Some of the Pressing Issues About RESP in Canada Many parents have been using the RESP Group plans since the Canadian government introduced it. The program is under the regulation of dealers such as the Higher Education Funds. The bodies represent the parents who are members of the RESP Group plans. The program has been doing well, until recently when many parents started complaining about the program. There are those parents who are complaining about barriers when you want to stop contributing to the program. Another problem is that parent is getting a small amount out of their contribution as a result of the reductions that are being made.
Smart Ideas: Education Revisited
While parents can transfer their savings to other platforms, the program will charge a lot to do the operation. All charges involved will be deducted from your savings and you are also expected to pay an enrollment fee. Many people have complained about the high rate of interest, lack of transparency in salespeople and the charges involved.
Getting Creative With Education Advice
Parents are still having problems despite the changes that have been made. A government agency in Ottawa reported that they are receiving many complaints from parents about RESP dealers. These problems are seen because the dealers make the decisions on behalf of the parents. The dealers also determine your contribution schedule. When you miss any contribution, you will have to pay extra charges and your account can also be terminated. The fees you are supposed to pay include trustee, enrollment and administration fees. With the program, you will be limited in many ways. You will be limited in the amount you can withdraw, and when you can do the withdrawal. A relief to most Canadian parents is that mutual fund dealers and banks have come into a collaboration to provide parents with self-directed plans. You can make the decision on the amount of money you can contribute and also the type of investment you want. The main advantage of the self-directed plan is that you can get your contribution at any given time. While the government can still give a grant to your child, this money won’t go to their school fees. Many mutual fund dealers have a certain fee but the fee keeps on reducing and after seven years, you are not charged anything. This is a benefit as you will save for your child’s education with no charges involved. RESP in Canada was formed to help parents save for the education of their children. There are many members of this program who have received benefits from it. However, with the recent issue with the dealers regulating the program, many parents will be forced to look for alternative ways of managing their savings.