Where Do You Open Your RESP

[blessedmommy]

Ok, my husband and I are hoping to have an RESP for our children.
We talked to someone in RBC today, which in my opinion did not help that much.
So, for those of you who has RESP and know a lot about it, please share.

1. Where do you open your RESP? Banks, credit unions? Pros and cons of it. Any fees?
2. 4 children- individual or family plan?
Say, in a family plan, child A needs more more money from RESP. Can he 'dip in' his siblings fund? Wouldn't that be unfair? How do you set the portion for each child under family plan?
3. Let's say we open 4 individual plans for 4 kids (easier to manage each one's funds). Can we later on open a family plan?


Thanks so much in advance!

[Litesandsirens911]

here are a couple of good sites explaining all this:
http://www.canlearn.ca/eng/saving/resp/index.shtml (this one is put out by the government)
http://www.heritageresp.com/resp_questions.html
http://public.cst.org/public/en/url/respguide/faq

[chillys-willy]

You would need to talk to a professional. I shy away from any of the funds specific to RESPs like Hertiage. I have mine with Educators Financial but that is only for educators and their families. I went with a family plan in case one of my children decide to not go a traditional educational route. The others can use the money. HTH

[blessedmommy]

here are a couple of good sites explaining all this:
http://www.canlearn.ca/eng/saving/resp/index.shtml (this one is put out by the government)
http://www.heritageresp.com/resp_questions.html
http://public.cst.org/public/en/url/respguide/faq

Thanks!
Checked the webs.

[Litesandsirens911]

You would need to talk to a professional. I shy away from any of the funds specific to RESPs like Hertiage. I have mine with Educators Financial but that is only for educators and their families. I went with a family plan in case one of my children decide to not go a traditional educational route. The others can use the money. HTH

I was just pointing out a variety of websites that would answer her questions....
And whether your child goes to traditional schooling or not, the funds are not lost if they don't, they can be transfered to another child if in a family resp, or a parents rrsp if there is an unused portion...

http://www.ehow.com/how_2214467_avoi...p-account.html

[YourMoneyMentor]

I would definately open the RESP through your bank or credit union. I would stay away from organizations that "Specialize" in RESPs. The administration fees are outrageous!!! I would also open a family plan as with 4 children at least 1 may decide not to go to post secondary and then the govt grant can be used by the other siblings who are going to further their schooling. If they all have individual plans and one or more do not go to post secondary school then the grants have to go back to the govt. The family plan also can keep track of what children contributed what so you could keep it fair if you needed to. The most important thing is to get the contributions in, the grants from the govt and start growing the money in a Canadian Dividend Fund or something to be decided by you and your advisor.

[Gsxrboy]

Going with a family plan is your best bet, it will allow your money to grow faster since there is more money being contributed into one account.

RBC and the other big banks all offer what are called Index Funds. I currently have 1 opened for both my daughters. I decided not to go with an RESP, but a TFSA instead. You may open an RESP Index Fund if you like, there is no fees, no minimum and no restrictions. Before opening one, please double check with RBC to make sure. I have a TD account and this is why I know there is no fees.

You may read more about index funds here.

http://www.moneysense.ca/investing/couch-potato/

Here are the funds available from RBC
http://canadiancouchpotato.com/canadian-index-funds/

FYI - Most low level personal bankers have no clue what index funds are, just make sure you have all the information you need before you visit the bank. Remember to only ask for the self directed ones, not the ones that are managed, they have higher fees.

[DanesMom]

We opened our RESP through Investors Group and they manage the funds very well; we have been very happy with the services they provide. My only advice to you is please speak with a professional, they don't charge you anything and can give you a whole new perspective on investing!

[Gsxrboy]

The only problem with investors group is that they do charge you a MER (Management Expense Ratio) You will need to find out what percentage is being charged and when it is charged. For example, are they taking the charge with every deposit, at the end of the year etc. The investment strategy I mentioned has no fees what so ever. Except of course when purchasing the index funds, they charge only 0.5% MER.

[ashedfc]

You get what you pay, Index Funds have all good, bad, ugly, junk everything of the index. There is no quality selection. In an upmarket you want to have high beta portfolio management, & high quality management comes with a price. Last year (2010) several RESP eligible funds have performed over 50%, whereas, none of the Index funds comes even close. Good things doesn't comes for free.
So, Finally it all depends on, the skill of the advisor & the portfolio allocation based on economic reality. What is conservative today may be junk tomorrow. Are you ahead of others.... or lagging others.

[Gsxrboy]

Most financial advisors who work on commission will always say that. I would love to see what funds the RESP's you are mentioning have performed over 50% than index funds.

I have attached a chart that shows that index funds compared to a balanced fund have performed extremely well. This does not take into account the fees associated with mutual funds.
http://www.moneysense.ca/2006/04/05/...rmance-tables/

Index funds can be as aggressive or conservative as you like, my asset allocation is set to 40% bonds 60% equities. As I get older, I will change it accordingly to reduce my exposure.
Currently I have (Search in google finance by typing TDB###)
TD eseries Canada Bonds TDB909
Eseries Canadian Equity TDB900
Eseries US Equity TDB902
Eseries International Equity TDB911

[ashedfc]

Look at Morningstar or Globefund, you have to look at the correct source to compare..