RESP Confusion

Leslie - posted on 02/03/2016 ( no moms have responded yet )




Hey moms I am new to the site just reading some of the posts and think I can add some insight on the RESP topic. I have a 20 year old son that is attending university and a 5 year old... I know I am crazy for the age gap between my boys but obvious not planned but could not imagine it any different now.

When my oldest son was born I received so much material for RESP's. I did my research and had 1st had knowledge of what the banks had to offer as I was working as a financial advisor for CIBC at the time... The biggest thing that I could not get over was how deceptive companies are by not disclosing fees. It seems like there is a lot of discussion around this on the site so I wanted to add my first hand knowledge. Just an FYI that all the sellers of RESP's have fees... Do not let anyone tell you otherwise and if they do turn and run because they are not being truthful.

What I found was that the Canadian Scholorship had one of the lowest fees if you compare apples to apples. Many companies such as Sun Life, Primarica and including the banks will not give you a factual dollar amount of what your investment will ultimately cost you. Being a family that had to watch every penny I needed someone to answer this question and CST was the only one that could answer this. As well I want to say that because of the pooling of you money that CST offers...... you cannot imagine how beneficial this is. If I would have had to rely on the 50.00 a month (and raised it to 100.00) once my financial situation changed by depositing it with the bank or the other companies I mentioned my sons investment never would have reaped the rewards it has... Especially because of the downturn in mutual funds. I received all my principal as well my son received all the fees back the 1st year he went to school. I realize that this has changed a bit over the years as my advisor has now indicated that 50 percent of the fees are now retuned not 100 but I still think that the return you receive far out ways the fees I paid.

I guess I look at it that we discussed this quite a bit at the bank as there were several of us that were either having a child or had young children and all but 2 went with CST so that says a lot.

I could go on and on about this topic but feel it would be more beneficial if anyone has questions I will try to answer it based on my experience.. I look forward to great decision.

This is a huge decision and I would hope that everyone is doing their due diligence and asking as many questions to make the most informed decision when it comes to our children's education.

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