# RESP tracking - couch potato investing



## BoringInvestor

Hi all,

As a companion post to my existing thread, this new thread will solely focus on my daughter's RESP. As a change, I'll be openly disclosing the full value of the account.


*RESP investing*

Statistics show many Canadians do not take advantage of an RESP. Of those who do use an RESP, many Canadians are not aware they can invest for themselves, and instead invest in group plans that are not optimal due to higher fees, restrictions on withdrawals, and under performance. 

I'm creating this thread to provide encouragement to those who are looking to take control of their child's RESP, by investing in a passive, index-tracking, low-cost, ETF portfolio. 
Feel free to post your questions or your own RESP results below.


*RESP setup*

The RESP will typically receive new deposits, and be rebalanced on a quarterly schedule (January, April, July, October).

I'll be following the ETF model portfolio, as described on Canadian Couch Potato, with some modifications:



The ETFs being used in the account are: VCN (Canadian markets), VXC (International markets), and VAB (Canadian bonds)
I've be allocating funds among three asset classes: equity, bonds, and GICs
For the equity portion, I'm allocating 20% to VCN (Canadian), and 80% to VXC (International)
Until the year my daughter turns 4 (2019), I'll be investing 100% of the portfolio in the equity class
Starting in 2019, I'll reduce the equity portion by 1/9 (~11%), and move the funds to bonds: VAB. This process will be complete in 2027.
Starting in the year my daughter turns 12 (2028), I'll be primarily focusing on capital preservation. To do this I'll be reducing the bond allocation by 1/5 (20%), each year and moving it into GICs with a maturity in 2033. I'll be fully out of bonds, and only in GICs, as of 2032.



*RESP deposit & government contribution schedule*

For RESPs, I have to be mindful of both of the rules surrounding personal and government contributions.

Personal contributions
Presently, there is a lifetime contribution maximum of $50,000. I'd like to front-load this as much as possible. 
As I intend to hit the maximum, my goal is to deposit $4,000 per year from 2015 to 2023, $3,000 in 2014, $2,500 from 2025 to 2028, and $1,000 in 2029.

Government contributions
Like all Canadians, my family qualifies for the Canadian Education Savings Grant, which provides 20% of the contribution each year, up to a maximum of $500 / year, and a lifetime maximum of $7,200. 
As I intend to get the maximum amount, if I follow my schedule outlined above, I'll receive $500 every year from 2015 to 2028, and $200 in 2029.


*RESP results*
The portfolio since inception (April 2015): up 5.20% or $467.35
If I count the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is: up 18.35% or $1,467.85

The annualized (money-weighted) investment rate of return is 6.48%

The annual cost of the portfolio (i.e, the combined, embedded ETF management fee) is 0.24%, or $22.38

_You can log in to view the attachment below._


Monthly performance:

2015

April 2015: -1.45%
May 2015: 2.08%
June 2015: -1.87%
July 2015: 4.88%
August 2015: -5.92%
September 2015: -2.79%
October 2015: 5.10%
November 2015: 1.31%
December 2015: 0.20%
2016

January 2016: -3.49%
February 2016: -3.60%
March 2016: 2.39%
April 2016: -1.09%
May 2016: 3.97%
June 2016: -1.13%
July 2016: 4.45%
August 2016: 0.72%
September 2016: 0.82%


View attachment 11874


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## none

The best strategy is just to put in the $2500 each year and any additional in your own or spouses TFSA if you have room. This is particularly true after you have claimed all $7200 in grants.

I don't know where you live but there are some provincial RESP bonuses like this:
http://www2.gov.bc.ca/gov/topic.page?id=30F9685761484A8FA6CB7ED216B052EC

I'm assuming you can buy those funds free. If not, E-series is likely better.


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## BoringInvestor

none said:


> The best strategy is just to put in the $2500 each year and any additional in your own or spouses TFSA if you have room. This is particularly true after you have claimed all $7200 in grants.
> 
> I don't know where you live but there are some provincial RESP bonuses like this:
> http://www2.gov.bc.ca/gov/topic.page?id=30F9685761484A8FA6CB7ED216B052EC
> 
> I'm assuming you can buy those funds free. If not, E-series is likely better.


Thanks for mentioning the strategy of limiting RESP contributions to only max the grant.

Upon reading your post I've looked into a few calculators and read posts and threads that talk about the difference between RESPs vs. TFSAs. 
I've decided to stick with my original contribution schedule for the following reasons:
1. Upon working through the calculations I've found the ending balance differences between i) all RESP vs. ii) mix RESP & TFSA to be negligible
2. I'd prefer to keep all the TFSA room my wife and I accumulate available for our retirement planning
3. I want to keep the account portfolios and balances simple, by not mixing different goals in the same account type

It may not be the 'best' solution from an economic argument, but it's what will work for me, it's one I can stick to, and know I can make work.
That said - if someone does follow this mix RESP/TFSA strategy I'd be interested to know how it's working out for you.

Re: your other comments
- I'm in a province without any additional grants, and my family income is too high to qualify me from receiving any other federal government grants.
- I am with a broker that allows commission-free ETF purchases, so I don't need to use e-Series.


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## none

I can understand that. My plan is to use the RESP/TFSA vehicle as I mentioned in my post. 

There are 'strings' on RESP withdraws and once you claim the grant they just add complication in my mind. 

One idea is that it's possible to hold more than one TFSA which you could earmark as a hybrid-'RESP' or something and keep additional RESP funds there. To me that seems much easier and clean than potentially paying tax on RESP withdraws when you don't have to. All it takes is your kid getting a good summer job one summer and the tax man comes knocking. Of course, if you don't have the TFSA room then you don't. I guess it depends if this annual 10K keeps going forward or what. Something to keep in mind though.

Also, keep in mind that how you wihdraw funds matters first. See here:

http://www.moneysmartsblog.com/resp-withdrawals/


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## BoringInvestor

none said:


> I can understand that. My plan is to use the RESP/TFSA vehicle as I mentioned in my post.
> 
> There are 'strings' on RESP withdraws and once you claim the grant they just add complication in my mind.
> 
> One idea is that it's possible to hold more than one TFSA which you could earmark as a hybrid-'RESP' or something and keep additional RESP funds there. To me that seems much easier and clean than potentially paying tax on RESP withdraws when you don't have to. All it takes is your kid getting a good summer job one summer and the tax man comes knocking. Of course, if you don't have the TFSA room then you don't. I guess it depends if this annual 10K keeps going forward or what. Something to keep in mind though.
> 
> Also, keep in mind that how you wihdraw funds matters first. See here:
> 
> http://www.moneysmartsblog.com/resp-withdrawals/


Indeed, I'll have to be mindful when it comes time to withdraw.

For our TFSAs I'd eventually like to be at a point where we can maximize them each year, so I'd rather not get into a situation where I have to juggle room between the hybrid-TFSA, and our retirement TFSAs.


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## none

Up to you. I see it as a very simple strategy to manage with a lot of benefits. To each his/her own.


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## CalgaryPotato

none said:


> I can understand that. My plan is to use the RESP/TFSA vehicle as I mentioned in my post.
> 
> There are 'strings' on RESP withdraws and once you claim the grant they just add complication in my mind.
> 
> One idea is that it's possible to hold more than one TFSA which you could earmark as a hybrid-'RESP' or something and keep additional RESP funds there. To me that seems much easier and clean than potentially paying tax on RESP withdraws when you don't have to. All it takes is your kid getting a good summer job one summer and the tax man comes knocking. Of course, if you don't have the TFSA room then you don't. I guess it depends if this annual 10K keeps going forward or what. Something to keep in mind though.
> 
> Also, keep in mind that how you wihdraw funds matters first. See here:
> 
> http://www.moneysmartsblog.com/resp-withdrawals/


It'll take a lot of money earned at that summer job to undue the value of earning the 20% grant money up front. If you're shoving in money at the last minute, then maybe the TFSA is better, but assuming you are contributing for 10-18 years that "bonus" money will compound. 

If your kids are making it into the say 40% tax bracket from their summer job and RESP there are worse problems to have in life.


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## none

I think you need to re-read the thread. 

The RESP wins every time when you account for the grant; however, once the $7200 is claimed it's better to hold and invest any additional monies in a TFSA.

You start paying taxes around $12,000 and education credits can be carried forward so you may as well save those up when making real money.


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## jetsfan

none said:


> You start paying taxes around $12,000 and education credits can be carried forward so you may as well save those up when making real money.


Education credits can only be carried forward if you don't have enough income to use them. You can't voluntarily defer them to higher tax paying years.


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## fraser

Some Provinces have added incentives.

Started one for our new born grandson last year. Just applied for the Alberta one time grant of $500. which is available IF you start the RESP at age two years of less.

This grant was apparently going to be eliminated by the budget that the Conservatives proposed prior to their defeat in the recent provincial election.

We like the RESP program for it's ROI but there are three other reasons. First, it encourages us to save for a child's secondary education. Second, the cost of post secondary education seems to be increasing at a much higher rate of inflation. I was astounded at the difference between my university fees and the fees that my children paid 30 years later. Thirdly, I suspect that in the future we will see many more people in post graduate programs simply to land a job. That means an extra year or two of fees and study.


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## jerryhung

OP
What brokerage do you use?


I just opened 2 RESP with TD MF e-series (not TDW as that requires $25K balance to waive the $50 yearly fee for RESP)
will simply do CCP with TDB900/902/911 and maybe bonds (TDB909)
have some catching up in contribution to do

http://canadiancouchpotato.com/2015/01/15/couch-potato-model-portfolios-for-2015/


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## BoringInvestor

jerryhung said:


> OP
> What brokerage do you use?
> 
> 
> I just opened 2 RESP with TD MF e-series (not TDW as that requires $25K balance to waive the $50 yearly fee for RESP)
> will simply do CCP with TDB900/902/911 and maybe bonds (TDB909)
> have some catching up in contribution to do
> 
> http://canadiancouchpotato.com/2015/01/15/couch-potato-model-portfolios-for-2015/


I'm using Questrade - the commission-free ETFs make the Canadian Couch Potato model very affordable.


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## nobleea

fraser said:


> Some Provinces have added incentives.
> Started one for our new born grandson last year. Just applied for the Alberta one time grant of $500. which is available IF you start the RESP at age two years of less.
> This grant was apparently going to be eliminated by the budget that the Conservatives proposed prior to their defeat in the recent provincial election.


Free money is always nice, but the Alberta grant of $500 (and $100 again at various ages) comes with strings. Namely it has to be kept in a bond fund. At least this is what TD told us.


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## fraser

Happy to take the money.....and place it into a bond fund. I have it with other investments managed by PHN. more than happy to have those monies in one of their bond funds.


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## Plugging Along

nobleea said:


> Free money is always nice, but the Alberta grant of $500 (and $100 again at various ages) comes with strings. Namely it has to be kept in a bond fund. At least this is what TD told us.


Totally not true. We are in other funds and manage it however we please, you still get the ab grant.


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## fraser

Just looked at my PHN account. The RESP is invested in equity funds. But, I have just applied for the Alberta grant through them.

Was not aware that there were other monies available after the first $500. We only just found out about the $500. because of a critique on the recently proposed Alberta budget....they were cutting this but gave some time to apply if the child was still under 2 years of age.

Do you know if we have to apply for them as the time comes or are they automatically deposited in the RESP?


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## BoringInvestor

fraser said:


> Just looked at my PHN account. The RESP is invested in equity funds. But, I have just applied for the Alberta grant through them.
> 
> Was not aware that there were other monies available after the first $500. We only just found out about the $500. because of a critique on the recently proposed Alberta budget....they were cutting this but gave some time to apply if the child was still under 2 years of age.
> 
> Do you know if we have to apply for them as the time comes or are they automatically deposited in the RESP?


If you're talking about the Canada Education Savings Grant [CESG], the Canada Learning Bond [CLB], or the Additional Canada Education Savings Grant [Additional CESG], you'll need to apply through your RESP provider.
The CESG is available to everyone, the CLB and Additional CESG are available for lower-to-middle income families.
http://www.canlearn.ca/eng/savings/resp.shtml


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## nobleea

fraser said:


> Was not aware that there were other monies available after the first $500. We only just found out about the $500. because of a critique on the recently proposed Alberta budget....they were cutting this but gave some time to apply if the child was still under 2 years of age.
> 
> Do you know if we have to apply for them as the time comes or are they automatically deposited in the RESP?


Yes, the AB centennial grant comes with 500 to start, then 100 at 8, 11, and 14yrs. Seems like you have to apply for each one individually.
http://eae.alberta.ca/funding/aces.aspx
Some uncertainty as to whether this is continuing since the PC's intended to phase it out, but they themselves have been phased out.


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## nobleea

Plugging Along said:


> Totally not true. We are in other funds and manage it however we please, you still get the ab grant.


Good to know. I'll look at switching that out to a cheaper fund as they put it in to a high MER bond fund.


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## banjopete

nobleea said:


> Free money is always nice, but the Alberta grant of $500 (and $100 again at various ages) comes with strings. Namely it has to be kept in a bond fund. At least this is what TD told us.


Nobleaa we just opened one for our daughter with TD and grabbed this one time bonus as well and you're correct it's just money and not surprisingly we were told we couldn't add it to the TDW account our RESP is set up in and that it had to be in a simple account. We didn't hear anything about bond only but it seems our options were cash, or GIC's. A little sad but hey, free money is free money, even if it'll only buy her a hamburger 20 years from now.


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## nobleea

banjopete said:


> Nobleaa we just opened one for our daughter with TD and grabbed this one time bonus as well and you're correct it's just money and not surprisingly we were told we couldn't add it to the TDW account our RESP is set up in and that it had to be in a simple account. We didn't hear anything about bond only but it seems our options were cash, or GIC's. A little sad but hey, free money is free money, even if it'll only buy her a hamburger 20 years from now.


I checked a few weeks ago when doing the monthly contribution and sure enough the $500 AB bonus has been put in a term GIC that I can't do anything about. Maybe when it comes up for renewal.


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## BoringInvestor

*June 2015 update*

*Commentary*
June was the second full month of the RESP. 

The month saw the final 2015 deposit of $3,000. 
I intend to make the next deposit in January of 2016. 

The final 2015 CESG payment should arrive in either July or August.


*Results*
The portfolio fell -1.87% in June, lowering my overall gain to -1.63%, and lowering my overall annualized rate of return to -14.87%.
If I count the CESG funds as an investment gain, the portfolio is up 3.28%.


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## BoringInvestor

*July 2015 update*

*Commentary*
July was the best month of the relatively short-lived RESP account.
The positions grew by 4.88%, or $216.10.

July saw the final 2015 CESG payment of $300, and the first dividends were paid into the account.
I'll rebalance the portfolio in August, then won't touch it again until the new year.

*Results*
The portfolio rose 4.88% in July, raising my overall gain to 3.28%, and raising my overall annualized rate of return to 18.87%.
If I count the CESG funds as an investment gain, the portfolio is up 16.19%.


_You can log in to view the attachment below._

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## BoringInvestor

*August 2015 update*

*Commentary*
August was the worst month of the relatively short-lived RESP account.
The portfolio fell -5.92%, or -$275.10.

*Results*
The portfolio fell -5.92% in August, lowering my overall gain to -2.84%, and lowering my overall annualized rate of return to -10.38%.
If I count the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is up 9.31%.


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## BoringInvestor

*September 2015 update*

*Commentary*
September was the second worst month of the RESP account. 
Both positions declared dividends in September, and the dividends will be paid out in October.


*Results*
The portfolio fell -2.79% in September, lowering my overall gain to -5.55%, and lowering my overall annualized rate of return to -15.27%.
If I count the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is up 6.26%.


_You can log in to view the attachment below._

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## BoringInvestor

*October 2015 update*

*Commentary*
October was the best month ever for the RESP account, and the account is just shy of breaking even (i.e., being equal to my total deposits and the CESG payments).


*Results*
The portfolio rose 5.10% in October, raising my overall gain to -0.73%, and raising my overall annualized rate of return to -1.71%.
If I count the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is up 11.68%.


_You can log in to view the attachment below._

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## BoringInvestor

*November 2015 update*

*Commentary*
November saw the portfolio return to positive territory (rising 1.31% or $58.33), as my investments have recovered all the losses from a couple months back.


*Results*
The portfolio rose 1.31% in November, raising my overall gain to 0.56%, and raising my overall annualized rate of return to 1.10%.
If I count the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is up 13.13%.


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## BoringInvestor

*December 2015 update*

*Commentary*
December saw a small monthly gain, for the third straight month of gains, and ends the first calendar year of the portfolio.
The plan in 2016 is to stick to a 100% equity allocation. Initially I was planning to put $4,000 into the account this year; as I won't be making any new deposits until June, I may end up altering that target as the year progresses.


*Results*
The portfolio rose 0.20% in December, raising my overall gain to 0.77%, or $34.60, and raising my overall annualized rate of return to 1.30%.
If I count the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is up 13.37%.


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## kingtosh82

@BoringInvestor: Been following this thread for a while (even though this is my first official post on CMF). My wife is pregnant and I'm trying to piece together an RESP plan based on index investing. Seeing as how you're a fan of CanadianCouch potato, I'm curious as to why you chose to start reducing your equity allotment when your child is 4 years old, instead of 8 years old, as suggested in this blog post on CCP: http://canadiancouchpotato.com/2010/11/05/taking-risk-in-an-resp/

I'm having trouble deciding between the CCP RESP asset allocation (as outlined in the link I posted) versus following your allotment of gradually reducing equity into bonds, and then your child reaches high school, to transfer everything to fixed income (or GICs) during their post-secondary years. Both seem like great strategies, but I'm just curious why you chose to dial down risk more than CCP.

Looking forward to your reply.

Thanks!


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## kingtosh82

@BoringInvestor: One more quick question.... Using your strategy, what rate of return do you expect or hope to get after the 18th year?


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## BoringInvestor

kingtosh82 said:


> @BoringInvestor: Been following this thread for a while (even though this is my first official post on CMF). My wife is pregnant and I'm trying to piece together an RESP plan based on index investing. Seeing as how you're a fan of CanadianCouch potato, I'm curious as to why you chose to start reducing your equity allotment when your child is 4 years old, instead of 8 years old, as suggested in this blog post on CCP: http://canadiancouchpotato.com/2010/11/05/taking-risk-in-an-resp/
> 
> I'm having trouble deciding between the CCP RESP asset allocation (as outlined in the link I posted) versus following your allotment of gradually reducing equity into bonds, and then your child reaches high school, to transfer everything to fixed income (or GICs) during their post-secondary years. Both seem like great strategies, but I'm just curious why you chose to dial down risk more than CCP.
> 
> Looking forward to your reply.
> 
> Thanks!


Hi kingtosh82, thanks for your reply and interest in this money diary, and congratulations to you and your wife on your expanding family and your early planning for your child's RESP!

For our daughter's RESP, compared to CCP's blog, I decided to i) be more conservative and reduce the equity exposure earlier, ii) accordingly, move funds to fixed income at an earlier date, and iii) have everything in GICs once the funds are needed.
I think you'd be fine sticking with either model, I just chose to be a bit safer than what CCP wrote.

Using the following rate of return assumptions: equities return an average of 7%/year, bonds return an average of 3.5%/year, and GICs return an average of 2% per year, and coupled with our contribution schedule, by the time my daughter is 18 we'll have $90,000 (in 2015 dollars) in her RESP. 
I suspect this amount will be more than sufficient to offset most, if not all, educational and related costs for undergrad.


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## kingtosh82

BoringInvestor said:


> Hi kingtosh82, thanks for your reply and interest in this money diary, and congratulations to your and your wife on your expanding family and your early planning for your child's RESP!
> 
> For our daughter's RESP, compared to CCP's blog, I decided to i) be more conservative and reduce the equity exposure earlier, ii) accordingly, move funds to fixed income at an earlier date, and iii) have everything in GICs once the funds are needed.
> I think you'd be fine sticking with either model, I just chose to be a bit safer than what CCP wrote.
> 
> Using the following rate of return assumptions: equities return an average of 7%/year, bonds return an average of 3.5%/year, and GICs return an average of 2% per year, and coupled with our contribution schedule, by the time my daughter is 18 we'll have $90,000 (in 2015 dollars) in her RESP.
> I suspect this amount will be more than sufficient to offset most, if not all, educational and related costs for undergrad.


Thanks for the reply.

Another quick question... Why did you choose to go with VAB instead of VSB? Seeing as how RESPs are medium term investments and the amount of time you plan to have money in the VAB fund is short term, why didn't you go with a short-term bond ETF?

What sort of withdrawl schedule do you plan to do? I've read that it is better to take out more money in the 1st or 2nd year since your child may not have job since they just completed high school, and thus, would be more beneficial for tax purposes. In addition, how do you think this might affect your GIC ladder investment approach? For example, do you plan to have a GIC mature in time for the first withdrawl that is close to 40% of the total RESP funds, and then 20% in each year after that? Or, do you plan to just do 25/25/25/25 for the 4 years?


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## BoringInvestor

kingtosh82 said:


> Thanks for the reply.
> 
> Another quick question... Why did you choose to go with VAB instead of VSB? Seeing as how RESPs are medium term investments and the amount of time you plan to have money in the VAB fund is short term, why didn't you go with a short-term bond ETF?
> 
> What sort of withdrawl schedule do you plan to do? I've read that it is better to take out more money in the 1st or 2nd year since your child may not have job since they just completed high school, and thus, would be more beneficial for tax purposes. In addition, how do you think this might affect your GIC ladder investment approach? For example, do you plan to have a GIC mature in time for the first withdrawl that is close to 40% of the total RESP funds, and then 20% in each year after that? Or, do you plan to just do 25/25/25/25 for the 4 years?


Good question re: VAB vs VSB - my preference is to go for the broader bond ETF, which would allow me to not be as concerned re: the impact of short-term fluctuations in the bond market. I see VAB as the slightly safer bet, which matches my goals of capital preservation with some a potential for higher returns (which of course also entails the possibility of more risk).

Re: withdrawals - I purposely haven't thought too much about it, as I figure I have some time to figure out the best strategy for GIC maturity dates vs. scheduled withdrawals. If I had to choose today I'd probably go for a maturity schedule of 50% in year 1, 25% in year 2, and 25% in year 3, and anything that matures and isn't needed would be rolled into a cashable GIC.


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## kingtosh82

BoringInvestor said:


> Good question re: VAB vs VSB - my preference is to go for the broader bond ETF, which would allow me to not be as concerned re: the impact of short-term fluctuations in the bond market. I see VAB as the slightly safer bet, which matches my goals of capital preservation with some a potential for higher returns (which of course also entails the possibility of more risk).
> 
> Re: withdrawals - I purposely haven't thought too much about it, as I figure I have some time to figure out the best strategy for GIC maturity dates vs. scheduled withdrawals. If I had to choose today I'd probably go for a maturity schedule of 50% in year 1, 25% in year 2, and 25% in year 3, and anything that matures and isn't needed would be rolled into a cashable GIC.


Thanks again for the reply.


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## BoringInvestor

*January 2016 update*

*Commentary*
January was a wild way to start the year, as the portfolio quickly suffered large losses. A late rally, plus dividends received, weren't enough to bring the portfolio back into positive territory.

For 2016 I'll be sticking with 100% allocation in equities (80% international, and 20% Canadian), and intend to put in $4,000 with deposits starting in June.


*Results*
The portfolio this month: down -3.49% or -$158.36.

The portfolio since inception (April 2015): down -2.75%, or -$123.76. 
My overall money-weighted annualized rate of return is: down -4.01%.

If I count the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is: up 9.41%.


_You can log in to view the attachment below._

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## BoringInvestor

*February 2016 update*

*Commentary*
February continued the decline in 2016, and was the second worst performing month since the portfolio began.


*Results*
The portfolio this month: down -3.60% or -$157.66.

The portfolio since inception (April 2015): down -6.25%, or -$281.42. 
My overall money-weighted annualized rate of return is: down -8.08%.

If I count the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is: up 5.46%.


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## BoringInvestor

*March 2016 update*

*Commentary*
Thanks to our generous family, March saw the first deposit ($2,100) to the account since June 2015.
Combined with the cash already in the account, I bought new shares of VXC and VCN to bring the portfolio to a near 80%/20% split.

I expect the $400 CESG payment (calculated as 20% of $2,100) to arrive in either late April or May, and also expect we can start regular quarterly contributions into the account starting in June.


*Monthly results*
The portfolio this month: up 2.39% or $151.10.

The portfolio since inception (April 2015): down -1.97%, or -$130.32. 

If I count the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is: up 6.06%.


*Complete RESP results*
The portfolio started in mid-April 2015 with $1,000

The value as of March 31, 2016, is $6,469.68
The annualized _investment_ rate of return is -3.38%
The annual cost of the portfolio (i.e, the combined, embedded ETF management fee) is 0.24%, or $15.34

Where the money has come from:


Deposits: $6,100
Canada Educational Savings Grant [CESG]: $500
Investment gains/losses: -$130.32

Value of account holdings:


VCN: $1,300.32
VXC: $5,151.26
Cash: $18.10


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## djkelly

April 2015 is exactly when I moved my RESP to Questrade and did the Couch Potato thing with it. Your results are spot on with mine. Lot's of years to go, so hopefully we'll see that number get back to positive soon.


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## BoringInvestor

djkelly said:


> April 2015 is exactly when I moved my RESP to Questrade and did the Couch Potato thing with it. Your results are spot on with mine. Lot's of years to go, so hopefully we'll see that number get back to positive soon.


Indeed, there's a very long time to go.


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## BoringInvestor

*April 2016 update*

*Commentary*
In April we received the Canada Educations Savings Grant ($420) for the deposit made in March.
We'll let this cash sit in the account until the next quarterly rebalancing in June, when we also expect we'll be making an additional deposit at that time.

Starting this month I've slightly altered the format of the attached image, and fixed a calculation error in my spreadsheet.

*Monthly results*
The portfolio this month: down -1.09% or -$75.34.

The portfolio since inception (April 2015): down -2.93%, or -$205.66. 

If I count the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is: up 11.71%.


*Complete RESP results*
The portfolio started in mid-April 2015 with $1,000

The value as of April 30, 2016, is $6,814.34
The annualized investment rate of return is -4.64%
The annual cost of the portfolio (i.e, the combined, embedded ETF management fee) is 0.22%, or $15.05

Where the money has come from:

Deposits: $6,100
Canada Educational Savings Grant [CESG]: $920
Investment gains/losses: -$205.66

Value of account holdings:

VCN: $1,351.68
VXC: $5,024.56
Cash: $438.10


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## redsgomarching

i feel you with the losses, i purchased the vanguard etfs pretty much while they were at their peak before the markets went down in 2015.  oh well, dollar cost averaging & time are on my side, hopefully for you as well!

Great job with saving for your kids!


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## arc

It looks like overall you would've came out ahead with just GIC ladders + bond ETFs rather than the standard balanced CCP ETF portfolio!


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## BoringInvestor

arc said:


> It looks like overall you would've came out ahead with just GIC ladders + bond ETFs rather than the standard balanced CCP ETF portfolio!


Over this duration of 13 months - yup.

I'm betting the CCP ETF portfolio will outperform a GIC ladder + bond ETF over the ~ 18 years until the funds are needed.


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## BoringInvestor

redsgomarching said:


> i feel you with the losses, i purchased the vanguard etfs pretty much while they were at their peak before the markets went down in 2015.
> 
> 
> 
> 
> 
> 
> 
> oh well, dollar cost averaging & time are on my side, hopefully for you as well!
> 
> Great job with saving for your kids!


Thanks. 

I'm not concerned about the losses at this point. The markets are volatile and I'm 100% in ETFs that hold stocks. This is par the course.


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## BoringInvestor

*May 2016 update*

*Commentary*
May was the third best month for the RESP, and saw the account not only turn positive for 2016, but also returned the overall asset gains back to positive since December 2015.

*Monthly results*
The portfolio this month: up 3.97% or $270.35

*Complete RESP results*
The portfolio since inception (April 2015): up 0.92% or $64.69
If I count the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is: up 16.14% or $984.69.

The annualized (money-weighted) investment rate of return is 1.29%

The annual cost of the portfolio (i.e, the combined, embedded ETF management fee) is 0.22%, or $15.76

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## BoringInvestor

*June 2016 update*

*Commentary*
We received some unexpected family money in June, which we used to top up our 2016 contributions to $4,000. The funds were used to rebalance the portfolio.
We won't be putting any more money in this year.
Based on the most recent deposit, we're due another $80 in CESG funds, which I expect to see deposited into the account in July.

June saw the RESP slip back to negative territory.

*Monthly results*
The portfolio this month: down -1.13% or -$101.24

*Complete RESP results*
The portfolio since inception (April 2015): down -0.41% or -$71.15
If I count the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is: up 11.04% or $883.45

The annualized (money-weighted) investment rate of return is -0.65%

The annual cost of the portfolio (i.e, the combined, embedded ETF management fee) is 0.24%, or $21.14

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## BoringInvestor

*July 2016 update*

*Commentary*
July saw the last deposit into the account in 2016 - the final $80 of CESG funds.
The month was the third best month since the portfolio began (4.87%), and brought the portfolio to it's all-time highs for both net gain ($400.41), and net gain % (4.45%).

*Monthly results*
The portfolio this month: up 4.87% or $436.96

*Complete RESP results*
The portfolio since inception (April 2015): up 4.45% or $400.41
If I count the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is: up 17.51% or $1,400.41

The annualized (money-weighted) investment rate of return is 6.19%

The annual cost of the portfolio (i.e, the combined, embedded ETF management fee) is 0.24%, or $22.21

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## BoringInvestor

*August 2016 update*

*Commentary*
August's results were slightly positive, bringing the account to its highest ever end of month total.
With these results the annualized money-weighted return is approaching my target of 7% return per year.


*Monthly results*
The portfolio this month: up 0.72% or $67.44

*Complete RESP results*
The portfolio since inception (April 2015): up 5.20% or $467.85
If I count the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is: up 18.35% or $1,467.85

The annualized (money-weighted) investment rate of return is 6.48%

The annual cost of the portfolio (i.e, the combined, embedded ETF management fee) is 0.24%, or $22.38

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## familyman

What computer program are you using to chart the progress?


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## BoringInvestor

familyman said:


> What computer program are you using to chart the progress?


I created my own excel document.

If you're looking for one to use, I've seen various free portfolio tracking documents available online - (FYI I still see mine as a work in progress so I've avoided sharing it).


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## BoringInvestor

*September 2016 update*

*Commentary*
September's results were slightly positive, bringing the account to its highest ever end of month total.
The account has seen three straight months of positive gains, tying it with the previously-held longest streak.

Both positions paid dividends in September, and an additional share of VXC was dripped.


*Monthly results*
The portfolio this month: up 0.82% or $77.35

*Complete RESP results*
The portfolio since inception (April 2015): up 6.06% or $545.20
If I count the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is: up 19.32% or $1,545.20

The annualized (money-weighted) investment rate of return is 6.79%

The annual cost of the portfolio (i.e, the combined, embedded ETF management fee) is 0.24%, or $22.53

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## BoringInvestor

*October 2016 update*

*Commentary*
October's result was very slightly positive. 
The past four months have seen consecutive positive returns which is the longest streak of gains since the account started.

*Monthly results*
The portfolio this month: up 0.37% or $33.64

*Complete RESP results*
The portfolio since inception (April 2015): up 6.45% or $580.84
If I count the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is: up 19.76% or $1,580.84

The annualized (money-weighted) investment rate of return is 6.63%

The annual cost of the portfolio (i.e, the combined, embedded ETF management fee) is 0.24%, or $22.61


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## BoringInvestor

*November 2016 update*

*Commentary*
November's results remained positive, and was the 7th best month since the portfolio began. 
The 'win' streak for the portfolio is now at five consecutive months.


Note: as the CMF board settings have changed I can no longer edit the first post in this thread with historical data. 
As such, all my results will only be shared through these monthly updates.


*Monthly results*
The portfolio this month: up 1.54% or $147.55

*Complete RESP results*
The portfolio since inception (April 2015): up 8.09% or $728.39
If I count the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is: up 21.60% or $1,728.39

The annualized (money-weighted) investment rate of return is 7.64%

The annual cost of the portfolio (i.e, the combined, embedded ETF management fee) is 0.24%, or $22.94


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## BoringInvestor

*December 2016 update*

*Commentary*
December was the sixth consecutive month with a gain, and the eight best month since the portfolio began.
The total gains in my account ($855.51), are rapidly approaching the total amount of Canadian Education Savings Grant received ($1,000).

For the year the portfolio gained $820.91, which was a 9.09% increase.

*Monthly results*
The portfolio this month: up 1.31% or $127.12.

*Complete RESP results*
The portfolio since inception (April 2015): up 9.51% or $855.51
If I count the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is: up 23.19% or $1,855.51

The annualized (money-weighted) investment rate of return is 8.23%

The annual cost of the portfolio (i.e, the combined, embedded ETF management fee) is 0.24%, or $23.25


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## Jerm

Hi BoringInvestor, 

My son was born a few months ago and I'm trying to set up a spreadsheet for his RESP. I really like your dashboard. I was hoping you could give me some insight into how you run your returns calculations. Specifically - how you split the CESG and the regular contributions. 

For reference - I use a heavily modified version of this spreadsheet for my personal accounts: 

edit - post count not high enough to post links - google "bogglehead returns spreadsheet" and the link is one page down on the first hit if you're interested. 

Anyway, all the calculations are performed based on 3 pieces of input per account per month: contributions, withdrawals, and account balance. 

I'm curious if you run two series of calculations in parallel? One with the CESG and one without? You must also differentiate between CESG and regular contributions when putting in your monthly numbers as well? I've heard that the CESG comes in 1-2 months after the regular contributions - does this affect your calculations at all? Do you just record the CESG in the month that you receive it?

Any advice you'd be willing to give would be greatly appreciated. I scrubbed version of your RESP spreadsheet would be awesome - but I completely understand if you'd prefer not give it out. 

Thank you!

Jeremy


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## BoringInvestor

Jerm said:


> Hi BoringInvestor,
> 
> My son was born a few months ago and I'm trying to set up a spreadsheet for his RESP. I really like your dashboard. I was hoping you could give me some insight into how you run your returns calculations. Specifically - how you split the CESG and the regular contributions.
> 
> For reference - I use a heavily modified version of this spreadsheet for my personal accounts:
> 
> edit - post count not high enough to post links - google "bogglehead returns spreadsheet" and the link is one page down on the first hit if you're interested.
> 
> Anyway, all the calculations are performed based on 3 pieces of input per account per month: contributions, withdrawals, and account balance.
> 
> I'm curious if you run two series of calculations in parallel? One with the CESG and one without? You must also differentiate between CESG and regular contributions when putting in your monthly numbers as well? I've heard that the CESG comes in 1-2 months after the regular contributions - does this affect your calculations at all? Do you just record the CESG in the month that you receive it?
> 
> Any advice you'd be willing to give would be greatly appreciated. I scrubbed version of your RESP spreadsheet would be awesome - but I completely understand if you'd prefer not give it out.
> 
> Thank you!
> 
> Jeremy


Congrats on the birth of your son! 

That Bogglehead spreadsheet is very pretty to look at, and seems easy to use. 
The one I use is a bit of a beast and requires frequent manual tweaking to update the chart. 


I've included the screenshots below to show the layouts of my sheets. 
The one that calculates XIRR I grabbed from somewhere on the internet - I'm sorry I don't recall where. It works quite well as I only enter data into column C, D, and E. 
It treats all CESG deposits the same as 'regular' deposits and calculates money-weighted, and time-weighted returns from that data.

The other two sheets I created myself. 
The first records past results, asset allocation, and predict future values. I assume annual rates of 7% for equity, 3.5% for bonds, and 2% for GICs, and conservatively just calculate it against the starting year's balance. I update the yellow cells values manually. ETF MERs are shown just below these cells. I think everything else is pretty self explanatory on the sheet.


On the tracking sheet I record total returns both with, and without, the CESG.
For example, looking at my typical monthly attachment, under the asset gain column (column T in the sheet, with yearly data starting on row 3) the calculation: 
- for 2015 is =SUM(S3/(P3+Q3))-1
- for 2016 it's: =SUM(S4/(S3+P4+Q4))-1

For column U, the column market asset gain (inc. CESG), the calculations are:
- for 2015 is =SUM(S3/P3)-1
- for 2016 it's: =SUM(S4/(S3+P4))-1


For the returns section (bottom-left corner of my typical monthly attachment, with the data in column R, starting on row 32), the calculations are:
- Total % return: =SUM(R28/SUM(R26:R27)) ..... aka it's dividing the total gains by the sum of the deposits and CESG received
- Total % return if CESG are a gain: =SUM(R29/R26)-1 .... aka it's dividing the total from the amount I've deposited (which excludes the CESG).

The annualized money-weighted & time-weighted returns come directly from the other sheet, and include CESG deposits.



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## Jerm

Damn I had a big reply written out but I seem to have lost it. Note to self - copy contents of post to clipboard before hitting submit.

Long story short - you definitely got me thinking about how I can modify my own sheet to account for the CESG. I think it'll basically just involve adding another piece of monthly input (CESG recieved) and adding a column similar to your column U. 

This is great - thanks again - and thanks for starting these threads. Your money diary is probably the one I follow closest


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## BoringInvestor

Ah, I know the feeling of losing those big posts - quite frustrating.


Thanks for the kind words.
If you'd like feel free to share your own results too. I'm happy to have 'my' threads filled with other couch potatoes in hopes of inspiring more to follow suit.


What were you thinking re: asset breakdowns in the future?
I plan to 
i) stay in equity ETFs for the first four years, 
ii) slowly shift over to bonds ETFs over the next eight years
iii) stay in bonds for a year before moving from bonds to GICs over four years, then
iv) sticking to GICs the last two years.


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## Jerm

I hadn't given it a ton of thought but I was planning on slowly transitioning (10% every 2-3 years) from an 80/20 equity/bond split to a 20/80 equity/bond split. I'm starting to wonder if that's a little reckless though, given that this account will likely be drained over a period of 4 years there's probably no good reason to be in equities when the kid is approaching college age...

Even VAB.to has dropped considerably in the past couple months... maybe GIC's would be more appropriate..hmm..

My returns shouldn't be anything special because I'm probably just going to use the CCP 3 fund portfolio off the start. I'm 80/20 equities/bonds in my personal portfolio and my returns were the same (within 5 basis points) of another poster who mentioned that he was 80/20 with a CCP portfolio in the "how did you do in 2016?" thread. This gives me confidence that I'm a) doin' it right and b) calculating returns correctly.


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## BoringInvestor

I decided principal protection was the #1 priority when the funds are needed, so I, perhaps conservatively, am choosing to move fully into GICs a couple of years before the money's needed.
Given not all the money will be needed on day 1, some of the funds can be invested in multi-year products, which I'm hoping will return a respectfully higher rate than a cashable or 1-year GIC.


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## none

Jerm said:


> I hadn't given it a ton of thought but I was planning on slowly transitioning (10% every 2-3 years) from an 80/20 equity/bond split to a 20/80 equity/bond split. I'm starting to wonder if that's a little reckless though, given that this account will likely be drained over a period of 4 years there's probably no good reason to be in equities when the kid is approaching college age...
> 
> Even VAB.to has dropped considerably in the past couple months... maybe GIC's would be more appropriate..hmm..
> 
> My returns shouldn't be anything special because I'm probably just going to use the CCP 3 fund portfolio off the start. I'm 80/20 equities/bonds in my personal portfolio and my returns were the same (within 5 basis points) of another poster who mentioned that he was 80/20 with a CCP portfolio in the "how did you do in 2016?" thread. This gives me confidence that I'm a) doin' it right and b) calculating returns correctly.


This is a useful guide. It's what I plan to follow at least.

http://www.moneysense.ca/columns/taking-risk-in-an-resp/


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## BoringInvestor

*January 2017 update*

*Commentary*
January carried on the consecutive win-streak to seven months, as the portfolio was up 0.28%.
The month also saw a $500 deposit that was used to rebalance the portfolio, and pushed the account over five-digits/$10,000.

Toward the end of the month, the total asset gains were over $1,000, and were greater than the total CESGs received. 
However, the past couple of days saw most of the month's gains evaporate, lowering the total asset gains to just shy of $900.


*Monthly results*
The portfolio this month: up 0.28% or $29.06


*Complete RESP results*
The portfolio since inception (April 2015): up 9.31% or $884.57
If I count the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is: up 22.17% or $1,884.57


How much money is the RESP making each year based on my deposits and growth (aka the annualized money-weighted rate of return since inception): 7.91%
How much money is the RESP making each year if I ignore the size of new deposits and treat them all equally (aka the annualized time-weighted rate of return since inception): 4.87%


The annual cost of the portfolio (i.e, the combined, embedded ETF management fee) is 0.24%, or $24.68


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## BoringInvestor

*February 2017 update*

*Commentary*
February was the 4th best month since the RESP started, and saw the positive gain streak stretch to eight months. 
The account was up 3.93%.

For the first time the investment gain in the account surpassed the amount of CESG received ($1,293 vs $1,000).


*Monthly results*
The portfolio this month: up 3.93% or $408.42


*Complete RESP results*
The portfolio since inception (April 2015) is: up 13.61% or $1,292.99
If I count the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is: up 26.98% or $2,292.99


How much money is the RESP making each year based on my deposits and growth (aka the annualized money-weighted rate of return since inception): 10.75%
How much money is the RESP making each year if I ignore the size of new deposits and treat them all equally (aka the annualized time-weighted rate of return since inception): 6.83%


The annual cost of the portfolio (i.e, the combined, embedded ETF management fee) is 0.24%, or $25.77


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## BoringInvestor

*March 2017 update*

*Commentary*
March marks the 24 month anniversary of the portfolio.
Over the month there was a deposit and rebalance, and the overall balance of the portfolio pushed deeper into 5-figure territory. 


*Monthly results*
The portfolio this month: up 0.89% or $118.23


*Complete RESP results*
The portfolio since inception (April 2015) is: up 11.76% or $1,411.22
If I count the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is: up 21.92% or $2,411.22


How much money is the RESP making each year based on my deposits and growth (aka the annualized money-weighted rate of return since inception): 11.76%
How much money is the RESP making each year if I ignore the size of new deposits and treat them all equally (aka the annualized time-weighted rate of return since inception): 7.20%
The annual cost of the portfolio (i.e, the combined, embedded ETF management fee) is 0.24%, or $31.84


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## BoringInvestor

*April 2017 update*

*Commentary*
April was the sixth best month on a percentage basis, and set a new record for the highest dollar gain at nearly $500.

The RESP received the Canada Education Savings Grant which boosted the overall value by $500. Our family also qualified for, and the RESP received, another $50 in additional CESG funds. 
I don't expect we'll qualify for the additional CESG in future years, so our CESG cap moving forward should be $500. 


*Monthly results*
The portfolio this month: up 3.58% or $499.63


*Complete RESP results*
The portfolio since inception (April 2015) is: up 15.23% or $1,910.85
If I count the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is: up 31.46% or $3,460.85


How much money is the RESP making each year based on my deposits and growth (aka the annualized money-weighted rate of return since inception): 13.60%
How much money is the RESP making each year if I ignore the size of new deposits and treat them all equally (aka the annualized time-weighted rate of return since inception): 8.83%
The annual cost of the portfolio (i.e, the combined, embedded ETF management fee) is 0.24%, or $33.10


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## BoringInvestor

*May 2017 update*

*Commentary*
May was the 11th positive month in a row, with a slightly below average return of 0.42%.


*Monthly results*
The portfolio this month: up 0.42% or $60.88


*Complete RESP results*
The portfolio since inception (April 2015) is: up 15.71% or $1,9,71.73
If I count the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is: up 32.02% or $3,521.73


How much money is the RESP making each year based on my deposits and growth (aka the annualized money-weighted rate of return since inception): 12.95%
How much money is the RESP making each year if I ignore the size of new deposits and treat them all equally (aka the annualized time-weighted rate of return since inception): 8.67%
The annual cost of the portfolio (i.e, the combined, embedded ETF management fee) is 0.24%, or $33.32


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## BoringInvestor

*June 2017 update*

*Commentary*
By percentage, June was the 4th worst month since the RESP began (-3.34%), and ended the consecutive gain streak at 11 months.
In dollars, it was the worst month, finishing down nearly $500.


*Monthly results*
The portfolio this month: down -3.34% or $484.50


*Complete RESP results*
The portfolio since inception (April 2015) is: up 11.85% or $1,487.23
If I count the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is: up 27.61% or $3,037.23


How much money is the RESP making each year based on my deposits and growth (aka the annualized money-weighted rate of return since inception): 9.15%
How much money is the RESP making each year if I ignore the size of new deposits and treat them all equally (aka the annualized time-weighted rate of return since inception): 6.66%
The annual cost of the portfolio (i.e, the combined, embedded ETF management fee) is 0.23%, or $32.09


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## BoringInvestor

*July 2017 update*

*Commentary*
July saw a $500 deposit into the account, bringing the total yearly deposits to $3,500. The final 2017 deposit of $500 will be made in October.
From hereon, (for the sake of simplicity and having read about the benefits of various time frames when rebalancing), I've decided to accumulate cash in the account and rebalance the portfolio once per year.

Over the past four months (April to July) the portfolio has an investment gain of $0.50.


*Monthly results*
The portfolio this month: down -0.52% or -$75.51


*Complete RESP results*
The portfolio since inception (April 2015) is: up 10.82% or $1,411.72
If I count the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is: up 25.75% or $2,961.72


How much money is the RESP making each year based on my deposits and growth (aka the annualized money-weighted rate of return since inception): 8.18%
How much money is the RESP making each year if I ignore the size of new deposits and treat them all equally (aka the annualized time-weighted rate of return since inception): 6.18%
The annual cost of the portfolio (i.e, the combined, embedded ETF management fee) is 0.22%, or $31.75


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## BoringInvestor

*August 2017 update*

*Commentary*
August's end-of-month balance marked a new monthly high, as it edged out the previous high-mark hit in May by ~$6.


*Monthly results*
The portfolio this month: up 0.46% or $66.24


*Complete RESP results*
The portfolio since inception (April 2015) is: up 11.33% or $1,477.96
If I count the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is: up 26.33% or $3,027.96


The RESP's yearly return based on my deposits and growth (aka the annualized money-weighted rate of return since inception): 8.03%
The RESP's yearly return if I ignore the size of new deposits and treat them all equally (aka the annualized time-weighted rate of return since inception): 6.17%
The annual cost of the portfolio (i.e, the combined, embedded ETF management fee) is 0.21%, or $30.60


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## BoringInvestor

*September 2017 update*

*Commentary*
September's ending balance marked a new monthly high, via a late strong rally to end up 2.03%.
For the first time since May, the portfolio has made more from asset gains ($1,773) then it has from government grants ($1,550).

In October I'll make my last deposit of 2017, of $500, into the account. 

Though I previously said I was only going to rebalance the account once a year, lately I've been eyeing a bi-annual rebalance during the early years of the portfolio.
At the moment I'm uncertain which way I'll go this month - leave the cash alone until April, or rebalance now.


*Monthly results*
The portfolio this month: up 2.03% or $295.32


*Complete RESP results*
The portfolio since inception (April 2015) is: up 13.59% or $1,773.28
If I count the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is: up 28.90% or $3,323.28


The RESP's yearly return based on my deposits and growth (aka the annualized money-weighted rate of return since inception): 9.00%
The RESP's yearly return if I ignore the size of new deposits and treat them all equally (aka the annualized time-weighted rate of return since inception): 6.81%
The annual cost of the portfolio (i.e, the combined, embedded ETF management fee) is 0.21%, or $31.17


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## BoringInvestor

*October 2017 update*

*Commentary*
October was a great month for the RESP. It was the best month by asset gain ($703.32), and the 2nd best by percentage gain (4.59%).
The account hit a new all-time high for total balance ($16,026), and total gains ($2,476).

In my last monthly update I was debating when to rebalance the portfolio - for now I've decided to hold off until the new year.


*Monthly results*
The portfolio this month: up 4.59% or $703.32


*Complete RESP results*
The portfolio since inception (April 2015) is: up 18.28% or $2,476.60
If I count the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is: up 33.56% or $4,026.60


The RESP's yearly return based on my deposits and growth (aka the annualized money-weighted rate of return since inception): 11.70%
The RESP's yearly return if I ignore the size of new deposits and treat them all equally (aka the annualized time-weighted rate of return since inception): 8.48%
The annual cost of the portfolio (i.e, the combined, embedded ETF management fee) is 0.21%, or $32.91


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View attachment 16770


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## BoringInvestor

*November 2017 update*

*Commentary*
November carried on the RESP's gain-streak to 4 months. 
It was the 11th best month by percentage, with a $260.14 gain.

During the month I decided to pull the trigger and rebalance the portfolio. 
I felt the amount and percentage of cash I was holding was unreasonable given my time horizon and the seasonality of deposits into the account. 
I'm planning to rebalance again in April 2018, and will likely also rebalance next November.


*Monthly results*
The portfolio this month: up 1.62% or $260.14


*Complete RESP results*
Total deposits since inception (April 2015): $12,000.00
The portfolio's gain since inception: up 20.20% or $2,736.74
If I include the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is: up 35.72% or $4,286.74


The RESP's yearly return based on my deposits and growth (aka the annualized money-weighted rate of return since inception): 12.20%
The RESP's yearly return if I ignore the size of new deposits and treat them all equally (aka the annualized time-weighted rate of return since inception): 8.88%
The annual cost of the portfolio (i.e, the combined, embedded ETF management fee) is 0.23%, or $37.31


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View attachment 17137


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## BoringInvestor

*December 2017 update*

*Commentary*
December finished down -1.19%, or -$194.30, and was the 8th worst month since the account began.
The ending balance was: $16,092.44.

For the year the account gained 11.71%, or $1,686.93. 
If I include CESGs as a gain, the account made 16.14%, or $2,236.93.


*Monthly results*
The portfolio this month: down -1.19% or -$194.30


*Complete RESP results*
Total deposits since inception (April 2015): $12,000.00
The portfolio's gain since inception: up 18.76% or $2,542.44
If I include the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is: up 34.10% or $4,092.44


The RESP's yearly return based on my deposits and growth (aka the annualized money-weighted rate of return since inception): 10.78%
The RESP's yearly return if I ignore the size of new deposits and treat them all equally (aka the annualized time-weighted rate of return since inception): 8.11%
The annual cost of the portfolio (i.e, the combined, embedded ETF management fee) is 0.23%, or $36.76


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View attachment 17441


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## BoringInvestor

*January 2018 update*

*Commentary*
January saw the 8th best return by percentage (2.88%), and second best by dollars ($477.78).

For the first time the net asset gain topped $3,000, and hit a new high for largest overall return of 21.50%.

January saw the first contribution of the year, of $500.
I'll rebalance the portfolio in either March or April.


*Monthly results*
The portfolio this month: up 2.88%, or $477.78


*Complete RESP results*
Total deposits since inception (April 2015): $12,500.00
The portfolio's gain since inception: up 21.50% or $3,022.22
If I include the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is: up 36.56% or $4,570.22


The RESP's yearly return based on my deposits and growth (aka the annualized money-weighted rate of return since inception): 12.04%
The RESP's yearly return if I ignore the size of new deposits and treat them all equally (aka the annualized time-weighted rate of return since inception): 8.98%
The annual cost of the portfolio (i.e, the combined, embedded ETF management fee) is 0.22%, or $38.02


_Log in to view the attachment below._

View attachment 17937


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## BoringInvestor

*February 2018 update*

*Commentary*
Similar to what I said in my companion couch potato thread, this month was quite a ride seeing huge losses, followed by a gain, only to end slightly negative at -0.80%.

The portfolio hit a new all time high of $17,082.94 on the lift from receiving a Canada Education Savings Grant.

I haven't yet decided when I'll rebalance this portfolio, but it will happen either this month, or next, after some further deposits are made.


*Monthly results*
The portfolio this month: down -0.80%, or -$137.28


*Complete RESP results*
Total deposits since inception (April 2015): $12,500.00
The portfolio's gain since inception: up 20.30% or $2,882.94
If I include the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is: up 36.66% or $4,582.94


The RESP's yearly return based on my deposits and growth (aka the annualized money-weighted rate of return since inception): 11.02%
The RESP's yearly return if I ignore the size of new deposits and treat them all equally (aka the annualized time-weighted rate of return since inception): 8.42%
The annual cost of the portfolio (i.e, the combined, embedded ETF management fee) is 0.22%, or $37.85


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View attachment 18185


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## BoringInvestor

Spoiler, I funded and rebalanced Thursday morning.
As expected given the market dive, the results so far have been quite poor! 

A full and regular update will come after the end of the month.


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## BoringInvestor

*March 2018 update*

*Commentary*
In March the account hit a new end-of-month high for total balance ($19,440), which was driven by a $2,500 deposit and rebalancing, but offset by a -$243 dollar asset decline.

I'm targeting to rebalance the portfolio once more this year, likely in the last quarter after all deposits are made and all CESG funds are received.


*Monthly results*
The portfolio this month: down -1.24%, or -$243.33


*Complete RESP results*
Total deposits since inception (April 2015): $15,000.00
The portfolio's gain since inception: up 15.81% or $2,639.61
If I include the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is: up 28.93% or $4,339.61


The RESP's yearly return based on my deposits and growth (aka the annualized money-weighted rate of return since inception): 9.64%
The RESP's yearly return if I ignore the size of new deposits and treat them all equally (aka the annualized time-weighted rate of return since inception): 7.77%
The annual cost of the portfolio (i.e, the combined, embedded ETF management fee) is 0.22%, or $44.06


_Log in to view the attachment below._

View attachment 18418


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## BoringInvestor

*April 2018 update*

*Commentary*
April saw the last CESG deposit ($400) of 2018, bringing the YTD total to $550, and the total over the past 3+ years to $2,100.
The portfolio received dividends on both positions at the beginning of the month, and got a DRIP (dividend reinvestment plan) of a single share of VXC.T.

The plan for the rest of the year is to deposit another $1,000, and do one last rebalace in October.



*Monthly results*
The portfolio this month: up 0.73%, or $144.89


*Complete RESP results*
Total deposits since inception (April 2015): $15,000.00
The portfolio's gain since inception: up 16.28% or $2,784.47
If I include the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is: up 32.56% or $4,884.47


The RESP's yearly return based on my deposits and growth (aka the annualized money-weighted rate of return since inception): 9.63%
The RESP's yearly return if I ignore the size of new deposits and treat them all equally (aka the annualized time-weighted rate of return since inception): 7.81%
The annual cost of the portfolio (i.e, the combined, embedded ETF management fee) is 0.22%, or $44.20


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View attachment 18618


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## JerriMc

Thanks for the great updates, are you able to share a spreadsheet template that I can use to pull my own numbers?


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## BoringInvestor

JerriMc said:


> Thanks for the great updates, are you able to share a spreadsheet template that I can use to pull my own numbers?


Hi JerriMC - no, I don't have a spreadsheet to share.
The one I use is quite customized, relatively ugly, frequently modified, and manual. I don't feel it's in a state to share.

There are some great spreadsheets publicly available that should satisfy most users.


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## JerriMc

BoringInvestor said:


> Hi JerriMC - no, I don't have a spreadsheet to share.
> The one I use is quite customized, relatively ugly, frequently modified, and manual. I don't feel it's in a state to share.
> 
> There are some great spreadsheets publicly available that should satisfy most users.


Thanks, can you share some links?


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## BoringInvestor

JerriMc said:


> Thanks, can you share some links?


Here's a great resource: https://www.bogleheads.org/wiki/Tools_and_calculators#Portfolio_tools
I've heard good reviews of the Boglehead sheets.


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## BoringInvestor

*May 2018 update*

*Commentary*
May finished up 1.72%, breaking through the $20,000 level for total account balance, and pushed the net asset gain to a new high of $3,125.51.


*Monthly results*
The portfolio this month: up 1.72%, or $341.04


*Complete RESP results*
Total deposits since inception (April 2015): $15,000.00
The portfolio's gain since inception: up 18.28% or $3,125.51
If I include the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is: up 34.84% or $5,225.51


The RESP's yearly return based on my deposits and growth (aka the annualized money-weighted rate of return since inception): 10.20%
The RESP's yearly return if I ignore the size of new deposits and treat them all equally (aka the annualized time-weighted rate of return since inception): 8.18%
The annual cost of the portfolio (i.e, the combined, embedded ETF management fee) is 0.22%, or $44.87


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## BoringInvestor

*June 2018 update*

*Commentary*
June started strong, but gave up most of its gains by the end, finishing slightly up at 0.25%.
The portfolio hit a new high for both total gain, and total balance.


*Monthly results*
The portfolio this month: up 0.25%, or $51.40


*Complete RESP results*
Total deposits since inception (April 2015): $15,000.00
The portfolio's gain since inception: up 18.58% or $3,176.91
If I include the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is: up 35.18% or $5,276.91


The RESP's yearly return based on my deposits and growth (aka the annualized money-weighted rate of return since inception): 9.88%
The RESP's yearly return if I ignore the size of new deposits and treat them all equally (aka the annualized time-weighted rate of return since inception): 8.05%
The annual cost of the portfolio (i.e, the combined, embedded ETF management fee) is 0.22%, or $44.91


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## BoringInvestor

*July 2018 update*

*Commentary*
July was a pretty good month for the portfolio, having its 5th best return by dollar gain ($431.42) and 10th best return by percentage gain (2.13%).
The portfolio saw dividends for both positions (VCN.T and VXC.T), an automatic purchase of a share of VXC.T, and price gains totaling to a monthly gain of $431.42.

The portfolio hit a new high for both total gain ($3,608.33), and total balance ($20.708.33).


*Monthly results*
The portfolio this month: up 2.13%, or $431.42


*Complete RESP results*
Total deposits since inception (April 2015): $15,000.00
Total CESG funds received since inception: $2,100.00
The portfolio's gain since inception: up 21.1% or $3,608.33
If I include the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is: up 38.06% or $5,708.33


The RESP's yearly return based on my deposits and growth (aka the annualized money-weighted rate of return since inception): 10.62%
The RESP's yearly return if I ignore the size of new deposits and treat them all equally (aka the annualized time-weighted rate of return since inception): 8.52%
The annual cost of the portfolio (i.e, the combined, embedded ETF management fee) is 0.22%, or $45.84


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## BoringInvestor

*August 2018 update*

*Commentary*
August saw the last deposit (of $1,000) and rebalance in this account this year.
The 0.61% asset gain brought the account to a new-high for total balance ($21,840), and total asset gain ($3,740).


*Monthly results*
The portfolio this month: up 0.61%, or $131.41


*Complete RESP results*
Total deposits since inception (April 2015): $16,000.00
Total CESG funds received since inception: $2,100.00
The portfolio's gain since inception: up 20.66% or $3,739.74
If I include the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is: up 36.50% or $5,839.74


The RESP's yearly return based on my deposits and growth (aka the annualized money-weighted rate of return since inception): 10.48%
The RESP's yearly return if I ignore the size of new deposits and treat them all equally (aka the annualized time-weighted rate of return since inception): 8.50%
The annual cost of the portfolio (i.e, the combined, embedded ETF management fee) is 0.23%, or $49.81


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## BoringInvestor

*September 2018 update*

*Commentary*
September reversed five consecutive months of gains, as the portfolio suffered a loss of -$295.80 or -1.35%.
It was the 8th worst month by percentage since the RESP began.

October will see dividends paid on both ETFs (VCN.T and VXC.T).


*Monthly results*
The portfolio this month: down -1.35%, or -$295.80.


*Complete RESP results*
Total deposits since inception (April 2015): $16,000.00
Total CESG funds received since inception: $2,100.00
The portfolio's gain since inception: up 19.03% or $3,444.14
If I include the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is: up 34.65% or $5,544.14


The RESP's yearly return based on my deposits and growth (aka the annualized money-weighted rate of return since inception): 9.17%
The RESP's yearly return if I ignore the size of new deposits and treat them all equally (aka the annualized time-weighted rate of return since inception): 7.81%
The annual cost of the portfolio (i.e, the combined, embedded ETF management fee) is 0.23%, or $49.16


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## BoringInvestor

*October 2018 update*

*Commentary*
October was the worst month for the portfolio, measured by dollars loss, as it finished down -$1,212.74. 
The loss wiped out nearly 35% of the total gains made to date.

If I include the losses from September too, the portfolio saw a decline of -$1,508.34, which is a decline of almost 40% of the total asset gain.

October's percentage loss of -5.63% was the second worst of the portfolio, trailing only the -5.92% loss in August 2015.

YTD 2018, the RESP has a net asset loss of -$311.04, or -1.51%.
If I include CESG dollars received, the account is up 1.19% over the past 10 months.

The large decline pushed down my annualized rate of return to just shy of 6%, which is on the low-end of my long-run range expectation for the account.


*Monthly results*
The portfolio this month: down -5.63%, or -$1,212.74


*Complete RESP results*
Total deposits since inception (April 2015): $16,000.00
Total CESG funds received since inception: $2,100.00
The portfolio's gain since inception: up 12.33% or $2,231.40
If I include the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is: up 27.07% or $4,331.40


The RESP's yearly return based on my deposits and growth (aka the annualized money-weighted rate of return since inception): 5.90%
The RESP's yearly return if I ignore the size of new deposits and treat them all equally (aka the annualized time-weighted rate of return since inception): 5.93%
The annual cost of the portfolio (i.e, the combined, embedded ETF management fee) is 0.23%, or $46.27


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## peterk

BoringInvestor said:


> Thanks for mentioning the strategy of limiting RESP contributions to only max the grant.
> 
> Upon reading your post I've looked into a few calculators and read posts and threads that talk about the difference between RESPs vs. TFSAs.
> I've decided to stick with my original contribution schedule for the following reasons:
> 1. Upon working through the calculations I've found the ending balance differences between i) all RESP vs. ii) mix RESP & TFSA to be negligible
> 2. I'd prefer to keep all the TFSA room my wife and I accumulate available for our retirement planning
> 3. I want to keep the account portfolios and balances simple, by not mixing different goals in the same account type
> 
> It may not be the 'best' solution from an economic argument, but it's what will work for me, it's one I can stick to, and know I can make work.
> That said - if someone does follow this mix RESP/TFSA strategy I'd be interested to know how it's working out for you.
> 
> Re: your other comments
> - I'm in a province without any additional grants, and my family income is too high to qualify me from receiving any other federal government grants.
> - I am with a broker that allows commission-free ETF purchases, so I don't need to use e-Series.


Hey BI - just going back to your original thoughts about maxing the full 50k vs the 36k...

I've been doing some spread sheeting myself - With a fully front loaded example, so $16.5k in year one, then 2,500 each year till max. The issue I am seeing is that even with only GIC growth, 3.5%, that grows to $90k at age 18. That's 40k in child's taxable income, likely spread out over 4 years. 10k/year isn't a lot, but considering they will likely make 10k/year in some summer job to begin with, it is not difficult at all for the child to end up in a 20-25% tax bracket with their RESP income added on. You on the other hand can have the money invested in non-registered and be paying capital gains/dividend taxes of about 20-25%! This issue gets far worse if you manage something like 6% growth, then there's 75k in child's taxable income to deal with. or if your kids get high paying co-op jobs (I made 35k taxable one summer). 

The next issue is that their incrementally higher income in likely becoming detrimental to the child's ability to get grants or non-repayable loans from the university or government. So the extra income from the extra non-CESG bearing contribution on your end is possibly/likely lowering their government grants. Might be best for them to have little/no income, take student loans, and then you pay off their debt when they're done school. 

Finally - 40k to 75k of university expenses is quite a lot. You could come across a situation with some of your children where 10-20k/year given for their schooling is too much. They might not want it, need it, or deserve it, or any combination of the three - But you'll be obliged to transfer the large sums of money on their behalf even if you know it's a bad idea, lest you pay 40-50% income tax on the withdrawals.

Just some food for thought


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## BoringInvestor

peterk said:


> Hey BI - just going back to your original thoughts about maxing the full 50k vs the 36k...
> 
> I've been doing some spread sheeting myself - With a fully front loaded example, so $16.5k in year one, then 2,500 each year till max. The issue I am seeing is that even with only GIC growth, 3.5%, that grows to $90k at age 18. That's 40k in child's taxable income, likely spread out over 4 years. 10k/year isn't a lot, but considering they will likely make 10k/year in some summer job to begin with, it is not difficult at all for the child to end up in a 20-25% tax bracket with their RESP income added on. You on the other hand can have the money invested in non-registered and be paying capital gains/dividend taxes of about 20-25%! This issue gets far worse if you manage something like 6% growth, then there's 75k in child's taxable income to deal with. or if your kids get high paying co-op jobs (I made 35k taxable one summer).
> 
> The next issue is that their incrementally higher income in likely becoming detrimental to the child's ability to get grants or non-repayable loans from the university or government. So the extra income from the extra non-CESG bearing contribution on your end is possibly/likely lowering their government grants. Might be best for them to have little/no income, take student loans, and then you pay off their debt when they're done school.
> 
> Finally - 40k to 75k of university expenses is quite a lot. You could come across a situation with some of your children where 10-20k/year given for their schooling is too much. They might not want it, need it, or deserve it, or any combination of the three - But you'll be obliged to transfer the large sums of money on their behalf even if you know it's a bad idea, lest you pay 40-50% income tax on the withdrawals.
> 
> Just some food for thought


Hi peterk, thanks for your thoughts.
I'll categorizing my replies to your points below.

*Deposit schedule & taxes*
The calculations for my daughter's RESP are a bit different from your numbers, as I'm not front-loading the whole $14k 'extra' ($50k - $36k) in year one, rather I'm spacing it out over the first 9 years (with an 'extra' $1.5k put in for ages 0-8, and an 'extra' $1k for age 9).

With that deposit schedule, and the scheduled transition from equities --> bonds --> GICs, I'm targeting a final amount in the RESP of $93.5k.

Assuming in the first year of university my daughter earns $15,000, and I draw down the RESP of $10,000 from investment growth, her tax payable on $25,000 of income would be $3,190, or 12.76%. That's seems reasonable IMO.

If she didn't earn any additional income, she wouldn't pay anything on the $10,000 withdraw, as it'd be below the basic personal amount threshold.


*Loans and grants*
Good point that my daughter may not be able to apply for certain loans and grants with her level of income or assets; however, I'm content not to seek to maximize every possible opportunity to subsidize her education and to leave the means-based funding to those who need it more. My daughter will always have other grants she can apply for based on her grades, volunteer work, field of study, etc. I'd rather her go for those.


*Cost of education*
I'd rather shoot high and assume she'll have high education costs, as she could potentially end up at numerous higher-learning institutions around the world. If she doesn't need all the money for schooling, then I'm content to use the RESP as pseudo-bank account to put aside money for her to use for her normal living expenses during her young adult years.


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## BoringInvestor

*November 2018 update*

*Commentary*
November's result brought the 2018 total return back into positive territory, as it was the 9th best month by percentage gain (2.49%), and 2nd best by dollar gain ($505.81).

With one month left in 2018, the RESP has made a total of $194.77 in investment gains year-to-date.


*Monthly results*
The portfolio this month: up 2.49%, or $505.81


*Complete RESP results*
Total deposits since inception (April 2015): $16,000.00
Total CESG funds received since inception: $2,100.00
The portfolio's gain since inception: up 15.12% or $2,737.21
If I include the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is: up 30.23% or $4,837.21


The RESP's yearly return based on my deposits and growth (aka the annualized money-weighted rate of return since inception): 6.89%
The RESP's yearly return if I ignore the size of new deposits and treat them all equally (aka the annualized time-weighted rate of return since inception): 6.51%
The annual cost of the portfolio (i.e, the combined, embedded ETF management fee) is 0.23%, or $47.53


_Log in to view the attachment below._


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## BoringInvestor

*December 2018 update*

*Commentary*
December saw the largest monthly dollar decline since the account began, as the RESP finished down -$1,215.33.
The -5.83% monthly loss was second only to the -5.92% loss back in August 2015.

For the first time, the account saw a negative return over a calendar year.
Over 2018 the account lost -$1,020,56 in value, or -4.94%.


Starting in 2019, I'll be implementing my original plan and begin a nine year shift in assets from stocks to bonds.
For 2019 I'm targeting 11% of the portfolio value in bonds, specifically in the fund VAB.TO.
I intend to minimize transaction costs by only using newly deposited funds to bring the account to its target allocation, with a rebalance occurring in April.


*Monthly results*
The portfolio this month: down -5.83%, or -$1,215.33


*Complete RESP results*
Total deposits since inception (April 2015): $16,000.00
Total CESG funds received since inception: $2,100.00
The portfolio's gain since inception: up 8.41% or $1,521.88
If I include the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is: up 21.7% or $3,621.88

The RESP's yearly return based on my deposits and growth (aka the annualized money-weighted rate of return since inception): 3.77%
The RESP's yearly return if I ignore the size of new deposits and treat them all equally (aka the annualized time-weighted rate of return since inception): 4.63%
The annual cost of the portfolio (i.e, the combined, embedded ETF management fee) is 0.22%, or $44.78


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Note - I'm having technical issues uploading images at the moment. I'll either attach the image at a later time, or make a subsequent post.


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## l1quidfinance

This is very interesting to read through. 

My sons RESP was started 2014. I'm slightly behind on the contributions but should be fully caught up by summer. We intend to contribute to the point of collecting the full gov't grant. Present Value is $18000 with Total contribution of $13728 and Grants $2745.60

This is heavily in bonds as my wife if very averse to risk so in convincing her for consent to be self invested we are running 70% bonds and 30% equities. Portfolio is made up of ETF's through Questrade due to being able to buy for free. As the balance builds I will likely replace some bond funds with 5 year Gics and build out a ladder. As stated this is a low risk portfolio with 30% equities. The fund currently holds 4 ETF's 

Gain since inception $1473 or 8.9%

What do you use to calculate the money and time weighted annualized returns?

Balancing is done by the reinvestment of dividends / interest & new money.


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## BoringInvestor

l1quidfinance said:


> What do you use to calculate the money and time weighted annualized returns?


Hi l1quidfinance,

For the rates of return, I use a excel spreadsheet I found online (that I've since modified heavily for my own purposes). 
I'm sure there are free ones still available out there for those interested in detailed tracking of money-weighted and time-weighted returns.


Do you have a plan when you'll transition from bonds ETFs to GICs?
For my daughter's account, I'll start to make the switch to GICs the year she turns 13, at a rate of 20% per year until she's fully in GICs the year she turns 17.


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## BoringInvestor

As I couldn't post it before, find below the RESP details for December.










Edit - looks like I misstated my rates of return in my post above.
As of the end of December, the account has seen a money-weighted rate of return of 2.10%, and a time-weighted rate of return of 3.66%.


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## BoringInvestor

*January 2019 update*

*Commentary*
2019 saw huge gains for the account, as it was the best return measured by dollar gain: $1,152.52, and by percentage: up 5.67%.

The gain in January exceeded the total loss from 2018, as the account has eked out a total gain of $131.96 over the past 13 months.

January also saw a deposit of $687.50 into the account.
I plan to rebalance the account twice this year - first in April, and lastly in October.


*Monthly results*
The portfolio this month: up 5.67%, or $1,152.52


*Complete RESP results*
Total deposits since inception (April 2015): $16,687.50
Total CESG funds received since inception: $2,100.00
The portfolio's gain since inception: up 14.23% or $2,674.40
If I include the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is: up 28.61% or $4,774.40

The RESP's yearly return based on my deposits and growth (aka the annualized money-weighted rate of return since inception): 6.22%
The RESP's yearly return if I ignore the size of new deposits and treat them all equally (aka the annualized time-weighted rate of return since inception): 6.05%
The annual cost of the portfolio (i.e, the combined, embedded ETF management fee) is 0.22%, or $47.09


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## ian

We review ours once a year, when the 31/12 number comes in. Our grandchildren are very young so we looking at a 15 year window.


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## BoringInvestor

Feel free to share the results here Ian.


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## BoringInvestor

*February 2019 update*

*Commentary*
February saw a 2.65% gain, which was the 10th best percentage gain since the RESP started.
The $572.54 investment gain, (which was the 3rd highest dollar gain), together the $137.50 from CESG, brought the account to a new high of $22,171.94.


*Monthly results*
The portfolio this month: up 2.65%, or $572.54


*Complete RESP results*
Total deposits since inception (April 2015): $16,687.50
Total CESG funds received since inception: $2,237.50
The portfolio's gain since inception: up 17.16% or $3,246.94
If I include the Canada Education Savings Grant [CESG] funds as an investment gain, the portfolio is: up 32.87% or $5,484.44

The RESP's yearly return based on my deposits and growth (aka the annualized money-weighted rate of return since inception): 7.22%
The RESP's yearly return if I ignore the size of new deposits and treat them all equally (aka the annualized time-weighted rate of return since inception): 6.65%
The annual cost of the portfolio (i.e, the combined, embedded ETF management fee) is 0.22%, or $48.39


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