Personal Finance

Anyone with experience with Knowledge First Financial - RESP??

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  • Nov 11th, 2023 11:58 pm
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Deal Addict
May 3, 2005
2660 posts
1369 upvotes
Woodbridge
I'm kind of curious what kind of rates of return we're getting on our investments. Could anyone look at this chart and tell me what kind of return I've received for this one time purchase with USC/KFF made back in Dec 2002? According to my calculations it's something like 2.9% but wouldn't mind confirming?

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On another note, we've (sadly) been investing with this company since our first born back in 2002 and then for our daughter in 2005. We made a couple of initial lump sum contributions and then started $25/month. So not a lot. By the time they'll be ready for university/college I figure there will be something like under $10K each taking into account CESG + the earned interest. So question, are we allowed to take everything out in one shot for the first year if there are enough legit school expenses? Let's say my daughter is going to go to Harvard and costs are $20K the first year. Could I use all of her $10K at once or will they make a stink and try to spread the $10K over X number years?

Knowing what I know now, I really regret signing up with this company and seeing how poorly the investment has turned out. I think like many other parents, we were overwhelmed with the information plus the pressure of being brand new parents just made it seem like it was a good deal. I also regret telling others to sign up for it as well back when we did. Our only saving grace was that we couldn't afford to invest very much back then hence the lowly $25/month for each kid. In the past couple of years we've been more financially stable and are now trying to catch up on their missed out CESGs and have opened up separate RESPs at TD for them. Even if the investments don't yield very much % wise, just getting the full CESG payout is enough for me since it's basically a 20% ROI right away. As far as I'm concerned the rest of the investment earnings are just gravy.

Can't say I'm looking forward to speaking with these people in a couple of years when my son is going to be ready to head to college/university.
Newbie
Apr 11, 2018
1 posts
I also have been investing since the early 2000’s with these crooks. I have been depositing 335 bucks per month for the last 14 years so far. Plus I gave them lump sum payments to start. I’m estimating as of right now, I have about 75% of my original investments. Just got my statement today. This is even with all the government grants. Has anyone had any luck with Lawyers?

By the end of this I will have given knowledge first about 70,000. Right now in my statements I’m looking at a whopping 45,000 when my kids graduate between the two of them. When I signed up, I wanted 50,000 per child. The crook who signed me up said no problem. Just forgot to say that by the end it would all be a 100,000, just forgot to mention they would steal the other 50,000.
Last edited by SwampDonk on Apr 12th, 2018 8:59 pm, edited 2 times in total.
Newbie
Jul 9, 2018
2 posts
6 upvotes
To SwampDonk and lobo:
I am so frustrated with Knowledge First (formerly USC). When I do get my money out, I will be making a formal complaint with the government. First, my daughter reached university one year prior, mainly because we moved from NS to AB prior to her starting school and they start earlier here. They refused to redeem even a cent, first citing it hadn't matured, and secondly citing she was not yet 18 years old. I should have known something was up! We paid her first year, but now we are going through the maturity process. There are four accounts to mature because lump sums were given a separate account (I'm guessing so they could charge them separate fees and commissions). The balance is less than what I have contributed + CESG monies, how disappointing. The third time was a charm for them to accept both the maturity application and proof of full-time enrolment back on June 4th..... until I got an email reminding me to mature our daughter's RESP and I called and suddenly they have no record of receiving anything except the initial "rejection" on May 11th. Thankfully I kept confirmation and approval for review dated June 4th! I've now printed everything in hard copy with a cover letter and will be sending by courier to meet their July 31st deadline to mature the four accounts. This is the second time I have fought with an RESP holder, and I will say this: the family plan at the bank would have been way easier, way smarter and made way more money!!!!
Deal Fanatic
Jul 1, 2007
8569 posts
1763 upvotes
Another thread that needs to show up on more google searches, when parents look into these scholarship trusts.

Unfortunately many don't. They're approached by a salesperson the moment their kid is born. It's like they hang out in the nursery wards or peruse the birth announcements or something. Before you know it, you're signed up to this. Unfortunately for many it's the first they've ever heard about an RESP and they do absolutely no research.

Avoid scholarship trusts at all costs.

BTW: I'm not a parent who fell victim of one of these, I'm a Certified Financial Planning professional telling you this. Avoid at all costs!
Money Smarts Blog wrote: I agree with the previous posters, especially Thalo. {And} Thalo's advice is spot on.
Newbie
Jul 19, 2018
1 posts
1 upvote
I too feel duped went to check what they had for me and thought that i was potentially the exception. Sadly my their stonewalling is classic. Whats up with class action, how many of us does it take. how many of you in Quebec where these predatory practices can be addressed at the consumer protection bureau? Many voices speak louder than one. With the amount of cash that they are ripping people off. Perhaps it might be worth a few bucks each to litigate.
Newbie
Aug 1, 2018
1 posts
I have an RESP for my daughter through knowledge first financial. I’ve been paying into it for almost 8 years. I’ve been reading some very sketchy things about this company and I want to pull out. Get my money back and put whatever is left into the bank. Is that even possible? What are the procedures and challenges of doing that? Can someone help me who has gone through this.
Banned
Aug 19, 2016
1903 posts
762 upvotes
With most financial products, their are usually more trouble than they are worth.
That is why we need to take our own financial matters into our own hands.

We don't need those so-called advisors who are just salesmen/women.

Just look at those mutual funds and hedge funds. You know what I mean.
If you put money into a mutual fund, you can expect to lose to the market average 99% of the time. Why don't we just buy the market average? Because we are too lazy perhaps to look up this subject.
Deal Fanatic
User avatar
Aug 29, 2001
6570 posts
1739 upvotes
rural ontario
I signed up many years ago, and this year I just sent some forms in to pay for my kids school. Guess I will see how this process works.
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Deal Addict
Jan 13, 2007
1490 posts
336 upvotes
I am so sorry for all the parents who had their hard earned money stolen by these crooks.

As a parent myself, with two RESP accounts at my bank, I am surprised as to why folks would have gone to these alternative investments to begin with. Then I realized most of these were early 2000's so perhaps info not readily available as it is today,

in any case, goodluck folks!
Deal Addict
May 3, 2005
2660 posts
1369 upvotes
Woodbridge
utopianbl wrote: I am so sorry for all the parents who had their hard earned money stolen by these crooks.

As a parent myself, with two RESP accounts at my bank, I am surprised as to why folks would have gone to these alternative investments to begin with. Then I realized most of these were early 2000's so perhaps info not readily available as it is today,

in any case, goodluck folks!
I think you're spot on. I would tend to research things like crazy these days but back in late 2002 when we had our first born, we didn't think about looking up these types of companies online. Granted there was probably not much online info back then. These days though it makes little sense to go with them at all.
Newbie
Aug 6, 2018
2 posts
Stay away from KFF!!! I've been investing RESP since last Oct. and they told me all my money goes to their management fee and the principal is 0 if I choose to transfer now.
Member
User avatar
Jun 17, 2007
249 posts
122 upvotes
YeH36176 wrote: Stay away from KFF!!! I've been investing RESP since last Oct. and they told me all my money goes to their management fee and the principal is 0 if I choose to transfer now.
Not sure how much money you’ve sunk into these guys but given it’s been less than a year , might be worthwhile to consider cutting them off and eating the loss than risk 17yeare later not being able to pull any of it out because you unknowingly violated one of their stupid clauses. You still have lots of time to catch up on the losses in the years to come if you start an RESP with the bank.
Newbie
Aug 6, 2018
2 posts
Ashock wrote: Not sure how much money you’ve sunk into these guys but given it’s been less than a year , might be worthwhile to consider cutting them off and eating the loss than risk 17yeare later not being able to pull any of it out because you unknowingly violated one of their stupid clauses. You still have lots of time to catch up on the losses in the years to come if you start an RESP with the bank.
I lost around two thousand :( They said my principal is guaranteed but my principal is 0, all $2000 goes to their management fee Face Screaming In Fear
Member
User avatar
Jun 17, 2007
249 posts
122 upvotes
YeH36176 wrote: I lost around two thousand :( They said my principal is guaranteed but my principal is 0, all $2000 goes to their management fee Face Screaming In Fear
Yeah I remember them quoting up front how the first few years its all management fees then it starts going to your principle. That was a no go for me. Good luck whatever you decide.
Banned
User avatar
Nov 28, 2016
22791 posts
3321 upvotes
Out west
rilles wrote: I signed up many years ago, and this year I just sent some forms in to pay for my kids school. Guess I will see how this process works.
Same in fact two we are done contributing so the money sits. I fill out the forms correctly until they go to school. The third we are still contributing to.

We signed up for this stuff pre internet. Its going to be what its going to be. Life lesson maybe, time will tell. To late to do anything about it now
Banned
User avatar
Nov 28, 2016
22791 posts
3321 upvotes
Out west
utopianbl wrote: I am so sorry for all the parents who had their hard earned money stolen by these crooks.

As a parent myself, with two RESP accounts at my bank, I am surprised as to why folks would have gone to these alternative investments to begin with. Then I realized most of these were early 2000's so perhaps info not readily available as it is today,

in any case, goodluck folks!
1996 is when we started and we had no clue. We wanted to just start a regular savings account and go from there. All their math and info seemed valid, and that they did all the grants for us, etc. Which they did.

I review each statement from eahc kid, and there is more money in there than we paid them. So unless something weird happens on withdrawel, it all seems valid.

But if this is happenign more and more, Ill bet there will be lawsuits against these companies, class action or something
Newbie
Aug 22, 2018
2 posts
You are referring to the new KFF Flex First Plan which has similar attributes to a bank self directed plan.

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