RESP - getting screwed!

[TheFuteballer]

Okay so I have an RESP that I will finally be using this year (through CIBC) however for my past 3 statements, I've been losing money! The CIBC stocks are crap!

What should I do? Should I immediately switch over to GIC's and let it grow there? I've lost nearly $4,000 in the past 3 statements >:(

Also with RESP's.. I can use that to pay residence costs right? And do I have to pay for all my fee's with it or can I split it up to use for all 4 years of my university?

[maniacshopper]

Check with personal banker. Stocks other than resources have been down.
You should have switched to something stable on your final year of RESP. Change to income fund or money markets fund. You don't want to be down and forced to sell when it is down again.

[arnyk]

You should've adjusted your investments appropriately to meet future liabilities. If you knew you were going to need the draw the money within the next 5 years, you should've been mostly cash for those final 5 years.

But hindsight always sucks, if you need the money now, switch to cash.

[TheFuteballer]

well I only opened the RESP about 8 years ago anyways..

and sorry what do you mean by switch to cash? u mean withdraw everything and put it in like ING direct savings account? (sorry I know nothing of finances)

[bubble.tea]

WHAT? *in disbelief.

RESPS aren't Guaranteed "thingies"?

[TheFuteballer]

Depends on what you choose to invest in..

[dolphie]

aren't they like rrsp's? you choose what sort of investment you want (high, low risk) depending on what sort of return you're looking for?

[rhyno]

I hope you didn't invest in energy. Energy is very volatile but can be extremely rewarding if extremely patient and rich. Move it to another fund like income fund (http://www.cibc.com/ca/mutual-funds/no-load-income/monthly-income-fund.html). Take a look at the chart at the bottom of the page. It would've given you some great returns the past five years. Better than any GIC.
But I'll have you note, it's volatility is at four. You can expect to lose some money a few quarters.

[Bullseye]

aren't they like rrsp's? you choose what sort of investment you want (high, low risk) depending on what sort of return you're looking for?

Correct. Unless you buy into one of those RESP plans that some companies push (not recommended).

[Firebot]

It sounds like you decided to invest into an energy fund at the hottest (and unsustainable) peak in April / May, and feeling the correction now. GIC's are the safe, no risk way of investing so do so if you feel you cannot afford the risk of losing more money. Expect your CIBC funds to rebound as the year goes on though, and you will be kicking yourself for buying high and selling low.

[TheFuteballer]

no I didn't invest in energies.. it was invested into CIBC's own stocks.. like their different credit card branches and such

so you suggest I should keep my stocks where they are, since they're gonna rebound?

[zero_]

If your RESP started 8 yrs ago, and was invested in CIBC share, how can you be in the negative? CM was trading at $58 in 1998, today it closed at $78.

[TheFuteballer]

nono I'm not in the negative.. just for the past my 3 statements. Near the new year I was around 30,000 but now I'm at 26,780-ish.. I'm afraid it will drop more and rite now is when I need the money since I'm finaly starting univeristy.

and with the stupid tuition hike and everything.. thats pays for ONLY a year and a bit of school (i'm going to residence also)... school is costing me $20,000 a year!! what a rip

[15-20_God]

nono I'm not in the negative.. just for the past my 3 statements. Near the new year I was around 30,000 but now I'm at 26,780-ish.. I'm afraid it will drop more and rite now is when I need the money since I'm finaly starting univeristy.

I would recommend taking some investing and finance courses when you're at university.

Markets fluctuate short term, which means yes, there is a possibility that prices will come down. If you're that worried, switch into a money market fund.