1 .Don‘t use RESP agent if you can’t keep up the RESP payment till maturity. There are some penalties (Interest lost, depending upon the company) for no keeping up the payment.
2. Out of the 20% you get from Govt approx 10% goes to RESP Financial Company.( which some goes to as agent fees/commission, managing account etc)
For those who like the freedom (paying RESP when you have money) and saving 10% open a RESP account in a Bank and manage yourself
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Directly from the horse mouth.
Do think the RESP agents are working for free and spending the time with you to explain the benefits for RESP. Do think the financials companies are doing a favor for you to manage your accounts. All this cost time and money.
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Posts: 1628
Location: carl sagan's universe
Posted on: 23-05-07 12:02:56
Location: carl sagan's universe
Posted on: 23-05-07 12:02:56
Quote:
Originally posted by VJ
Originally posted by jayaram
I can't post a comparison here as it's in an excel file. But on any day RESPs offered by banks and mutual fund companies cab not beat the TRUST companies.
edited quotes tag
If you really wanted you can post a comparison. Just cos its on an excel file is no excuse. So how about it?
I counsel both on MFs and trust scholarships for RESPs. I give both the pros and cons.
For some MFs are good for others trust scholarships are good.
I am assuming the 'cab' is a typo and it should read 'can'.
Posts: 1628
Location: carl sagan's universe
Posted on: 23-05-07 12:16:09
Location: carl sagan's universe
Posted on: 23-05-07 12:16:09
Quote:
Originally posted by jayaram
1 .Don‘t use RESP agent if you can’t keep up the RESP payment till maturity. There are some penalties (Interest lost, depending upon the company) for no keeping up the payment.
2. Out of the 20% you get from Govt approx 10% goes to RESP Financial Company.( which some goes to as agent fees/commission, managing account etc)
For those who like the freedom (paying RESP when you have money) and saving 10% open a RESP account in a Bank and manage yourself
1.Sorry, what RESP agent are you talking about? One who sells trust scholarships? Like CET, Allianz? There are several like me who counsel clients to go for the MFs, even though I represent a trust scholarship as well. These have no penalties. Actually there is a trust scholarship company that has no penalties nor enrollment fees as well
The point you make is very valid as there is job insecurity here , so some people cannot make the payments at times but do resume later on. It has happened so many times in my career.
However if you like the banks- by all means indulge yourself.
