# Children's $$



## Kim (Jan 10, 2011)

Soon after each of my 2 children were born I got them bank accounts. They have a few thousand each saved up ( one is 2 yrs and the other is 6 yrs ). 

Now other than a good decision 4 yrs ago to lock in a couple grand at a high interest rate - the rest of their money sits there doing nothing. 

Everytime I deposit more $$ into them I look at the balance and think I should be doing something with it ....but what? Any suggestions.


----------



## DavidJD (Sep 27, 2009)

Please tell me that these RESP accounts - not mere bank accounts?

If they are not - go out and get one immediately. You need a SIN for each child. Transfer the money into the new account and then come back and repost your question.


----------



## Berubeland (Sep 6, 2009)

Agree with DJ on this and if you don't know what a RESP is, you can save yourself a lot of trouble by buying Four Pillar's book at his website www.moneysmartsblog.com 

I opened one for my son and it's doing very well. He's three and has over $10,000 in there now for his education.


----------



## DavidJD (Sep 27, 2009)

I have two kids under 2 1/2 (don't do that at home) and put in $2,500 each the year they were born (a few months later when their SIN cards came in) and the federal government added 20% or $1,000 to my contributions. So, $6,000 and as of this afternoon that is at $10,900.

Once you read up on the RESPs (quick process) begin the discussion on what should go in there right here.


----------



## the-royal-mail (Dec 11, 2009)

Well done on starting savings accounts for your children.

However, the message should be that THEY need to fund them and watch them grow. By funding the accounts you could be sending the wrong message, that someone else will always be there to fund their accounts. Not good.

That said, the RESP is a good idea. The gov't has some helpful websites about this. Here is one of the key portals.

http://www.canlearn.ca/eng/index.shtml

But more importantly, how are YOUR finances? Is your family ready to weather a financial crisis with a good emergency fund structure?


----------



## Plugging Along (Jan 3, 2011)

I agree, get the money into an RESP at least. You didn't say their ages, so that will factor into what you should be invested in.


----------



## Karen (Jul 24, 2010)

> ...However, the message should be that THEY need to fund them and watch them grow. By funding the accounts you could be sending the wrong message, that someone else will always be there to fund their accounts...


A two-year-old and a six-year-old should be funding their own RESPs??? How would you suggest they should do that?


----------



## Addy (Mar 12, 2010)

I'm pretty sure TRM meant their savings accounts they should be funding, not the RESP's.


----------



## Sampson (Apr 3, 2009)

Karen said:


> A two-year-old and a six-year-old should be funding their own RESPs??? How would you suggest they should do that?


Gifts? Or are those implied to go to the parent? 

I personally don't know what to do with money people give to my kid. He just turned 2 months old and he has more money than I did after I graduated University. Little spoiled brat 

I'm starting to think that what makes mom and pop happy, means we treat our son better... so off to book a flight somewhere sunny.

Otherwise, I may just annex it, invest it, and give him only the principle back.


----------



## Karen (Jul 24, 2010)

I apologize then - I misunderstood.


----------



## the-royal-mail (Dec 11, 2009)

Correct. My mom got me started on a savings account when I was about 7 years old, but she didn't fund it -- I did. Any allowance or earned pay I made from doing odd jobs around the house, the idea was that if the money was earned, I should be putting it in the bank rather than spending all of it. A dollar or two here and there, it added up. That taught me the value of money and the product of hard work at a young age.

I think the whole RESP thing is a product of good marketing by banks. I just hope the parents are financially secure BEFORE starting this type of plan. How many threads have we seen where the parents set up RESPs but don't have any money saved to protect the family in case of adversity?

Anyway, I don't mean to assume or suggest this is what the OP is doing. I would appreciate some further clarification as to their own finances before we go too far down the RESP road.


----------



## Berubeland (Sep 6, 2009)

Dear Royal, 

There are not too many investments that pay 20% in free government money. 

And the sooner you start the better off you are.


----------



## the-royal-mail (Dec 11, 2009)

Could be - but that won't do a thing to help the family if one or both parents ends up disabled, unemployed for a long time etc etc. Just want to make sure the family's base finances are in tip-top shape first.


----------



## marina628 (Dec 14, 2010)

Sampson said:


> Gifts? Or are those implied to go to the parent?
> 
> I personally don't know what to do with money people give to my kid. He just turned 2 months old and he has more money than I did after I graduated University. Little spoiled brat
> 
> ...


My 18 year old has $67,000 in the bank between savings we did for her since birth and her RESP we have been buying.I also saved every bit of money she was given for special occasions.She thinks she has $15,000 for school(RESP and about $5000 in savings) I deposited $3000 in bank account so she could qualify for high interest on her bank acct and she thinks she is super rich.LOL
We decided a while ago we won't be letting her know how much cash is for her ,She works full Time saving for school ,rent etc and really is proud of her.

I think when my 8 year old is ready to go to school she will have easy $100,000+ Compounded interest really adds up.My biggest fear is the youngest won't go to school and we will get hit with the big taxes if we collapse the fund. How long do the kids have to decide on school? Can they take a couple years off then go to school?
My daughter just turned 18 in November but will go to school again in September before she turns 19 .Assuming that is why no communication on the RESP and a why is she not in school letter!


----------



## Plugging Along (Jan 3, 2011)

Sampson said:


> Gifts? Or are those implied to go to the parent?
> 
> I personally don't know what to do with money people give to my kid. He just turned 2 months old and he has more money than I did after I graduated University. Little spoiled brat
> 
> ...


We were in the same boat. Our kids are pretty fortunate, and we have very generous family, and fortunately pratical. Instead of lots of presents, they do cash too. We the amounts in there own savings accounts. 

Our 5 year old has had allowance for just over a year, and we have special bank, that has Save-Spend-Give. She knows that her save is long term only, and puts the 'largest' amount in. We're going to be taking her to the bank soon to open her own account so she can experience it for herself. We do the same for smaller amounts of cash now too.


----------



## Sherlock (Apr 18, 2010)

Don't save for your kids, my parents never saved a penny for me, I funded my university education entirely through osap and working during the summers and I turned out fine. It made me take my education more seriously than the kids whose parents paid for their education.

You will feel pretty stupid if you bust your *** to fill up their RESP and then they don't take university seriously and just party and flunk out, or if they decide to stop speaking to you.


----------



## Sampson (Apr 3, 2009)

Sherlock said:


> Don't save for your kids, my parents never saved a penny for me, I funded my university education entirely through osap and working during the summers and I turned out fine. It made me take my education more seriously than the kids whose parents paid for their education.


I don't believe much in these generalizations.

My parents paid for the majority of my education, I took it very seriously. I know many who fund their own eduction and still don't take it seriously.

I understand many people are suggesting that spoiling a child and not teaching them the value of proper work ethic and giving a sense of entitlement can result in poor choices and behaviors in the future. However, this isn't a rule, and I doubt that this pattern is even true.

It is one thing to give money without strings attached to your children, it is another to give them a 'head-start' AND teach them to be fiscally responsible. Besides, if I didn't save money for my kid, what the heck would I do with it, give all those monies to charity?


----------



## Kim (Jan 10, 2011)

Thank you all for the thoughts on this.

I went and read the RESP on canlearn.ca - I remember this coming up at the bank when I opened their accounts. What concerned me is if the funds did not get used, for whatever reason ( think of reason here ). The way I understand it each RESP provider has their own set of rules to play by. Some will allow a grace period while the child travels the world for a year, some longer, some not. 

But what if child #1 or #2 decides NOT to attend post secondary education at all, then the RESP provider returns your premium and the grants get returned to GOV Canada. Which is fair. 

But then perhaps I should have had that money working somewhere else, a place the child gets to keep the earnings no matter what they decide......do you see what I mean? I am assuming your saying the benefits outweigh the "what ifs".

On Canlearn.ca it also mentioned asking your RESP provider what "investment choices" they offered, what does that refer to?

I am trying to teach my 7 yr old about money but I hate to tell him exactly how much he has in the bank as like any 7 yr old he starts telling all his team mates in the change room at hockey. Or if I tell him how much his hockey costs / year he tells all his friends that too. He has gone with me to the bank to deposit saved coins from his piggy bank. 

My children's current source of income are their Aunt and Grandmother!

Our finances are good - currently debt free.


----------



## Sampson (Apr 3, 2009)

Kim said:


> But then perhaps I should have had that money working somewhere else, a place the child gets to keep the earnings no matter what they decide......


You do get to keep the earnings on those monies, regardless of whether they go to school or not. Your original investment does not get taxed twice.

The only 'downside' is that you will be paying tax on those earnings. Whether you pay tax on the lump then, or whether you pay tax on the earnings in a non-registered account, you still pay tax. Which is better? can only be determined by your current and future income and the tax paid on the 'growth'.


----------



## Plugging Along (Jan 3, 2011)

Also, you can roll the earnings into your rrsp if you have the contribution or use it to further your education if you choose. 

Another option is an "In Trust" account for the kids, however there is no government grant.


----------



## the-royal-mail (Dec 11, 2009)

OP: thanks for answering my question. Now I have another one. How are your TFSAs for you and your husband? Are they maxed out? If not, could you perhaps use these to store the kids' money, and then invest it in the usual manner? They would be against your name, but that may or may not be a problem depending on whether or not you max them out every year? I'm thinking the kids will never have anywhere near the max $5K per year. This way at least you could invest the money and make it grow and that growth would be tax free. Would this work for you?


----------



## Sampson (Apr 3, 2009)

the-royal-mail said:


> How are your TFSAs for you and your husband? Are they maxed out? If not, could you perhaps use these to store the kids' money, and then invest it in the usual manner?


The RESP may still be the better option, since like the TFSA, all growth is tax sheltered, plus there are significant free monies from the government (upwards to 30%) depending on the OP's income.

I personally wouldn't worry that my kid doesn't go to school. The types of qualifying education are so broad, and post-secondary education so common in Canada, it is almost a sure bet.

Remember also that RESPs, like TFSAs are your money and held in your name, not your child's. Only the government grant money is there's exclusively. When your kids go to school, and you decide you want them to learn responsibilities and choose not to fully fund their education, you can take back your original investment completely tax free.


----------



## the-royal-mail (Dec 11, 2009)

Sampson said:


> The RESP may still be the better option, since like the TFSA, all growth is tax sheltered, plus there are significant free monies from the government (upwards to 30%) depending on the OP's income.
> 
> I personally wouldn't worry that my kid doesn't go to school. The types of qualifying education are so broad, and post-secondary education so common in Canada, it is almost a sure bet.
> 
> Remember also that RESPs, like TFSAs are your money and held in your name, not your child's. Only the government grant money is there's exclusively. When your kids go to school, and you decide you want them to learn responsibilities and choose not to fully fund their education, you can take back your original investment completely tax free.



Great post!


----------



## Plugging Along (Jan 3, 2011)

Sampson said:


> The RESP may still be the better option, since like the TFSA, all growth is tax sheltered, plus there are significant free monies from the government (upwards to 30%) depending on the OP's income.
> 
> I personally wouldn't worry that my kid doesn't go to school. The types of qualifying education are so broad, and post-secondary education so common in Canada, it is almost a sure bet.
> 
> Remember also that RESPs, like TFSAs are your money and held in your name, not your child's. Only the government grant money is there's exclusively. When your kids go to school, and you decide you want them to learn responsibilities and choose not to fully fund their education, you can take back your original investment completely tax free.


Totally Agree!


----------



## SW20 MR2 (Dec 18, 2010)

My son was given approximately $6k when he was born, mostly from his grandpa. I opened an in-trust trading account and put the money into a couch potato portfolio. He gets a little more money each year, and as he gets more money, I'll probably just start buying some long-term positions in dividend paying stocks. 

I'll be opening up a regular bank account to hold any small $ gifts that he gets.


----------



## Kim (Jan 10, 2011)

I'll be comparing between ATB and TD for best suited RESP in the coming days and let you know how it goes.


----------



## sprocket1200 (Aug 21, 2009)

be very careful people. while i agree that resp is a great vehicle, we are invested in it primarily for the tax free growth and grants. our twins are nearly three but I am already investigating the best ways to get this money out in the future. crazy?? not so...

the current rules state that yes, you do get your original investment back tax free (you already paid tax on it), but if the account is not fully used and is closed, any funds in it must be repaid. the original investment bears no tax, but all its growth does. so if the account stands at $100,000 of growth and is taxed that year there is a huge tax implication (unless you have RRSP room to hide it, limited to $50,000). on top of that there is a 20% penalty on the money (I am not sure if it includes original investment and grants in the calculations). this is a very bad return...

i agree with others, funding the RESP before funding your emergency funds, RRSP, TFSA, is a very bad idea... we are parents, not philanthropists, it is good for your kids to work for the things they have in life.


----------



## Addy (Mar 12, 2010)

sprocket1200 said:


> the current rules state that yes, you do get your original investment back tax free (you already paid tax on it), but if the account is not fully used and is closed, any funds in it must be repaid. the original investment bears no tax, but all its growth does. so if the account stands at $100,000 of growth and is taxed that year there is a huge tax implication (unless you have RRSP room to hide it, limited to $50,000). on top of that there is a 20% penalty on the money (I am not sure if it includes original investment and grants in the calculations). this is a very bad return...


Who's rules are these? The Federal Gov't or did you invest in an RESP via a company? 

I'm asking because I find most companies rip people off when they try to use their RESP because the rules can be simply b.s. ie only 500 students can cash in their RESP a year from our company, or you only can get your RESP money if you take Business Courses (not sciences), etc etc.... pure crap!


----------



## DavidJD (Sep 27, 2009)

Even if your kids are not academic there a many alternatives that are acceptable - and related to some type of education. If they cannot find ANYTHING in the decade plus allowed to spend it - they have other problems.

RESP is still the best.


----------



## Plugging Along (Jan 3, 2011)

sprocket1200 said:


> be very careful people. while i agree that resp is a great vehicle, we are invested in it primarily for the tax free growth and grants. our twins are nearly three but I am already investigating the best ways to get this money out in the future. crazy?? not so...
> 
> the current rules state that yes, you do get your original investment back tax free (you already paid tax on it), but if the account is not fully used and is closed, any funds in it must be repaid. the original investment bears no tax, but all its growth does. so if the account stands at $100,000 of growth and is taxed that year there is a huge tax implication (unless you have RRSP room to hide it, limited to $50,000). on top of that there is a 20% penalty on the money (I am not sure if it includes original investment and grants in the calculations). this is a very bad return...
> 
> ...


----------



## Plugging Along (Jan 3, 2011)

Addy said:


> Who's rules are these? The Federal Gov't or did you invest in an RESP via a company?
> 
> I'm asking because I find most companies rip people off when they try to use their RESP because the rules can be simply b.s. ie only 500 students can cash in their RESP a year from our company, or you only can get your RESP money if you take Business Courses (not sciences), etc etc.... pure crap!




The rules of the taxation is by the Federal government. In terms of what you are are allowed to use the funds for, are quite liberal, UNLESS you are in one of the those pooled/heritage funds. If your RESP is in a bank or investment company, then you just need to show the restration, and take the money out. 

They get to make up a whole bunch of rules that you are bound by because you signed a contract. They are worse things to get into and are the most restrictive. DO NOT EVER EVER EVER go into a pooled fund.


----------



## sprocket1200 (Aug 21, 2009)

OMG people, these are Canadian federal rules. I had to tell my banker about the 20% penalty too!!!

from this page: http://www.canlearn.ca:80/eng/saving/resp/faq.shtml 
and I quote: "12. How is an RESP taxed if a child decides not to continue education after high school?

You will not be taxed on the amount you contributed to the RESP, but you will have to pay taxes on the money that you earned in your plan as interest. This money is called “accumulated income”. It will be taxed at your regular income tax level, plus an additional 20 percent."

the funny thing is they say taxed at regular income. um, duh, you will be pushed into the highest tax bracket when you have to take it all out, but yes, that will be the regular income....

it is too funny that people do this stuff before they take care of themselves and before they read the rules. kinda like signing a contract for real estate that is not even built. it is just too easy to make money off these kinds of people!!


----------



## Plugging Along (Jan 3, 2011)

Thanks for the information on the 20% penalty. In my situation, it doesn't change my decision. For us, I think there is a much higher probability that they will attend some sort of post secondary than not. You also have the option of transferring the gains into your own rrsp. I imagine we wouldn't have triple the gains based on the investments we're in.


----------



## sprocket1200 (Aug 21, 2009)

there are limits to how much you can transfer to the RRSP, after that the penalties will apply.


----------



## Kim (Jan 10, 2011)

Just got off the phone with ATB ( of which I was on hold for 15 minutes ). I was inquiring about the RESPs. Turns out I have one for my son! I wondered what that statement was I was receiving ( dumb dumb dumb - smack me in the head ). 

After I opened his bank acct in 2006 I put $500 in an RESP on a 5 yr term. I have received $100 form the gov and they have made a whopping $4 in interest over 5 years! She couldn't tell me what the $500 had earned - we have to wait till it matures in June to find out...hmmmm...ok? I asked her all the questions that it says to ask on the www.canlearn.ca site and she kept telling me that the answers were on the Canada Revenue site....??? She had answers for some but as for fees and penalties she said it was not made by institutions but by the gov. 

She also told me she had RESPs for her kids but doesn't use a bank - just goes through her investement person who comes to her house and helps her with all her finances......so if the lady that works at the bank doesn't use the bank then what does that tell me? She also mentioned that the banks are busy right now and not to worry about this until March! hehe too funny.

In summary ATB does not have any fees for putting $ in or taking it out according to her ( but whats that worth in 10 years when I am trying to get it out and they slap me with a penalty) and that all the child has to do is come into the bank and show a letter of acceptance into a learning facility that is recognized by the Canadian gov and they will gladly transfer $ into the child's ( grown up now of course ) account. Any amt that we want, although she mentioned you will be getting taxed on it at the beneficiary's tax bracket. Which makes me ask if I get this right... Putting my today's earned $$ into an RESP will save it from being taxed until my child takes it out and they will get taxed at a lower rate? 

Ok wrote this in a hurry before I forgot it all and now I have an appt I am late for - I'll check back in tonight.


----------



## Sampson (Apr 3, 2009)

Kim said:


> Putting my today's earned $$ into an RESP will save it from being taxed until my child takes it out and they will get taxed at a lower rate?


Correct.

With all the tax credits students get, the money shouldn't be taxed at all.

The story of your banker is completely different AND funny. Someone working in the industry, selling products to others STILL does not manage their own investments...

Bizarre.


----------



## Bupp (Nov 13, 2009)

Not sure if it has been pointed out yet, but the money does not have to be used for university/college. There are tons of non-traditional education programs that qualify (art/music/theatre/etc.)

As well the resp account can stay open for 36 years. So even if they don't follow a traditional path out of high school they can still take advantage of the funds later on in life.

I'd also recommend going with a "family plan" where the funds can be withdrawn by any of your children. That way if one kid doesn't go to school or ends up getting a full scholarship the money is available to help the other kid.


----------



## sprocket1200 (Aug 21, 2009)

four pillars, care to correct the 'open for 36 years' timeline mentioned above...


----------



## the-royal-mail (Dec 11, 2009)

Four Pillars said:


> You should buy my book.
> 
> http://www.moneysmartsblog.com/resp-book-education-savings-plans-canadians/


Are commercial posts permitted?


----------



## HaroldCrump (Jun 10, 2009)

I think we can allow Four Pillars one promotional plug


----------



## Four Pillars (Apr 5, 2009)

the-royal-mail said:


> Are commercial posts permitted?


No they aren't - which is why I deleted my post.

I should probably just ignore them - but I get a bit annoyed at times with questions that are easily answerable with a bit of Googling.


----------



## Four Pillars (Apr 5, 2009)

sprocket1200 said:


> four pillars, care to correct the 'open for 36 years' timeline mentioned above...


It's not wrong. I think it's ok to say either 35 or 36 years. In fact I said the rule is 36 years in my RESP Book (oh oh, there I go promoting the book again). 

I'll ask you guys what your opinion is on whether 35 or 36 years is more accurate:

The exact rule is:

The RESP must be terminated by the end of the 35th year (40th year in the case of a specified plan) after the year the plan was opened.

The link is: (Section 1.1)

http://www.hrsdc.gc.ca/eng/learning...ions_resources/promoter/tools/guide/033.shtml

This means that the "age" of the account is 35 years, however it could be open for at least parts of 36 calendar years.

The exact length of time the account can be open depends on when you open it. If you open it Jan 1 and then close it on Dec 31 of the 35th year after the initial year. The account will be open 36 years less 1 day.

Alternatively, if you open the account on Dec 31 and close it on the last possible day - it will be open exactly 35 years plus 1 day.

So neither 35 years or 36 years is perfectly accurate - it's probably better to just state the entire rule.


----------



## the-royal-mail (Dec 11, 2009)

Four Pillars said:


> No they aren't - which is why I deleted my post.
> 
> I should probably just ignore them - but I get a bit annoyed at times with questions that are easily answerable with a bit of Googling.


I understand. We see a lot of that in other forums too.


----------



## Kim (Jan 10, 2011)

Thank you for the input - as far as I am concerned 35 or 36 years can be classified as plenty of time to get it figured out.

I think I'll turn this current RESP into a Family type and just have the one. That way I am hedging my losses hoping that 1 out of 2 children will use it. ( I hope I used "hedge" in the correct context there )

Just because the bank person said don't go to the bank before March has made me want to go right away. ( I wonder why people do that - you know, want to go in the opposite direction someone has told them to go ???) Maybe they planned it that way? Hmmmm

I have googled a lot and read much. Sometimes the answers I find are more confusing than the question I had in the first place. The answers on the forums seem to be in layman's terms. Example the rabbit story explaining TFSAs! > : o<

And if my count is correct - that was the second mention in this thread that I should buy a book - must be some kinda book. ; )


----------



## bbmoney (Feb 9, 2011)

*thoughts on industrial allliance RESPs?*

Newbie here...sorry if i'm not posting this correctly...
Just had my first child and received so many phone calls to invest through industrial alliance - family members trying to sell resp via industrial alliance. Should I go with them or set up via bank?


----------



## Kim (Jan 10, 2011)

Hi BB, Well since I started this thread I'll tell you what I have learned. You have to do your homework and phone Ind. All. ( which I am not familiar with ) and a couple other Resp PROVIDERS and ask them the same set of questions so that you can compare. Here is a good set of starter questions from Canlearn.ca

http://www.canlearn.ca/eng/saving/resp/questions.shtml

Obviously you need to find a RESP provider that suits you but make sure you know what happens in 17 years when your child is grown and ready to attend post sec. school. You don't want to be surprised by any hidden fees / penalties / requirements. Find one you trust. Keep notes in your childs banking file folder. 

You would be surprised at how quickly you'll forget details - I am not sure if it's due to hormones or lack of sleep but I can't remember a thing anymore.


----------



## Four Pillars (Apr 5, 2009)

bbmoney said:


> Newbie here...sorry if i'm not posting this correctly...
> Just had my first child and received so many phone calls to invest through industrial alliance - family members trying to sell resp via industrial alliance. Should I go with them or set up via bank?


Go to a bank.

Industrial Alliance and any other company that phones you are scholarship/pooled RESPs and are very restrictive.


----------



## DavidJD (Sep 27, 2009)

Seriously? If they are all calling YOU there must be some costs for you and some fees for them.

It is quite simple. Set up the account and just put cash into it and you get an automatic 20% gain from the feds. As you become more accustomed to investing you can select some things that are low risk and will create great returns over the years your kids get ready for school.

Anyone offering to do all this for you is going to be costly.


----------



## bbmoney (Feb 9, 2011)

*resp advices*

Thanks so much for all your advices. I love this website, so helpful. I've opened up an account for my newborn now and will open RESP with TD or RBC, not sure yet about which has lower fees.


----------



## Eclectic12 (Oct 20, 2010)

Addy said:


> Who's rules are these? The Federal Gov't or did you invest in an RESP via a company?
> 
> I'm asking because I find most companies rip people off when they try to use their RESP because the rules can be simply b.s. ie only 500 students can cash in their RESP a year from our company, or you only can get your RESP money if you take Business Courses (not sciences), etc etc.... pure crap!


Hmmm ... these restrictions sound more like a contract with a specific company than a regular RESP.

I can remember when similar contracts were marketed before the RESP was available. Some of them required a decision by the student within a one to two year window. If the decision was no more school for now - you lost the money invested.


In any case, it is well worth the time to make sure of the rules and options before picking one or other type of RESP.


Cheers


----------



## Kim (Jan 10, 2011)

Update! I went to ATB today to get the RESP back on track. I changed it from a primary to a family plan. I found out that the money I put into it can either be invested in 1. GICs; 2. mutual funds; 3. savings plan 4. or locked into equity links ( 1 3 and 5 yr terms ) She suggested the GIC at 2% locked infor 2 yrs. I went with the Equity link ( I have never heard of a "link" in finance options but maybe it is just the name they use )

ATB guarantees the principle but not any return in the links. There were 3 to choose from and I guess the options change every 3 months. The first option listed stocks that were oil and gas based / the second was commodities ( hogs and cattle included! ) and the third seemed to have a good selection oil / gas / rail / west jet, so i picked door # 3 for a 5 yr term. I mean really it was a guess at best but I hope it's a good one. When the terms are up I have to reinvest or it goes into a savings account.

She explained that we could go with monthly deposits into the RESP but that the paperwork that follows it would be huge. She thought tha if I could put the amt. in lump sum it would be better. We also applied for the AB Centennial Educ. Savings Grant and the Canada Learning Bond. We would be able to apply for these again when we were eligible. There are no fees associated with what I have in place. 

I also had to pick what post secondary school I would like the grants to go to should we not use the RESP at all. I could pick any one I wanted. I had not heard about this before but thought it was a nice touch on behalf of the gov. - although just letting me keep the money would be my first choice! 

So there you have it - the easy part is done - now I just have to get the $ into the account each year and hope my kids are able to utilize it when the time comes.

Edited to note: The links I talked about above are GICs where the principle is protected, $1K min. inv., not redeemable prior to maturity, and have the potential to earn a higher rate of return than a traditional GIC.


----------

