Hi friends,

I would appreciate sincere and honest suggestions if one should go for RESP's or its all bogus.

What are the other alternatives for us to save money for our kids educations.

Pls comment.

Regards,

Pranav

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Live & let Live

RESP is just hype


I know government is paying 20% of what you deposit, but what about rest?

What is return we are getting on it? I think they only have projected value - not the real one.

I don't think we should go for that one.

Instead of that - your kids can apply for education loans.

Not worth going for RESP

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Hurat Honani Murat!

hi,
I completely agree with Surti.
Just keep one thing in mind, the persons sitting in the govt. who make such decisions and policies, always have the mandate in favour of Govt. so govt. is not fool to give us 20% grant like that.
And one more thing, remember there is no TAX benefits anywhere, it is just deferment of paying TAX, now or whenever such deals matures.
Instead of that, I would suggest to have long term GIC's in the name of your kids and give them when they need for educations. Or the best thing is go for education loans.

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Sunil Sharma, P.Eng.

I am in favor of RESP.

The reason being not government benefits, but it forces me to put some money for my daughters. If I think that I will invest some money on their names regularly, probably I cannot do that.

Regarding loans, I am not sure, but it depends on your income, when you apply for loans, and according to our indian nature, I don't think we will be that poor to be eligible for loans.

My two cents!

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A Proud Indian Canadian

Now if instead of going for resp'S i DEPOSIT i.e $10000 which is equal to 3 lakhs in India as fixed deposit for 15 yrs the amount becomes apprx 24 lacs . Is that a wise decision.

Pls advise

Pranav

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Live & let Live

RESP's are useful financial tools but they shouldn't be the priority in any plan. Whether or not they are appropriate for you depends on numerous factors, what do you want? How much do you have? What are your current and future needs? What sort of RESP, a group trust or individually directed? Will you invest the RESP and the CESG (the 20%) in fixed income or equities or a combination?

Also would you rather put the money towards your childrens education or towards a longer term goal for them?

As with most things you need to sit down and talk with a proffessional.

If you wish to explore more issues here let me know.

Also as always you're all free to write to me if you require advice.

one can open a RESP account and invest those monies in GIC therefore they do get the interest ans at the same time the 20% from the government. SO overall you get a better return then when you invest without opening e RESP account. Is this not the case??