What are you doing to save for kids education - RESP, anything else?

[MoneyGuy]

I don't get those who say university is cheap. My kids are done with post-secondary but a four-year degree could easily cost $10,000 a year and costs are rising by a good clip, so you need to save.

For anyone who cares, RESPs are a pain in the arse to set up for the financial institution. Some won't even do them, even if you have other large accounts. Tonnes of paperwork is required.

Those old-style plans are crap. Avoid them. Call Slava.

[Slava]

Originally Posted by V

Because I was young and stupid when I had my first kid. Saw a commercial from CST, called them and set it up. Seemed like a good idea at the time. The effort and money lost in cancelling just isn't worth it.

The kid's about 8 years from university, so there's no point now.

Oh I see, I didn't realise that you were in a program like that. I figured that you were just using some other vehicle in the RESP and that was the difference.

[CaptainCrunch]

Originally Posted by MoneyGuy

I don't get those who say university is cheap. My kids are done with post-secondary but a four-year degree could easily cost $10,000 and costs are rising by a good clip, so you need to save.

For anyone who cares, RESPs are a pain in the arse to set up for the financial institution. Some won't even do them, even if you have other large accounts. Tonnes of paperwork is required.

Those old-style plans are crap. Avoid them. Call Slava.

10 k over a 4 year degree isn't bad when you consider the payoff in terms of earning potential.

I guess to me its cheap, I paid double that in the States in the early 90's to get my degree.

[V]

I don't get those who say university is cheap. My kids are done with post-secondary but a four-year degree could easily cost $10,000 and costs are rising by a good clip, so you need to save.

You can't tell me that a kid can't make $2,500 over a summer.

When I was in Engineering it was about $20k, now it's about $32k. That's about a 3% annual increase, so not much more than inflation. The kids can get a summer job and pick up some work on the side, and that should pay for most of it. I got through with minimal student loans, and I'm sure my kids will be able to do the same. If they can't qualify then I'll loan them the money.

I just flat out don't believe in paying for my kids' most important investment of their lives. They need to learn to work for themselves, and I don't believe handing them the money is going to be conducive to that. I'd much rather buy a house with them and have them manage the property. That's probably where I'll spend most of my capital when they get out of university.

[Tyler]

A four year degree costs $10k? What school is that at??

[Wormius]

We are putting in $210/month per kid into this RBC Target 2020/2025 funds. They are doing reasonably well.

Interesting factoid we learned when we were moving some of our investments over to an advisor with RBC Dominion in BC - our RESPs couldn't be moved over because of some of the Alberta grants. Didn't pursue it too much though.

[Johnny199r]

I graduated with two degrees in 2008 with no debt. I was frugal as hell and worked hard. I won't pay for my kid's tuition. I might consider it if tuition was expensive as U.S schools, but it's not. I see no reason to pay for a kid's school. They can earn it.

[Street Pharmacist]

Originally Posted by Johnny199r

I graduated with two degrees in 2008 with no debt. I was frugal as hell and worked hard. I won't pay for my kid's tuition. I might consider it if tuition was expensive as U.S schools, but it's not. I see no reason to pay for a kid's school. They can earn it.

Then they'll have to live with you while going to school, AND make good money in the summer because tuition is increasing at a crazy rate

[Neeper]

We put in a $200/mo, all gift money they receive goes into our RESP portfolio. The portfolio is 100% self directed.

[troutman]

Qualifying expenses are more than just tuition - ex.

A qualifying expense is defined as an amount paid to help your child further his/her post-secondary education, and generally includes the cost of tuition, books and supplies, as well as living and transportation costs.

http://www.bmonesbittburns.com/IA/IA...9&VERSION=null

Saving $100K per child seems wise.

[Ozy_Flame]

I don't have kids. If I had one, I'd make them take out a student loan and learn the value of money - no help from Mom or Pop

[ah123]

We put in $2500 per year into an RESP, but I have looking at informal trust as an alternative. Probably need to talk to someone who understand this stuff better than I do.

[Slava]

Originally Posted by ah123

We put in $2500 per year into an RESP, but I have looking at informal trust as an alternative. Probably need to talk to someone who understand this stuff better than I do.

What is the intended benefit?

[MoneyGuy]

Originally Posted by Tyler

A four year degree costs $10k? What school is that at??

Sorry, I meant per year. Corrected.

[TurdFerguson]

209/month/kid in a self-directed fund through ATB. Money adds up quick so probably wont continue that investment level through university age..Need to hedge that bet that the kids attend University (and qualifying one) etc. Shift those contributions into something with more outgoing flexibility. Wanted to get the 20% gvt bump in early to get the most of that free working money.

[albertGQ]

I have my RESPs through Slava. The government grant, monthly contribution and the growth of the funds he selected has the RESPs at a decent size portfolio now.

[yyjvisitor]

Is a Lump Sum or Annual Contributions Better for an RESP?We decided to lump sum $30000 the first year and contribute $2500 yearly until we reach the maximal contribution amount.

[Slava]

Originally Posted by yyjvisitor

Is a Lump Sum or Annual Contributions Better for an RESP?We decided to lump sum $30000 the first year and contribute $2500 yearly until we reach the maximal contribution amount.

Assuming you don't have six kids, you won't receive all of the grants with that kind of lump sum. As far as I know (unless it's been changed) the maximum grant is $1000 per year, per child.

[schooner]

Originally Posted by MoneyGuy

I don't get those who say university is cheap. My kids are done with post-secondary but a four-year degree could easily cost $10,000 a year and costs are rising by a good clip, so you need to save.

For anyone who cares, RESPs are a pain in the arse to set up for the financial institution. Some won't even do them, even if you have other large accounts. Tonnes of paperwork is required.

Those old-style plans are crap. Avoid them. Call Slava.

I have not heard that before. I work for one of the big banks. Excluding the time I take to understand the client and set the investment strategy, I can complete the processing (account opening, investment purchase, grant and bond application) in 5 to 10 minutes. Everything is computerized and automated so maybe some of the smaller firms are still using a manual process?

[Slava]

Originally Posted by schooner

I have not heard that before. I work for one of the big banks. Excluding the time I take to understand the client and set the investment strategy, I can complete the processing (account opening, investment purchase, grant and bond application) in 5 to 10 minutes. Everything is computerized and automated so maybe some of the smaller firms are still using a manual process?

They're definitely more work than a 'normal' investment account. Also because of the limits involved and things like that the account values are generally smaller, so its more work for less money to be totally honest. It doesn't bother me because I have a different view and run my practice a little different, but there are definitely advisors and firms that flat out refuse to set them up.