Comments on: The RESP Strategy http://www.milliondollarjourney.com/the-resp-strategy.htm Building Wealth through Saving and Investing Sun, 12 Feb 2012 07:02:44 -0330 http://wordpress.org/?v=abc hourly 1 By: Will http://www.milliondollarjourney.com/the-resp-strategy.htm/comment-page-2#comment-119855 Will Mon, 11 Apr 2011 16:36:43 +0000 http://www.milliondollarjourney.com/the-resp-strategy.htm#comment-119855 @Steph how can one contribute only $25 when each fund costs roughly $10 and the couch potato method uses 4 funds? 25 divided by 4 would not allow for the purchase of a single share of any e-series fund... @Steph how can one contribute only $25 when each fund costs roughly $10 and the couch potato method uses 4 funds? 25 divided by 4 would not allow for the purchase of a single share of any e-series fund…

]]> By: Steph http://www.milliondollarjourney.com/the-resp-strategy.htm/comment-page-2#comment-119184 Steph Wed, 02 Mar 2011 20:39:02 +0000 http://www.milliondollarjourney.com/the-resp-strategy.htm#comment-119184 @Baalat, the minimum is only $25 per transaction if you set up a pre-authorized purchase plan (PPP). I set up a monthly PPP based on my desired allocation and then plan to use birthday (July) and Christmas money to rebalance (manually). @Baalat, the minimum is only $25 per transaction if you set up a pre-authorized purchase plan (PPP). I set up a monthly PPP based on my desired allocation and then plan to use birthday (July) and Christmas money to rebalance (manually).

]]> By: FrugalTrader http://www.milliondollarjourney.com/the-resp-strategy.htm/comment-page-2#comment-117914 FrugalTrader Sun, 16 Jan 2011 15:23:12 +0000 http://www.milliondollarjourney.com/the-resp-strategy.htm#comment-117914 @jodi, once you open an account with one of those RESP scholarship companies, you are obligated to make the payments. Personally, if you don't have the cash to contribute, then don't. Perhaps you can take cash gifts etc to put towards their education. @Balaat, I do everything manually as well. All cash goes directly into a money market fund initially, then I rebalance as I see fit with the new cash. @jodi, once you open an account with one of those RESP scholarship companies, you are obligated to make the payments. Personally, if you don’t have the cash to contribute, then don’t. Perhaps you can take cash gifts etc to put towards their education.

@Balaat, I do everything manually as well. All cash goes directly into a money market fund initially, then I rebalance as I see fit with the new cash.

]]> By: Baalat http://www.milliondollarjourney.com/the-resp-strategy.htm/comment-page-2#comment-117913 Baalat Sun, 16 Jan 2011 15:18:50 +0000 http://www.milliondollarjourney.com/the-resp-strategy.htm#comment-117913 @Peter @FrugalTrader: I have the same question. According to TD e-series rules the minimum ammount to buy each time is $100. So if you contribute $2500 per year (to maximize grants) and have 4 e-funds to distribute it would be $625 per fund, or a maximum of 6 transactions per fund ($104.17 each) per year. What I have not found is a way to make it automatically with e-funds (will we have to do it manually, each 2 months?) @Peter @FrugalTrader: I have the same question. According to TD e-series rules the minimum ammount to buy each time is $100. So if you contribute $2500 per year (to maximize grants) and have 4 e-funds to distribute it would be $625 per fund, or a maximum of 6 transactions per fund ($104.17 each) per year. What I have not found is a way to make it automatically with e-funds (will we have to do it manually, each 2 months?)

]]> By: jodi http://www.milliondollarjourney.com/the-resp-strategy.htm/comment-page-2#comment-117815 jodi Mon, 10 Jan 2011 15:58:42 +0000 http://www.milliondollarjourney.com/the-resp-strategy.htm#comment-117815 I've recently been contacted by Heritage Education Funds about opening an account with them. To start off I should let you all know that we are a low income family with only one parent working, we have 2 children ages 6 born 2004 and our daughter born 2009. I would like to take advantage of the CLB and basically anything else the government is going to contribute, but at this time we don't have the finances to contribute. what would you suggest for us to do? I’ve recently been contacted by Heritage Education Funds about opening an account with them. To start off I should let you all know that we are a low income family with only one parent working, we have 2 children ages 6 born 2004 and our daughter born 2009. I would like to take advantage of the CLB and basically anything else the government is going to contribute, but at this time we don’t have the finances to contribute.
what would you suggest for us to do?

]]> By: Peter http://www.milliondollarjourney.com/the-resp-strategy.htm/comment-page-2#comment-117777 Peter Fri, 07 Jan 2011 18:38:17 +0000 http://www.milliondollarjourney.com/the-resp-strategy.htm#comment-117777 @FrugalTrader: thanks for the info. Once the funds are in the "TD CDN Money Mkt" would you do a 'switch' to the TD e-series funds when you rebalance? Does it make sense to rebalance more than once a year? @FrugalTrader: thanks for the info. Once the funds are in the “TD CDN Money Mkt” would you do a ’switch’ to the TD e-series funds when you rebalance? Does it make sense to rebalance more than once a year?

]]> By: FrugalTrader http://www.milliondollarjourney.com/the-resp-strategy.htm/comment-page-2#comment-117756 FrugalTrader Thu, 06 Jan 2011 15:55:16 +0000 http://www.milliondollarjourney.com/the-resp-strategy.htm#comment-117756 @Peter, CanadianCapitalist created a spreadsheet to help with the rebalancing. I also only rebalance with new funds. http://www.canadiancapitalist.com/sleepy-portfolio-rebalancing-spreadsheet/ @Peter, CanadianCapitalist created a spreadsheet to help with the rebalancing. I also only rebalance with new funds.

http://www.canadiancapitalist.com/sleepy-portfolio-rebalancing-spreadsheet/

]]> By: Peter http://www.milliondollarjourney.com/the-resp-strategy.htm/comment-page-2#comment-117753 Peter Thu, 06 Jan 2011 15:42:22 +0000 http://www.milliondollarjourney.com/the-resp-strategy.htm#comment-117753 Hi All, Can anyone offer advice on the easiest way to rebalance the portfolio when the fund values change and skew your percentage distribution between funds? I was thinking of doing an auto purchase every month to get a 40/20/20/20 split between the funds but what’s the best way to rebalance also factoring in the extra cash from the grant? Do you rebalance yearly and buy just to top up or do you transfer from one over valued fund to a lower valued one? Any tips on how to make this as painless and automatic as possible using easyweb would be appreciated. Thanks! Hi All,
Can anyone offer advice on the easiest way to rebalance the portfolio when the fund values change and skew your percentage distribution between funds? I was thinking of doing an auto purchase every month to get a 40/20/20/20 split between the funds but what’s the best way to rebalance also factoring in the extra cash from the grant? Do you rebalance yearly and buy just to top up or do you transfer from one over valued fund to a lower valued one? Any tips on how to make this as painless and automatic as possible using easyweb would be appreciated. Thanks!

]]> By: Peter http://www.milliondollarjourney.com/the-resp-strategy.htm/comment-page-2#comment-116698 Peter Mon, 29 Nov 2010 14:57:05 +0000 http://www.milliondollarjourney.com/the-resp-strategy.htm#comment-116698 These below all had the "-e" after the name...I just didn't know what to choose to follow the couch potato Fixed Income: TD CDN Bond Index Canadian Equity: TD CDN Index US Equity: TD DJIA Index TD Nasdaq Index TD US Index TD US Index Currency Neutral Global Equity: TD European Index TD Int’l Index TD Int’l Index Currency Neutral TD Japanese Index TD Mgd Idx Portfolios: TD MGD IDX AGG GR TD MGD IDX BAL GR TD MGD IDX INC TD MGD IDX I&M GR TD MGD IDX MAX GR These below all had the “-e” after the name…I just didn’t know what to choose to follow the couch potato

Fixed Income:
TD CDN Bond Index

Canadian Equity:
TD CDN Index

US Equity:
TD DJIA Index
TD Nasdaq Index
TD US Index
TD US Index Currency Neutral

Global Equity:
TD European Index
TD Int’l Index
TD Int’l Index Currency Neutral
TD Japanese Index

TD Mgd Idx Portfolios:
TD MGD IDX AGG GR
TD MGD IDX BAL GR
TD MGD IDX INC
TD MGD IDX I&M GR
TD MGD IDX MAX GR

]]> By: FrugalTrader http://www.milliondollarjourney.com/the-resp-strategy.htm/comment-page-2#comment-116697 FrugalTrader Mon, 29 Nov 2010 14:45:50 +0000 http://www.milliondollarjourney.com/the-resp-strategy.htm#comment-116697 @Peter, e-series funds have an "e" after the fund name, such as: TD CDN Index-e** TD US Index-e** TD CDN Bond Index-e** TD Int'l Index-e** That's what I use for my "couch potato" like portfolio. @Peter, e-series funds have an “e” after the fund name, such as:

TD CDN Index-e**
TD US Index-e**
TD CDN Bond Index-e**
TD Int’l Index-e**

That’s what I use for my “couch potato” like portfolio.

]]> By: Peter http://www.milliondollarjourney.com/the-resp-strategy.htm/comment-page-2#comment-116696 Peter Mon, 29 Nov 2010 14:40:25 +0000 http://www.milliondollarjourney.com/the-resp-strategy.htm#comment-116696 These are the line items I see under each category. There seems to be so many I'm not sure which to purchase to follow the couch potato. Thanks for the help! Fixed Income: TD CDN Bond Index Canadian Equity: TD CDN Index US Equity: TD DJIA Index TD Nasdaq Index TD US Index TD US Index Currency Neutral Global Equity: TD European Index TD Int'l Index TD Int'l Index Currency Neutral TD Japanese Index TD Mgd Idx Portfolios: TD MGD IDX AGG GR TD MGD IDX BAL GR TD MGD IDX INC TD MGD IDX I&M GR TD MGD IDX MAX GR These are the line items I see under each category. There seems to be so many I’m not sure which to purchase to follow the couch potato. Thanks for the help!

Fixed Income:
TD CDN Bond Index

Canadian Equity:
TD CDN Index

US Equity:
TD DJIA Index
TD Nasdaq Index
TD US Index
TD US Index Currency Neutral

Global Equity:
TD European Index
TD Int’l Index
TD Int’l Index Currency Neutral
TD Japanese Index

TD Mgd Idx Portfolios:
TD MGD IDX AGG GR
TD MGD IDX BAL GR
TD MGD IDX INC
TD MGD IDX I&M GR
TD MGD IDX MAX GR

]]> By: FrugalTrader http://www.milliondollarjourney.com/the-resp-strategy.htm/comment-page-2#comment-116675 FrugalTrader Sun, 28 Nov 2010 00:54:35 +0000 http://www.milliondollarjourney.com/the-resp-strategy.htm#comment-116675 Peter, can you list the exact names you see under the e-series? Peter, can you list the exact names you see under the e-series?

]]> By: Peter http://www.milliondollarjourney.com/the-resp-strategy.htm/comment-page-2#comment-116671 Peter Sat, 27 Nov 2010 19:40:29 +0000 http://www.milliondollarjourney.com/the-resp-strategy.htm#comment-116671 What are the names of the funds that you have the above strategy invested in? For example, under global equity, I see that there are a couple of e-series funds available, how do I know which to choose to follow the couch potato approach? What are the names of the funds that you have the above strategy invested in? For example, under global equity, I see that there are a couple of e-series funds available, how do I know which to choose to follow the couch potato approach?

]]> By: FrugalTrader http://www.milliondollarjourney.com/the-resp-strategy.htm/comment-page-2#comment-116251 FrugalTrader Sun, 07 Nov 2010 16:27:17 +0000 http://www.milliondollarjourney.com/the-resp-strategy.htm#comment-116251 laydeejai, you really can't control what happens to the markets, which is the reason why the portfolio shifts from equities to fixed income nearing the withdrawal date. With regards to MERs, the TD e-series that is mentioned has the lowest mers around for index mutual funds. On the range of 0.50%. laydeejai, you really can’t control what happens to the markets, which is the reason why the portfolio shifts from equities to fixed income nearing the withdrawal date. With regards to MERs, the TD e-series that is mentioned has the lowest mers around for index mutual funds. On the range of 0.50%.

]]> By: laydeejai http://www.milliondollarjourney.com/the-resp-strategy.htm/comment-page-2#comment-116250 laydeejai Sun, 07 Nov 2010 14:51:34 +0000 http://www.milliondollarjourney.com/the-resp-strategy.htm#comment-116250 My Question is this ..... With so much invested into Equity up untill age 14 .... how do you recoup losses if the market crashes, or is effected by any situation in the world? EG: Haitti - Hurricaine. When the market goes down, so does my fund, if my fund is effected by the stock market it effect my CESG ... I was told if I lose the CESG in the Market and my child doesnt go to school, I now have to pay that Grant back to government.... Also the MER fees... how come nobody mentions this? ON AVERAGE we Canadians are paying a minimum of 2.49% in fees that are compounding on our total investments ... so at the end ... thats upwards to like $16,000+ that I will NEVER SEE AGAIN!!! Not to mention if the market crashes here and there during the first 14yrs ... and we all know historically it happens on averege every 7yrs.. So, I have a newborn ... I want to invest $2500, its 2010 the market crashed both in 2008 and 2009 so when my son is aproximately 5yrs old the market should crash ... then again at 12yrs ... so how will I recoup those losses with only 5-6yrs left before he will need the money? I was looking into a group plan... Heritage Education and they have a fee like all group companies, however I get that back when my son goes to school and its a FRACTION of what I would be paying with a bank/trust comp with the MERs Can you offer advise? My Question is this …..

With so much invested into Equity up untill age 14 …. how do you recoup losses if the market crashes, or is effected by any situation in the world? EG: Haitti – Hurricaine. When the market goes down, so does my fund, if my fund is effected by the stock market it effect my CESG … I was told if I lose the CESG in the Market and my child doesnt go to school, I now have to pay that Grant back to government….

Also the MER fees… how come nobody mentions this? ON AVERAGE we Canadians are paying a minimum of 2.49% in fees that are compounding on our total investments … so at the end … thats upwards to like $16,000+ that I will NEVER SEE AGAIN!!! Not to mention if the market crashes here and there during the first 14yrs … and we all know historically it happens on averege every 7yrs..

So, I have a newborn … I want to invest $2500, its 2010 the market crashed both in 2008 and 2009 so when my son is aproximately 5yrs old the market should crash … then again at 12yrs … so how will I recoup those losses with only 5-6yrs left before he will need the money?

I was looking into a group plan… Heritage Education and they have a fee like all group companies, however I get that back when my son goes to school and its a FRACTION of what I would be paying with a bank/trust comp with the MERs

Can you offer advise?

]]> By: Jordan http://www.milliondollarjourney.com/the-resp-strategy.htm/comment-page-2#comment-78814 Jordan Wed, 22 Apr 2009 05:26:49 +0000 http://www.milliondollarjourney.com/the-resp-strategy.htm#comment-78814 I just noticed my link to the CRA website is now broken. Unfortunately the government makes no effort to create permalinks or redirect previous pages. Just to save someone else the hassle, the new "2008" version of the page which includes the clause of interest attribution for the CCTB/UCCB payments to minors, it is now at: http://www.cra-arc.gc.ca/E/pub/tg/5000-g/5000-g-02-08e.html#P532_55436 I just noticed my link to the CRA website is now broken. Unfortunately the government makes no effort to create permalinks or redirect previous pages.

Just to save someone else the hassle, the new “2008″ version of the page which includes the clause of interest attribution for the CCTB/UCCB payments to minors, it is now at:

http://www.cra-arc.gc.ca/E/pub/tg/5000-g/5000-g-02-08e.html#P532_55436

]]> By: Michael http://www.milliondollarjourney.com/the-resp-strategy.htm/comment-page-1#comment-75748 Michael Wed, 01 Apr 2009 18:41:54 +0000 http://www.milliondollarjourney.com/the-resp-strategy.htm#comment-75748 Albertans need to ensure that their RESP provider is able to get them the Centennial Savings grant of $500/child. In this regard, avoid Scotia iTrade (formerly eTrade) as it has made it clear to me that I'm out of luck with the RESP I have with it. Albertans need to ensure that their RESP provider is able to get them the Centennial Savings grant of $500/child. In this regard, avoid Scotia iTrade (formerly eTrade) as it has made it clear to me that I’m out of luck with the RESP I have with it.

]]> By: J. http://www.milliondollarjourney.com/the-resp-strategy.htm/comment-page-1#comment-74802 J. Tue, 24 Mar 2009 23:01:23 +0000 http://www.milliondollarjourney.com/the-resp-strategy.htm#comment-74802 I know this is a bit off topic, but can you do some comparisons on fund companies in Canada? In the U.S., Vanguard specializes in low cost index funds; Fidelity usually has the best research tools; T. Rowe Price has a lot of analysts; Janus focuses on high-risk/high-return funds, etc. I wonder what the Canadian equivalents are like. In particular I want to know what the closest thing to Vanguard we have in Canada. Is TD the best for low cost mutual fund as FT suggests in this post? I'd appreciate the info. Thanking in advance. I know this is a bit off topic, but can you do some comparisons on fund companies in Canada? In the U.S., Vanguard specializes in low cost index funds; Fidelity usually has the best research tools; T. Rowe Price has a lot of analysts; Janus focuses on high-risk/high-return funds, etc. I wonder what the Canadian equivalents are like. In particular I want to know what the closest thing to Vanguard we have in Canada. Is TD the best for low cost mutual fund as FT suggests in this post? I’d appreciate the info.

Thanking in advance.

]]> By: FrugalTrader http://www.milliondollarjourney.com/the-resp-strategy.htm/comment-page-1#comment-67271 FrugalTrader Fri, 16 Jan 2009 01:54:45 +0000 http://www.milliondollarjourney.com/the-resp-strategy.htm#comment-67271 newbie, as far as I know, you can only get the td e-funds via TD. newbie, as far as I know, you can only get the td e-funds via TD.

]]> By: newbie http://www.milliondollarjourney.com/the-resp-strategy.htm/comment-page-1#comment-67252 newbie Thu, 15 Jan 2009 21:19:02 +0000 http://www.milliondollarjourney.com/the-resp-strategy.htm#comment-67252 Is TD the only bank that offers e-funds? Is TD the only bank that offers e-funds?

]]>