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chasbos
10-22-2008, 08:51 AM
Well, got our recent statement in the mail yesterday and I almost:faint:

I new it was not going to be pretty but I lost 12% in value over the last year! Now DH wanted to know - did we lose the governments or our own??

I laughed at him at first and then started thinking about it and he has a point - the government contributes 20%, so did we just lose the governments money?

We have other RRSP's that come due in March and they have been riding the stock market for the last 5 years - I am sure they are worth nothing by now. Good thing we are no where near retirement!

Beechnut
10-22-2008, 09:11 AM
We have 3 RESP's (kids I mean ) and one is graduating in the spring. I dont think there will be anything left for him when he comes to use it. The only thing is at least the original money we put in is still there. However you'd hope after 15 years there would have been some growth.

chasbos
10-22-2008, 09:20 AM
We have 4 kids on our RESP and the oldest is also graduating high school this year and she is looking into Colleges.

I think I am going to have to sit down with our advisor and see how this all works - do we draw down for the first one? And how much?

I guess I will be learning something new this year too - how the goverment comes out with a saving plan for post secondary education and it drops in value. Never thought I would see that.

Beechnut
10-22-2008, 09:25 AM
I have heard from friends that you are limited on HOW and HOW MUCH you take out. You can't just cash it in and go. You are only alowed to take out a % for books, lets say, and a % for tuition. and some things are not allowed. Great eh? they sucked us in with the promise of 20% bonus. I would have don better in ING's GIC's HAHAH

MikeyNS
10-22-2008, 09:26 AM
We have RESPs for our boys (3 and 5 months) and I know between now and when they need it there will be growth.. benefits of being able to stay the course I suppose.

chasbos
10-22-2008, 09:33 AM
We have been long term also - but my kids are 17, 16, 13, & 10. So withing the next 5 years I will 3 kids in post secondary education, not much room for an upswing.

We are fortunate in a way that our kids already go to a private school where we pay $10,000+ for tuition - so college will be a walk in the park.

We had just hoped to use some of the governments $$ to do it!

pkitty
10-22-2008, 09:55 AM
Now I am reconsidering what I planned to do for dd....heading off to college in 3 years. I will be looking elsewhere to put my lump sum contributions I think.:thumbsup2

sk8jdgca
10-22-2008, 11:50 AM
Some of you might be getting some mis-information.

For normal RESP's (scholarship trusts might be different) the only restriction is that the first 13 weeks, you can only with draw 5000 of EAP (educational assistant payments) that is the growth and the portion that the government gave you. after the first 13 weeks, you are unlimited as long as the child is in post seconday education. You can take out as much of the funds you put in as you want.

your advisor should have been making your resp more and more conservative as you reached your target date. If you purchased a target type fund you should be fine as they move to a straight money market type of investment as they near the target date.

If you are still contributing and your child is going next year or the year after, changeyour contributions and those of the government to money market so that these will be first funds you use

dancin Disney style
10-24-2008, 09:40 PM
The OP lost 12% in the last year......I've lost 20% in the last 3 months and my oldest just graduated and will need to 'go away' to college next year. I've basically lost an entire years' expenses.:sick: The only good thing is that she is only taking 2 classes right now, which, will be finished by January. So, she is working almost full time and now knows that she will have to contribute some money.

My other DD is only 10 so there is time to make up the loss for her. I just hope that there is some money left in the account after her sister finishes school. My friends have said that it cost a lot more than you think it will.

minnie56
10-24-2008, 09:48 PM
Ohhhh College will not be a walk in the park!! My 2 DD's went to Private School as well ($13,000 plus per year - each) One DD...her tuiton at Queen's was $16,000 per yr PLUS $600 per month for rent not to mention food and the other is at Guelph and hers is $9,000 per year plus $450 per month rent. Add approx $1,200-$1,500 per student - per year for text books and you are getting the idea! We thought Univesity would be a relief as well and it sure was not and is not!!!!!!!!

(We have been long term also - but my kids are 17, 16, 13, & 10. So withing the next 5 years I will 3 kids in post secondary education, not much room for an upswing.

We are fortunate in a way that our kids already go to a private school where we pay $10,000+ for tuition - so college will be a walk in the park.

We had just hoped to use some of the governments $$ to do it!