Comments on: Why Aren’t You Using an RESP?

By: Site

Site — Sun, 29 Apr 2012 19:07:53 +0000

their blog, it shares with their adoring…

public a part of themselves, which makes the blog seem like a personal letter.for the fans, it feels like their beloved celebrity is talking to them. having these blogs written by celebrities, serves as the closest that a fan can get…

By: emms

emms — Sun, 10 Jul 2011 05:35:02 +0000

i set up a resp family plan with rbc in 2007 for my daughter. it was so easy i just went to service canada building and filled out a sin # for her, then booked an appointment with rbc. they deposited $25 just for opening an resp. i had a monthly automatic contribution of $25 dollars. but that didn’t work out with me because one month i didn’t have the funds so they stopped the contribution, even though i had stopped contributing, there were still deposits from the govern being made. just this year i realized i can make manual contribution online. i would contribute $5 to 300 a month and at the end of every month the govern would make contribution (different amounts all the time). i would contribute to a saving account until i have $500 then move to a gic (higher interest rate and safe). this really works for me because i don’t make a lot of money and some times i have no money in my bank account. i usually contribute when i get paid from work, child benefit (all), and even from gifts (all). they remove the amount from your cheq account right away (unlike cibc, takes a week +) then you see the amount in your resp within 1-3 days.
you can also do this for rrsp & tfsa (manual contribution, not a lot of website tell you about it)

By: Marie

Marie — Tue, 31 Aug 2010 15:56:12 +0000

Ian:
I tink that you can transfer money into your RSP if you have the contribution room. There are details that I forget.

By: Ian

Ian — Tue, 31 Aug 2010 15:31:59 +0000

Update in summer 2010:
http://www.taxtips.ca/resp/respalternatives.htm

Before judging whether they are good, get advice from people who have $100k of value in their RESP with a kid that doesn’t go to post-secondary education. Then what?

By: Benefits, Drawbacks, and an Alternative to RESPs « Share the Wealth Blog

Benefits, Drawbacks, and an Alternative to RESPs « Share the Wealth Blog — Tue, 09 Feb 2010 18:51:40 +0000

[...] is another interesting article we found that highlight some benefits and drawbacks. Do you have some RESP or RESP Alternative [...]

By: This & That: Kids’ Education Edition « gailvazoxlade.com

This & That: Kids’ Education Edition « gailvazoxlade.com — Wed, 27 Jan 2010 10:51:19 +0000

[...] sometimes called “scholarship trust RESPs” aren’t such a great deal, according to a recent government study. S wrote: I was hoping for some *clear* advice regarding Registered Educational Savings Plans. I [...]

By: You’re ENTITLED! « gailvazoxlade.com

You’re ENTITLED! « gailvazoxlade.com — Fri, 22 Jan 2010 10:43:33 +0000

[...] woman has a couple of issues. First, there’s the issue of what RESPs are and how they work. This isn’t a difficult product to understand, although there are some twists and turns with the [...]

By: Asad

Asad — Fri, 21 Aug 2009 18:12:59 +0000

I graduated from college in 2008, and now have settled down with my wife. We are expecting a child in 3 months and she is SUPER excited about getting RESP and how its the greatest thing since SLICED BREAD. I can understand RESP’s can benefit a child because they allow the child not to worry about the financial burden that a post secondary school education can have. How ever I can think back now, that just 1 year ago I had graduated from college and NEVER took a loan from OSAP, TD, Royal bank or my parents for that matter. SHOCKING, in addition I didn’t have RESP. I simply had the thing called a “JOB”. I went to college with No DEPT, and I came out with NO DEPT. I do real call a large number of people in the same boat as myself. This huge cry for RESP is slightly overated

So now I would like to ask the question do people that do not have RESP not go to university? Do all those millions of people actually never obtain a Diploma/Degree REALLY? Do they all come out with $50 million in dept?
If not then which percentage actually do?

By: Faye

Faye — Sat, 09 May 2009 00:14:14 +0000

I started an resp for my youngest when she was 14 which was the last year that I could. I used the child tax benefit for the 4 years. I did $250/month with USCI. Then I was able to add on an older sibling who was 16. They are now 20 and 22. When the plan matured, I got back my principle, which they are now using for a justice and music program in Australia and Hawaii with community work, jelping girls caught in human traffiking in Thailand and Europe (travelling to Russia, Finland, Sweden, Denmark,etc.). Their lives are changed for the better. They will be coming back and continuing their studies locally using, interest, grant and grant interest. I am so thrilled that I saved part of the child tax benefit and gave them this opportunity. My only regret is that I didn’t save more of it. Had I not taken the plunge, although nervously, & not opened the RESP, they would not have gone anywhere. Forced savings is a GREAT thing, a new idea for this generation but an old idea for our grandparents. Wonderfully, my savings were protected from any market changes, I had no worries. I am so thankful!

By: Geoff

Geoff — Thu, 05 Mar 2009 19:15:34 +0000

Elaine — you haven’t lost or gained from the market being bad, unless you sell. What has happened is that your investments have gone down in value from the point in time you invested until now. Stock markets go up and down at any period in time, not always up and not always down. What you need to do is assess your horizon — ie if your child is 3 years old, you’ve got lots of time to ride it out — if she’s 19, you’re out of time. It does sound to me like you’re a bit unsure about exactly what you’re invested in (an RESP is a vehicle, doesn’t say what the investment is) and you should do that first. And find out what the MER is on your resp. If it’s more than 1.5% ask lots of questions.

Sheila – don’t feel bad you made the best decision you could based on the ifno at the time. I’d investigate leaving, but since you’re close to using it I suspect that you’d be better off remaining in the plan. Don’t do anything until you get answers you want in writing from CST, these group plans do not have the best reputation regarding full disclosure of fees and costs.

By: Sheila

Sheila — Wed, 11 Feb 2009 00:46:26 +0000

I currently hold an RESP for my daughther with the Canadian Scholarship trust (CST) foundation which I started a number of years ago-my daughter is 15 and will be starting post-secondary education in a few years. I e-mailed Gail to find out the difference between these group plans and the ones offered through banks and she sent me this blog. I am really disappointed that I made the choice to be a part of the Group plan but years ago I did not have all of this information. I am interested in getting the groups advice, I am behind on my Group contribution by about $2000, I had stopped contributing while on maternity leave. Is it worth it to catch up on these payments or should I cease contributions altogether and start a new self-directed plan with the bank. I expect that my daughter will be starting university in the next 3 years.

I have another daugther now 2.5 and will be going through a traditional bank for a self-directed RESP for her.

By: Elaine

Elaine — Thu, 22 Jan 2009 12:24:54 +0000

Hi Gail….loved this post. One problem with our RESP’s. We maxed out at $2500 last year and received the $500. Now I got my statement and our total balance is $2200. We lost from the market being so bad? I am hesitant to contribute. Do you think we will see this money come back or should I just keep in a savings account? Thanks,
Elaine

By: Jenny

Jenny — Tue, 20 Jan 2009 02:33:20 +0000

Hi Gail!

I have looked up the Canada Learning Bond on the government website. I am a single mom and a low income earner. I was very excited to hear about this program, but when I went to the website I realized my daughter is too old. She was born in 2002. Is there anything for low income earners out there with older children?

Thanks,
Jenny

By: edgarella

edgarella — Fri, 16 Jan 2009 21:10:15 +0000

Just a note about living at home vs away

Yes it was YEARS ago when I was in school and moved from my home in Ottawa to attend university in Montreal, school was cheap and rent was cheap there at the time, but living away from home was an EXCELLENT education in budgeting and money management. At home, when you are hungry you can go to the fridge and eat. Away, when you only have 5 bucks, you’re eating ramen and feeling it with every bite Assuming your kids have a decent foundation in money management and you are not bankrolling them, there’s nothing like being tossed into the real world for a few life lessons.

By: Lisa M

Lisa M — Thu, 15 Jan 2009 15:49:14 +0000

Does a comparison chart for RESPs exist (similiar to what you see sometimes with credit card comparisons from the FIs) anywhere out there in the internet world that compares the various options and the management fees involved? eg. TD RESP vs an RESP with Edward Jones Financial Mgment (I’m interested in individual, not group).

Thanks for the RESP info. Blog and comments very timely and informative. I love this site!!!