What type of portfolio would be most appropriate for Ogden Wells in the early years of the RESP?

In the context of a Registered Education Savings Plan (RESP) for a child’s future education expenses, it’s crucial to consider the investment horizon and the risk tolerance. In the early years of the RESP, the account has a significant amount of time before funds are needed, typically 10 years or more.

Investing in a 100% equity fund is appropriate because equities tend to offer higher potential returns over long periods compared to bonds, making them well-suited for long-term growth. This growth is beneficial for an RESP, as it can substantially increase the capital available when the beneficiary is ready to pursue post-secondary education. Additionally, younger investors can typically tolerate more volatility as they have time to recover from market fluctuations.

Investing entirely in equities aligns with a growth-oriented strategy, allowing the portfolio to benefit from capital appreciation and compounding returns. Furthermore, historically, equities have outperformed bonds over long-term periods, making this a fitting choice during the early years of saving for education. This strategy can help ensure that the RESP maximizes its potential to provide sufficient funds for education when it's time to withdraw.