Quote:
Originally Posted by moon
Whats wrong with a pooled RESP that doesn't have fees and in which you can transfer your money to RRSP if your kid doesn't go to school? That seems to be your big complaint about them. I don't know much about the financial business but wouldn't so perhaps there is more negatives here than those two but they seem to be the bug complaints you have about them. Also, wouldn't Slava take a fee from me as well? I know Vic is a good guy but I imagine he would want to get paid for any work he did.
|
Oh, where do I start. Biggest problem for me is that if your child has a pooled RESP and doesn't go to PS school and the assets can't be transferred to another child, you lose all of the gains. Another is the investments are seriously conservative. Sorry, but for a very young child whose parents can tolerate some volatility, equities are the way to go. You'll see hugely better growth that way. Ask the salesman how much his commissions are; they're huge. I'm a financial planner and one of my clients finally read the small print and told me she wanted to get out of her RESP. I checked and told her the fees that would be required to close the plan - they were huge. My client was so pissed that she said she would close the plan, no matter what it cost. The cost was around $4,000, which as I recall was about 20% of the plan's value. Pooled plans are horrible.
Trust me, Vic's commissions are a very small amount compared to those of pooled RESPs. I don't even set up RESPs unless it's for an existing client. Some advisors won't set them up at all.
