Comments on: The RESP Book: Review and giveaway

By: Natalie MacLellan

Natalie MacLellan — Wed, 03 Nov 2010 17:33:24 +0000

That is not an easy question to answer, Big E. Everyone’s budget is different, and $5,000 a year is just not possible for everyone. If you want to try to make it work, perhaps set a budget including stricter savings goals, or talk to a financial adviser for advice. Good luck.

By: Big E

Big E — Wed, 03 Nov 2010 17:25:15 +0000

Thanks for the review.

I want to make the most of the CESG available to me, but with my second child on the way how am I supposed to contribute $5000/year???

By: Eva

Eva — Wed, 03 Nov 2010 15:36:52 +0000

I have a 6-week old and want to understand the ins and outs of RESPs as part of our new financial reality. Thanks for reviewing this book!

By: Natalie MacLellan

Natalie MacLellan — Wed, 03 Nov 2010 13:24:41 +0000

Laura – self-directed RESPs are available at most financial institutions. Do a quick google search on the term, and hopefully you will find info on what your preferred financial institution provides.

By: Natalie MacLellan

Natalie MacLellan — Wed, 03 Nov 2010 13:21:12 +0000

Rob – you can carry over contribution room from one year to the next, but the rules are complex – I may need to dedicate a whole post to the topic. You can only contribute one year’s unused contribution room at a time. So though you may have 15 years to make up for, this year you could make a contribution for 2010 and 2009. Next year, for 2011 and 2008, and etc.

It is somewhat more complicated for older children as well. Annual contribution room is now $2500, but before 2007 was $2000. Also, there are special grant and contribution rules for 16 and 17 year olds. This link might help: http://www.canlearn.ca/eng/saving/cesg/src.shtml

By: Natalie MacLellan

Natalie MacLellan — Wed, 03 Nov 2010 13:11:31 +0000

Allow me to quote Mike on this one:
“The two account types are similar, because the rules allow you to transfer money between any type of account.” He goes on to point out that while there is no real advantage to one strategy over the other, having one single family account means only one account fee.

By: Sam

Sam — Wed, 03 Nov 2010 12:53:05 +0000

I’m getting mixed messages on the advantages and disadvantages of family vs individual plans. Does it really matter which?

By: schultzter

schultzter — Wed, 03 Nov 2010 02:06:02 +0000

[My financial institution is] as clueless about RESPs as they are about their own e-accounts! I’d feel much better if I had this book in hand!

Laura Thomas: what gives you the idea you can’t self-direct your RESP? My discount brokerage offers RESP accounts, and I’m sure other (all?) brokerages do too! Your bank probably doesn’t and if they don’t have a brokerage division they may be misleading you to keep your money – or worse: your rep is misleading you to keep your money under his management (which directly affects his salary).

By: rob

rob — Tue, 02 Nov 2010 20:20:18 +0000

This is very timely for us Natalie. We are looking at starting an RESP for our two girls, albeit very late as they are both teens now.

My question is, is it true that you can contribute both last year’s and this year’s allowable limit at the same time? ie. deposit for both years right now?

Thanks in advance

By: Laura Thomas

Laura Thomas — Tue, 02 Nov 2010 19:46:56 +0000

My question is why can’t we self-direct our RESPs? Do you know the history of that decision?

If I don’t win the book, I will pick it up and review it for my blog:
http://moneyandmeforcanadians.blogspot.com/

By: Mike Holman (the author)

Mike Holman (the author) — Tue, 02 Nov 2010 17:40:11 +0000

Thanks a lot for the great review!