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Email this10:58 am
November 15, 2018
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I'm a new grandpa & want to open an RESP account shortly. Any suggestions & or ideas on the best FI & account? Thanks
12:53 pm
October 21, 2013
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Congratulations, gramps!
There were several good threads on this topic in the past. I suggest you try to find them although I know the search function can be less than adequate. Do not act in haste. There is a lot to be wary of, although it can be a useful vehicle.
If you have a more specific question, you'll likely get some responses.
1:09 pm
April 6, 2013
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How about earlier discussion RESP recommendations pls?
The discussion also refers to two earlier discussions Global RESP and RESP with "Knowledge First Financial".
2:36 pm
January 12, 2019
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In the past, I heard some real horror stories about Group RESP's.
Do they still exist now?
" Live Long, Healthy ... And Prosper! "
4:19 pm
December 12, 2009
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Dean said
In the past, I heard some real horror stories about Group RESP's.Do they still exist now?
I assume you mean the scholarship plans, Dean, as opposed to a "group RESP" (which I'm not sure exists, but assume would be similar to an employer-sponsored group RRSP). I don't think they're all bad necessarily in terms of performance, but they do tend to have higher than average management fees, ancillary fees, and, crucially, lock-ins with penalties for early withdrawals.
They definitely still exist and you can look up their plan documents on SEDAR (KnowledgeFirst is one; Heritage is another).
Best bet would be to go with a robo-advisor as they often have no minimum account balance for new RESPs and will even waive management fees until you have up to $5,000 in your account. Beyond that, go with a discount brokerage.
Also, anyone can start an RESP for someone, but you have to be a certain type of relative to start a "family RESP" that can be transferred to another beneficiary. So, for example, if my sister had decided to have a baby with her partner, I could start an RESP (if I had the baby's SIN) for her hypothetical baby; however, as a hypothetical uncle, I could not start a family RESP for multiple hypothetical babies.
Grandparents, on the other hand, are one of the familial relation types that can start a "family RESP" as I understand it.
As a courtesy, it's recommended that you discuss beforehand with the baby's parents who will be claiming the government grants as each child is only eligible for one set of grants.
Cheers,
Doug
