RESP: near withdrawal timeline investing / AA
I've seen most of the threads about RESP investing, as well as read CCP and other blog advice on asset allocation at various life stages. Most threads here discuss new RESPs. I've got 2-6? years until start to full draw down (family plan, different aged children), so am trying to shift toward FI to protect (relatively) soon-needed funds. At this point, according to some advice, I am still significantly overweighted in equities at 30%.
I've always had a GIC ladder, and therefore have slowly realized the sad drop in rates over the past few years. Psychologically, though, it's crossed a line. At RBC DI, rates for 2y max out at 1.55%. And those are for a lot of mortgage trust co., any concerns about housing/mortgage changes relative to investing with these? I realize GICs are CDIC protected, but if it's a hassle to collect on that, I do need this money quickly.
Even if I stretch to 5y terms, max is 1.88% (and I can't ladder to that time frame for very much longer). ETF bond funds are seen as longer term investments. Am I simply screwed for the next few years as my plan goes into drawn-down mode?
I've always had a GIC ladder, and therefore have slowly realized the sad drop in rates over the past few years. Psychologically, though, it's crossed a line. At RBC DI, rates for 2y max out at 1.55%. And those are for a lot of mortgage trust co., any concerns about housing/mortgage changes relative to investing with these? I realize GICs are CDIC protected, but if it's a hassle to collect on that, I do need this money quickly.
Even if I stretch to 5y terms, max is 1.88% (and I can't ladder to that time frame for very much longer). ETF bond funds are seen as longer term investments. Am I simply screwed for the next few years as my plan goes into drawn-down mode?