Quote:
Originally Posted by Cowperson
Sorry Zukes, but that's not a good deal . . . . or at least, not comparable to what can happen with an RESP if the beneficiary doesn't use it, including the option to roll over income earned into your own RSP provided you have the contribution room.
An informal trust initially can be a good idea - perhaps even a good idea in terms of flexibility long term - but you'll be missing the government kicking in money for each of your contributions through to age 17 of the beneficiary.
An RESP is an attractive vehicle but, as one person noted, it's not a guarantee that your bright spark of a kid will actually go on to post-secondary.
The world still needs ditch diggers. 
Cowperson |
Agreed. The Canadian Scholarship Trust Fund is exactly the kind of RESP that is to be avoided. Fees are very high, costs to get out can be thousands of dollars and the commissions are very generous to the salesperson. Set up a self directed account to hold equity mutual funds or blue-chip stocks. There are three financial products that are so bad that I don't think anyone (well, virtually no one) should buy. These pooled RESPs are one of them. You'd be way better off contacting Slava and having him set it up right for you.
Actually, if you think about it, the OP is asking the wrong question. Sorta like asking, "Which RRSP is best." Think about it.