Personal Finance

Industrial Alliance RESP

  • Last Updated:
  • Mar 13th, 2020 12:09 am
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Deal Fanatic
Jul 1, 2007
8341 posts
1336 upvotes
Slawek wrote: I am actually just about to sign up my son for an resp and I was weighing heavily on this Industrial Alliance plan. However, we have pretty much made up our mind to go with RBC directly from the bank
Good call.
Money Smarts Blog wrote: I agree with the previous posters, especially Thalo. {And} Thalo's advice is spot on.
Newbie
Nov 4, 2004
56 posts
64 upvotes
Wish this thread had been around in 2003 when we joined the plan. It has been year after year of awful returns, consistently underperforming the markets by a long shot. We knew nothing about RESPs at the time, but a close family friend of my wife's parents was selling these and we trusted him. Big mistake. Before any of your friends give birth, make sure you warn them about these types of companies. Shows how bad they are when people are recommending the big banks ahead of these guys! Think about that!
Deal Fanatic
Jul 1, 2007
8341 posts
1336 upvotes
We can only hope by the power of Google that other parents and prospective clients of this type of plan or other group RESPs find this thread, and the many others on group RESPs here, and avoid them before it's too late!
Money Smarts Blog wrote: I agree with the previous posters, especially Thalo. {And} Thalo's advice is spot on.
Newbie
Nov 21, 2018
2 posts
2 upvotes
We've had RESP with Industrial Alliance for our 3 kids for 10 years now. I truly regret signing up for this plan. Rate of return for this year has been -3.37 %. Our son is turning 17 this year. While the funds were in Diploma Elementary, rate of return was 3-4%, this is the rate from the inception of the account. Since he is approaching college age, IAP starts transferring chunks of the money to Diploma Secondary Fund, and rate of return in that fund really sucks, it is -0.73%. By the time he gets to college, a big chunk of what was earned will be eaten up by poor return rate in Diploma Secondary. Add inflation on top of it. So decide for yourself.
Newbie
Jun 13, 2019
7 posts
Hi All,

I took an RESP in IA in 2017 Dec and paid until Jan 2019 and compared my interest and noticed that there is no interest it accumulated. Also my budget got tedious. so I requested IA to stop payments for 6 months. During this time I noticed they are laying charges if you stop the contributions as well. So I realized something is messy around and planned to transfer my RESP from IA to my Financial Institute. Now I was told that IA charging on my contributions.

My contributions: $6000
IA charges: $2500
Interest/Growthfund accumulated till now: $150

Its been only 3 years I am in the country and I was saving RESP in Scotia in 2016-2017 and I got trapped by my colleague, and changed my saving from scotia to IA.

Please guide me how to get my 2500CAD. I was not even aware RFD before to check for the reviews :(

Thank you so much in advance.
Deal Addict
Dec 4, 2016
1750 posts
801 upvotes
Thanks to threads like this on RFD, I recently signed up for a simple GIC RESP for my daughter at a credit union in Ottawa. My wife is not a big fan of TD, so I couldn't do TDDI. Given the relatively small amount, I didn't bother with mutual fund or discount brokerage.

Now that I think about it, I'm the first person I know who didn't go with a group plan. These scammer really know how to push sales.
Newbie
Dec 25, 2017
1 posts
M1P 2S5
you are not totally correct as banks too have MERs and fees. Here even if u pay little more but your money is effectively managed
Deal Fanatic
Jul 1, 2007
8341 posts
1336 upvotes
bymalik wrote: you are not totally correct as banks too have MERs and fees. Here even if u pay little more but your money is effectively managed
How is the money more effectively managed at IA? At banks you can also buy index funds, which are much lower fee.
Money Smarts Blog wrote: I agree with the previous posters, especially Thalo. {And} Thalo's advice is spot on.
Deal Addict
User avatar
May 11, 2014
3650 posts
3503 upvotes
Iqaluit, NU
Rule #1: Avoid group RESPs

Rule#2: Avoid segregated funds for long term investing. In other words, if the RESP/investment is coming from an insurance company, double-check that they are segregated funds.
Segregated funds have their role, but 99% of the time, they are being sold to the wrong people.

Insurance companies tend to be lousy places to invest because of this.
Support your local Credit Union!

Sask Pension Plan Upto $6300/yr in Credit Card spending on RRSP contributions
http://forums.redflagdeals.com/sask-pen ... ns-2167222
Newbie
Feb 15, 2020
3 posts
1 upvote
Thanks for your post. I am in the same situation like you, stuck with IA since 2015. now my son is 5 years old and I dont seen any growth, 2-3 % only which compensates the inflation. Just wondering are you still with IA? or you managed to get out of it? if so how much penalty you had to pay? your response will help me decide the future saving for my son. Appreciate your help.
Newbie
Nov 16, 2019
1 posts
1 upvote
I transfer my RESP out and been charged $900 for fee!! If your daughter is only 5 years old, worth to transfer out and find a Adviser to transfer the investment to an good mutual fund. You will make up the lost and get more growth over the years.
Deal Addict
Jan 8, 2006
1291 posts
487 upvotes
DilN15956 wrote: Thanks for your post. I am in the same situation like you, stuck with IA since 2015. now my son is 5 years old and I dont seen any growth, 2-3 % only which compensates the inflation. Just wondering are you still with IA? or you managed to get out of it? if so how much penalty you had to pay?
You have another 12 years to recover. I think it's worth to bite the bullet and move on.

I try to look into this https://iaa.secureweb.inalco.com/cw/-/m ... 005927.pdf but it's all mumbo jumbo. It will be best for "DilN15956" to call them and ask them how much it will cost to transfer out for your particular account.

Carolsavepeople wrote: I transfer my RESP out and been charged $900 for fee!! If your daughter is only 5 years old, worth to transfer out and find a Adviser to transfer the investment to an good mutual fund. You will make up the lost and get more growth over the years.
This is good info. Will help some RFDers..
Newbie
Feb 15, 2020
3 posts
1 upvote
Thank you very much for your response. That gives me more confidence. Much appreciated.

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