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theglobeandmail.com

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Sep 14, 22:18

Saving for Children's Future Beyond RESPs: Strategies and Challenges

The article explores alternative savings vehicles for children's future beyond RESPs, considering TFSAs, non-registered accounts, formal and informal trusts, and life insurance, weighing their benefits and drawbacks.

Saving for Children's Future Beyond RESPs: Strategies and Challenges

The article explores alternative savings vehicles for children's future beyond RESPs, considering TFSAs, non-registered accounts, formal and informal trusts, and life insurance, weighing their benefits and drawbacks.

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What are the key advantages and disadvantages of using parental TFSAs or non-registered accounts for children's savings?

Parental TFSAs offer tax-free growth but consume parental contribution room. Non-registered accounts are easily accessible, posing a risk of parental spending. Both lack the inherent inaccessibility of RESPs or RRSPs, which helps prevent premature withdrawals.

theglobeandmail.com

🌐 75% Global Worthiness

Mar 25, 16:16

Investment Strategies Amidst Trade War and Interest Rate Fluctuations

A financial advisor answers reader questions about investment strategies amid the US-China trade war and fluctuating interest rates, recommending diversified portfolios, hedging against currency risks, and adjusting asset allocation based on risk tolerance and economic uncertainty.

Investment Strategies Amidst Trade War and Interest Rate Fluctuations

A financial advisor answers reader questions about investment strategies amid the US-China trade war and fluctuating interest rates, recommending diversified portfolios, hedging against currency risks, and adjusting asset allocation based on risk tolerance and economic uncertainty.

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How do the recommended investment choices, such as specific ETFs and high-interest savings accounts, balance risk and potential return in light of the current economic climate?

The financial advisor's recommendations emphasize a cautious approach, prioritizing capital preservation over aggressive growth given the economic uncertainties. This is particularly evident in the advice given to a 73-year-old widow, where a shift towards lower-risk investments like money market funds and US fixed-income securities is suggested. The advisor acknowledges the potential for declining interest rates to impact returns on high-yield savings ETFs.

theglobeandmail.com

🌐 65% Global Worthiness

Sep 8, 13:20

Planning for Registered Education Savings Plans (RESPs) in Wills

To ensure child beneficiaries inherit RESP benefits, parents and grandparents should specify RESP instructions in their wills, naming a successor subscriber to avoid plan collapse and potential tax liabilities upon death.

Planning for Registered Education Savings Plans (RESPs) in Wills

To ensure child beneficiaries inherit RESP benefits, parents and grandparents should specify RESP instructions in their wills, naming a successor subscriber to avoid plan collapse and potential tax liabilities upon death.

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How can the continuation of an RESP be ensured after a subscriber's death?

Having joint subscribers (spouses or common-law partners) allows for automatic succession in most provinces. Alternatively, designating a successor subscriber in the will ensures continuation, even if both joint subscribers predecease the beneficiary. Naming the estate or a testamentary trust as the successor is also possible, but it involves added complexities and costs.

theglobeandmail.com

🌐 75% Global Worthiness

Mar 17, 19:16

Conservative Investing Costs Canadian Parents Thousands in Lost Education Savings

Canadian parents' conservative investment approach to their children's education is costing them substantial returns due to inflation; leveraging the stock market and the government's RESP program could greatly increase their savings.

Conservative Investing Costs Canadian Parents Thousands in Lost Education Savings

Canadian parents' conservative investment approach to their children's education is costing them substantial returns due to inflation; leveraging the stock market and the government's RESP program could greatly increase their savings.

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How does the Canadian government's RESP program impact potential returns on postsecondary education savings, and what percentage of Canadians utilize this program?

Investing in the stock market through ETFs provides diversification and minimizes risk over the long term, maximizing returns for children's education. The Canadian government's RESP program offers a 20% contribution match, further increasing savings. Failure to utilize RESPs and long-term stock market investing means foregoing significant potential returns and free government money.

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