Investment Q&A

Q: My Grandsons are 3 &1 old. They have 43% ZUT, 35% VFV, 21% ZWB and 0.9% BTCC.in their present RESP. I am looking for thoughts for the coming year deposit.
My thought are add to VFV (not enough now to reinvest),add a Reit ETF like TGRE or add an telecom ETF. I can not find a telecom ETF in Canada so maybe an alternative would be T.
All thoughts would be much appreciated.
Thank you

Q: Looking at the price performance of this name the decline appears to have started around the time an increase in interest rates was contemplated since when the price has halved and the yield gone from around five to about 10%. Listening to the conference call the recent shortfall appears to have been problems with their Prospect investment, against which management says they should receive some or all of the moneys owing, probably in '23, maybe '24, and that the future for their facilities are buoyant - not that anyone would fault management for championing their business. Over the years, and they have been almost all low rate years, their unit price has not dropped below 10, or 9 if you go back 20 years save for a brief interlude in ‘09, since which time they have presumably grown.

What has been your experience with other health care REITs and what outlook would you assign to the sector as well as for MPW

Q: I have an RESP for my nephew who is in grade 12 now and attending a college in the fall. His parents are not great savers, and I don't have children, so I'm fine to subsidize his education. I currently hold only CDZ and TD in the RESP and would like to add some additional cash soon.

What's your advice on how to proceed? Do I add to one or both, or would I be better to invest in CASH or PSA.

Thanks,
Robert

Q: Hi there. I am looking for a dividend growth company or ETF to add to our kids RESP with a 10 year time horizon. What do you recommend from the 5i Research universe to initiate a position in now. After the initial purchase, I intend to dollar cost average on an ongoing basis. I already have Telus, Abbvie, and BMO in two other accounts and those are my highest dividend payers.

Q: In a previous question you recommended ZSP be held in a RRSP so as to avoid the US withholding tax on dividends. Does the same tax rule apply to a RESP? If not & there is a US withholding tax on dividends, is it still worth holding ZSP in a RESP. Thanks … Cal

Q: Is there a way to avoid the foreign withholding tax on US dividends?

Q: I am looking to start a RESP for my one-year-old grandson. Can you please suggest a suitable investment portfolio for an initial $5000 investment. Could you also recommend a strategy for investing future deposits to the plan.

Thanks.

Q: Hi Team,
I am looking for your opinion. I am thinking of adding 5k to my kids RESP after todays ugly selloff. I am banking with the ATB and most of the resp is currently in the atb compass growth fund. My question is...do you feel that I am best off adding to this fund, or buying an idividual stock? As far as stock I was thinking stable growth with a dividend. I had either BNS or SLF in mind. What are your thoughts? Or any other better suggestions as opposed to the ones mentioned? I don't plan on using any funds for at least 2 years. Thanks

Shane.

Q: Questions on RESPS. My kids are 5 and 3 so I have their RESP money in VGRO, right now. Plan is to move it to VBAL when they get closer to needing the money. But then I assume I have to de-risk it even further later on. What would you suggest for this eg. GICS and how many years out? I know this is years out, but just want to have a plan.

Q: My daughter has a Family RESP Account for our 2 grandaughters.
They are soon to be 16 and 13 years young.
Both, at this stage of the education game, appear to be headed to college or university.. I contribute monthly into the RESP plan for my grandchildren.
The original funds were invested in a Target 2025 mutual fund RBF1048, recently rename to RBF5731. This is showing an inception return of 4.4%. Since 2016 I have been investing this thru my Direct Investing Account. My present portfolio mix is about 98% equity Stock and is showing a return of 28%, since inception.
Finally to my question. Since the oldest Granddaughter will be attending post secondary education in the next 2 years and little.
What is your suggestion on how to split the total amount? Should I start investing more in fixed income?
Any other suggestions you have for a situation like this?
Thanks team,,,, your are my number 1 in finance.

Q: Hi,

Should one treat an RESP with a child who is 17 years old similarly to someone would view their nest egg when only a few years from retirement?

In other words, I have an RESP for my nephew as his parents don't have the financial wherewithal to assist him with schooling, which will start in about 1.5 years. Should I be switching to more conservative investments with his schooling approaching?

Right now, I really just have CDZ and TD. Would you keep those?

Thanks,
Robert

Q: Hi 5i Team,

I have held a balanced Canadian Couch Potato Portfolio with the above etfs in my son's RESP which i started when he was born in 2009. The portfolio has done pretty well (in my books at least) at 8% annual return. I am now looking at a 6 year time horizon for when he will need to begin to draw from the RESP. I am thinking of starting to rotate toward more conservative holdings as the timeline for needing the funds draws closer. Under "normal" circumstances from what i have learned this would mean moving more into bonds at this point but I am having trouble believing this is appropriate in the current market. With interest rates and inflation both rising i am wondering if low debt dividend stocks might be a better bet to hold onto purchasing power in this time frame? Maybe something something like CDZ vs XBB? I know you can not suggest specific portfolio recommendations but looking for suggestions/best bets for maintaining value and keeping up with inflation over this time frame.

Thanks,

Q: Greetings 5i team,
Marcel asked a question about contributing $10k to his granddaughter's RESP. If he wants to maximize the juicy gov't grant, he should first review the rules under which the grant is awarded; that large a contribution may not all be recognized for the grant, if made in a single year.
SP

Q: Good Morning
We have a approximately 10k that we would like to contribute to our Grand daughters RESP. We would like to do so with stocks and have about a 10 year window before the funds would be needed. Could you suggest 3 conservative stocks that would be appropriate for this type of account with one additional stock having a more aggressive approach?
Thks
Marcel

Q: Q.

Would you recommend one ETF for a 12 yr+- time frame for my sons RESP?
One that I can add to over time, growth minded, MER friendly with CDN & US exposure taking into consideration US taxation.

Thanks,
Dan

Q: Hi gang, would like to to buy between ARE or SYZ? For dividends 2-3 years in RESP account Is it a good idea or better choice anywhere it’s for my granddaughter 2 years old. Thanks
Alnoor

Q: Hi 5i,

I currently have an RESP for my two daughters. Questrade is charging us $50 every time we pull money out to pay for tuition, etc. That makes it four times a year.

We have used up the EAP portion so I'm thinking of pulling all the money out at once and transferring it to one of my daughter's TFSA account (there is room). the cost of totally divesting it is $100 but then we'll be mercifully done with the fees.

After that, I believe we can split it between the two daughters and take it out without any fees involved.

Do you see any problems with this strategy or can you suggest any better way of handling it?

Feel free to make it a public question or not depending on whether it would be of interest to other clients.

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.

Thanks,
Irene

Q: Since my kids RESP is still fairly small I only have room for one stock in each sector. What would you recommend for the bank stock? TD, BNS, RY or BMO? And why do you think the one you suggest is the better choice?

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!