Top 7 Questions to Ask an RESP Provider
There have been many changes to the Registered Education Savings Plan in recent years. Likewise, there are many institutions offering this plan and you can ask a experts like Heritage Education Funds. So before committing to any provider, these are some questions you should ask.
1. What Are the Fees?
Often, many people disregard this question. Registered Education Saving Plans come with many different fee structure and costs. It is essential to know this beforehand, so you don’t get trapped by extra fees that drain your Heritage RESP earnings. Do your research and choose an institution that offers the lowest charges.
2. What Will Be My Total Earnings?
This is another important question you must ask. However, your total earnings depend on the total amount of money invested.
3. What’s My Minimum Contribution?
Your provider should be able to answer this question correctly. There are many ways to arrive at the amount you need; however, it must be tailored to your specific budget. Remember, this is not a one-time setting. You have a chance to review it every three years as you deem fit.
4. What If I’m Unable to Meet the Contributions?
There are times when situations might change for the worse. Ensure you’re prepared for the worse while expecting the best. You don’t want to get locked in and be forced to pay a fee if you can no longer make contributions. Many companies will penalize you if you stop your contributions. To avoid such an unpleasant situation, ask this question.
5. What Happens If Your Company Goes Out of Business?
Sure, this question sounds odd, but its importance will be clear to you if this eventually happens. If you are getting to know the provider, it is imperative to know what happens if they are no longer in the business. What happens to your investment? Do they have any provisions in place? Their response will determine whether or not they are worth building a business relationship with.
6. What Happens If I Am Not Satisfied With Your Service and Decide to Take My Business Elsewhere?
This is another crucial question that helps you understand what you are getting into. The truth is things don’t go the way we expect sometimes. There may be an instance when you are no longer happy with a particular provider due to poor service, and you may want to transfer your earnings to another institution as Heritage Education Funds. So, you need to know what it will cost you to do so. Many parents have had to pay several hundreds of dollars in penalties to get out of such a contract. Don’t get caught in the same web.
7. What Type of Plan Is This?
Keep in mind that there are many different types of plans available including individual, family or group. You can choose one that best suits your needs. Keep in mind that each plan has its own unique pros and cons, and each option should be discussed before you make a final decision.
When shopping around for a provider who specializes in RESP, be sure to ask these questions and do your research.