Resp

[daddy_of_2_girls]

I am thinking of starting an RESP for my kids and have been contacted by various sales rep. about the plans that they offer. Does anyone have any feedback on the various companies such as Canadian Scholarship Trust Plan, Heritage Education Funds etc. Is it better to go through a bank or use these plans.

Any feedback is much appreciated.










Any advices on where to buy would be much appreciated...

[marstec]

We have a family plan through our bank. There was a time when you could only get them through those ones you mentioned and the policies were very limiting.

Having a family plan means that if one child doesn't use the funds, it can transfer to the other(s). I'm thinking their grant portion may not transfer over, but any gains from it will, anyway.

Remember that an RESP is just a savings vehicle. If you are not comfortable buying equities that incur risk, you can just put it into something fixed...you can also transfer it around if you change your mind later (as long as it' not locked for a term).

If you start it when they are young, look at how many years you will have for the money to grow. Even if you buy a gic with it, which isn't giving much these days, you will get an instant 20% return (for the first year) when the gov't grant is factored in...not too much giving that these days.

The important thing is to start up the plan and put in amounts that you can afford. I wouldn't hesitate to make an appointment at the bank to discuss it in more detail.

[daddy_of_2_girls]

We have a family plan through our bank. There was a time when you could only get them through those ones you mentioned and the policies were very limiting.

Having a family plan means that if one child doesn't use the funds, it can transfer to the other(s). I'm thinking their grant portion may not transfer over, but any gains from it will, anyway.

Remember that an RESP is just a savings vehicle. If you are not comfortable buying equities that incur risk, you can just put it into something fixed...you can also transfer it around if you change your mind later (as long as it' not locked for a term).

If you start it when they are young, look at how many years you will have for the money to grow. Even if you buy a gic with it, which isn't giving much these days, you will get an instant 20% return (for the first year) when the gov't grant is factored in...not too much giving that these days.

The important thing is to start up the plan and put in amounts that you can afford. I wouldn't hesitate to make an appointment at the bank to discuss it in more detail.

Thanks...so you suggested that we go through the bank instead of private ones...want to know the pros and cons of both places...

[AmberLab]

I have a family plan for my boys through our bank as well. When you set up an RESP, the gov't will match funds up to a set amount yearly (think it's called the Canadian Education Grant..can someone correct me on that name?).

I guess from my point, using a bank is more secure and insured. I don't trust putting my money into those private agencies.

[marstec]

Thanks...so you suggested that we go through the bank instead of private ones...want to know the pros and cons of both places...

I would personally go through the bank. The private ones may have an administration fee or have higher fees on their investments.

[corbinx]

I agree with the above posters. Definitely a family plan at the bank.

[sguyot]

I would agree with everyone about opening one with a bank. Keep in mind that if you ever want to withdraw your plan from one of these private companies, the cancellation fees can be horrendous! Whatever you do, read ALL the fine print!