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Old 08-01-2018, 04:59 PM   #5
Slava
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Join Date: Dec 2006
Location: Calgary, Alberta
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Quote:
Originally Posted by Cameron Swift View Post
Well, ####! We started one of these with CST right after our son was born. Had no idea until now that it was a bit dodgy. Just spent the last hour reading online articles and comments and I'm pretty mad. I think these guys just called out of the blue right after my son was born and I see that's a common practice for them.


So, from what I'm reading the cons with these guys, you're not entitled to the money they promised if you miss a payment, pull out early, child doesn't go to to university, doesn't do a 4 year course, switches courses or takes a year out prior to university. I'll have to dig out the paperwork later to see what the fine print says on all this. Additionally, even then, you don't get your full payment back as they keep a big chunk of it for maintenance fees.


At this stage in the game, my son is 9, so we're halfway through. We've paid $100 a month since he was born. Our son will almost certainly be going to university (very intelligent kid) so I guess it doesn't make sense for us to pull out now. Maybe a dumb question, but is it possible to have two RESPs for a child? Thinking it might make sense to open a more stable one with a bank just in case we get screwed with CST.
You can have more than one RESP, but there is a finite grant and thatís all you get (if that makes sense?). There are a few other advantages such as tax sheltered growth and things like that which you would still get though.

Later (when I am not on my phone) I will post an RESP primer to go through a bunch of the considerations and things like that.
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