It’s been over year since my last RESP portfolio update and probably would have been longer if it wasn’t for a reader request for a quick update. Our RESP portfolio for our child is setup with TD e-Series mutual funds which provide a low cost way to index the market.  I chose to go with mutual funds instead of ETFs as I like the freedom of adding small amounts at a time without having to pay a commission for every purchase.

What did the diversified portfolio consist of?  The long term plan for the RESP is to be aggressive for the first 10 years (90% equities 10% bonds) with increasing fixed income as the University tuition nears.  I copied the table from my RESP strategy article below.

Index 0-10yrs 10-14yrs 14-17yrs 18yrs +
Canadian Equity 30% 20% 10% 0%
US Equity 30% 20% 10% 0%
International Equity 30% 20% 10% 0%
Canadian Bonds 10% 40% 35% 0%
GIC’s 0% 0% 35+% 75%
Money Market Fund 0% 0% 0% 25%

Although my plan to is follow the allocation stated in the table, things have deviated a little due to the market volatility in 2008 then in 2009.  In 2008, I added a little to equities within this portfolio, but in hindsight, I should have added much more.  In 2009, I let cash build in the account as I fully expected a market correction to follow the strong rally.  However, as we all know, that hasn’t happened… yet.

Below is my actual allocation and portfolio values thus far.  We plan to deposit another $2,500 into the account in a couple weeks.

Portfolio as of March 17, 2010

Investments Units
Price Per
TD CDN Money Mkt 197.464 $10.00 $1,974.64 32.780 $1,974.64
TD CDN Index-e** 67.609 $19.25 $1,301.47 21.600 $1,246.99
TD US Index-e** 51.914 $20.48 $1,063.20 17.650 $1,144.09
TD CDN Bond Index-e** 53.033 $10.90 $578.06 9.590 $571.67
TD Int’l Index-e** 124.416 $8.90 $1,107.30 18.380 $1,239.03
Total as of Mar 17, 2010 $6,024.67 $6,176.42

I started his portfolio in early 2008 near the peak of the market so there was a point in early 2009 where the market value of this portfolio was significantly below book value.  It’s comforting to see that the portfolio has climbed to almost the break even point

Going forward, I hope to deploy some of the cash as opportunities arise.  The cash portion of the portfolio is already 32% of the portfolio not counting the upcoming contribution.

If you have setup an RESP, who is your provider?  What is your investment strategy?

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FT is the founder and editor of Million Dollar Journey (est. 2006). Through various financial strategies outlined on this site, he grew his net worth from $200,000 in 2006 to $1,000,000 by 2014. You can read more about him here.
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Ed Rempel
12 years ago

HI Simkamak,

There are actually 4 different grant programs. It appears TD e-series only offers one of the 4 grants. Here is a list of providers from HRDC: .

We are often surprised who qualifies for the various programs, especially the Canada Learning Bond. We apply for all the programs for everyone, just in case, and have found some people with higher income get it for some reason. It seems that the $525 for the CLB usually is only paid out when the first RESP is opened.


Ed Rempel
12 years ago

Hi Mark,

Interesting strategy. An investment loan will likely provide a higher return and tax savings, but it may be too aggressive given that education savings are a shorter duration and are taken out over just a few years.

You could do an investment loan for your retirement plan and then use an RESP for education savings. This way, you have the benefits of the leveraged investments plus you get the RESP grants.


12 years ago

Hi FT,

I am wondering if you have done a comparison between Questrade’s RESP and TD’s. Given its flexibility, would not Questrade’s account be better?

12 years ago

TD’s website says: “The TD Mutual Funds Education Savings Plan supports only the basic Canada Education Savings Grant and not any other provincial or federal government RESP grants or tax incentives.” Was this a non-issue for you when you decided to use TD e-series? I’m in Quebec where the government provides 10% provincial grant, but seems like it can’t go into TD mutual funds.

P/S Just found this on their website: “TD Canada Trust
Education Savings Plan supports only the Alberta Centennial Education Savings Grant and not any other provincial government RESP grants or tax incentives.” Too bad!

12 years ago

Can we please have an update on RESP?

13 years ago

I wouldn’t do an RESP is what I am saying. I would do an investment loan and a Non Registered Segregated Fund for the benefits and I would speak to my advisor first to see if this strategy is right for you.

13 years ago

Why not take out an investment loan taking advantage of the Interest deduction on Investmetn loans. You are using the power of compounding with a larger lump sum than a monthly payment in the same investment. There are risks involved but it may be a tax advantage.

14 years ago

Thanks, Cannon.

14 years ago


You may want to evaluate FT’s matrix to see if that fits your comfort level.