RESPs

[SarahS83]

I'd appreciate some advice on RESPs.
Not sure to go with a bank (probably not, as their #1 interests are always themselves), a credit union, or to seek a financial advisor (I don't have one).
Wondering in terms of amounts to put in etc, and the best way to make use of the gov't contributions.
thanks.

[momof5boys]

Sarah, you may want to seek a trusted financial advisor...maybe ask around in your area for recommendations. There are rules surrounding RESP's and it would be good to have someone walk you through these rules. All our five boys have had RESP's. Initially (with our older boys) we had put all their funds into the markets and then the markets crashed. Thankfully the older boys never lost money because it recovered nicely for them. Our youngest now still have RESP's in the markets but very low risk and it is doing well.

[lizzie bargain]

I would not recommend the pooled ones through private companies as I believe if your child does not attend school you do not receive money. I would recommend that you open a family RESP if you have more than one child as this allows any of your children to use the contributions. Putting a max of 2500 per year per child will maximize the govt grants. You can also make up for past missed years by contributing up to 2 years worth at a time I believe and getting double grants until you have used up the unused years contributions. If you look at the CESG website you will find lots of info-there are also small extra grants available to very low income families I believe. I personally just have mine in GIC's at the bank-even though the rate of return is low, so is the risk. Since I already got an extra 20% grant from the govt I prefer not to invest it in the markets, but I am sure many people choose to do this so invest according to your comfort level after checking out all your options.

[Colsgirl]

We have our RESPs through http://www.cst.org/ and we are really happy - everything is online so you can check it. The money is transferable between kids (if one goes to university and the other doesn't), any money not spent can be claimed back including all of the interest (and the interest on the portion put in by the government.

I started ours off about 7 years ago and they had a deal that if you used so many HBC points they would put $50 into each kids account - best $100 worth of points I ever redeemed!!

[sweet sparrow]

I recommend this book (I borrowed it from the library): http://www.amazon.ca/The-RESP-Book-R.../dp/0986648906 It's a great source of info to get all your options.

Take some time to do some reading and don't rush. It'll be more hassle to move money around and switch accounts if you want to put it in something else.