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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hi 5i team,

I recently opened an RESP DI account with Questrade for my 1 year old son. Could you please give me couple suggestion to invest on at current level? I am okay with either EFT or single stock and I have long term time horizon 10+ years.


Read Answer Asked by Irene on December 08, 2021

Q: I opened an RESP account for my newborn son this year, my goal is to have ~10% annual return and not have to actively manage and rebalance the portfolio. So I plan to just buy and hold VEQT with available funds for the next 10-15 years, then slowly transition to a more balanced VBAL as it gets closer to withdrawal. What are your thoughts on this strategy, and would you recommend another ETF/stocks as a better alternative for the purpose? Thanks!

Read Answer Asked by Best on November 15, 2021

Q: To Randall re:RESP and CESG grant,
I just wanted to flag you that the government’s grant portion is a maximum of $500 per year to a life time maximum of $7200. If you top up your Grandson’s RESP 30k at once you will still only receive $500 in government grant and have used up the contribution allowance of 50k.

Read Answer Asked by KERRI on November 02, 2021

Q: Question for 5i team (or any other RESP knowledgeable subscriber). Over the past 8 years my adult son has contributed a total of $20000 to my grandson's RESP. With interest earned plus CESG grants, the total value is now $25000. PLAN: I want to top off my grandson's RESP to the $50000 maximum allowed. QUESTION: Is my contribution $30000 -- or limited to $25000 in (consideration of the CESG and interest accruing to the account). Thanks.

Read Answer Asked by Kryndryl on November 02, 2021

Q: Dear Peter and the team:

Nice articles as always in this month's Canadian Money Saver. Enjoyed the article by Sandi Martin on RESPs. I hope you can clarify something for grandparents like us!
The article doesn't address this specific issue.

On September 02, 2020, an article in the Globe mentions that one can safely contribute 14000 $ to the RESP. One can continue to contribute 2500 $ a year as well to benefit from the matching Govt grant. (500 $ max) until one reaches 50000 $. I have included the link to that article here.

Is it okay to gift to one's grandchild's RESP 14k during the early years? I know one will NOT get the Govt Grant for this amount. If one buys a low fee, growth oriented ETF, will this approach yield better result than the ones cited in CMS article?

Your input is always appreciated.


Read Answer Asked by Savalai on September 17, 2021

Q: Hello. I am planning on investing in education for our first grandchild. As our children were near graduating high school when RESPs were introduced I am not well versed in the pros and cons. I was recently told that there is a lot more cost than allowable deductions on income tax.
Question: if the parents of our grandchild have lots of room in their TFSAs, would it make more sense to save for education using the TFSA instead of RESPs? The rationale is that it is non taxable when it taken out for education in the future as compared to taxable even though there is an initial 20% grant from the government with an RESP. And perhaps making RESP contributions at child's older age, a few years prior to university age. Thank you.

Read Answer Asked by Catherine on August 11, 2021

Q: I have some cash to invest in RESP that still has 4 yrs to go. Could you recommend some stocks to initiate positions now? Stocks can be growth or value and from the US or Canada. Thank you!

Read Answer Asked by Wei on July 29, 2021

Q: Hello,

Could you please recommend a few 'set and forget' high growth stocks which would be a good fit for a RESP for the next 15-ish years?


Read Answer Asked by Timour on July 28, 2021

Q: Could I get your suggestions for some $CDN ETFs to invest for a toddler's RESP. I was thinking maybe a split between a tech-based ETF and a general North American-based ETF, but am open to any other ideas. There is not too much in the RESP at the moment, but it does have years to go, so growth is the main goal.

Read Answer Asked by grant on July 26, 2021

Q: Looking for a couple of nice growth stocks for long term holds in RESPs for my three grandkids. Time horizon would be 10-15 years. A little dividend would be nice too.

Read Answer Asked by JEFF on June 23, 2021

Q: Hello,
I am opening a RESP account for my 6month old son. In your opinion, is it better to invest in Stocks or ETFS? Can you please also provide me a top 3 stocks or ETFS in your mind?


Read Answer Asked by shi on June 07, 2021

Q: I have an RESP for our 3 year old son that we opened a couple years ago. Current value is about $35K and comprised of BCE, BIPC and ENB in about equal values plus a slightly higher amount in BPY.UN. Thinking about selling BPY now deal with BAM is finalized and considering adding a couple of more growth oriented companies as focus was more dividend/stability before. Cdn or US stocks or ETF's are fine as options.

Read Answer Asked by Bruce on April 07, 2021

Q: We have one 2 year old grandchild, and one on the way. I want to set up a small $1000 investment account for each of them, and add to it each year on their birthday. Because of the small initial amount, I plan to cover the trade commissions. Who knows if it will work, but the object is over 20 years, to show them how buying a good company, with a solid, growing dividend, and adding funds regularly, will reap long term benefits. They will be able to follow the first $1000, and hopefully at least cause them to have some thoughts/questions about investing.
Realizing potential risk/reward, I am looking for stock ideas for low and medium, risk.
Can you recommend 3 companies that you would recommend in each risk level, for this type of idea,

I will probably add trading companies along the way, but I do want one low risk, and one medium risk, long term hold, to start.
Thank you.

Read Answer Asked by Grant on March 22, 2021

Q: Given the state of the markets, what would some of your current favorite names be to add to a new RESP account for my son? I've set aside $10k to take a few stock positions early on (anticipated long term hold as he's a newborn) and then am thinking going forward I'll devote annual contributions to a more passive approach (boarder market ETFs, etc.).

With a smaller account like this diversification decisions seem a little more difficult. Any general suggestions on RESP considerations would also be appreciated.

Thanks for the great service!

Read Answer Asked by Jordan on March 10, 2021

Q: Hi my question is regarding resp’s and best way to contribute. Time frame is 15-20 years. I understand ETF’s offer diversification, however would you at all consider a few slow and steady (conservative) stocks instead. Your top 5 ETF’s and stocks for this scenario please and thank you!


Read Answer Asked by Lauren on March 05, 2021