Determine the future value at this resp

Reference no: EM13501705

Betty Anne just had a baby boy named Roland and she wants to put aside money for his education. It is expected that he will attend University at his age 17. Betty Anne's investment knowledge is low and her risk tolerance is medium but she wants the portfolio to focus on growth given the long time horizon. She wants to maximize the education savings grant but she will not qualify for any supplemental grants given her high income. Assume a 10% annual compound return.

Required:

1. Determine the future value at this RESP at Roland's age 17 and create a mutual fund portfolio with at least two different funds that is consistent with a growth objective and a long term investment horizon.

2. Betty Anne also wants to know what will happen to the plan if Roland does not attend a qualifying post secondary institution.

3. Also, is the RESP tax advantaged in any way?

Reference no: EM13501705

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