# RESP with Questrade



## bettrave (Jan 10, 2013)

Hi,

My daughter is 15 months old.
Unfortunately, before being interested in investing we have set up an RESP plan with Universitas for 500$/year.
Now, I can afford to put more money and I want to open a RESP account with Questrade (I already have a margin account and my TFSA).

Anyone has a RESP with Questrade?
Should I open an individual or a family RESP?
We are not sure if we going to have another child.
I was thinking to invest half in canadian ETF and the other half in US ETF.
Vanguard VCN
Vanguard VUN
Good?

Thanks


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## Jungle (Feb 17, 2010)

We chose a family RESP, incase we have another kid. ALso I use couch potato type strategy for this one, ETFs are free to buy at Questrade. I have HXT, VUN and XEF and Cash. (no bonds) 

Good luck 

Jungle


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## Charlie (May 20, 2011)

I'd go family RESP too. Though you can roll an individual to a family later on. We did that with Kid 1's.


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## bettrave (Jan 10, 2013)

Jungle said:


> We chose a family RESP, incase we have another kid. ALso I use couch potato type strategy for this one, ETFs are free to buy at Questrade. I have HXT, VUN and XEF and Cash. (no bonds)
> 
> Good luck
> 
> Jungle


Hi,

Why did you chose HXT (a swap based ETF) and not a normal one?
Thanks


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## Jungle (Feb 17, 2010)

It has a lower mer, plus I like the total return and don't have to receive any cash distributions.


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## bettrave (Jan 10, 2013)

Jungle said:


> It has a lower mer, plus I like the total return and don't have to receive any cash distributions.


Then, why did you chose VUN instead of HXS?


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## Jungle (Feb 17, 2010)

Vun tracks us total market, some 4000 stocks, vs 500 for hxs. Given a choice I would rather total market with small caps vs biggest 500. I believe reading in globe and mail the total market benchmark has out performed s&p500 1% annually over last 10 years.


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## Andrew (May 22, 2009)

Do the RESP accounts with Questrade qualify for the government grants that make RESPs attractive? I don't see why not.


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## amitdi (May 31, 2012)

bettrave said:


> Hi,
> 
> My daughter is 15 months old.
> Unfortunately, before being interested in investing we have set up an RESP plan with Universitas for 500$/year.
> ...


My 2 cents. With family RESP is better in case. The advantage is that with 2 kids, you can better manage the portfolio and save on commissions. Disadvantage is I guess you have to specify which child it is for, so can be confusing if you dont have a paper trail. On any day, family RESP is better.

If you manage all of your accounts as one portfolio, I would suggest dont buy US assets in RESP. Better buy them in your other accounts. Reasons (an these apply to Questrade RESP only) -
Each day your trade US security in RESP, you are charged $5 on top of all other commissions
Norbert's Gambit is cumbersome because they dont convert to USD cash but buy USD units where 1 unit=1USD. This is because RESP is not allowed to hold USD cash. Anyway, I have tried Norbert's Gambit in RESP and it was not straight-forward. Now (at rebalancing time) I have done reverse gambit and only buy Canada ETFs in RESP.


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## bettrave (Jan 10, 2013)

I don't want to buy ETF listed in the US, but rather canadian ETF that cover the US market.


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