Comments on: This & That: Kids’ Education Edition http://gailvazoxlade.com/blog/archives/1394 Mon, 21 May 2012 14:54:31 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: TimH http://gailvazoxlade.com/blog/archives/1394/comment-page-1#comment-62426 TimH Mon, 09 May 2011 20:00:24 +0000 http://gailvazoxlade.com/blog/?p=1394#comment-62426 It seems the majority of the comments pertaining to group RESPs are concerned with how they got burned because they broke the rules of the contract. My children have just completed their 3rd and 4th years respectively at University. My group RESP has covered every bit of their education and I actually have an excess at the end of it all that is tax free money! Where people run into problems, is when they quite the plan or stop making payments. These plans have to run on a contribution schedule because it is a pooled investment, and the funds have to be seperated equally as per what you put into it, when the kids actually go to school. These rules aren't in place to screw people out of their money, but rather because it has to be done this way. The benefits of these plans are that the pooled investment allows for enhancements to the plan (such as return of membership fees), a guaranteed principle return and they can even provide insurance to cover the costs of your childs education in the unfortunate case of death or disability. Banks and financial planners offer great choices for RRSP and other investments, however putting your child's education in the hands of the stock market is not the wisest option considering their is only 18 years to save. In the case of a downturn, the investment may be much less than you'd planned on in the first place. That's a bit dicey if you ask me. I'd much prefer a higher returning group RESP to a low paying GIC or an MER layden mutual fund. Yes, there is fine-print in bank plans too! Don't be fooled, the average MER on a mutual fund investment is 2.4%. Compound 2.4% on a $2500.00 investment per year over 18 years... Do the math, it adds up to much more than you would pay with an RESP group plan. Just my opinion, we're all entitled to one aren't we? It seems the majority of the comments pertaining to group RESPs are concerned with how they got burned because they broke the rules of the contract. My children have just completed their 3rd and 4th years respectively at University. My group RESP has covered every bit of their education and I actually have an excess at the end of it all that is tax free money! Where people run into problems, is when they quite the plan or stop making payments. These plans have to run on a contribution schedule because it is a pooled investment, and the funds have to be seperated equally as per what you put into it, when the kids actually go to school. These rules aren’t in place to screw people out of their money, but rather because it has to be done this way. The benefits of these plans are that the pooled investment allows for enhancements to the plan (such as return of membership fees), a guaranteed principle return and they can even provide insurance to cover the costs of your childs education in the unfortunate case of death or disability. Banks and financial planners offer great choices for RRSP and other investments, however putting your child’s education in the hands of the stock market is not the wisest option considering their is only 18 years to save. In the case of a downturn, the investment may be much less than you’d planned on in the first place. That’s a bit dicey if you ask me. I’d much prefer a higher returning group RESP to a low paying GIC or an MER layden mutual fund. Yes, there is fine-print in bank plans too! Don’t be fooled, the average MER on a mutual fund investment is 2.4%. Compound 2.4% on a $2500.00 investment per year over 18 years… Do the math, it adds up to much more than you would pay with an RESP group plan. Just my opinion, we’re all entitled to one aren’t we?

]]> By: BETTYEMarsh24 http://gailvazoxlade.com/blog/archives/1394/comment-page-1#comment-57732 BETTYEMarsh24 Tue, 21 Dec 2010 17:02:13 +0000 http://gailvazoxlade.com/blog/?p=1394#comment-57732 The <a href="http://bestfinance-blog.com/topics/credit-loans" rel="nofollow">credit loans</a> suppose to be very useful for guys, which want to start their career. In fact, it is comfortable to get a short term loan. The credit loans suppose to be very useful for guys, which want to start their career. In fact, it is comfortable to get a short term loan.

]]> By: Bank Savings Account Interest Rates http://gailvazoxlade.com/blog/archives/1394/comment-page-1#comment-53923 Bank Savings Account Interest Rates Tue, 19 Oct 2010 16:10:32 +0000 http://gailvazoxlade.com/blog/?p=1394#comment-53923 I’d so much rather contribute to an RESP over buying some cute stuff in the early years. The exception would be with struggling parents, then I’d prefer to buy diapers. ************* smith <a href="http://www.savingssite.net" rel="nofollow">Bank Savings Account Interest Rates</a> I’d so much rather contribute to an RESP over buying some cute stuff in the early years. The exception would be with struggling parents, then I’d prefer to buy diapers.
*************
smith
Bank Savings Account Interest Rates

]]> By: d http://gailvazoxlade.com/blog/archives/1394/comment-page-1#comment-24619 d Sat, 30 Jan 2010 09:25:23 +0000 http://gailvazoxlade.com/blog/?p=1394#comment-24619 A message for S - you can contribute a scholarship at the "Hope for Children Foundation" for fosterkids. The contribution would be tax deductible. You can even have a "named" scholarship if you like that you contribute yearly. Or you can do one year by year. These scholarships go directly to kids in care or former kids in care who are pursuing college or university. The kids have to provide proof of attendance etc. It is a great service to Crown Wards A message for S – you can contribute a scholarship at the “Hope for Children Foundation” for fosterkids. The contribution would be tax deductible. You can even have a “named” scholarship if you like that you contribute yearly. Or you can do one year by year. These scholarships go directly to kids in care or former kids in care who are pursuing college or university. The kids have to provide proof of attendance etc. It is a great service to Crown Wards

]]> By: This & That: Kids' Education Edition « gailvazoxlade.com | A2Z Of Web http://gailvazoxlade.com/blog/archives/1394/comment-page-1#comment-24520 This & That: Kids' Education Edition « gailvazoxlade.com | A2Z Of Web Fri, 29 Jan 2010 10:53:56 +0000 http://gailvazoxlade.com/blog/?p=1394#comment-24520 [...] See original here: This & That: Kids' Education Edition « gailvazoxlade.com [...] [...] See original here: This & That: Kids' Education Edition « gailvazoxlade.com [...]

]]> By: Canadian Personal Finance Blog » Blog Archive » Random Stuff: Now that’s Chutzpah! http://gailvazoxlade.com/blog/archives/1394/comment-page-1#comment-24510 Canadian Personal Finance Blog » Blog Archive » Random Stuff: Now that’s Chutzpah! Fri, 29 Jan 2010 06:41:50 +0000 http://gailvazoxlade.com/blog/?p=1394#comment-24510 [...] Vaz-Oxlade also mentions the special in This & That: Kids’ Education Edition. Useful hints on RESPs here as [...] [...] Vaz-Oxlade also mentions the special in This & That: Kids’ Education Edition. Useful hints on RESPs here as [...]

]]> By: Geoff http://gailvazoxlade.com/blog/archives/1394/comment-page-1#comment-24422 Geoff Thu, 28 Jan 2010 14:00:52 +0000 http://gailvazoxlade.com/blog/?p=1394#comment-24422 @ Lisa - No - it's not TD Waterhouse. It's TD, but their e-funds account. You do not need to open a waterhouse account, there are no fees, and you do not need to open a TD chequing account either. There is a low MER on the index funds. I don't buy individual stocks, I buy the index funds which compose all the stocks in the S&P 500 etc. I followed the directions below, and a few times I had to tell the TD guy what to do but I got it done eventually. For more details: http://www.canadiancapitalist.com/investing-in-td-e-series-funds-for-your-resp/ http://www.milliondollarjourney.com/how-to-open-a-td-e-series-e-funds-resp-account-not-complete.htm @ Lisa – No – it’s not TD Waterhouse. It’s TD, but their e-funds account. You do not need to open a waterhouse account, there are no fees, and you do not need to open a TD chequing account either. There is a low MER on the index funds. I don’t buy individual stocks, I buy the index funds which compose all the stocks in the S&P 500 etc. I followed the directions below, and a few times I had to tell the TD guy what to do but I got it done eventually.

For more details:

http://www.canadiancapitalist.com/investing-in-td-e-series-funds-for-your-resp/

http://www.milliondollarjourney.com/how-to-open-a-td-e-series-e-funds-resp-account-not-complete.htm

]]> By: Stephanie Lemmone http://gailvazoxlade.com/blog/archives/1394/comment-page-1#comment-24400 Stephanie Lemmone Thu, 28 Jan 2010 08:01:41 +0000 http://gailvazoxlade.com/blog/?p=1394#comment-24400 I prefer term deposits as our savings investment ensure our savings will remain intact, without withdraw, allowing the investment to grow with interest while the years go by. I prefer term deposits as our savings investment ensure our savings will remain intact, without withdraw, allowing the investment to grow with interest while the years go by.

]]> By: Lisa M http://gailvazoxlade.com/blog/archives/1394/comment-page-1#comment-24384 Lisa M Thu, 28 Jan 2010 04:07:15 +0000 http://gailvazoxlade.com/blog/?p=1394#comment-24384 Geoff, Is your son's RESP with TD Waterhouse? Their fee is $50 per annum correct?...unless the balance is over $25K, then waived. I was just online checking and they have the mutual fund RESP as well. I want to set one up and wondered which one you used (I'm guessing Waterhouse because of the stocks). Thanks. Lisa PS GREAT Post Gail and as usual very informative. You are wonderful! Geoff,
Is your son’s RESP with TD Waterhouse? Their fee is $50 per annum correct?…unless the balance is over $25K, then waived. I was just online checking and they have the mutual fund RESP as well. I want to set one up and wondered which one you used (I’m guessing Waterhouse because of the stocks).
Thanks.
Lisa
PS GREAT Post Gail and as usual very informative. You are wonderful!

]]> By: Sarah http://gailvazoxlade.com/blog/archives/1394/comment-page-1#comment-24375 Sarah Wed, 27 Jan 2010 22:49:58 +0000 http://gailvazoxlade.com/blog/?p=1394#comment-24375 Sorry about that!! Do group RRSPs work in the same way? That is the only way for me to contribute at work to RRSPs and I am not familar with them. Sorry about that!! Do group RRSPs work in the same way? That is the only way for me to contribute at work to RRSPs and I am not familar with them.

]]> By: Sarah http://gailvazoxlade.com/blog/archives/1394/comment-page-1#comment-24374 Sarah Wed, 27 Jan 2010 22:47:45 +0000 http://gailvazoxlade.com/blog/?p=1394#comment-24374 Do group RRSP Do group RRSP

]]> By: Jenny J http://gailvazoxlade.com/blog/archives/1394/comment-page-1#comment-24369 Jenny J Wed, 27 Jan 2010 21:43:46 +0000 http://gailvazoxlade.com/blog/?p=1394#comment-24369 @ Tamara The child does need to be a Canadian resident, but they can go to any accredited school anywhere. I have several clients whose children are attending universities in the US, Scotland, and Israel - no problems with the RESP withdrawals, because all the universities are internationally recognized and accredited. @ Rose The Lifelong Learning Plan (LLP) is definitely only for you, your spouse or your common-law partner, not for your kids. http://www.cra-arc.gc.ca/E/pub/tg/rc4112/rc4112-09e.pdf @ Tamara

The child does need to be a Canadian resident, but they can go to any accredited school anywhere. I have several clients whose children are attending universities in the US, Scotland, and Israel – no problems with the RESP withdrawals, because all the universities are internationally recognized and accredited.

@ Rose

The Lifelong Learning Plan (LLP) is definitely only for you, your spouse or your common-law partner, not for your kids.
http://www.cra-arc.gc.ca/E/pub/tg/rc4112/rc4112-09e.pdf

]]> By: Marie http://gailvazoxlade.com/blog/archives/1394/comment-page-1#comment-24367 Marie Wed, 27 Jan 2010 20:47:19 +0000 http://gailvazoxlade.com/blog/?p=1394#comment-24367 SophieW: Canadian legislation is minimal. They limit the interest rate that can be collected but all sorts of 'fees' are allowed. Those fees can add up! There are lawsuits, but I do not know how many are successful. I am completely AGAINST retroactive rate increase! The Canadian system needs a bit of tweaking. SophieW:
Canadian legislation is minimal. They limit the interest rate that can be collected but all sorts of ‘fees’ are allowed. Those fees can add up! There are lawsuits, but I do not know how many are successful. I am completely AGAINST retroactive rate increase! The Canadian system needs a bit of tweaking.

]]> By: SophieW http://gailvazoxlade.com/blog/archives/1394/comment-page-1#comment-24366 SophieW Wed, 27 Jan 2010 20:29:18 +0000 http://gailvazoxlade.com/blog/?p=1394#comment-24366 Wow, I just watched the Frontline piece and I have to say that what the American credit card companies have been allowed to get away with is criminal. i can't imagine opening my cc bill and discovering that the rate had been increased retroactively causing my minimum payment - which for so many people was all they could afford - to skyrocket... Not to mention the concept of lobby groups sickens me as well. I know it's the 'American Way' but that doesn't make it right! BUT I also see so many people who took credit for granted. It's almost as if they expected to be looked after, despite the fact that FIs and CC companies are out to make a buck - or several million... They just want to keep you as a paying customer and take as much of your hard earned money as you will give them. And boy did we give! And with the state of so many people we'll be giving for a very long time... I'm glad we have some legislation here in Canada, but until people start taking responsibility for themselves and their actions, it's not going to get better; the FIs and CC companies will continue to rake in the cash. What to do? Pay off the cards, use them responsibly, and buy stock in the FIs and CC companies :) Wow, I just watched the Frontline piece and I have to say that what the American credit card companies have been allowed to get away with is criminal. i can’t imagine opening my cc bill and discovering that the rate had been increased retroactively causing my minimum payment – which for so many people was all they could afford – to skyrocket… Not to mention the concept of lobby groups sickens me as well. I know it’s the ‘American Way’ but that doesn’t make it right!

BUT I also see so many people who took credit for granted. It’s almost as if they expected to be looked after, despite the fact that FIs and CC companies are out to make a buck – or several million… They just want to keep you as a paying customer and take as much of your hard earned money as you will give them.

And boy did we give! And with the state of so many people we’ll be giving for a very long time…

I’m glad we have some legislation here in Canada, but until people start taking responsibility for themselves and their actions, it’s not going to get better; the FIs and CC companies will continue to rake in the cash.

What to do? Pay off the cards, use them responsibly, and buy stock in the FIs and CC companies :)

]]> By: Tamara http://gailvazoxlade.com/blog/archives/1394/comment-page-1#comment-24362 Tamara Wed, 27 Jan 2010 20:07:40 +0000 http://gailvazoxlade.com/blog/?p=1394#comment-24362 Thanks for the information on the RESPs. Can RESPs only be set up for Canadian residents? Do they have to go to school in Canada? Thanks for the information on the RESPs. Can RESPs only be set up for Canadian residents? Do they have to go to school in Canada?

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