Unconventional ways of investing in a family RESP
Surprise: a lump-sum contribution is likely to result in more money, even though you forgo government grants. Plus, reassurance for blended families who want to hold a family RESP with both parents as joint subscribers.
Good article.
The only problem I see in your theory is that you assume a 5% Return every year with the lump sum.
The governement Grant is guaranteed money even if the markets are down.
Much Safer to go with Strategy A.
Why look at just what happens in the RESP account though? How about the scenario where I have the money (36000k) for a lump sum deposit today, but choose to deposit 2500k+grant every year in my kid’s RESP while investing the rest in an unregistered (or ideally in a TFSA) account? Isn’t it misleading to ignore growth outside of the RESP?
Due to the large volume of comments we receive, we regret that we are unable to respond directly to each one. We invite you to email your question to [email protected], where it will be considered for a future response by one of our expert columnists. For personal advice, we suggest consulting with your financial institution or a qualified advisor.
Hi,is thea penality for over contributing to RESP?
Due to the large volume of comments we receive, we regret that we are unable to respond directly to each one. We invite you to email your question to [email protected], where it will be considered for a future response by one of our expert columnists. For personal advice, we suggest consulting with your financial institution or a qualified advisor.