Recent Buy – Brookfield Asset Management

A new purchase in Baby R2R‘s portfolio this time. Regular readers may be aware that I started a two-part portfolio for Baby R2R earlier this year. The first part is related to her education fund that is invested in index funds and I make regular monthly contributions to that fund and dollar-cost average over time. The second part of the portfolio is what I call her Nest Egg Fund.

The Nest Egg Fund

The idea behind the Nest Egg Fund is simple and straightforward. Contribute $100/month and let the investment compound over the next few decades. Instead of going with a taxable account in her name, I have earmarked a portion of my tax free investment account, so that I can avoid paying dividend and capital gain taxes.

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Recent Buy – Baby R2R’s New Portfolio

At the beginning of January, I set the following goal for the financial well being of our baby daughter. I am happy to report that I have started putting this plan into motion.

> New portfolio for our daughter – In 2016, my wife and I welcomed our daughter. Time to set things in motion for the financial well being of our baby daughter.

  • We have opened up a new RESP (Registered Education Savings Plan) account, which allows us to save and invest for her post-secondary education. The plan allows us to get education grant money from the government and is tax-deferred on the income generated. We intend to start investing this money soon and will post an update on which stocks/ETFs we chose.
  • In addition to the RESP plan, we intend to start a DRIP plan to put away a small amount of money each month (starting off with $100/month for now) that will be her nest egg when she is an adult. Time is one of the most powerful weapons in an investor’s arsenal and starting off a DRIP plan allows us to let the investment compound over the course of 20-ish years. I’ll post an update soon on which stock I am picking for this plan.

The Education Plan

A quick background on the Registered Education Savings Plan (RESP). RESP is an account type available to Canadians to save, invest and grow funds for post-secondary education. While not only limited to kids, it is generally targeted to help parents save for their kids’ education. The best part of this plan is that the government matches the contributions via the Canada Education Savings Grant (CESG). The grant amount is 20% of contributions to a max of $500 per year. So, to maximize the benefits, we would contribute $2,500 per year into this account.

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Baby R2R

Hi all,

I wanted to announce that last week my wife and I welcomed a baby girl in our family. Both mother and baby are doing great and I couldn’t be happier 🙂 As first time parents, we have a lot of learning and adapting to do with our day-to-day lifestyle. Regular followers will see decreased activity on the blog and social media accounts as I will be spending more time away from the screen in the coming days.

Normal service should resume in a couple of weeks 🙂

cheers

R2R