Let’s take a look at three funding strategies. In each case, we’ll model how much money you can accumulate in an RESP over 18 years, when most kids will begin a post-secondary education and will need to begin drawing funds from their RESP. In the examples below, I’m going to assume that RESP subscribers will initially invest all their RESP contributions and the CESGs in a pure equity portfolio, which will generate a six per cent rate of return annually. When the prospective student turns 16, however, with only two years or so left until funds are needed for post-secondary education, the portfolio will be switched into less volatile fixed income investments, such GICs. In this case, I prefer a laddered approach where GICs of two-, three-, four- and five-year durations are purchased, such that funds become available each year of a four-year program. We’ll assume an average three per cent rate of return for those final two years of accumulation.