Looking at RESP contributions.
Seems like the optimal strategy is to lump sum 50K into the account on day 1, get 500 in grants year 1 and forget about it.
Made me realize that the optimal strategy cuts you out of getting the grants. As far as i understand you only get the grants if you contribute over time.
50,500 invested at 6% for 18 years is about 144k.
The same 50k, invested 7500 year 1 in the RESP and 2500 year 2-18 with the balance of the 50k invested in a non registered account, accounting for a 1.04% tax drag on an estimated 2% distribution yield results in \~124k
Annual cost of Uni today is \~9k for tuition, 1.5k for books, 32k for rent, 24k for living expenses. so around 66.5 / year... so about 266k for 4 years.
Did a quick check on cost for US schools and it's 600-700k CAD for 4 years. Also not sure but seems like the RESP grants would have to paid back in this case.
What am i missing here? Is this program just poorly designed? Is there another strategy that I'm not seeing?