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RESP - Scotiabank or TD ?

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spacyfoil

True Looser
Dec 30, 2004
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Finance help needed guys. Please and thanks.

I have been doing my research on RESP. Figured I'll go with Mutual Funds with one of the big banks. I hear scholarship funds are dangerous, too many charges.

Wondering if there are any vets with experience here. Which bank have you banked RESP with ? How was your experience.

Btw, I am an uncle now :)

Thanks for you help.
 
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oil&gas

Well-known member
Apr 16, 2002
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Don't have a RESP but I can't see why the choice of bank
warrant careful consideration. If you already have a RRSP account
why not just open the RESP account at the same institute. If you have
bank mutual funds in your mind TD may have the advantage over Scotiabank
in that TD offers a greater variety of funds. Each of the major banks has its
own strength. Personally I would be equally comfortable with keeping a
RESP account in National Bank, HSBC or any of the others.
 
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sct

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Sep 26, 2010
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I deal with TD Waterhouse, and I have no issues with them.

Like any investment account, what you want to look at are the fees and what investment instruments are available to you through that particular brokerage. And if you like something that is issued by that specific bank, you probably get a break on the fees.

Yes, and if it was me, I would stick with the big financial institutions.

I do not know what is involved with RESP's. But l know someone who when she got pregnant, and signed up for some "new mommy" offers, every salesman came out of the woodwork calling and mailing stuff to her non-stop trying to sell RESP's... I'm going to assume just because of that experience, there's probably big commissions (kickbacks) involved in this industry.

After all, once they got your money, they're almost guaranteed to have it to do what they want with until the benificiary is 18 years old.
 
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d9139ont

Active member
Oct 31, 2003
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Forget the banks

Work with an independent advisor who sells mutual funds. They can set up RESPs too.
 
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theycallmebruce

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Nov 17, 2002
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Stick with the banks and stay away from those people who work in Shopping malls trying to sell you Education plans. They are very restrictive and you pay a shit load when you want to switch to another financial institution.

First of all, you will need to apply for a SIN number for the before you can open the RESP. Once you hae that, go to your bank and they will do the rest. For every $1 you put in, the government will give you 20 cents up to a maximum of $500 per year. For example, if you contribute $2,500, you will get a $500 grant. The grants are available up to the year the child turns 17. You can invest in anything you want and choose what the grant is invested in too. I recommend that you go with a growth mutual that is well diversified. A good one would be a Dividend Fund, for example, RBC has one called the RBC Canadian Dividend fund and it's averaged about 11% since its inception ( 1997 I think ). There is more stuff, but i will end it here unless someone has any questions.
 
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duang

Active member
Apr 17, 2007
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theycallmebruce said:
Stick with the banks and stay away from those people who work in Shopping malls trying to sell you Education plans. They are very restrictive and you pay a shit load when you want to switch to another financial institution.

First of all, you will need to apply for a SIN number for the before you can open the RESP. Once you hae that, go to your bank and they will do the rest. For every $1 you put in, the government will give you 20 cents up to a maximum of $500 per year. For example, if you contribute $2,500, you will get a $500 grant. The grants are available up to the year the child turns 17. You can invest in anything you want and choose what the grant is invested in too. I recommend that you go with a growth mutual that is well diversified. A good one would be a Dividend Fund, for example, RBC has one called the RBC Canadian Dividend fund and it's averaged about 11% since its inception ( 1997 I think ). There is more stuff, but i will end it here unless someone has any questions.
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Stay away from the scholarship trust people: you're locked in with high fees and they invest in only bonds so the outlook isn't pretty.

Do your RESP where you do your regular investing (I.e. With bank or advisor). $2500 per year contribution limit but carries forward. 20% grant on contributions and if you have low income you might qualify for savings bonds (I.e. Extra free money).

Good luck. D.
 
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wingedfaith

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May 26, 2011
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Hi! I actually work for one of the above mentioned banks. Honestly, it makes no difference where you invest. Most of the large institution have similar mutual funds and investments. My recommendation for you is to visit both banks and speak to advisors from both. Make your decision based on the advisor themselves. I always try to give my clients quality information and recommend investment options depending on their investment preferences.
 
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jessicahot1

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Oct 30, 2010
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Horrible decision to invest with a bank they invest in stocks and bonds and charge huge MER fees. For fucks sake why would you not go with a group plan!!!
 
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duang

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Apr 17, 2007
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jessicahot1 said:
Horrible decision to invest with a bank they invest in stocks and bonds and charge huge MER fees. For fucks sake why would you not go with a group plan!!!
Click to expand...
Either an employee of a group plan or someone with no clue. Either way this is an inane comment. Educate yourself or exercise some ethics.

D.
 
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duang

Active member
Apr 17, 2007
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oil&gas said:
What does a group plan invest in if not stocks and bonds?
Click to expand...
Usually just bonds (which isn't a great place to be stuck going forward the next 5-10 years). Huge hidden fees to cover the egregrious commissions only make it worse.

D.
 
S

sleazure

Active member
Aug 30, 2001
4,099
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duang said:
Either an employee of a group plan or someone with no clue. Either way this is an inane comment. Educate yourself or exercise some ethics.

D.
Click to expand...
Hehe, better be careful, this might turn out to be your new favorite SP.
 
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Timbit

Tasty and Roundish
Jan 7, 2002
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In Ecstacy
jessicahot1 said:
Horrible decision to invest with a bank they invest in stocks and bonds and charge huge MER fees. For fucks sake why would you not go with a group plan!!!
Click to expand...
Ummm, no such thing as a "Group RESP" - they are individually registered and you have to buy them for an individual. Maybe you mistook the original poster's question and thought he was talking about opening an RSP, in which case your comment takes on an entirely different connotation. But then again, Group RSPs typically charge a whole lot to be managed too (only they hide the fees really, really well).

So maybe you don't know what you're talking about...

Timbit
 
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Timbit

Tasty and Roundish
Jan 7, 2002
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In Ecstacy
duang said:
Usually just bonds (which isn't a great place to be stuck going forward the next 5-10 years). Huge hidden fees to cover the egregrious commissions only make it worse.

D.
Click to expand...
Not necessarily - most Group RSPs have an investment process whereby the participant of the plan has an ability to choose from any number of different investment options - typically from Conservative to Moderate to Growth to Aggressive Growth. Even more likely, the plan will have a choice of mutual funds where you can choose from a selection of up to 15 or 20 different funds.

Timbit
 
S

spacyfoil

True Looser
Dec 30, 2004
683
4
18
Canuckland
Everyone, Thanks so much for your responses. Great help.

So far I have been to TD, Scotia and CIBC.

Scotia guy seemed to know his stuff, but then again each branch is different. CIBC after two visits could Not find me free advisors. Wait was for hours.
I have questions for few people above, I'll break it down.
 
S

spacyfoil

True Looser
Dec 30, 2004
683
4
18
Canuckland
theycallmebruce said:
Stick with the banks and stay away from those people who work in Shopping malls trying to sell you Education plans...
Click to expand...
Thanks, doing that already. I noticed that you mentioned 11%, that is the biggest increase I have heard about.

I pushed both TD and Scotia guys to show me figures. TD guy showed me about 8% for Med-High risk Mutual Funds.

Scotia guy said about 6% but showed me there was a charge of 1.9%. Said TD charges but don't tell you about it. I am confused.
 
S

spacyfoil

True Looser
Dec 30, 2004
683
4
18
Canuckland
oil&gas said:
Don't have a RESP but I can't see why the choice of bank
warrant careful consideration. If you already have a RRSP account
why not just open the RESP account at the same institute. If you have
bank mutual funds in your mind TD may have the advantage over Scotiabank
in that TD offers a greater variety of funds. Each of the major banks has its
own strength. Personally I would be equally comfortable with keeping a
RESP account in National Bank, HSBC or any of the others.
Click to expand...
Why choice of bank ? You say it yourself " TD may have the advantage over Scotiabank
in that TD offers a greater variety of funds. "
 
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duang

Active member
Apr 17, 2007
1,121
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36
Timbit said:
Not necessarily - most Group RSPs have an investment process whereby the participant of the plan has an ability to choose from any number of different investment options - typically from Conservative to Moderate to Growth to Aggressive Growth. Even more likely, the plan will have a choice of mutual funds where you can choose from a selection of up to 15 or 20 different funds.

Timbit
Click to expand...
I was talking about group RESPs. This is one of the terms used for the expensive Scholarship Trust or Pooled RESPs that invests only in bonds and pay very high commissions to the sales people.

D.
 
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