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Thread: Your opinions on RESP: GIC vs Mutual Funds

  1. #1
    Smart Canuck Purdee's Avatar
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    Hello all, I recently visited my local TD bank and needless to say the financial advisor I met with confused me with her colorful charts and graphs that she didn't even know how to read. Anyway, I wanted to open a RESP for my daughter who is 2.5 years old with a $50 deposit every 2 weeks and the flexibility to deposit more whenever I can. My goals were to put away a little on a set schedule and take advantage of the government contribution. I thought there was only 1 type of RESP, but the financial advisor said there is the mutual fund (10% return) which I'd make more money in the long run and the GIC which is very low like 3.5%. I was afraid of losing my principles and went with GIC since it's a guaranteed type of investment.
    Thoughts? If you currently have RESP, which one and why?
    Thank you.
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  2. #2
    Canadian Genius
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    I do have RESP for both my girls and I found that it was amazing when it was time for them to go to university . Still have a DD who is entering her 2nd year. I didnít go with a bank. I did mine with Knoweldge Finiancial and contributed into a family group plan which was my understanding at that time would make more interest. But mine was a fixed amount every month. I also did lump some whenever I have a little saved up . There is a lot of info on there website if you look it up. Hope this helps
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  3. #3
    Smart Canuck
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    I did mostly GIC-I am like you and not wanting to risk my principle-even though perhaps I could get more long term I did not want the risk-my reasoning was since I was already getting a 20% grant from the govt the GIC interest in addition would be enough. DD is now starting second year and we had plenty saved-mind you we did put in the max 50,000 even though not all of that received the grant.
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  4. #4
    Dancing bean paste bun Ciel's Avatar
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    Did spot this week an article about how a parent can go about getting the RESP money for their scholar child -it requires advance notice to the plan:
    https://www.thestar.com/life/advice/...lars-resp.html

    You may also find this page of definitions from the CRA on RESPs useful:
    https://www.canada.ca/en/revenue-age...ns.html#family
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    2019 #Gold

  5. #5
    Mastermind Shwa Girl's Avatar
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    There is a book that you can get at your public library called The RESP Book by Mike Holman
    One strategy he mirrors is investing like The Canadian Couch Potato portfolio#2
    https://canadiancouchpotato.com/model-portfolios/
    Last edited by Shwa Girl; Sun, Sep 2nd, 2018 at 11:18 AM.
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