Short Course on Plans – Covering The Basics

Some of the Pressing Issues About RESP in Canada A good number of Canadian parents have joined RESP Group plans since it was formed by the government. Heritage Education Funds, USC, and other dealers are given the responsibility of regulating the registered education saving group plans. The bodies represent the parents who are members of the RESP Group plans. Although the plan has been doing well in the past, many parents are now raising a lot of concerns about it. There are those parents who are complaining about barriers when you want to stop contributing to the program. Another problem is that parent is getting a small amount out of their contribution as a result of the reductions that are being made.
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The program can allow you transfer funds to other places, but you will incur a lot of charges for doing that. All charges involved will be deducted from your savings and you are also expected to pay an enrollment fee. Other issues that have been raised concern include the lack of transparency on the charges involved, dishonest salespeople, and high rates of interest.
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Parents are still having problems despite the changes that have been made. There have been increased complaints from parents as reported by a government agency based in Ottawa. These dealers are the one who makes the decisions for all members of the program. They also give you the contribution schedule that you should follow. In case you fail to contribute on time, your account can be suspended or attract extra fees for every contribution you failed to pay. The fees you are supposed to pay include trustee, enrollment and administration fees. There are a lot of restrictions with RESP Group plans as compared to other saving plans. The dealers determine the amount that you can withdraw and when you can withdraw. A relief to most Canadian parents is that mutual fund dealers and banks have come into a collaboration to provide parents with self-directed plans. With this plan, you can control the amount you wish to contribute and the kind of investment you want. The main benefit of a self-directed plan is that you can withdraw your money when you need it. While the government can still give a grant to your child, this money won’t go to their school fees. Although mutual fund dealers have certain charges, but the amount of fee reduces with time and get lifted after seven years. This is a benefit as you will save for your child’s education with no charges involved. The RESP program was formed by the Canadian government to help parents save for their children’s education. There has been a good number of parents who use the program and they have benefited from it. Due to the many issues that parents are raising, there is a high probability of many parents to stop being members of the program.