RESP with Global

[frehman005]

We signed up with Global RESP plan when we arrived here in Canada for two kids about 2 years ago. Unfortunately I didn't do much research on the fee these plans charged. My account admin at RBC suggested to open up RESP with them and suspend payments with Global, as investments return is very poor and they charge crazy amount of enrollment fee ($3k to $4K) per child which can be refunded at the end.

My investment advisor also suggested to come out of global plan do it with any big banks.

I was of the understanding that if I suspend I there will be no penalty and I can keep my money there and until we need it for kids education, which not the case. I can suspend my payments upto 3 years but I have to catch up after 3 years otherwise I will loose enrollment fee on the plan :(

I am not sure what to do. Should I stick to the plan with Global or take the money out or any other option? Any advice.

[Reyshel01]

find out if there is a penalty when you leave.

[frehman005]

Penalty is same meaning I have to give up enrollment fee and govt grants

[Piro21]

If you transfer to another institution you won't lose the grants, only if you withdraw for non-educational purposes.

[frehman005]

If you transfer to another institution you won't lose the grants, only if you withdraw for non-educational purposes.

That is correct. You were asking about leaving the plan and I thought you were asking about withdrawl. Govt. grants are small portion of enrollment fee.

[rfdrfd]

My sister is looking into this Industrial Alliance, RESP, which gives you an additional BONUS 15%

http://www.inalco.com/english/individual/glossary/glossary.jsp#etudes

This would be better than any other bank - self directed ones. I wonder if there are any drawbacks. I'm googling...

[jingnhi]

My situation is similiar to freshman. Its true that you will not get your enrollment fee back (which is about $5100 and 5900 for my situation as those are they fee of my 2 kids)if you missed payment, reduce contribution from amount you set from begining, or cancel. The reps I was dealing with didnt let me know about any of these. I was using RBC with my first daughter and switched over to Global. If I know better I wouldn't switch, but now I'm in the process fo writing a formal complaint to the company and OCS, Ombudsman if it require to go that route. For anyone whom in similiar situation, be sure not to do anything before you switch, file a formal complain and go from there.

[SamuelConsultant]

My sister is looking into this Industrial Alliance, RESP, which gives you an additional BONUS 15%

http://www.inalco.com/english/individual/glossary/glossary.jsp#etudes

This would be better than any other bank - self directed ones. I wonder if there are any drawbacks. I'm googling...

The plan you mentioned at Industrial Alliance should be "Diploma". Although, our brokerage carries this product, I haven't advised this to any of my clients yet.
If I remember correctly, although there could be bonus, there could be penalty if you could not commit to all the scheduled contributions. So make sure you read the terms and conditions carefully before you enrol.

************************

[frehman005]

My situation is similiar to freshman. Its true that you will not get your enrollment fee back (which is about $5100 and 5900 for my situation as those are they fee of my 2 kids)if you missed payment, reduce contribution from amount you set from begining, or cancel. The reps I was dealing with didnt let me know about any of these. I was using RBC with my first daughter and switched over to Global. If I know better I wouldn't switch, but now I'm in the process fo writing a formal complaint to the company and OCS, Ombudsman if it require to go that route. For anyone whom in similiar situation, be sure not to do anything before you switch, file a formal complain and go from there.

Jinghi - Have you filed your complaint yet? Let me know the process (or link where I can find the detail of filing a complaint) and I would do the same.

[Rickson9]

Only speaking for myself, the cost of financial ignorance appears particularly onerous when it comes to RESPs. Unfortunately the combination of emotions of wanting to do well for the children and parental financial ignorance is a winfall for companies like Global.

For better or worse, I was fortunate at an early age to learn to never trust a salesperson with regards to money, RESP or otherwise. Conflict of interest. Always. Unavoidable. I do everything myself. Lucked out. My opinion only. Good luck to the OP.

[ACC-Major]

Only speaking for myself, the cost of financial ignorance appears particularly onerous when it comes to RESPs. Unfortunately the combination of emotions of wanting to do well for the children and parental financial ignorance is a winfall for companies like Global.

For better or worse, I was fortunate at an early age to learn to never trust a salesperson with regards to money, RESP or otherwise. Conflict of interest. Always. Unavoidable. I do everything myself. Lucked out. My opinion only. Good luck to the OP.

The sadness, taking advantage of the uneducated. I mean, they are unfortunate enough to be uneducated, and yet people took advantage of it. it is like putting salt on a wound.
People are so blinded. They rather trust these salesmen (although they don't market themselves as salesmen), rather than trusting a successful investor such as myself (yes, I have a 5 year track record of beating the market average namely the S&P500 including dividends). They think I was just lucky 5 years in a row. As a matter of fact, I was losing to the S&P500 3 out of 5 years; however, my performance in 2012 put me in the winning spot.
I had tried very hard to talk people into investing, and they were ignored. However, when their financial adviser told them to invest in mutual funds with high fees, they bought them mindlessly mainly in their RRSP accounts. Mutual Funds in RRSP accounts are easily to sell because it has this RRSP tax deduction element to it.

I had written numerous articles and reports for friends, family and colleagues in the past. 50% didn't bother to read them. 25% who read it couldn't understand them. another 25% couldn't get get pass the first paragraph thinking them are BS. Unfortunately, they have a hard time believing that the stock market goes up 100% of the time over a longer period of time, even though I shown them the S&P500 chart going back 40 years+.

[Thalo]

My sister is looking into this Industrial Alliance, RESP, which gives you an additional BONUS 15%

http://www.inalco.com/english/individual/glossary/glossary.jsp#etudes

This would be better than any other bank - self directed ones. I wonder if there are any drawbacks. I'm googling...

Probably a return of the astronomical MERs of the funds/GIFs they put you in. There's never free money.

To the OP: if the kids are still very young and you have only put a few thousand into the plan, cut your losses now and bail.

[Uranium101]

Probably a return of the astronomical MERs of the funds/GIFs they put you in. There's never free money.

To the OP: if the kids are still very young and you have only put a few thousand into the plan, cut your losses now and bail.

What is the quickest and easiest way to cancel these plans and forfeit all past contributions?
My friend got into this; however, she is only 1year into this plan.
I am sure the agent won't do it for you, or it will take the agent forever to get it closed because she setup pre-authorized contributions. The long it takes for the cancellation to kick in, the better for the agent.

Your input is appreciated.

[wesboag]

What is the quickest and easiest way to cancel these plans and forfeit all past contributions?
My friend got into this; however, she is only 1year into this plan.
I am sure the agent won't do it for you, or it will take the agent forever to get it closed because she setup pre-authorized contributions. The long it takes for the cancellation to kick in, the better for the agent.

Your input is appreciated.

Call the company, not the agent. The agent is either A) long gone, or B) won't lift a finger as it effects his/her already cashed commissions which may trigger a charge back to him/her.

Tel: (416) 741-7377
Client Services : 1-877-460-7377
Fax: (416) 741-8987

[Uranium101]

Call the company, not the agent. The agent is either A) long gone, or B) won't lift a finger as it effects his/her already cashed commissions which may trigger a charge back to him/her.

Tel: (416) 741-7377
Client Services : 1-877-460-7377
Fax: (416) 741-8987

Thanks,

My friend is with Knowledge First Financial. I will tell her that.

[Rickson9]

"Knowledge First Financial" ... Is that supposed to be irony?

[Uranium101]

"Knowledge First Financial" ... Is that supposed to be irony?

Only people without knowledge would go with them.

[Uranium101]

Just an update, my friend couldn't get her account closed with the Agent or with Knowledge First. Can she just forced cut the tie by telling her bank to void that pre-authorized withdrawal? Then the account with Knowledge First will be closed?

[AntonyLingo]

..

I had written numerous articles and reports for friends, family and colleagues in the past. 50% didn't bother to read them. 25% who read it couldn't understand them. another 25% couldn't get get pass the first paragraph thinking them are BS. Unfortunately, they have a hard time believing that the stock market goes up 100% of the time over a longer period of time, even though I shown them the S&P500 chart going back 40 years+.


Can you PM me this letter you sent out. I'd love to see what your wrote.