Comments on: Canadian Scholarship Trust Plan RESPs: Beware http://twinutero.org/2008/01/canadian-scholarship-trust-fund-resps-beware/ Germinal writings on parenting multiples Sun, 14 Mar 2010 02:50:15 +0000 http://wordpress.org/?v=abc hourly 1 By: Ann A http://twinutero.org/2008/01/canadian-scholarship-trust-fund-resps-beware/comment-page-3/#comment-902 Ann A Sun, 14 Mar 2010 02:50:15 +0000 http://twinutero.org/?p=47#comment-902 guess it's true Cathi. I know back then these plans were not very flexible. I actually admire people that signed up back in 1970 to 1990. There was risk, you are right. But now, they really introduced a lot of flexibilities. I even think plans that were opened in 1990 can be transfer to individual plans this way you still have access to all your interest. Not that you need it, since your son is going to school. By the way, congratulations to you with that!!! guess it’s true Cathi. I know back then these plans were not very flexible. I actually admire people that signed up back in 1970 to 1990. There was risk, you are right. But now, they really introduced a lot of flexibilities. I even think plans that were opened in 1990 can be transfer to individual plans this way you still have access to all your interest. Not that you need it, since your son is going to school. By the way, congratulations to you with that!!!

]]> By: Cathi http://twinutero.org/2008/01/canadian-scholarship-trust-fund-resps-beware/comment-page-3/#comment-901 Cathi Sat, 13 Mar 2010 23:17:56 +0000 http://twinutero.org/?p=47#comment-901 Ann, They have changed the ruling on returning your interest because in my papers (1990) it was not returned but went back into the pool if your child did not go to university. It does take the risk factor out which is a good thing. Cathi Ann, They have changed the ruling on returning your interest because in my papers (1990) it was not returned but went back into the pool if your child did not go to university. It does take the risk factor out which is a good thing.
Cathi

]]> By: Adeel http://twinutero.org/2008/01/canadian-scholarship-trust-fund-resps-beware/comment-page-3/#comment-900 Adeel Sat, 13 Mar 2010 21:45:24 +0000 http://twinutero.org/?p=47#comment-900 Cathi and Ann Ann, thanks for the link. Cathi, i just did little cost calculation for my kid Based on the admission in the waterloo university for 4 years program in computer science and the assumptioin that kid is not living with us. It comes ups 78000. My kid will be going in 2024 so you need to add more money because of inflation, I guess statement show almost the right amount which is 93000 in my case. (prediction for year 2024). I believe we both wrong saying that CST exaggerates. We need to understand that they are human being and they can only predict and their basis is statistic canada. looks like my kids have to stay with us during their education to cover the cost for the specific course and the university (Now i stop dreaming for honey moon in Cancun for parents) as i was thinking we will have extra money. Thanks AD Cathi and Ann

Ann, thanks for the link.

Cathi, i just did little cost calculation for my kid Based on the admission in the waterloo university for 4 years program in computer science and the assumptioin that kid is not living with us.

It comes ups 78000. My kid will be going in 2024 so you need to add more money because of inflation, I guess statement show almost the right amount which is 93000 in my case. (prediction for year 2024).

I believe we both wrong saying that CST exaggerates. We need to understand that they are human being and they can only predict and their basis is statistic canada.

looks like my kids have to stay with us during their education to cover the cost for the specific course and the university
(Now i stop dreaming for honey moon in Cancun for parents) as i was thinking we will have extra money.

Thanks

AD

]]> By: Ann A http://twinutero.org/2008/01/canadian-scholarship-trust-fund-resps-beware/comment-page-3/#comment-899 Ann A Sat, 13 Mar 2010 20:40:05 +0000 http://twinutero.org/?p=47#comment-899 http://www.getsmarteraboutmoney.ca//tools-and-calculators/university-cost-and-debt-calculator/university-cost-and-debt-calculator.html cost of education http://www.getsmarteraboutmoney.ca//tools-and-calculators/university-cost-and-debt-calculator/university-cost-and-debt-calculator.html

cost of education

]]> By: Cory http://twinutero.org/2008/01/canadian-scholarship-trust-fund-resps-beware/comment-page-3/#comment-898 Cory Sat, 13 Mar 2010 19:55:57 +0000 http://twinutero.org/?p=47#comment-898 For those of you that are defending Banks and Personal Investment firms, I would like to see some numbers. Has anyone out there that has invested with a Financial Advisor or bank actually received the money for their kids, and how much interest after fees did they receive in EAP's. I defend group plans because we had a proven track record of how much has actually been paid out per basic unit. Some people out their actually understand the benefits of attrition. In fact this week, I had a gentleman open an RESP with the company I represent,for that very reason. He wanted his child to benefit from attrition. What many are forgetting is that group plans also offer the option to parents to deposit when and how much they want. The fellow decided he wanted to deposit $1000 every 6 months, with the option to skip a year if we wanted to. I offered him what we call a lump sum deposit. I do agree that many reps encourage people to deposit monthly because their commission is based on the number of units they sell. I personally prefer having a statisfied customer that will not cancel their plan because I have done my job and shown all the possibilities of deposit schedules. I probably make less money than most reps. but I also have a lot less dissatified customers. Ok Bob and the others....show me your numbers please. For those of you that are defending Banks and Personal Investment firms, I would like to see some numbers. Has anyone out there that has invested with a Financial Advisor or bank actually received the money for their kids, and how much interest after fees did they receive in EAP’s. I defend group plans because we had a proven track record of how much has actually been paid out per basic unit. Some people out their actually understand the benefits of attrition. In fact this week, I had a gentleman open an RESP with the company I represent,for that very reason. He wanted his child to benefit from attrition. What many are forgetting is that group plans also offer the option to parents to deposit when and how much they want. The fellow decided he wanted to deposit $1000 every 6 months, with the option to skip a year if we wanted to. I offered him what we call a lump sum deposit. I do agree that many reps encourage people to deposit monthly because their commission is based on the number of units they sell. I personally prefer having a statisfied customer that will not cancel their plan because I have done my job and shown all the possibilities of deposit schedules. I probably make less money than most reps. but I also have a lot less dissatified customers.

Ok Bob and the others….show me your numbers please.

]]> By: Ann A http://twinutero.org/2008/01/canadian-scholarship-trust-fund-resps-beware/comment-page-3/#comment-897 Ann A Sat, 13 Mar 2010 19:08:57 +0000 http://twinutero.org/?p=47#comment-897 No Cathi, if your child doesn't go to school, you can transfer all your interest on your principal and interest on Grants can be transferred to your RRSP. This is an RESP regulation, not a CST rule. So if my kids don't go to school, I will get my principal and my interest, I won't get my fees back, but I will still make a nice profit. I am sorry Cathi, you are very wrong about this. For me, it's no risk at all. If one doesn't go to school, transfer to another. If none of them go to school, I get everything back, less the fees and Grants. Win win situation. No Cathi, if your child doesn’t go to school, you can transfer all your interest on your principal and interest on Grants can be transferred to your RRSP. This is an RESP regulation, not a CST rule. So if my kids don’t go to school, I will get my principal and my interest, I won’t get my fees back, but I will still make a nice profit. I am sorry Cathi, you are very wrong about this. For me, it’s no risk at all. If one doesn’t go to school, transfer to another. If none of them go to school, I get everything back, less the fees and Grants. Win win situation.

]]> By: Cathi http://twinutero.org/2008/01/canadian-scholarship-trust-fund-resps-beware/comment-page-3/#comment-896 Cathi Sat, 13 Mar 2010 18:45:14 +0000 http://twinutero.org/?p=47#comment-896 Ann and Adeel, The point I am trying to make is that there is no guarantee that your child is going to first, go to university and second, finish university. It's a bit of a gamble when you enroll in CST when he/she is in diapers. So if they don't go to university you are guaranteed to get your principal back, no interest. So for that $35,000 in Adeel's case and he hasn't made a penny on it. Whereas if he had less units instead of betting the farm, he could put the other money in a tax free savings account and then he would have a little more control over his investment. I don't think its a good investment strategy to tie up a fair bit of cash in units you don't need. I gave my costs for my two sons in my previous comment March 13th so I think I've shown that CST's projections are very high. But this is my story, not everyone's story. I've been through the system so you take what I've learned or leave it.It's your money. Good luck Cathi Ann and Adeel, The point I am trying to make is that there is no guarantee that your child is going to first, go to university and second, finish university. It’s a bit of a gamble when you enroll in CST when he/she is in diapers. So if they don’t go to university you are guaranteed to get your principal back, no interest. So for that $35,000 in Adeel’s case and he hasn’t made a penny on it. Whereas if he had less units instead of betting the farm, he could put the other money in a tax free savings account and then he would have a little more control over his investment. I don’t think its a good investment strategy to tie up a fair bit of cash in units you don’t need. I gave my costs for my two sons in my previous comment March 13th so I think I’ve shown that CST’s projections are very high. But this is my story, not everyone’s story. I’ve been through the system so you take what I’ve learned or leave it.It’s your money. Good luck
Cathi

]]> By: twinutero http://twinutero.org/2008/01/canadian-scholarship-trust-fund-resps-beware/comment-page-3/#comment-895 twinutero Sat, 13 Mar 2010 18:07:54 +0000 http://twinutero.org/?p=47#comment-895 Hello everyone, I appreciate all the recent comments and am astounded both at the depth of discussion and the number of people reading. It tells me there really is a lack of independent information on RESPs. I've learned a lot and have a stack of questions for CST when we return to Canada. By the way, Ann, we spoke to a number of people at CST (not just the rep) and no one gave us the option of a refund. No one. So I'm very interested to hear that it was presented to you. I'd like to keep this discussion going, and welcome a hearty argument, but PLEASE, no personal attacks. Thanks. Hello everyone,

I appreciate all the recent comments and am astounded both at the depth of discussion and the number of people reading. It tells me there really is a lack of independent information on RESPs. I’ve learned a lot and have a stack of questions for CST when we return to Canada.

By the way, Ann, we spoke to a number of people at CST (not just the rep) and no one gave us the option of a refund. No one. So I’m very interested to hear that it was presented to you.

I’d like to keep this discussion going, and welcome a hearty argument, but PLEASE, no personal attacks. Thanks.

]]> By: Ann A http://twinutero.org/2008/01/canadian-scholarship-trust-fund-resps-beware/comment-page-3/#comment-894 Ann A Sat, 13 Mar 2010 17:15:28 +0000 http://twinutero.org/?p=47#comment-894 Adeel, from what I understand, if you stay with Group plan, you will get you principal back in the first year (you are correct) and the rest will be divided over four years and given to your child. The money is never sent to school (RESP regulations I believe) So the only thing you have to do is to prove that your child is in school. You get to use the funds however you want. So the only condition is your child has to be a student. If one child doesn't go to school, then you an transfer it to another child (the whole amount, again it's RESP regulation) So Adeel, if you have more money then you need, then great, you have a extra for your family!!! Adeel, from what I understand, if you stay with Group plan, you will get you principal back in the first year (you are correct) and the rest will be divided over four years and given to your child. The money is never sent to school (RESP regulations I believe) So the only thing you have to do is to prove that your child is in school. You get to use the funds however you want. So the only condition is your child has to be a student. If one child doesn’t go to school, then you an transfer it to another child (the whole amount, again it’s RESP regulation) So Adeel, if you have more money then you need, then great, you have a extra for your family!!!

]]> By: Adeel http://twinutero.org/2008/01/canadian-scholarship-trust-fund-resps-beware/comment-page-3/#comment-893 Adeel Sat, 13 Mar 2010 15:39:50 +0000 http://twinutero.org/?p=47#comment-893 Hi Ann I guess the question is that will this easy to get the remaining money to spend on something else? or there some condition applies e.g age of kid, number of years in school etc. Or they will return all the money with no question ask after 4 years in school? Thanks AD Hi Ann

I guess the question is that will this easy to get the remaining money to spend on something else? or there some condition applies e.g age of kid, number of years in school etc. Or they will return all the money with no question ask after 4 years in school?

Thanks

AD

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