Portfolio Update February 2021

Another 3 months have gone by, so it’s time to report on our DIY Portfolio progress. As usual, expect our next update in about 12 weeks.

You can have a look at previous portfolio updates here:

All Portfolio Updates
Portfolio Update August 2018
Portfolio Update November 2018
Portfolio Update February 2019
Portfolio Update May 2019
Portfolio Update August 2019
Portfolio Update November 2019
Portfolio Update February 2020
Portfolio Update May 2020
Portfolio Update August 2020
Portfolio Update November 2020
 
On the human scope of things, those last few months have been rocky to say the least. Yet we all were lucky because events could have been even harsher, disasters were and are still just at our corner. Let’s hope for all our sake that things will get better now that the wolf is out of the sheepfold.
 
The air already feels fresher as common sense, cooperation and decency are getting back to the forefronts. Let’s hope most conservative Americans can wake up and really see the benefits of being kind to each other and sticking together.
 
Investing-wise, it has been smooth sailing, at least for us. We’ll briefly report on it next. Our main topic today will be to talk about our adventures withdrawing from our big banks RESPs. We’ll conclude with another quick review of our latest DIY Portfolio transactions.  
 
Once more, I’ll remind you that I am not an investment or tax professional of any kind. The intent of this blog is not to give specific investing advice. Before investing yourself, we suggest you do all necessary research and consult a licensed financial professional if need be. 
 
Still Going Strong
 
As always, we manage to stay patient thru all this. Markets and our morale were up and down (or maybe down and up) all last year. Our DIY Portfolio finally did quite well in 2020 with an overall return just under 15%, so our long-term average climbed a little to about 13%.

Learn About RESPs If You Have Kids

In Canada, governments really entice you to save for your children’s education. Especially if you are a low-income family, you must take advantage of all this free money.

Let’s start by looking at the Registered Education Savings Plan (RESP). Although the RESP is a bit complex, it can be pretty interesting for most families.

Here are some highlights of the RESP to help you get the most out of it:

Contributions Not Tax-Deductible: RESP contributions are not deductible from your income tax, contrary to those of an RRSP (Registered Retirement Savings Plan).

Grant and Bond: Instead, governments pay incentives to the RESP in the form of grant and bond.

Tax-Free Growth: money can grow tax-free while in the RESP.