Please read the article first for basic info
1. RESP is an investment vehicle with extra goverment support.
2. Its life cycle is shorter than RRSP in most cases... so it should be preferred ... though a percentage balance can be done in savings depending on individual situations.
3. Self- Directed ones do have some fees as annual charges by the bank/ institution.NOTHING COMES FREE..... except ideas at desi cancdian!.. I can discuss investments further with you...( I am not intersted in making u my client). The fees is low and is charged every year of plan and not at the beginning.. See point #6 below too.
4. For investment.. I have collected some sites at http://www.geocities.com/balsmin/stock.html
5. Info is too much.. u need to search... I can streamline it once u go thru it.
6. Self- Directed one is good but u need to really self-direct it. Then your money can multiply faster.

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trying to find real persons

AFAIK.....private RESP companies charge a lot of fees.....if your child does not end up using the funds in RESP....the fee is not refundable.....

once you start a RESP plan....for the first 12-18 months.....every contribution amt you make is applied towards fees.....these fees can be as high as $3.5K.....

instead if one opens RESP plan with any reputable bank....there is a yearly fee...but it ranges between $15-$30 a year......even if you pay these fees for 18 years...it's still much lesser than $3.5K......but the fees charged by banks are not refundable at all.....

so one has to consider the pros and cons.....any more input is welcome.....

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Let's help each other to grow & prosper in Canada

First of all I would congratulate people you have decided to invest in their kids and start saving now rather then take a loan when the child start to go to higher education.

A Registered Education Savings Plan is a type of savings account that grows tax free until a child is ready for post-secondary education. RESPs are a good way to save for a number of reasons:

* The money grows tax free until the child needs it for tuition, residence and other educational expenses;
* An RESP allows you to apply for the Canada Education Savings Grant (CESG) on your child's behalf;
* The CESG enhancement is to increase the grant from 20% to 40% for the first $500 contributed each year by families with income less than $35,000*. For Families whose combined income is between $35,000* and $70,000*, the grant will be increased from 20% to 30% on the first $500 contributed each year. All other CESG eligible RESP contributions will receive 20%.
* You may contribute up to $4,000 a year in an RESP
* The recent Federal Budget proposes to introduce the Canada Learning Bond (CLB), which will provide a $500 bond for children born after December 31, 2003 that are entitled to the National Child Benefit Supplement. In addition, these families will receive a $100 bond every year for 15 years.

There are diffrences when it comes to where to invest your money for example some are non-profit and your principle is safe with kind of investments they use. Banks on the other hand we all know \"bottom line\" if you invest in GIC you are not even keeping up with inflation in long term and if you invest in mutual funds of stock you are paying higher MER and your investments are not guarantee.

It always pays to ask lots of question before you decide to invest. I would love to answere if anyone have any more questions.

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Orginally posted by farwab

First of all I would congratulate people you have decided to invest in their kids and start saving now rather then take a loan when the child start to go to higher education.

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Chandresh

Advice is free – lessons I charge for!!

Quote:

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Orginally posted by chandresh
Can you tell me what is wrong in the child taking a loan to study and then repaying him/herself? I think that is a good way of educating your children the value of money at a young age, teaching them financial management, and putting them in responsible position to manage their career and financial affairs.
Chandresh

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"Progress comes from deviation".

On a side note if anybody finds my comments or posts offensive or irritating please ignore it and if that still bothers you; please write to me and I will demonstrate.

I agree with Azazf.


Beside, you read almost every day how much we are borrowing in North America and it is not finacially healthy long term. Look at how many people are force to work past their retirement becasue they dont have neccessary fund to retire confortably.

Their are other ways to teach a child about the vaule of money. For example when they attain adult age, let them work part time and manage their own expense.

But goverment is cutting so much education funding that money saved part time wont be enough thats is where parents comes.

I can go on and on but I think I made my pointe....say to to borrow ...say yes to saving...and earning more moeny

Hi,

I show one TV show and the financial planner advisor says that people should not invest in RESP ...but should invest in RSP because what if something happen to us ...i.e. laid off this and that we should have backup of money ...and fore childeren educaiton, should take a loan etc... now I am confused what is right and what is wrong...

Can any experience person advise regards to this matter.

Thank you