Quote:
Originally Posted by yyjvisitor
Quote:
Originally Posted by yyjvisitor 
Is a Lump Sum or Annual Contributions Better for an RESP?We decided to lump sum $30000 the first year and contribute $2500 yearly until we reach the maximal contribution amount.
Assuming you don't have six kids, you won't receive all of the grants with that kind of lump sum. As far as I know (unless it's been changed) the maximum grant is $1000 per year, per child.
Our son is 6 mo old and I would rather get the compounding interest of the $30K over the next 17 years and give up some of the grant money. |
Well you could invest the $27,500 and then move it in gradually to get all the grants over the coming years. That would give you the same compounded return, but more grant money.