I recently had a baby and am thinking about opening an RESP to save for his education. Is this the best way to invest my money? Is there a chance of losing money this way?
Dazed, an RESP is a type of account. Within the RESP, you can have cash, investments or even savings vehicles like GICs etc. So depending on where you put the money within the RESP, yes, there is a chance of losing money.
If you think your children will attend post secondary education, I don't think that there is a better way to save. The government will match 20% of your contribution, up to a maximum grant of $500 per year.
To take advantage of the grant, we contribute $2500 per year to obtain the maximum $500 grant.
Hope this helps!