An easy solution to RESP investing, 10 TSX dividend stocks with earnings momentum, and the bond market bubble

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An easy solution to RESP investing, 10 TSX dividend stocks with earnings momentum, and the bond market bubble GlobeInvestor

This translation has been automatically generated and has not been verified for accuracy.Parents, here’s a task to add to your back to school to-do list: Check the registered education savings plan you set up for your children’s college or university costs to see whether you have the right mix of investments.

As the father of two twentysomething university grads, I’m an RESP veteran. One of the lessons I learned is that running an RESP portfolio is like managing a registered retirement savings plan, but sped up. You might have a span of 30 to 40 years over which you have to adjust the mix of investments in an RRSP. You have roughly half that much time with an RESP, if we assume a child starts a postsecondary education at age 18.

What investments to use? I had a mix of ETFs and GICs for the most part. A query from a reader with a six-year-old daughter reminded me how there’s an even simpler solution available today. “I wonder what stocks, mutual funds, guaranteed investment certificates or a basket of these to buy and hold for the next 11 years for her,” this reader asked.

With a six-year-old, this reader still has time to go with an aggressive balanced ETF. Examples include the Vanguard Growth ETF Portfolio (

 

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