Hi PatrickM
I salute 2 U. I am impress how you efficient u reply to all post and help us.
not everyone has this quality. i hope best for u since u r very helpful.
BACK to the point.
I am in Montreal, so my baby was also born in Montreal, Its only four month for second one so i dont know yet if its a boy or girl
but in two weeks i will be able to know.
would u please advise me how to start with RESP ? i hv account with TD and one more thing i m moving to Toronto in after my baby's born . so i am thinking of holding for investment till this summer.
what is your feedback
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'Some goals are so worthy, it's glorious even to fail.' (Param Vir Chakra awardee Lt. Manoj Pandey)
Quote:What options are you looking for?
Originally posted by shaileshjkumar
Thanks Pratikm, I am going to find out more details about the RESP self directed family plan from out of the top 5 banks and will go ahead with the one which suits the best as per my plan for investment growth and security of the principal. I’ll make sure to go through CIBC’s option carefully. My primary banks are BMO and Scotia and could not find them much of a good option.
Quote:Don't worry if you don't know about mutual funds and ETFs yet - there is lots of time to learn.
I just wish I had known more about the mutual fund and what bond index fund, TSX index fund and ETF. But by time I it will be clearer and would be able to decide what to do with what is in the RESP account. I wanted to know if the self directed family RESP plan is flexible to move the funds from one type like GIC to another like Mutual Fund in later days like after 5 years time. Also, I would be able to move the grant money same as my portion of RESP.
Quote:Wow, doesn't seem like there is much "interest accrued", is there?
]Originally posted by nari
Based on the phone conversation i had with Customer service that i had called yesterday he told me my total money in the account was roughly about $3200 including grants, my contribution ($2000), and interest accrued. He told me if i moved out of the plan they would deduct about 1350$ Enrollment fees out of this total amount and pass on rest to other institution where i want the money to be moved.
Quote:Technically it doesn't matter where you open the account, but since you plan to move right after the baby is born, it's better to wait.
]Originally posted by Blue_Peafowl
would u please advise me how to start with RESP ? i hv account with TD and one more thing i m moving to Toronto in after my baby's born . so i am thinking of holding for investment till this summer.
what is your feedback
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
Quote:
Originally posted by nari
Good question Pratickm, I will call the customer service once again tomorrow and check where my funds are invested. Actually, i opened the Account with Global back in 2006 when my daughter was born. I deliberately didn't max out in investing with this account for 2 reason first i also thought same way like you didn't have confidence with trust companies and other if i had to move out of the country or had a job loss i wouldn't have been able put in max amount. I thought it was a good idea to make a lumpsum amount any time rather than committing to maximum Limit.
The other reason i opened with Global was i wanted to give some business to a family friend whom i couldn't deny as he is an Agent with Global.
Based on the phone conversation i had with Customer service that i had called yesterday he told me my total money in the account was roughly about $3200 including grants, my contribution ($2000), and interest accrued. He told me if i moved out of the plan they would deduct about 1350$ Enrollment fees out of this total amount and pass on rest to other institution where i want the money to be moved.
Looking at this calculation it seems if i move all my money i loose all the government grant upto now plus the interest.
Once again Thanks Pratickm & Investpro and all others for building up these thread with your expert opinion. I definitely think it would help others like me who have some confusion or want to clarify things with respect to RESP investments.
Quote:Correct, which is why I said that it appears the account is losing money instead of gaining.
Originally posted by investpro
This all should add up to more than $3200
Unless of course they haven't given you the $100 of this year nor the last 20% grant of your last contribution.
Do you have the statement sent to you earlier this year which should show you the contribution, grant, CLB plus accrued interest?
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
Regarding investments in second RESP Plan:
I have room for contribution towards another RESP after paying my first plan with Global.
So far the investments @ Global have been safer, return of approx 5% p.a. Global invests the funds in bonds (govt., provincial, municipal and corporate) plus in cash and principal protected notes.
In order to avoid additional enrollment fees at Global (refundable), I am thinking of opening one more RESP plan with RBC bank. This way I will have a flexibility to choose my investments in RESP and reap the benefit of dollar cost averaging.
Looking at the SHORT window of this plan (3 years) when the child enters college/University, what will make better sense in your opinion:
1. To invest in low MER currency neutral ( I am bearish on USD) equity index funds; US Index, International Index, and Canadian Index. Looking at the index, it appears that markets might bottom out in the next few months, followed by surge of 6% or more p.a. in the next 3 years.
http://www.rbcam.com/pdf/information/rmfiri.pdf
http://www.rbcam.com/pdf/information/rmfusr.pdf
http://www.rbcam.com/pdf/information/rmfcdi.pdf
2. Stay away from equities and stick with low return safer investments such as: Canadian bond index funds/GIC/ High interest savings a/c etc.
http://www.rbcam.com/pdf/information/rmfcbi.pdf
Regards,
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Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/
Hi Amit,
for a 3 yr window, and if you are happy with Global why not continue with Global- tell your pal you want to invest extra every year without buying units as to avoid paying the enrollment fees.
Global also has a group sponsored plan where there are no enrollment fees and the return is the same as you are enjoying now.
He'll arrange it for you.
However if you are bent on making RBC richer than it is, by all means invest there.
equities for a 3 yr term - I do not advise. However if you are looking to use the new money you invest now towards the end of uni years in say 7 years- then why not if you have confidence that the markets will bounce back.
Do not rely on what the experts say anymore re the markets as they know 'anda'- believe you me they are full of scatological material, but newspapers/mags have to fill their pages, TV channels have to fill up airtime, colleges have to call in 'expert' guest speakers as part of their program etc. etc and they all know a big goose egg, myself included.
Sometimes when I am giving a seminar, I am thinking to myself- what garbage am I talking? At a recent financial forum, I gave a talk on where the markets were going and believe you me, I analysed it all using certain factors, but what if those factors don't play out? Basically I was giving out balderdash like every other speaker, but they will never say so except after their tongues are loosened by booze as their livlihood depends on it.
My livelihood does not depend on the speaker circuit, so I am telling it like it is.
Keep on with Global is my advice but just do the top-up so you avoid paying the enrollment fees as from the looks of your post that is a deterrent despite it being returnable.
Hang loose.
Thanks investpro.
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Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/
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