Comments on: Funding Your Childs Post Secondary Education http://www.milliondollarjourney.com/funding-your-childs-post-secondary-education.htm Building Wealth through Saving and Investing Sun, 21 Mar 2010 00:57:57 -0400 http://wordpress.org/?v=abc hourly 1 By: DogsFan http://www.milliondollarjourney.com/funding-your-childs-post-secondary-education.htm/comment-page-1#comment-110050 DogsFan Wed, 27 Jan 2010 22:35:43 +0000 http://www.milliondollarjourney.com/?p=1095#comment-110050 FT, to be honest...not a chance! I much prefer the stock market to the PITA factor involved in real estate investing (and I'm not a handy man at all). It was fine for me at the time because I lived there. If I purchased a rental now, I would need to find another "me" to be the landlord and look after the things that I looked after (finding roommates, small maintenance, etc). Maybe you could find someone like that by offering them a discount on their own rent in exchange for managing the property for you. I'm not really interested at this point in my life. We're probably in pretty similar situations (I just turned 30, we had our first child last May), and here in Southern AB the housing market took off about 4 years ago and has stayed pretty high during the recession. We bought the 5 bedroom house in 1998 for $105k and sold it for $126k in 2003. Bought a new 2 bedroom house later in the year (as I still needed a place to live) for $129k which is now valued at $249k. The same bargains aren't out there for 5 bedroom houses ($350k+) or 3 bedroom condo's ($220k+), it feels to me like I would be buying at the height of the market without any real upside. Like I said, for now I like the stock market...Dogs of the TSX strategy for the RRSP's and Income Trusts for the TFSA's. The example I gave you is more of a life/learning investment for your child, and then you can sell after they graduate...or keep the house in some capacity if it they like the arrangement. 5 year investment, pretty low risk...could even generate good cash-flow for you and/or your child. FT, to be honest…not a chance! I much prefer the stock market to the PITA factor involved in real estate investing (and I’m not a handy man at all). It was fine for me at the time because I lived there. If I purchased a rental now, I would need to find another “me” to be the landlord and look after the things that I looked after (finding roommates, small maintenance, etc). Maybe you could find someone like that by offering them a discount on their own rent in exchange for managing the property for you. I’m not really interested at this point in my life.

We’re probably in pretty similar situations (I just turned 30, we had our first child last May), and here in Southern AB the housing market took off about 4 years ago and has stayed pretty high during the recession. We bought the 5 bedroom house in 1998 for $105k and sold it for $126k in 2003. Bought a new 2 bedroom house later in the year (as I still needed a place to live) for $129k which is now valued at $249k. The same bargains aren’t out there for 5 bedroom houses ($350k+) or 3 bedroom condo’s ($220k+), it feels to me like I would be buying at the height of the market without any real upside.

Like I said, for now I like the stock market…Dogs of the TSX strategy for the RRSP’s and Income Trusts for the TFSA’s.

The example I gave you is more of a life/learning investment for your child, and then you can sell after they graduate…or keep the house in some capacity if it they like the arrangement. 5 year investment, pretty low risk…could even generate good cash-flow for you and/or your child.

]]> By: FrugalTrader http://www.milliondollarjourney.com/funding-your-childs-post-secondary-education.htm/comment-page-1#comment-110048 FrugalTrader Wed, 27 Jan 2010 22:03:27 +0000 http://www.milliondollarjourney.com/?p=1095#comment-110048 Dogsfan, kudos to you and your family for running a rental together. From your experiences as a landlord, do you plan on becoming a real estate investor going forward? Dogsfan, kudos to you and your family for running a rental together. From your experiences as a landlord, do you plan on becoming a real estate investor going forward?

]]> By: DogsFan http://www.milliondollarjourney.com/funding-your-childs-post-secondary-education.htm/comment-page-1#comment-110044 DogsFan Wed, 27 Jan 2010 21:35:57 +0000 http://www.milliondollarjourney.com/?p=1095#comment-110044 FT, I have a solution for you if your child decides to leave home to go to school. Co-sign on the purchase of a 4 or 5 bedroom house and have your child live there rent free, provided that they act as the "land-lord", find roommates to cover the mortgage and utilities, shovel the walk, mow the lawn, etc. My parents did this for me when I moved about 200 KM away to go to University. It was a great way for me to learn how to manage the household, juggle the bill payments, learn people skills (one bad roommate is all it takes for you to figure that out). I probably had 15 roommates over the course of 5 years, and at the end we sold the house for a tidy profit. I believe there were also some tax advantages for my parents, with the house being a rental property. The summer prior to school starting, my parents and I drove down to the University town and hunted for a good quality house that would suit our needs (5 bedroom, within a 15-20 minute walk from campus). Renting it out was never a problem, as there are always needy students looking for a place to rent for $300 - $500/month. We kept a joint account for all of the household bills and mortgage to go through (so they could keep tabs on me I'm sure), but I honestly never ran into any issues and for the most part had a great experience managing the house. The reason you co-sign rather than just buying it as a rental property is that it establishes some credit for your child as well as developing pride of ownership and sense of accomplishment (looks pretty impressive to be a 19 yr old home owner). Just wanted to point this out as an option for you to consider. FT, I have a solution for you if your child decides to leave home to go to school. Co-sign on the purchase of a 4 or 5 bedroom house and have your child live there rent free, provided that they act as the “land-lord”, find roommates to cover the mortgage and utilities, shovel the walk, mow the lawn, etc.

My parents did this for me when I moved about 200 KM away to go to University. It was a great way for me to learn how to manage the household, juggle the bill payments, learn people skills (one bad roommate is all it takes for you to figure that out). I probably had 15 roommates over the course of 5 years, and at the end we sold the house for a tidy profit. I believe there were also some tax advantages for my parents, with the house being a rental property.

The summer prior to school starting, my parents and I drove down to the University town and hunted for a good quality house that would suit our needs (5 bedroom, within a 15-20 minute walk from campus). Renting it out was never a problem, as there are always needy students looking for a place to rent for $300 – $500/month. We kept a joint account for all of the household bills and mortgage to go through (so they could keep tabs on me I’m sure), but I honestly never ran into any issues and for the most part had a great experience managing the house.

The reason you co-sign rather than just buying it as a rental property is that it establishes some credit for your child as well as developing pride of ownership and sense of accomplishment (looks pretty impressive to be a 19 yr old home owner).

Just wanted to point this out as an option for you to consider.

]]> By: sneeker http://www.milliondollarjourney.com/funding-your-childs-post-secondary-education.htm/comment-page-1#comment-108465 sneeker Mon, 14 Dec 2009 16:54:34 +0000 http://www.milliondollarjourney.com/?p=1095#comment-108465 Lots to think about here. I think I'm convinced that participating in an RESP is the best way to go. I have a 2 year old son & another on the way and since i was wary of the RESP in the past, i never started any education savings for him. Now, I am realizing that I am probably making the worst decision out there - doing nothing. I need to start and I intend to start now. I have $2,500 that I am going to make sure to get into an RESP by December 31st, 2009 to get the grant for the current year and I am wondering one thing: Should I invest in RBC Index Funds (MER = 0.68%) or the RBC Target 2025 Education Fund (MER = 1.95%)? It's still very early in the investment lifetime and I think I will become more & more involved in my investments over time - as they grow. Opinions please! Thanks!!! Lots to think about here. I think I’m convinced that participating in an RESP is the best way to go. I have a 2 year old son & another on the way and since i was wary of the RESP in the past, i never started any education savings for him. Now, I am realizing that I am probably making the worst decision out there – doing nothing. I need to start and I intend to start now. I have $2,500 that I am going to make sure to get into an RESP by December 31st, 2009 to get the grant for the current year and I am wondering one thing:

Should I invest in RBC Index Funds (MER = 0.68%) or the RBC Target 2025 Education Fund (MER = 1.95%)? It’s still very early in the investment lifetime and I think I will become more & more involved in my investments over time – as they grow.

Opinions please! Thanks!!!

]]> By: JFG http://www.milliondollarjourney.com/funding-your-childs-post-secondary-education.htm/comment-page-1#comment-107002 JFG Sun, 08 Nov 2009 15:41:46 +0000 http://www.milliondollarjourney.com/?p=1095#comment-107002 Wow, so much bad information. No offense, but any vehicle that lets you save money without being taxed on the return is beneficial. Is it the end all to all investments? No, but a good one. Just to clarify, as of today, you get 20% from the Gov't of Canada, to a max of $500 a year, to a max of $7200 lifetime. Depending on your income, you can also qualify for the Bond and the Grant. Certain provinces also have programes. Alberta has a program where if you are born in the province, after 2005, you get a $500 grant. then $100 at the age of 8, 11 and 14, if you live in Alberta. There are three portions to a RESP. EAP (Educational Assistance Program, These amounts include the RESP's accumulated income, Canada Education Savings Grant (CESG), and income on the grant.) There are rules for this withdrawal and it is taxed in the childs hands. check before doing a withdrawal. AIP (Accumulated Income Payments, is any distribution from a registered education savings plan (RESP), excluding a refund of payments, repayment of a Canada Education Savings Grant (CESG), an educational assistance payment (EAP), a payment to an educational institution, or a transfer to another RESP.) And last, the capital (your money). I could tell you all of it, but honestly, rules change. For example, you can keep the RESP until your child turns 31. Used to be 25. As for when to close, you have a lot of options as today. Child takes it, you take your money back, you can even donate it.... All withdrawals have a set of rules and taxes. Check before you want to do it. As for the investments, you can put almost anything. Just remember, when they turn 15, start transferring into income and/or savings vehicles. Just so you all know, I work for one of the five banks and I have made a lot of withdrawals in the last few months. The amount of bad information, bad investments, etc is no laughing matter. My preference is an Income vehicle with exposure to the market. Regular contributions, passive income and time, will cover all bases. I only touched the surface. Cheers Wow, so much bad information.

No offense, but any vehicle that lets you save money without being taxed on the return is beneficial. Is it the end all to all investments? No, but a good one.

Just to clarify, as of today, you get 20% from the Gov’t of Canada, to a max of $500 a year, to a max of $7200 lifetime. Depending on your income, you can also qualify for the Bond and the Grant. Certain provinces also have programes. Alberta has a program where if you are born in the province, after 2005, you get a $500 grant. then $100 at the age of 8, 11 and 14, if you live in Alberta.

There are three portions to a RESP. EAP (Educational Assistance Program, These amounts include the RESP’s accumulated income, Canada Education Savings Grant (CESG), and income on the grant.) There are rules for this withdrawal and it is taxed in the childs hands. check before doing a withdrawal.

AIP (Accumulated Income Payments, is any distribution from a registered education savings plan (RESP), excluding a refund of payments, repayment of a Canada Education Savings Grant (CESG), an educational assistance payment (EAP), a payment to an educational institution, or a transfer to another RESP.)

And last, the capital (your money).

I could tell you all of it, but honestly, rules change. For example, you can keep the RESP until your child turns 31. Used to be 25.

As for when to close, you have a lot of options as today. Child takes it, you take your money back, you can even donate it…. All withdrawals have a set of rules and taxes. Check before you want to do it.

As for the investments, you can put almost anything. Just remember, when they turn 15, start transferring into income and/or savings vehicles.

Just so you all know, I work for one of the five banks and I have made a lot of withdrawals in the last few months. The amount of bad information, bad investments, etc is no laughing matter. My preference is an Income vehicle with exposure to the market. Regular contributions, passive income and time, will cover all bases.

I only touched the surface.

Cheers

]]> By: Stan http://www.milliondollarjourney.com/funding-your-childs-post-secondary-education.htm/comment-page-1#comment-106986 Stan Sat, 07 Nov 2009 13:39:04 +0000 http://www.milliondollarjourney.com/?p=1095#comment-106986 The 20% government grant, coupled with years of tax-free growth, makes the RESP a compelling investment for families who can afford it. We maximize the RESP grant ($500 for $2500 contributions a year each) for both our children and plan on doing so until we max out on the government grants about 14 years from now, unless the rules change. We already know there is an extremely high likelihood that the children will pursue postsecondary education. However, I do believe that parents should prioritize their RRSPs and TFSAs before committing money to the RESP. There will be a time to help children through school, but it shouldn't be at the expense of your own savings and retirement. RRSP first, TFSA second, RESP third, non-registered savings fourth. The 20% government grant, coupled with years of tax-free growth, makes the RESP a compelling investment for families who can afford it. We maximize the RESP grant ($500 for $2500 contributions a year each) for both our children and plan on doing so until we max out on the government grants about 14 years from now, unless the rules change. We already know there is an extremely high likelihood that the children will pursue postsecondary education. However, I do believe that parents should prioritize their RRSPs and TFSAs before committing money to the RESP. There will be a time to help children through school, but it shouldn’t be at the expense of your own savings and retirement. RRSP first, TFSA second, RESP third, non-registered savings fourth.

]]> By: Melanie Samson http://www.milliondollarjourney.com/funding-your-childs-post-secondary-education.htm/comment-page-1#comment-106982 Melanie Samson Sat, 07 Nov 2009 12:16:25 +0000 http://www.milliondollarjourney.com/?p=1095#comment-106982 If the parents make a good salary, then a student loan is not an option. This is something to consider when deciding whether or not to save for your child's education. I think paying for most of it while requiring that the student come up with part of the money is a good solution. If the parents make a good salary, then a student loan is not an option. This is something to consider when deciding whether or not to save for your child’s education.

I think paying for most of it while requiring that the student come up with part of the money is a good solution.

]]> By: Ms Save Money http://www.milliondollarjourney.com/funding-your-childs-post-secondary-education.htm/comment-page-1#comment-106964 Ms Save Money Fri, 06 Nov 2009 17:26:23 +0000 http://www.milliondollarjourney.com/?p=1095#comment-106964 In my opinion, it is a great idea to give your child some tuition money for college especially if they receive no financial help from the government. However, it is up to him to find a part time job while he is attending college to help pay for other extra necessities. Something that definitely helps though is scholarships. Applying for small scholarships accumulate and in the end it really does add up to a lot. In my opinion, it is a great idea to give your child some tuition money for college especially if they receive no financial help from the government. However, it is up to him to find a part time job while he is attending college to help pay for other extra necessities. Something that definitely helps though is scholarships. Applying for small scholarships accumulate and in the end it really does add up to a lot.

]]> By: Stephanie http://www.milliondollarjourney.com/funding-your-childs-post-secondary-education.htm/comment-page-1#comment-106956 Stephanie Fri, 06 Nov 2009 08:49:02 +0000 http://www.milliondollarjourney.com/?p=1095#comment-106956 My humble two cents: My parents saved for my post-secondary education but I was expected to work part-time through high school and contribute, as well. They paid my rent and I paid my tuition, books, and was responsible for my spending money and food. I did not live at home and was glad for the experience of both residence and living with others (challenging!). I know that if I had run out of money, they would have contributed more but I had saved well and that never occurred. In fact, they didn't use all of the money they saved for my undergrad degree and were able to help out a bit with my Master's. My husband and I now have an RESP for our young toddler and will do the same as my parents did - we are fortunate enough to do so and really appreciate that. My husband graduated college with a fair amount of debt (his parents didn't save and he had to work on their farm, for which he didn't get paid, hence didn't save much either) and doesn't want our child to have the same situation. On another note: I had several friends who chose college over university due to a more rapid route to a job (ie. less time in school) and due to a lack of savings. They're now trying to go back to university while raising families. I guess my conclusion is that we're saving so that our child has options and so that we're not having to pinch pennies ourselves when he goes away to school. At the same time, we will encourage him to save and learn the value of money, as well. I have a sense of satisfaction from paying as much as I did for my education and hope to encourage that in him, as well. My humble two cents:

My parents saved for my post-secondary education but I was expected to work part-time through high school and contribute, as well. They paid my rent and I paid my tuition, books, and was responsible for my spending money and food. I did not live at home and was glad for the experience of both residence and living with others (challenging!). I know that if I had run out of money, they would have contributed more but I had saved well and that never occurred. In fact, they didn’t use all of the money they saved for my undergrad degree and were able to help out a bit with my Master’s.
My husband and I now have an RESP for our young toddler and will do the same as my parents did – we are fortunate enough to do so and really appreciate that. My husband graduated college with a fair amount of debt (his parents didn’t save and he had to work on their farm, for which he didn’t get paid, hence didn’t save much either) and doesn’t want our child to have the same situation.
On another note: I had several friends who chose college over university due to a more rapid route to a job (ie. less time in school) and due to a lack of savings. They’re now trying to go back to university while raising families.
I guess my conclusion is that we’re saving so that our child has options and so that we’re not having to pinch pennies ourselves when he goes away to school. At the same time, we will encourage him to save and learn the value of money, as well. I have a sense of satisfaction from paying as much as I did for my education and hope to encourage that in him, as well.

]]> By: Arcaneind http://www.milliondollarjourney.com/funding-your-childs-post-secondary-education.htm/comment-page-1#comment-106945 Arcaneind Thu, 05 Nov 2009 20:11:03 +0000 http://www.milliondollarjourney.com/?p=1095#comment-106945 A friend of mine used this technique with his kids in university: - Children worked and paid up front for all tuition. - If final marks are over 75% (per course) my friend reimbursed the tuition costs for that course. - Room/Meal plan costs were divided. Kids breezed through but also learned the value of money and responsibility. My friend's theory was that he was not going to pay if his kid's weren't taking it seriously (i.e. "Party Time at U of ________"). I'm planning to trying something very similar. While I have been contributing to the RESP, I'm not going to go crazy either. A friend of mine used this technique with his kids in university:

- Children worked and paid up front for all tuition.
- If final marks are over 75% (per course) my friend reimbursed the tuition costs for that course.
- Room/Meal plan costs were divided.

Kids breezed through but also learned the value of money and responsibility. My friend’s theory was that he was not going to pay if his kid’s weren’t taking it seriously (i.e. “Party Time at U of ________”).

I’m planning to trying something very similar. While I have been contributing to the RESP, I’m not going to go crazy either.

]]> By: used tires http://www.milliondollarjourney.com/funding-your-childs-post-secondary-education.htm/comment-page-1#comment-106925 used tires Thu, 05 Nov 2009 05:09:59 +0000 http://www.milliondollarjourney.com/?p=1095#comment-106925 I am not sure what to say about the rising cost of tuition, right now I am a student but for me... it is what it is... and either way if I want higher education I have to pay. From what I know though.. the cost of tuition could be even higher if it wasn't for the aid of the government aiding state colleges as far as the USA universities are concerned. Till then, Jean I am not sure what to say about the rising cost of tuition, right now I am a student but for me… it is what it is… and either way if I want higher education I have to pay. From what I know though.. the cost of tuition could be even higher if it wasn’t for the aid of the government aiding state colleges as far as the USA universities are concerned.

Till then,

Jean

]]> By: FrugalTrader http://www.milliondollarjourney.com/funding-your-childs-post-secondary-education.htm/comment-page-1#comment-106921 FrugalTrader Thu, 05 Nov 2009 01:46:43 +0000 http://www.milliondollarjourney.com/?p=1095#comment-106921 Just did a quick search on Morningstar.ca, RBC Canadian Index, MER 0.68% (http://www.morningstar.ca/globalhome/quicktakes/fund_overview.asp?fundid=916) RBC Canadian Bond Index MER 0.63% (http://www.morningstar.ca/globalhome/quicktakes/fund_overview.asp?fundid=6181) RBC US Index MER 0.70% (http://www.morningstar.ca/globalhome/quicktakes/fund_overview.asp?fundid=1086) RBC International Index MER 0.67% (http://www.morningstar.ca/globalhome/quicktakes/fund_overview.asp?fundid=991) Just did a quick search on Morningstar.ca,

RBC Canadian Index, MER 0.68% (http://www.morningstar.ca/globalhome/quicktakes/fund_overview.asp?fundid=916)
RBC Canadian Bond Index MER 0.63% (http://www.morningstar.ca/globalhome/quicktakes/fund_overview.asp?fundid=6181)
RBC US Index MER 0.70% (http://www.morningstar.ca/globalhome/quicktakes/fund_overview.asp?fundid=1086)
RBC International Index MER 0.67% (http://www.morningstar.ca/globalhome/quicktakes/fund_overview.asp?fundid=991)

]]> By: FrugalTrader http://www.milliondollarjourney.com/funding-your-childs-post-secondary-education.htm/comment-page-1#comment-106920 FrugalTrader Thu, 05 Nov 2009 01:41:30 +0000 http://www.milliondollarjourney.com/?p=1095#comment-106920 Index funds generally range around 1% MER. A fair bit higher than the td e-series or ETF's, but still much cheaper than the typical active management mutual fund. If your looking for ideas, check out my <a href="http://www.milliondollarjourney.com/the-resp-strategy.htm" rel="nofollow">RESP strategy</a>. I'm sure that RBC has a Canadian, US, international and bond index available for their RESP. Index funds generally range around 1% MER. A fair bit higher than the td e-series or ETF’s, but still much cheaper than the typical active management mutual fund. If your looking for ideas, check out my RESP strategy. I’m sure that RBC has a Canadian, US, international and bond index available for their RESP.

]]> By: Kate http://www.milliondollarjourney.com/funding-your-childs-post-secondary-education.htm/comment-page-1#comment-106918 Kate Thu, 05 Nov 2009 00:30:16 +0000 http://www.milliondollarjourney.com/?p=1095#comment-106918 FrugalTrader: Kate, before I started with the td e-series, I did not bank with TD. Although my td rep told me differently, you CAN simply open a td e-series/mutual funds account and fund the account via your regular bank (EFT). Thanks for your reply. The problem is I already have RESP with Royal Bank with some money there. Next year I am going to contribute every month but contemplating on which index funds to choose... FrugalTrader: Kate, before I started with the td e-series, I did not bank with TD. Although my td rep told me differently, you CAN simply open a td e-series/mutual funds account and fund the account via your regular bank (EFT).
Thanks for your reply. The problem is I already have RESP with Royal Bank with some money there. Next year I am going to contribute every month but contemplating on which index funds to choose…

]]> By: Briefcases http://www.milliondollarjourney.com/funding-your-childs-post-secondary-education.htm/comment-page-1#comment-106916 Briefcases Thu, 05 Nov 2009 00:23:46 +0000 http://www.milliondollarjourney.com/?p=1095#comment-106916 I was lucky enough to have my mom cover most of the costs of my 2 year post secondary degree. I don't know what I would have done if she was not able to pay that. I might've settled for a much different route if I had to pay for it all myself. Of course not everyone will be able to pay for their child's schooling. If you can pay for it though, it sets them up for a much easier start to their professional life. Instead of paying off a debt for 10+ years, they can start saving for important things like an apartment or vehicle. I was lucky enough to have my mom cover most of the costs of my 2 year post secondary degree. I don’t know what I would have done if she was not able to pay that. I might’ve settled for a much different route if I had to pay for it all myself. Of course not everyone will be able to pay for their child’s schooling. If you can pay for it though, it sets them up for a much easier start to their professional life. Instead of paying off a debt for 10+ years, they can start saving for important things like an apartment or vehicle.

]]> By: Briefcases http://www.milliondollarjourney.com/funding-your-childs-post-secondary-education.htm/comment-page-1#comment-106915 Briefcases Thu, 05 Nov 2009 00:20:10 +0000 http://www.milliondollarjourney.com/?p=1095#comment-106915 That sounds like a great plan to fund your child's post secondary education. With education costs so high, many young people will simply skip post secondary education. It is either that, or go into debt that will take many years to repay. That sounds like a great plan to fund your child’s post secondary education. With education costs so high, many young people will simply skip post secondary education. It is either that, or go into debt that will take many years to repay.

]]> By: Ms Save Money http://www.milliondollarjourney.com/funding-your-childs-post-secondary-education.htm/comment-page-1#comment-106914 Ms Save Money Wed, 04 Nov 2009 23:11:45 +0000 http://www.milliondollarjourney.com/?p=1095#comment-106914 If a parent can afford to put their child in post secondary education that's all good. But really just a BA is good enough - since you never know what route your child will take in the future anyways. If a parent can afford to put their child in post secondary education that’s all good.

But really just a BA is good enough – since you never know what route your child will take in the future anyways.

]]> By: ldk http://www.milliondollarjourney.com/funding-your-childs-post-secondary-education.htm/comment-page-1#comment-106913 ldk Wed, 04 Nov 2009 22:36:49 +0000 http://www.milliondollarjourney.com/?p=1095#comment-106913 Four Pillars...thanks for the link...that was my understanding as well. Though we certainly planned to encourage our kids to pursue post-secondary education, we figured there was a real chance they might opt for another path and so we went the trust account route....everyone needs to make that choice for themselves I guess. Four Pillars…thanks for the link…that was my understanding as well.

Though we certainly planned to encourage our kids to pursue post-secondary education, we figured there was a real chance they might opt for another path and so we went the trust account route….everyone needs to make that choice for themselves I guess.

]]> By: Four Pillars http://www.milliondollarjourney.com/funding-your-childs-post-secondary-education.htm/comment-page-1#comment-106912 Four Pillars Wed, 04 Nov 2009 21:08:55 +0000 http://www.milliondollarjourney.com/?p=1095#comment-106912 Idk - Thanks for the "real life" story. The resp is very flexible - once they are enrolled, there are very few limitations on withdrawals and you just ask for the money - you don't need to show receipts or anything. If the child doesn't go to school then the trust fund will end up ahead of the resp according to my calculations. If the child does go to school then the resp wins. This article I did compares resp vs open account - the advantages of a trust account are similar to the open account. http://www.four-pillars.ca/2007/11/16/resp-a-comparison-to-non-registered-accounts/ Idk – Thanks for the “real life” story.

The resp is very flexible – once they are enrolled, there are very few limitations on withdrawals and you just ask for the money – you don’t need to show receipts or anything.

If the child doesn’t go to school then the trust fund will end up ahead of the resp according to my calculations. If the child does go to school then the resp wins.

This article I did compares resp vs open account – the advantages of a trust account are similar to the open account.

http://www.four-pillars.ca/2007/11/16/resp-a-comparison-to-non-registered-accounts/

]]> By: sco http://www.milliondollarjourney.com/funding-your-childs-post-secondary-education.htm/comment-page-1#comment-106911 sco Wed, 04 Nov 2009 21:03:07 +0000 http://www.milliondollarjourney.com/?p=1095#comment-106911 I don't see why the parents should pay. At 18-22 the child is already an adult. The child should borrow the money (and/or work part-time). However, I think that education costs should be picked up by the government. Admission to college/university should be based exclusively on merit. The government will recover the costs in taxes later on. We should attract top scientists to our Universities and that will cost much more than what we are paying the teachers right now. So I hope the costs for higher education will increase substantially in the future. I don’t see why the parents should pay. At 18-22 the child is already an adult. The child should borrow the money (and/or work part-time).

However, I think that education costs should be picked up by the government. Admission to college/university should be based exclusively on merit. The government will recover the costs in taxes later on.

We should attract top scientists to our Universities and that will cost much more than what we are paying the teachers right now. So I hope the costs for higher education will increase substantially in the future.

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