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Originally Posted by fotze
The $100 hardly seems worth it when you consider everyones time filling out all the annoying forms.
I don't know what to do if the kids don't go to school. My kiddies have a big inheritance in their savings that I would rather they do not know about until they are no longer ######ed at around age 25.
Does the school have to meet some minimal standards? Can it only be spent on tuition? Living expenses? i.e. can they go to clown college/DeVry and the money can be spent on an apartment near clown college?
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Well RESPs are a program where there are no strings attached in the sense that you don't have to provide receipts or anything like that. So if your child is enrolled and provides proof of enrolment you don't have to take out the same amount for tuition and costs; if the tuition is say $5000 and you just withdraw $15,000 that's your decision.
Its also important to note that the account is really the person opening the account to control. So while I have an RESP for the kids, if my kids are 15-16 years old, been to jail three times and failing out of high school, aside from dealing with a cranky old man who would like to knock some sense into them, they won't be collecting a dime of that RESP! There are options here.
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Originally Posted by Ruttiger
Was talking with someone the other day and she mentioned an alternative to an RESP was a form of life insurance (can't remember which type exactly) as it offered greater flexibility, etc. Can you shed any light on this?
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Well an insurance policy
could be used for these types of things and would almost surely be a whole life plan that builds up a cash value. There is more flexibility in the sense that you could withdraw funds for purposes other than just education. You wouldn't get the government grants here though, and that along with the growth on the grants can be significant over the years.
There are benefits to these other ideas though, as long as you're willing to fund them and understand in advance what you're getting into.