RESP question

[sil]

Is there such thing as a self-directed RESP similar to self-directed RRSP's?

[Bullseye]

Yes, and all the major banks offer them.

[veryhuman]

Yes, and all the major banks offer them.

Not BMO. But then I guess they arent that major.

[sil]

Yes, and all the major banks offer them.

thanks, and what exactly do the providers that are not major banks do? Do they simply do the investing and managing for you? So if they invest into funds, not only am I paying management fee for the fund, but probably a fee for these providers as well?

[nalababe]

We have it Scotia Mutual funds....

[Ottawa]

RESPs offered at over 70 financial institutions.

www.canlearn.ca (gov't site)

RESP gets you 20% grant on top of whatever you put in, up to $2,500 (new budget).

you get 30% if you make less than $74,500 instead of 20%.
Most people on this thread don't qualify, but you get 40% if family net income is below $37K. These people also get a free 500$ bond www.canlearn.ca

RESPs - all kinds are out there. RBC is a good place to get them.

[mensrea]

I have an RESP setup for my first son with Heritage. I was going to setup another one for our newest son with Heritage as well, but I thought I would look around.

I was at TD and it seemed about the same as heritage.

What makes RBC a good one, just curious?

[nutbar]

We use etrade.ca, there is a $50.00 annual fee. but no hidden fees.

[ricoboxing]

You can also set up a TD Efunds mutual funds account for your RESP. I use efunds for my RRSP and RESP

[salah]

Is there such thing as a self-directed RESP similar to self-directed RRSP's?

Yes there are. I believe the best self directed is "Global resp"

[bionicbadger]

RESP gets you 20% grant on top of whatever you put in, up to $2,500 (new budget).

Huh? Did that budget pass? Going to that website, it says the 30% is only paid on the first $500 and 20% on the first $2000

[Shaynelle]

We use etrade.ca, there is a $50.00 annual fee. but no hidden fees.

We also use edtrade.ca, highly recommend them.

Also *very important* be careful when you sign your RESP agreement - we have found that a LOT of companies, especially the private (ie non bank) organizations have clauses such as:

a) According to how many students in their plan that go to school that year, you only get a "cut" of the maximum amount per year the company gives back out... thefore if 10 students go, great... but if 1,000 students go you are basically screwed and get very little money that year

b) If you miss ONE payment you forfeit ALL of the money you have invested

c) The company you've invested your RESP with specifies which schools your child can attend, which programs they can take, etc.

These are just SOME of the examples we've read from some companies who offer RESP's. And by far I notice the non-bank ones are the worst for these b.s. clauses.

So please, parents, do your homework and read the small print - I suggest taking the agreement home and reading it over before you sign it. It could save you a lot of headache and thousands of $'s in the long run.