OSC Perspectives
Do your homework before investing in an RESP
September 17, 2009 - 
Post-secondary education is a goal most parents have for their children but it’s no secret that tuition fees keep going up. Investing in a Registered Education Savings Plan (RESP) is one way to set aside money to meet education costs. Before you sign on the dotted line, you’ll need to decide if an RESP is right for you and, if so, what type is best suited to your needs.
There are different types of RESPs, all of which have different risks, costs, and restrictions associated with them. The Ontario Securities Commission (OSC) urges parents, especially new parents, not to feel pressured into making an investment.
The Investor Education Fund also offers information and resources on RESPs. Established by the OSC, the Investor Education Fund is funded through fines and settlements from OSC enforcement proceedings. The Fund is a source of information and tools that can help consumers make better decisions when investing and managing their money.
Post-secondary education is a goal most parents have for their children but it’s no secret that tuition fees keep going up. Investing in a Registered Education Savings Plan (RESP) is one way to set aside money to meet education costs. Before you sign on the dotted line, you’ll need to decide if an RESP is right for you and, if so, what type is best suited to your needs.There are different types of RESPs, all of which have different risks, costs, and restrictions associated with them. The Ontario Securities Commission (OSC) urges parents, especially new parents, not to feel pressured into making an investment.
Here are some questions to ask before you invest:
- What kinds of post-secondary programs qualify?
- What fees are you expected to pay, and when?
- What are your options for making contributions?
- When and how will payments be made from the plan?
- What happens if your child does not go on to post-secondary education?
- What happens if you want to cancel your plan?
- What are the risks of the investments in the plan?
The Investor Education Fund also offers information and resources on RESPs. Established by the OSC, the Investor Education Fund is funded through fines and settlements from OSC enforcement proceedings. The Fund is a source of information and tools that can help consumers make better decisions when investing and managing their money.
