Before you buy RESP from Private Companies, Read this.
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Posts: 2873
Location: Western Hemisphere
Posted on: 16-03-15 21:03:05
Location: Western Hemisphere
Posted on: 16-03-15 21:03:05
Quote:
Originally posted by Confused_Canadian
Most of the time new immigrants fall for this.the key problem is projection, there is big gap in projection and actual returns.This is a day light robbery, how can the authorities allow this in a country likeCanada. It's ok to charge provided the returns justify that.
I have learnt a great deal after this and other investments gone sour.When they are investing in bonds why are they charging so much fees. Did they project with bond rate ?.There are so many complaints that can be seen now in internet.But 10 years ago so much information was not available in internet.
What you have stated reflects exactly what I said before. It is critical to understand the basics of investing for your own protection, if not for anything else.
No investment, except perhaps GIC and savings can guarantee the return (even those carry a certain amount of risk, which is minimal). Everything else is subject to 100% loss of money. The investment company should have a disclosure stating that past performance is not an indication of future returns. It is outright illegal to guarantee returns.
That is why, there are two forms of numbers - one that shows past performance, which is a fact and not a projection. Second, a projection can be done as an example to illustrate the effect of compounding.
You should revisit the investments that you believe have scammed you and see if they have guaranteed a return or if they have provided a hypothetical example that is loosely based on past performance. The former is illegal while the latter is not.
The third aspect are the fees. No amount of return can justify a ridiculous fee since returns cannot be guaranteed. Therefore, this is something the investor needs to be careful.
My first experience with investing was in February of 1998 (before internet existed for the commoner). I bought a book of mutual funds which had 100 "best" mutual funds listed. I read and read and read again, tried to understand the fee structure, and finally selected two mutual funds. Filled up a paper application, wrote a cheque for $100 and mailed it away. Today, I still hold these 2 mutual funds from that list. Although, the funds are front-loaded as a % of invested amount, my returns have been wonderful that I continue to invest in them.
The reason I stated the above is because due diligence is critical and is your own responsibility. The gullible will always be taken advantage.
I am assuming before these immigrants immigrate, they probably have some form of investing experience in their homeland, no? I am not sure why they should become gullible as soon as they land in Canada. Why can't they apply the same diligence across the board?
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Dimple2001
Dimple !!
subject is not about knowledge of investment , you are smart so you judge that way or you are RESP agent so you are diverting the topic !!!
********** important part is our fellow country man which is main engine of this SCAM to run efficient...they don't work hard to earn money they just CHEAT and who is best cheater is win the market....
I agree with you that MR Dimple is diverting the topic . Dimple should be screaming SCAM in bold rather than educating fellow desis .
May be I am too naive but still unable to understand your three pages of posts and what you are trying to say . Its a scam as per you . We get it .
Sincere advise - first establish your credibility before questioning / doubting people who have been around here for a while helping .
Quote:
Originally posted by NJJ
Dimple !!
subject is not about knowledge of investment , you are smart so you judge that way or you are RESP agent so you are diverting the topic !!!
********** important part is our fellow country man which is main engine of this SCAM to run efficient...they don't work hard to earn money they just CHEAT and who is best cheater is win the market....
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Growing Old Is Mandatory ..Growing UP is Optional
Posts: 2873
Location: Western Hemisphere
Posted on: 16-03-15 22:18:25
Location: Western Hemisphere
Posted on: 16-03-15 22:18:25
Quote:
Originally posted by NJJ
Dimple !!
subject is not about knowledge of investment , you are smart so you judge that way or you are RESP agent so you are diverting the topic !!!
********** important part is our fellow country man which is main engine of this SCAM to run efficient...they don't work hard to earn money they just CHEAT and who is best cheater is win the market....
I haven't diverted anything. The subject is indeed about the knowledge of investment. You have the choice of either blindly listening to some scamster or listen to the scamster, do your homework, and learn a thing or two before signing the papers. Once again, a basic knowledge in investment is for your own protection.
Next, I am not an RESP agent. When you make assumptions, whether it be on a discussion forum or in investments, things can go in the wrong direction very soon.
Finally, you may yell "scam" all you want in this forum. However, my question remains - did the company disclose all the fees prior to you signing the papers? If yes, then I will continue to state that due diligence and knowledge of fundamentals of investing on your part is critical. If there was no disclosure and they guaranteed returns, you have a case to claim scam.
If you let them, "our fellow countrymen" will take you for a ride, not just in investments, but at the airport or at an UPS store.
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Dimple2001
Quote:
Originally posted by febpreet
Ok, I have an RESP from a private company, called Knowledge First Financial. From your post, it looks like I have a reasons to worry. A few of my friends got from 'Heritage' and they actually did fine.
Need to look into it further. I did my due diligence when signed up. But the posts like these scare the $hit out of me.
it's always better & safe with big institution like Scotia-Bank.
I think you can still switch it to your bank
good luck
I don't think one can brush it away saying buyers beware. Consumers/clients should know many things agreed. But in this case regulators failed in allowing a product like this to be sold. What happend to KYC. You are comparing mutual funds , and past performance not a guarantee ..... etc. agreed, However I am fairly confident if a class action suit is filed there are very high chance of winning this case simply because they are misleading the client and selling it.
Financial institutions constantly mis sell the products without any consideration to the clients and when caught pay the fine and if enough pressure is put on the regulators they do their job otherwise they also want to sleep.
uote]Originally posted by dimple2001
Quote:
Originally posted by Confused_Canadian
Most of the time new immigrants fall for this.the key problem is projection, there is big gap in projection and actual returns.This is a day light robbery, how can the authorities allow this in a country likeCanada. It's ok to charge provided the returns justify that.
I have learnt a great deal after this and other investments gone sour.When they are investing in bonds why are they charging so much fees. Did they project with bond rate ?.There are so many complaints that can be seen now in internet.But 10 years ago so much information was not available in internet.
What you have stated reflects exactly what I said before. It is critical to understand the basics of investing for your own protection, if not for anything else.
No investment, except perhaps GIC and savings can guarantee the return (even those carry a certain amount of risk, which is minimal). Everything else is subject to 100% loss of money. The investment company should have a disclosure stating that past performance is not an indication of future returns. It is outright illegal to guarantee returns.
That is why, there are two forms of numbers - one that shows past performance, which is a fact and not a projection. Second, a projection can be done as an example to illustrate the effect of compounding.
You should revisit the investments that you believe have scammed you and see if they have guaranteed a return or if they have provided a hypothetical example that is loosely based on past performance. The former is illegal while the latter is not.
The third aspect are the fees. No amount of return can justify a ridiculous fee since returns cannot be guaranteed. Therefore, this is something the investor needs to be careful.
My first experience with investing was in February of 1998 (before internet existed for the commoner). I bought a book of mutual funds which had 100 "best" mutual funds listed. I read and read and read again, tried to understand the fee structure, and finally selected two mutual funds. Filled up a paper application, wrote a cheque for $100 and mailed it away. Today, I still hold these 2 mutual funds from that list. Although, the funds are front-loaded as a % of invested amount, my returns have been wonderful that I continue to invest in them.
The reason I stated the above is because due diligence is critical and is your own responsibility. The gullible will always be taken advantage.
I am assuming before these immigrants immigrate, they probably have some form of investing experience in their homeland, no? I am not sure why they should become gullible as soon as they land in Canada. Why can't they apply the same diligence across the board?
Posts: 2873
Location: Western Hemisphere
Posted on: 17-03-15 19:17:49
Location: Western Hemisphere
Posted on: 17-03-15 19:17:49
Quote:
Originally posted by Confused_Canadian
I don't think one can brush it away saying buyers beware. Consumers/clients should know many things agreed. But in this case regulators failed in allowing a product like this to be sold. What happend to KYC. You are comparing mutual funds , and past performance not a guarantee ..... etc. agreed, However I am fairly confident if a class action suit is filed there are very high chance of winning this case simply because they are misleading the client and selling it.
Financial institutions constantly mis sell the products without any consideration to the clients and when caught pay the fine and if enough pressure is put on the regulators they do their job otherwise they also want to sleep.
If the original poster was indeed scammed, then he/she has the option of taking up the issue with the regulators.
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Dimple2001
