There is no advantage of individual plans over a family plan (other than mental accounting). So the cost savings alone give the family RESP the advantage.
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There is no advantage of individual plans over a family plan (other than mental accounting). So the cost savings alone give the family RESP the advantage.
Well, just to be clear, to me the mental accounting is a drawback for people. Not that we need to do a deep dive here, but money is fungible. So while a lot of people like to think of it in terms of the separate accounts, it’s not really a factor and not optimal.
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From a recipient’s view point the mental accounting can be a concern indeed. My high school aged grandson has been concerned that his older sibling will suck all the funds out of the family resp and leave him with nothing. He has been assured that won’t happen in any event he has opted to enlist in the military and been accepted.
Well, just to be clear, to me the mental accounting is a drawback for people. Not that we need to do a deep dive here, but money is fungible. So while a lot of people like to think of it in terms of the separate accounts, it’s not really a factor and not optimal.
Yes, exactly. I wasn't clear in my post: I wasn't suggesting that mental accounting is an actual benefit, just one that people think is a benefit.
When, in fact, it is actually a detriment.
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My kids never get tax receipts for the the withdrawals to add to their income. Me neither. Whats up with that?
We did our RESP through RBC and I’m pretty sure my son got his receipt while we were sitting in the office doing the withdrawal each year.
Just as an aside, the RESP worked out really great for him. He came out with an undergrad degree and a good chunk of money in the bank. He worked summers but was able to fully concentrate on school during the term.
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in any event he has opted to enlist in the military and been accepted.
