Quote:
Originally Posted by bizaro86
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.
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Not quite how this works. The way this investment works is that you need to contribute a definite amount each year until age 17 to qualify for the bonus.
If you contribute $100 per year, MER would be $3.50 and they would provide you a $15 bonus. And this would be the same each and every year.
This would not be a good plan for someone that isn't committed to doing this until age 17. If your planning to stop or do sporadic contributions, this would be horrible.