Parking RESP cash with high interests rates - Meridian Credit Union 1.75% RESP Savings Account

 As we are cashing in RESPs now and have to transition out of equity mutual funds due to shorter investment time horizon (Investor's Group rules) we need to find a good place to park money - Meridian's has a nice RESP savings rate of 1.75%.  You could consider this as the fruit of your loins (your kids) approach university age and you transition into something safe to preserve capital and earn a little to counter inflation.

Meridian has branches across Ontario - a new on here in the Beaches - they are promoting the credit union at the CNE this year.  Being Ontario chartered, deposits are protected through The Deposit Insurance Corporation of Ontario (DICO).  It insures Canadian currency deposits, including interest, to a maximum of $100,000  per customer. Unlike CDIC which has an insured limit, deposits held in RSP, RIF, LIRA , LIF, RESP, and TFSA accounts are fully insured with no maximum amount.   Unique trust or joint accounts are insured separately from those in your own name, to a maximum of $100,000 per account.

Sprott Private Credit Trust now Sprott-TEC Private Credit Fund - Steady Historical Returns, New Tax Structure

SPR & Co LP is a new operating company created assuming portfolio management of the Canadian diversified assets of Sprott Asset Management LP. Sprott Private Credit  Trust (SPCT) is also merging into Sprott Private Credit Trust II (SPCT II) with the combined fund renamed as Sprott-TEC Private Credit Fund.

With the changes, the new fund is no longer tax sheltered as the forward contract has ended - this means a capital gain for the unit holder in 2017. The merger FAQs indicate some of the reasons for the changes:

1) To simplify ownership structure for the relevant assets
2) To ensure unitholders’ tax liability in SPCT is in line with their economic benefit in the
same tax year.
3) To potentially lower annual fixed costs to unitholders of SPCT and SPCT II, as the merger
would increase assets under management in the remaining fund.

Returns on the trust have been steady (see example table below) and with the same sub-advisor can be expected to continue :

The following sums up how private lending decisions are made:

Investment Criteria for Private Credit Loans
VALUABLE ASSET COLLATERALSenior liens on self-liquidating working capital assets and critical business assets with realizable liquidation values
PROVEN BUSINESS MODELSound business strategy with visible product demand and capacity for cash flow generation to limit default risk
STRONG MANAGEMENTExperienced management teams committed to business and aligned through personal risk and ownership
STAKEHOLDER SUPPORTStrong customer, supplier, employee, junior creditor, and/or shareholder relationships
MULTIPLE EXITSWide range of deleveraging options not dependent on refinancing or collateral realization and liquidation

Fund details are available here. The fund is now open for new investments.