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Investment Tips for RESPs

When meeting with an RESP representative, make sure you know what you are getting. Don't be afraid to ask questions.

Here are some pointers on things to consider and understand about RESPs:



  • Know what will happen if you miss a payment, terminate your plan, or wish to transfer an RESP between plans or beneficiaries.

  • Read the Prospectus - if you don't understand it, don't invest until you do! If you change your mind after starting a plan, you do have up to 60 days to cancel your account at no cost to you.

  • Understand how the salespeople are paid, and where those payments come from.

  • Know what fees are involved, and when you will pay them.

  • Don't make investments based only on verbal representation - get it in writing.

  • Check the registration and qualification of your investment representative.

  • Don't be a victim to aggressive marketing - do your research.

  • Review the rules for the types of post-secondary education that are eligible under the RESP that you choose.

  • How much work is being done to earn the management fees? If your money is being invested only in simple, low risk instruments like GICs and T-Bills, the management fees should be relatively low.

    (The above is based on information provided by the Ontario Securities Commission)

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