The Ontario Securities Commission (OSC) has introduced a new brochure to help families find out what they should know about Registered Education Savings Plans (RESPs) before they invest.
“During RRSP season, many families make the bulk of their financial decisions for the year, including how much to allocate for post-secondary education savings,” said Perry Quinton, manager of investor communications at the OSC. “Before you commit to any investment, careful research can help you protect your money.”
Developed in response to investor concerns, the RESP checklist highlights some key areas to research while choosing a plan, such as:
- the different types of RESPs;
- knowing what fees to pay, and when;
- the consequences of missing a payment;
- which post-secondary programs qualify for an RESP;
- how to access money from the plan;
- what happens if the child does not go on to a qualifying program; and
- cancelling the plan.
The checklist was designed to complement the OSC’s existing brochure Saving for your child’s education, which explains the different types of RESPs available. Both are available in printer-friendly format at www.checkbeforeyouinvest.ca.
Both resources were developed in response to investor inquiries and complaints. “In many cases, these inquiries and complaints reflected a lack of understanding of how the investment works and its associated risks and costs,” said Quinton. “Given that the RESP market has grown quickly in recent years, we want to help families know exactly what they’re investing in.”