While searching for a good RESP plan, most of us don’t give much thought to the RESP provider. However, this is the person who will be going to be advising us, taking care of our RESP, and will be in charge of providing us with the monetary value once we want to take it out.
The RESP or Registered Education Savings plan provider is in-charge of your plan. Some providers tend to have extra costs or hidden fees in their plans. It is important to know
if there is any fee when you reach a limit on the amount or whether there is a service fee they may be taking. Sometimes, certain providers may even charge penalties when you want to close your account pre-maturely.
Another thing to keep in mind is that some portion of RESP money can be invested in the market too. Some people prefer to invest in other avenues to increase their value. This can be stock or mutual funds. As a provider, they will be doing so from their end. These methods usually have risks involved and need to be monitored on regular basis.
How can you choose the best RESP provider for you?
Well, the first step in ensuring if the provider is good for you is to get to know them.
Meeting your RESP provider can help you understand their ideology and make the right decision. Asking them questions like “What is the extra fees involved? Do I have to pay anything once I have opened the RESP? Will I get regular reports on investments? and other such crucial questions, you can get a grasp of the way they function.
Checking their credibility using references and testimonials from previous clients can also help you make a better decision. It is also recommended to check whether they are allowed to provide you an RESP or not. Another way to verify the credibility of your RESP provider is to test their knowledge of the industry. This can help you determine how far your provider is going to be able to help you benefit.