Quote:
Originally Posted by kl83
There is an MER of 3.5% as part of the investment fund but no admin fees otherwise. The document was just a general overview brochure. More details available if required.
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Looks like my prediction about the size of the fees based on the feel of the document was 100% correct.
Example with numbers: My kid was born this year, if I put in $100 they "give" me a 15% educational bonus. The money will be in there for an average of 20 years (assumes university from 18-22). So on the $115, they are charging $115*0.035*20 = $80.50 in fees over 20 years. Once you offset the $15 bonus you're still paying $65.50 in fees on a $100 investment.
This excludes the government grant, because you get that no matter where you do an RESP.