Anybody got RESP for their kids? Get a call yesterday and wondering if I start one.

Avez-vous des REEE pour vos enfants?  Si oui, Avec quoi et pourquoi? Sinon pourquoi?

I've had one for my son since he was born. I pay like 30 bucks a month or something into it..It will come in handy for sure...

I have a RESP for my kids.

Tax-Free growth, and 20% Goverment grants (up to $400 per child)
makes it an easy choice.
[ NB. You don't get a tax refund like RRSPs, but your money grows tax-free as long as it's in the plan]

Go with a no-fee program offered through banks.

You might not have as many investments options, (...how many do you really need...? ),
but you'll save yourself $100-$200/yr  that an investment broker would charge.

Get a "Family" plan which includes all your kids, not an individual plan per child.

For instance if you have 3 kids (like) me, I can put $2000 per child per year, and get $1200 in grants
( 20% of $2000 for each child ).

If only 2 of my 3 kids go to higher education, I can still use ALL the money in the plan,
including the contributions for the 3rd child.

The only downside is if no kids go on to post secondary education by age 25,
your must close the plan, return ALL the grants and pay tax on the money received,
unless you have contribution room in your RRSP to roll it over,
but then you still need to rerturn ALL of the 20% grants and you get no deduction for the RRSP contributions.

Still, my wife and I though it was a good plan, so we signed-up with our bank (CIBC)
and have a family plan for our 3 boys.

But a** with any financial decision, do your resesarch first.
Don't let some salesman coerce you with a sales pitch.


Steph

Yup. I have one for both kids. I put in 100$ a month. They will end up with 32000$ each when graduating high school. Makes for a nice little nest egg for future studies and such.

Quoted Text

I can put $2000 per child per year,  

Actually last year they increased the contribution maximum to $2500. per child per year. At a 20% government contribution, you are getting a free $500. per child maximum.  If you can find the money, you absolutely must contribute. It applies to many different post secondary type schools. University, college, trade school etc. Dont go with those companies that leave pamplets in the doctors office and give out balloons at the mall. Stick with your bank, that you you wont get burned with the fine print.

I have contributed every year for both kids. It will make things a lot easier in the future for sure. I am on the old side to have an almost 12 year old and a 2 1/2 year old. The younger one's tuition will probably be my retirement savings otherwise.

Do it.  Tuition is only ever going up, and it makes sense now while the little ones are little.  As well, my advice is to do this:

Quoted from Steph

Get a "Family" plan which includes all your kids, not an individual plan per child.

Then if you get one kid wanting to be a doctor and one kid wanting a college diploma, you're not stuck with 2 separate equal plans for two very unequal education/tuition paths.

Daniel

We set one up just after our daughter was born, and so far we've managed to max it out every year ($2500 from us plus $500 from the government).  We've also gotten contributions from family for Christmas/birthdays.  The only problem there is that the contributions are per calendar year, so Christmas gifts can be a tight squeeze to get in before the cutoff.  Given how much it cost my wife and I to go through University, and how tuition more than doubled between when we started and finished, my kid's going to need all the help she can get paying for school in about 16 years.