REGISTERED EDUCATION SAVINGS PLANS - for college and university
source: Ontario Securities Commission
Make sure you know what happens if you miss a payment, terminate your plan, or want to transfer the RESP between plans or beneficiaries.
- Read the prospectus - if you don't understand it, don't invest. If you change your mind after reading the prospectus of a Scholarship Trust Plan, you have 60 days to cancel your purchase at no cost to you.
- Understand how salespeople are paid, and where those payments come from.
- Know what fees you are expected to pay, and when you will pay them.
- Don't make investments based on verbal representation - get it in writing.
- Check the registration and qualifications of your investment representative.
- Don't fall victim to aggressive marketing techniques - take your time and do your research.
- Review the rules for the types of post-secondary education that are eligible under the RESP that you choose.
- How much work is being done to earn the management fees? If your money is being invested only in simple, low-risk instruments like GICs and T-Bills, the management fees should be relatively low.