What stocks would you hold in an RESP that will be used over the next 7 years?

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Asked on August 2, 2020 3:05 pm
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Hi Scott,

It is very difficult for us to provide individual advice. Everyone's situation is different, and have different risk profiles. That being said, a 7-year timeframe is actually not that long. If this were my RESP portfolio, i'd start to look at getting more defensive. I'd likely shift from a growth focused, to an income focused portfolio and those with a moderate risk profile. I would not try and hit a home run.

Think of it similar to retirement. As one approaches retirement, the conventional approach would be to lessen the portfolio's risk profile The intent is to preserve capital and to ensure the portfolio can withstand a sudden drop (much like we've seen this year). Some of our foundational stocks such as ATD.B, FTS, L, T, FNV and CNR all fit the bill here. They are likely to deliver consistent growth, provide income and are likely to outperform in a market downtrend.

Once again, this is generalized advice but it is the approach I will likely take once my children are 7 years out from needing the RESP funds.

Mat

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Posted by Mathieu Litalien
Answered on August 3, 2020 2:07 pm