Investment Q&A

Q: Hello Peter and 5i team,
We took some profits in our grandson'e RESP [ a toddler ] and are considering a new position or adding to our current holdings. The current holdings are ATD.B, AVO, CXI, DHX.B, XTC, GUD. Thank you for your opinion.

Q: We would like to set up a RESP for our new granddaughter. If we spread the contributions over 15 years, the CESG is maximized. What would you suggest for annual investments if we followed this approach? Or do you think a lump sum RESP investment now would produce better returns, even if it means forgoing the CESG? Thanks!

Q: Our kids are now going to post-secondary school, so the RESP will be drained at a rate of 25% annually. With these fixed needs, what is an appropriate stable holding? The portfolio is 75% preferreds that have held their par value (GWO.pr.p IGM.pr.b POW.pr.c) but I am concerned they may not hold their ground for the next 4 years. The remainder is in a Cdn Balanced fund.

Q: Hi Peter and Ryan,

For an RESP lacking Tech exposure, what would be your 2 top picks at this time.

Thanks

Dave

Q: The big winner in this account has been CCL.B. In order to maintain balance and diversification should I to some trimming (now at about 40 per cent of the account)? Trimming is hard to do as the stock has been stellar so far! Would you please suggest the best buys in the utilities and info tech sectors. I have a 5 year time frame and am only interested in solid blue chip companies. Besides CCL.B I own DHX.B, BNS, PEY, SJ and T. Thanks for your great service. Carole

Q: Hi Peter and Team,
BCE is hitting an all-time high today. I own a small position and have been watching over the last 6 months or so for an exit point, for two reasons: 1) it is held in an RESP which we need to take some $$ out of, and 2) I chose BCE to sell because we expected little in the way of growth. Perhaps I am wrong...?
What are your thoughts on the near/mid term outlook for BCE? We could instead consider selling a couple of other holdings: ESL, GRC, AVO, CNQ, AW-UN, GUD, HWO, TII, MIC, WIN, and Sprott Small Cap Equity Fund.
What would you suggest selling?
Thanks again for your excellent service!

Q: Hi Peter, our RESP needed in 5 years has BNS, T, GUD (bought today), and TCN (bought today) @ $6k each = $24k plus $18k in cash. What would you do with the remaining cash at this time ? Thank you, Paul

Q: Hello Peter and 5i team,
These are the current holdings in our grandson's RESP [ a toddler ]. Please advise if the selections are still effective and any changes. What additions would you recommend for new money?
AVO, AYA, CPH, CXI, DHX.B, DSG, XTC.

3 ARE DOWN SUBSTANTIALLY [ AVO,CPH, AND CXI ]. Should we sell any of these holdings. XTC is up nicely. Do you still like this sector?

Thank you for your advise .

Q: We have been blessed with two granddaughters this year and want to start an RESP for them to take advantage of the 20% government grant. Starting out the amounts are low so we are considering purchasing GIC's. What investments would you consider appropriate when starting out and as the funds increases.

Wishing you and your team all the best for the upcoming holiday season.

Bob

Q: Based on current valuations and diversification, please name 5 " steady eddy" stocks for a RESP with a 10 year hold. I am considering Telus, Loblaw, TD Bank, Boyd Auto Body and K Bro Linen. Thank you.

Q: I have a new baby (less than two months old) and have just set up an RESP. We plan to contribute $2500 each year to get the government grants and grow a portfolio. Because $2500 is fairly low, what would you recommend as a starting equity position for this? Would something like GUD or DHX.B be a good start, or wouldis there an ETF be recommended first?

Thanks!

Q: We have to sell one of these to pay his tuition
Which would you sell
Because he is overweight BNS , I thought we should sell 1/3 for a loss ... but perhaps that isn't a good strategy .
BNS (big loss) , OTC (loss) , XSP (loss) , GWO (gain) , L (big gain ) , ATD.B ( huge gain ),
Are RESP losses non claimable ???

Thanks

Q: I will deploy cash soon from my kids RESP account, and I want to buy the companies in US. Since I can't hold US dollar cash in RESP account, I am thinking of buying below ETFs hedged in Canadian dollars.
10% -- ZUB (Financial Sector)
10% -- ZUH (Healthcare Sector)
20% -- ZQQ (Technology Sector)
5% -- ??? (Which ETF is equivalent to IWM?)
55% -- XSP (S&P 500)
Please comment on above combination and sector weighting. Thanks!

Q: I am starting an RESP for a 2 year old with $5000 and will add $1000 each yr. Can you advise me what to invest in or what portfolio to follow. Do I buy a little of many companies or just add new ones each year
Thanks

Q: Good Morning Team,

Would you please provide a recommendation for a European ETF that could be purchased in Canadian dollars? The funds would not be accessed for at least six years. The ETF would form a 15% position within an RESP.
Thanks,
Richard

Q: I have a family RESP with: $37K BYD.un; $44K CSU; $7K FSZ; $18K RY; and $82K cash. Two of the 3 beneficiaries are in their first year of a 4 yr program, and the third beneficiary won't be out of high school until June 2019.
I'll likely be taking out about $30K per year of EAP for both currently eligible kids. My plan is to keep the contributions and take as much earnings and grant out for the first two kids as I'm not sure what's going to happen with the last child.
About $100K is due to contributions (untouched).
I think BYD and CSU are definite keepers. I believe you still have faith in FSZ (but in the last 18 months I've held it there's been an overall 2% loss). I'm not sure what to do with RY and the cash balance.
I'd love to hear your suggestions!

Q: Hi Peter, our 13 year old has $40k in her RESP. $20k is ~evenly split between BNS, ESL, and Telus. At this time where would you put the remaining $20k ?
Thank you.

Q: Dear Peter and team.

I am switching a $25,000 family plan RESP (for 2 kids ages 6 and 4) to a self-directed account and would like to create a diversified and safe portfolio. I plan on maximizing annual contributions and expect the government top up as well, so will add $6,000 per year. The funds will not be needed for 12 years and I am willing to weather some volatility. Do you think an 8-10 stock portfolio is a good starting point, with the annual lump sum contributions used to add 1 or 2 new positions each year? If so, could you recommend 8-10 stocks to be acquired over the next month or so?

Many thanks for an amazing service!

Q: You have mentioned in previous answers that stock allocation in an RESP should be independent from other account holdings due to the defined time frame when the money will be used. I have an RESP for my 8 year-old that consists of $10,000 BNS and 10,000 SLF and $6500 cash. I plan to deploy the cash in March. Do you have any recommendations on a single additional stock OR might I be better off to sell BNS and SLF and buy a few ETF's to sufficiently diversify? I still have 9 years until she heads to post-secondary.
Thanks.

Q: Hi Peter and team
I hope you can help with this dilemma. I want to open an RESP account for my grandchild and I have like to hold Uas stocks in this account. I have been told by RBC DI that they only set up CAD accounts in RESP's. Do you or any members out there know of what alternatives I have to do this? If there is such a possibility does it qualify for the CESG having USD stocks?