In this second set of scenarios, we look at what some might call more “realistic” sequences of contributions. While the scenarios in Part 2 offer the best results in terms of education funding, the reality is that many young families are not going to have 10s of thousands of dollars on-hand for large initial contributions. […]
In this first set of scenarios, we look at what happens when we try to front-load the RESP contributions in two ways. First, we maximize the contributions as quickly as possible and second, we maximize grants as quickly as possible (while still maximizing contributions). Prioritize Maximizing Contributions This scenario maximizes contributions as soon as possible
A Registered Education Savings Plan (RESP) is a type of Canadian registered investing account designed to save for a child’s post-secondary education. In this series of articles we’ll take a look at the basics of these accounts and do some modeling of various contribution and drawdown scenarios. RESPs can be opened up at most Canadian
Much of what I hope to do with my articles is show how we can use the math behind personal finances (see Principle #5) to make finanical projections. These projections are never perfect because the future is uncertain. But they can give us a general sense of whether we are on track for our financial
This article is an ongoing collection of what I consider to be key principles for successfully managing your personal finances and reaching financial independence. Think of this as my personal take on some of the most valuable advice I’ve collected. Principle 1: Behavioural over Analytical This principle suggests that managing the behavioural side of personal
