Hi All
I have set up a TD e-fund RESP and am about to start paying into it monthly. I was looking at doing $25 Nasdaq Index $37.50 International Index and $37.50 Canadian Index with the grant from the government going into Canadian bonds. I picked these funds after looking at the previous year’s performance 2003-2008 from the TD website.
I do realise that past performance doesn't predict future performance but I had to start somewhere and these were the four that averaged over 5% each year for that period. Additionally I like the international as I understand it still has some exposure to the US. I don't think the US is going to be the powerhouse it has been but I'm happy to hedge my bets a little.
Anyways my main questions are
1) I have been googling and searching blogs for allocation information and no one seems to select the Nasdaq fund. I must admit I don't know a lot about this market except for it suffering a lot in the dot com bust. Am I missing something that should be warning me away from this index?
2) As inflation appears likely in the future might I be better leaving the government grant in the money market fund rather than bonds. I understand bonds don't do as well in an inflationary environment. I do want it is something low risk as I don't mind "playing" with my money but in my mind the government money is the childs and shouldn't be risked, apart from rebalancing if the whole market tanks again.
Thoughts? Opinions? I may be setting up a TFSA e-fund up (after the emergency fund is full) so I'd like to get as good an understanding of the fund options as possible.
Thanks
I have set up a TD e-fund RESP and am about to start paying into it monthly. I was looking at doing $25 Nasdaq Index $37.50 International Index and $37.50 Canadian Index with the grant from the government going into Canadian bonds. I picked these funds after looking at the previous year’s performance 2003-2008 from the TD website.
I do realise that past performance doesn't predict future performance but I had to start somewhere and these were the four that averaged over 5% each year for that period. Additionally I like the international as I understand it still has some exposure to the US. I don't think the US is going to be the powerhouse it has been but I'm happy to hedge my bets a little.
Anyways my main questions are
1) I have been googling and searching blogs for allocation information and no one seems to select the Nasdaq fund. I must admit I don't know a lot about this market except for it suffering a lot in the dot com bust. Am I missing something that should be warning me away from this index?
2) As inflation appears likely in the future might I be better leaving the government grant in the money market fund rather than bonds. I understand bonds don't do as well in an inflationary environment. I do want it is something low risk as I don't mind "playing" with my money but in my mind the government money is the childs and shouldn't be risked, apart from rebalancing if the whole market tanks again.
Thoughts? Opinions? I may be setting up a TFSA e-fund up (after the emergency fund is full) so I'd like to get as good an understanding of the fund options as possible.
Thanks