I have few questions?
1. If the child was born on Nov mid of a year, then what is the max eligibility of grant for the same year ending Dec 31st?
2. How good is IA Diploma, having a 15% Bonus on the total principal?
3. What RESP option should I opt for which makes my money secure and also gives me a suitable return?
4. What RESP option is available which does not create issues at the time of getting back for the son's education?

I would also like to know more about the "IA Diploma". Are there any strings attached to it and also is it reliable? Some good family friends advice me to be careful with the trust and the insurance companies offering the RESP and also not to go in for the group plan. After all the suggestions and advices from many good friends and financial advisors, I could figure out that the Family Plan offered by the banks are the one I should opt for and in that the investment depends that I want to go aggressive, moderate or calm-going (safe and secure).

I want to know what are the views for getting the RESP from a bank in a Family Plan with investments in mutual funds having a moderate approach and/or going in for money market GIC having 100% security for one’s own hard earned money.

I would like to get some inputs as I am in a decisive stage for going in for RESP as my son is 1 month old.

Hi Shailesh,
pease read reply on another thread as well.

If your child is born in Nov of this year, what you can get from the govt is as foll:

The Amount of the CESG
On the first $500 you save in your child’s RESP, the Canada Education Savings Grant will give you:

up to $200, if your net family income is $37,885 or less;
up to $150, if your net family income is between $37,885 and $75,769, or;
up to $100, if your net family income is more than $75,769.
The family net income amounts are updated each year based on the rate of inflation. Income amounts shown are for 2008.

Then 20% on any amount above $500


please see link:
http://www.hrsdc.gc.ca/en/learning/education_savings/public/cesg.shtml

and use icons on left for delving deep and more info

Also since your child is born this year, the child also has eligibility for Canada Learning Bond of $500 this year. This you get just by opening the account and not even contributing
Again surf through website given above.

Please do not forget the most important part for CESG eligibility- SIN for your child.
If you do not have one as yet please apply as soon as possible. No SIN - no grant but you can still open an ESP account but it will be registered once the SIN is in place.

Once again go thru the link given above

Quote:

---

Originally posted by shaileshjkumar
I would also like to know more about the "IA Diploma". Are there any strings attached to it and also is it reliable? Some good family friends advice me to be careful with the trust and the insurance companies offering the RESP and also not to go in for the group plan. After all the suggestions and advices from many good friends and financial advisors, I could figure out that the Family Plan offered by the banks are the one I should opt for and in that the investment depends that I want to go aggressive, moderate or calm-going (safe and secure).

I want to know what are the views for getting the RESP from a bank in a Family Plan with investments in mutual funds having a moderate approach and/or going in for money market GIC having 100% security for one’s own hard earned money.

---

-----------------------------------------------------------------
"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"

Hi Shailesh,

As mentioned by investpro and patrickm, stay away from group plans and trust companies. Going with one of the banks family plan is the best option. Please note following,

As explained by investpro, there are difft tiers for CESG, however, the max annual contribution that qualifies for CESG is $2500 per beneficiary per calendar year.

So no matter when your child is born, as long as you contribute anytime by Dec/31 of the year in which your child was born, you will get full CESG. It is not pro-rated for that year. Ofcourse, you need to have SIN.

Investment selection within RESP depends largely on your child's age and you should talk with your regular banker abt the same.

I also work with one of the big banks. If you need any help, please feel free to call me. It's no obligation. I would like to give you a very unbiased opinion. As long as you stick to one of the big banks, I am happy for you.

Hope this helps.

-----------------------------------------------------------------
Let's help each other to grow & prosper in Canada

I had set up my Account with Global RESP but after following the OP post and sucessive comments. I sense that i have made a mistake by falling in trap of these trust company. Is there any way to move my money from these company to a Bank as we do with our RRSP's. Or i have to stop contributing the money now and leave whatever money i have invested i kept my contribution to minmum about $50 per month. I think i would go by suggestion of Pratickm to open a Self Directed RESP with the current bank i have account with.

Thanks for you valuable suggestions.

Quote:

---

Originally posted by nari
Is there any way to move my money from these company to a Bank as we do with our RRSP's.

---

Quote:

---

Or i have to stop contributing the money now and leave whatever money i have invested i kept my contribution to minmum about $50 per month.

---

-----------------------------------------------------------------
"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"

I calculated from 2006 upto now i have contributed roughly about 2000$. I will check the prospectus tonight for their terms & conditions.
Thanks