Hi Guys,

My wife has saved 2000 $ of kids money... she wants me to invest that into kids for long term..

Please advice us what is the best way to invest ?

we want to put it for long term and not touch it say 15 -20 years..

is there any good and sound investment ?

or we just put it in RESP ?

My kids are 4 months and 2 years ..

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'Some goals are so worthy, it's glorious even to fail.' (Param Vir Chakra awardee Lt. Manoj Pandey)

Quote:

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Originally posted by Blue_Peafowl

Hi Guys,

My wife has saved 2000 $ of kids money... she wants me to invest that into kids for long term..

Please advice us what is the best way to invest ?

we want to put it for long term and not touch it say 15 -20 years..

is there any good and sound investment ?

or we just put it in RESP ?

My kids are 4 months and 2 years ..

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Dont help others because others have helped you,,,,help others because its the right thing to do!!!

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Thank you RESP

i hv sent u PM.

by the way we dont have any RESP account setup yet.

but i am also wondering if there is any other safe and sound long term investment.

we kind of put this money and forget about it for say 15-20 years

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'Some goals are so worthy, it's glorious even to fail.' (Param Vir Chakra awardee Lt. Manoj Pandey)

You can always open a Trust account in their name and buy a long term bond (Corporate or Provincial) which will do some interest compunding given the fact for medium term tenure.
Also historically even if you invest in a Canadian Focused Equity MF you still can earn atleast 8%+ over the term with the ability to Add-On at later date provided an additional source.

can someone tell me in short how an RESP is better than say putting money in a fixed deposit savings account?

very well questiong Wall-E

i was gonna ask same thing.

I am also intrested to know about it long term fixed income.

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'Some goals are so worthy, it's glorious even to fail.' (Param Vir Chakra awardee Lt. Manoj Pandey)

Wall E/BP,
I will give you short answer
1) In RESP you get min 20 % of your contribution from goverment. (It's like 20 % return gauranteed!). If you contribute $100 monthly for RESP. Gov will contribute $ 20. So the total amount of $ 120 is going towards your child's RESP. This can go upto 40 % (there are some conditions)depending upon your income.
2) Your money grows tax free.
3) When withdrawing for education purpose, the tax is less as it is counted as beneficiary' s income (Your Child)
4) Potential for higher growth which you will not get in fix deposit saving account.

Hope this helps