I've been reading this forum since January. Decided tonight to register to ask a question.
Yesterday we had a Canadian Scholarship Trust rep come to our house and give us her spiel on her company's group RESP plans. She talked a mile a minute and I tried to listen intently, but there was a lot of info flying around. She said "all the information is in our prospectus, we email that to you the first week of enrollment...but no one ever reads that".
After an hour she left; we did not sign up. I told her we'd think about it.
I went to their website and read the prospectus. Some things she told us were off from what I read.
I googled the company; lots of unhappy group RESP plan holders sharing their experiences in the comments of blogs telling readers not to sign up for group RESP plans. Although there were a few happy clients.
Most saying it was hard to get the money...lots of red tape....not as much money as projected....penalties for changing your contributions.
This morning she called me and we had a 2 hour conversation on why I'm skeptical and why she believes CTS is a superior product. Her main point was your principle is protected. My main point was the inflexibility and hoops I have to jump through to get the most out of the plan.
I have a RESP set up with scotia bank right now for my DD3. I know it's not the best use of my money but I have no knowledge as how to do it any better. I now have a DS3months and I'd like to start doing this properly.
So, what's the deal? Is my gut right about group RESP's being a bad idea? Would I lose money in them? What are the fee comparisons between group and self directed? What is a good return on my money...she kept saying 5%, but the prospectus was only 3.5% the last 5 years. Should I stay with scotia or move it somewhere else?