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As your child approaches university age, it’s important to gradually decrease the risk in her RESP
| Your | Maximum % | Minimum % |
| child’s age | equities | fixed income |
| 8 or younger | 100% | 0% |
| 9 | 90% | 10% |
| 10 | 80% | 20% |
| 11 | 70% | 30% |
| 12 | 60% | 40% |
| 13 | 50% | 50% |
| 14 | 40% | 60% |
| 15 | 30% | 70% |
| 16 | 20% | 80% |
| 17 | 10% | 90% |
| 18 or older | 0% | 100% |
I stress that these are maximum stock allocations. Depending how early you start and how much you’re able to save, you may not need to take any equity risk at all. Thanks to the generous 20% government grant on RESP contributions, $200 a month starting when your child is six will grow to $50,000 by the time she’s 18 if you earn a modest 5% annually. That may not be achievable with an all-bond portfolio today, but it has been in the past and will likely be possible again in the future as interest rates rise.
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My 16 year olds resp is invested in td e-series US, nasdaq, intl, . I want to switch what are the options. Close td e-series and move all funds to a savings account? R there other options
Due to the large volume of comments we receive, we regret that we are unable to respond directly to each one. We invite you to email your question to [email protected], where it will be considered for a future response by one of our expert columnists. For personal advice, we suggest consulting with your financial institution or a qualified advisor.