Dow Jones, Nasdaq. ETFs. SPY, DIA, QQQ but these are USD, which you can convert in Questrade,

If you don't want to convert, you can also buy the CAD equivalent ETFs. Like for Nasdaq: ZQQ

If it was me, I'd buy ZQQ because technology is growing super fast right now, Google, Apple, Amazon, etc. in 10-20 yrs when you baby grows up, tech will be even more amazing than now.

Done
Newbie
Jun 10, 2013
88 posts
22 upvotes
FANG stocks...While I probably agree that tech is the most lucrative sector, I'd rather use a broader index for diversification terms. You never know if you're paying too much relative to the intrinsic worth of the FANG stocks. But recently, valuations have nothing to do with price/performance anymore so I'm lost...I just get the S&P (500 companies) or total market (less turnover tax). Not sure if you're allowed to have USD in an RESP but I'm sure Questrade will find a way around this rule maybe...There's an AI/machine learning ETF with ticker symbol BOTZ, think it made a 40%+ gain over the past year, tempting but I'll pass (it's definitely the way of the future).
Deal Addict
Aug 2, 2003
2062 posts
78 upvotes
Toronto
I kept it simple and just did TD E-Series follow couchpotato

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