RESP

[boltz]

Which bank is the best place to open RESP?

What are some of the basic and imp Qs to ask while opening RESP?

Thx.

 

[Rob_TO]

Which bank is the best place to open RESP?

What are some of the basic and imp Qs to ask while opening RESP?

Thx.

TD is a popular choice with their "e-series" funds that have low management fees. You would need to go into a branch to check the details (I have no experience with them, for my kid's RESP I actually use broker Questrade and buy my own ETFs for the RESP investment).

All the other banks also offer RESPs, though usually they will only have the option to put the investments in their own mutual funds which can have very high management fees.

Main questions to ask to any bank RESP rep:
- Are there any annual fees for the RESP?
- What are the MERs (management expenses) of the funds? High MERs in funds can eat away at your return.

 

[nope]

Which bank is the best place to open RESP?

What are some of the basic and imp Qs to ask while opening RESP?

Thx.

One question to ask yourself is "Am I an American?" If the answer is 'YES', then look very carefully at the tax laws surrounding RESPs and expatriate Americans. If you have a non-American spouse, put it in their name. Consider other vehicles.

 

[drkosamia]

Also we needs to see who is providing "Provincial Education Saving Incentives". I lives in BC and either of TD or CIBC offers that.

 

[keesio]

One question to ask yourself is "Am I an American?" If the answer is 'YES', then look very carefully at the tax laws surrounding RESPs and expatriate Americans. If you have a non-American spouse, put it in their name. Consider other vehicles.

Yup. And also think twice about a TFSA also.

 

[JMOBhatti]

Think twice about TFSA ?? Why so, please? Are there some drawbacks of having TFSA ?

 

[keesio]

Think twice about TFSA ?? Why so, please? Are there some drawbacks of having TFSA ?

It is a drawback only for Americans expats in Canada. The IRS does not recognize it as a valid tax shelter so income earned in one is subject to US taxes. Also the IRS considers it a trust so you have to fill out complex tax forms for it. The consensus is that it is simply not worth the hassle (for American expats).