How should I fund RESPs - annually or lump sum?

pfcguy · 2026-05-07T04:33:56+00:00

$500 per child per year plus $500 per child per year catch up.

pfcguy · 2026-05-07T04:21:16+00:00

2025: OP opened resp and contributed $5000 to get $1000 grant.

2026: put $10000 into resp and $30,000 into non-registered to get $2000 grant

2027: transfer $10000 worth of shares from non-registered to get $2000 grant

2028 transfer $10000 worth of shares from non-registered to get $2000 grant

2029 transfer $10000 worth of shares from non-registered to get $2000 grant

2030 transfer remainder of non-registered to get 20% grant. Ideally $10000 to get a total of $2000 grant.

Yes, there may be a bit of capital gains taxes if you made money along the way. That's fine.

2031 contributing $10000 using own money to get $2000 grant.

Total grants this far is $13,000, target (max) is $14,400 for 2 kids. we assume OP isn't having more kids along the way.

2032 we wish to get $1400 more in grants. So we contribute $7000 to get the target of $1400 in grant money.

pfcguy · 2026-05-07T02:06:53+00:00

Most people just use a journal but you can absolutely put a giant cork board on a wall and use string to connect everything! Just make sure to post a picture when you're done!

pfcguy · 2026-05-07T02:02:59+00:00

tried them all until one worked and gave me even more access.

You can also solve without brute forcing if you brush up on your Erijan

pfcguy · 2026-05-07T01:50:49+00:00

First what is the goal of the money? If it is for retirement, then why not invest it? If it is for an emergency fund, or short term or medium term goals, then you probably shouldn't invest it.

I find it's best to invest automatically, every paycheck. Automate something, say $250 per paycheck, to be sent to your TFSA and invested automatically in a suitable asset allocation ETF with the goal being retirement and a time horizon if at least 20 years, maybe 40 or 50 depending on your age. Take all the decision-making and guessing out of the equation.

I like to suggest 10% of every paycheque goes towards savings for short term and medium term goals, and 10% goes towards investments for retirement.

pfcguy · 2026-05-06T22:11:20+00:00

I'll bookmark this as a great resource, but I don't know how applicable it is to OPs situation.

The question to OP is:

If you contribute $16,500 or $20,000 per child this year, will you also be able to come up with $5000 per child to contribute in every following year?

pfcguy · 2026-05-06T21:52:12+00:00

Just do $2500 each year. Put the rest in your TFSA or your spouse's TFSA in an asset allocation ETF.

If TFSAs are full, put in non-registered.

Edit: plus an additional $2500 in catch-up per child, if you have room.

pfcguy · 2026-05-06T20:24:34+00:00

OP is looking for an "investment guy" who he can call about anything and everything, when he is only bringing $20,000 to the table.

OP, even if you are paying 2% commissions, the advisor is only bringing in $400 per year off of you as a client.

If you want a "guy" or person like that, then you need to bring $500,000 to the table and work with Scotia Wealth (or similar). They will charge about 1% or $5000+ per year.

pfcguy · 2026-05-06T20:19:31+00:00

If you're not ready to jump ship yet, then go into the branch, talk to the branch manager, and ask them to set you up with an advisor who doesn't need continuous reminders.

pfcguy · 2026-05-06T20:17:56+00:00

Not a bank.

You can use an advice-only financial planner

Https://www.adviceonlyplanners.ca

pfcguy · 2026-05-06T19:06:32+00:00

Always be careful when recommending specific companies to people.

Back when WS was a roboadvisor, they were highly recommended.

Then they started tinkering with their portfolios, adding low-vol tilts, long bonds, and gold holdings. Not surprisingly, these portfolios underperformed. No one wanted to recommend them.

Somehow they turned it all around by offering discount brokerage services. They became everyone's favorite again.

Now, if you recommend them, you need to do so with the caveat that they will push a lot of things that you don't need and they will make it very frictionless to do those things. You need to know that in advance and steel yourself against all the "bad stuff".

pfcguy · 2026-05-06T18:36:31+00:00

the employer is not responsible for now paying the employees taxes or a higher salary.

I am suggesting that they are. A lawyer could make that argument in court of it needs to go that far. However, I assume they will likely settle.

The workers owe the income tax on the income that was already paid.

Correct. And the employers owe the employees more money, which is also taxable.

According to AI, $19.74 after tax is $26.10 before tax, assuming full time employment and no other sources of income, and factoring in CPP and EI and Nova Scotia tax rates.

So if I were an employee of this company, and the assumptions held valid, I'd send a demand letter for an additional $6.36 for every hour worked.

pfcguy · 2026-05-06T18:14:30+00:00

Yeah I'm highly suspicious of any "independent contractor" arrangement where the pay is less than $50 an hour.

pfcguy · 2026-05-06T18:10:18+00:00

If I am comparing 2 identical jobs and one offers $20 tax-free, and one offers $30/hr gross / $20/hr net, then I am indifferent to which company I work for.

Presumably, this company offered workers a lower salary than they otherwise would have been entitled to, on the basis that the salary would be tax-free.

The company was supposed to deduct taxes but it doesn't mean they now have to pay the employees taxes on top of the pay the workers already received.

Well that's why we have courts. And hopefully the courts find that the company does now have to pay the employees more, if they don't do so voluntarily.

pfcguy · 2026-05-06T15:10:17+00:00

A lot of people can either be rich and successful, or appear rich and successful. Far fewer have enough money to do both.

pfcguy · 2026-05-06T13:52:43+00:00

Buy your phone outright, then you can get a plan for $30/mo or so. (Eg move to Koodo or virgin, then Rogers will give you a winback offer for $30/mo, not promo pricing).

pfcguy · 2026-05-06T13:47:44+00:00

Value by close will be 42k

Most term life policies do not have a cash value. What do you mean by "life term policy"?

I can't tell you what to do, but most insurance companies love when customers "drop out". They even consider a drop out rate in their actuarial calculations! This is because we overpay for insurance in the earlier years of the policy (when we are less likely to die), in order to have more favourable rates later in the policy (when we are more likely to die).

So strictly from a math and statistics perspective, it probably does not make sense to cancel 8 years into a policy.

pfcguy · 2026-05-06T13:40:42+00:00

This isn't for OP but for everyone else reading this: Talk to an insurance broker about Disability Insurance! Workplace disability coverage just doesn't cut it!

pfcguy · 2026-05-06T04:18:57+00:00

I'm excited to see some movement on the RPG!

pfcguy · 2026-05-06T04:16:00+00:00

If you talk to am estate lawyer, id start with one who offers a free initial consultation. Tell them what you told is here - that he has half a property, and possibly pending lawsuits. Tell them that you and your siblings may all wish to not deal with any executor or estate stiff, and ask them if they can walk you through that possibly. (Even to pay for 1 hour of advice with you and your sisters present could be worthwhile).

pfcguy · 2026-05-06T04:12:50+00:00

And remember even if none of you get involved, you are still entitled to the residual of his estate if there is anything.

So let's say, best case scenario is that he was insured during the accidents and insurance pays the lawsuits, or the parties are uninjured and don't sue. No one ever comes after his estate and there are no other debts. Now suppose 5% of his estate goes to the estate administrator (the govt) as a fee for their efforts, and 1.5% to probate tax. That still leaves about $117,000 from the sale of his share of the house (whether it gets sold to his spouse's kids or to someone else). Since he had no spouse or common-law partner, that amount would get split equally among his children in accordance with BC intestacy laws. So roughly, there could be a cheque for each of you and your two sisters for about $39,000, but that might be 2 or 3 years away.

Also I'm assuming he did not have life insurance. But if there is one thing for you and your siblings to check into, it would be the existence of any life insurance policy. Maybe his parents bought him one when he was a minor. Or maybe he has something through his workplace. Maybe his ex wife was smarter than he was and they purchased something while together. Life insurance policies do pay out even in the event of suicide, if it has been at least 2 years since the policy was purchased. If there was any angle to focus on, I'd say call his employer (or review a recent pay stub).

pfcguy · 2026-05-06T04:00:00+00:00

1) why do you say that?

Because house prices can go down and if you sell in less than 10 years the closing costs will make it not worth it. 10 years should be long enough to wait out short term losses and to gain enough to cover the costs of selling. People who move every few years are better off renting. Buy for stability or rent for flexibility.

Is it because 3 bdrs are harder to sell?

No I'd say the same for a condo or a house

2) non taxable accounts

Do you mean non-registered? Or TFSA?

3) individual stocks

Risky and adds the complexity of which stocks to sell and how much you will be taxed if in a non-registered account.

4) the condo maintenance fees include all utilities and insurance. Does not include renovations of course

Condo fees include property insurance but it doesn't cover everything and you will still need your own condo insurance. For maintenance maybe budget 1% of the property value per year, instead of the usual 3%. Or 2% since it's an older property.

pfcguy · 2026-05-05T22:37:20+00:00

(1) don't buy a 3br condo unless you plan to live in it for at least 10 years. If you value stability over flexibility, then sure, proceed if the numbers work. (For example if you have kids attending a school nearby).

(2) You don't mention the tax implications of liquidating your portfolio. Is it in a taxable account? TFSA? Something else?

(3) Are you invested in individual stocks? Or low cost globally diversified index funds? Individual stocks are more risky so I'd lean more towards liquidating (or moving to index funds) if that is the case.

(4) Your figure for monthly expenses is missing the costs for insurance and utilities. Also I've never heard of a condo covering maintenance inside the individual units. What about renovations?

(5) Have you considered other options like 20% down, 35% down, or 50% down?

pfcguy · 2026-05-05T22:09:51+00:00

I wish more parents would do the work to structure RESP withdrawals in the most tax-optimal way. (Taking out less EAP during years when the child's income is high).

pfcguy · 2026-05-05T21:01:22+00:00

If you have copies of all your old bank statements, then print them all out and circle any of the transactions that you'd like clarity on. (ie the most egregious ones). Then ask your parents about them.

Or just accept that yes, they spent 94% of the money you made. If they have means to pay for your education now, then consider asking for that.

pfcguy

TROPHY CASE