@nobudgetbabe: Stay away from group RESPs—these are plans sold by private companies, and unlike individual or family RESPs, these plans come with a unique structure, pooling resources for a "supposedly more conservative asset mix" and offering "loyalty bonuses." However, a recent Quebec class-action lawsuit, certified in 2021, has thrown these plans into the spotlight. The lawsuit alleges that the upfront sales charge imposed by major providers violates provincial securities regulations and the Quebec civil code. These providers, managing a staggering $15.7-billion in assets, are facing scrutiny for their practices. While proponents argue that the pooled structure safeguards principal contributions and provides shared investment returns, critics emphasize the darker side. 😫 High fees, restrictive contract terms, and confusing contracts have become sticking points. People don't understand what they're getting into, and it's done this way on purpose so they can maximize how much money they make off of YOU. This Quebec lawsuit follows a trail of negative headlines for Group RESPs. A 2019 review by researchers at Queen's University and the University of Winnipeg highlighted issues faced by low-income investors, including inaccurate marketing materials and high-pressure sales tactics. Yes, sometimes these companies will even come to you IN THE DELIVERY ROOM after you give birth. It's beyond predatory. Instead opt for an RESP that you can self manage - family RESPs that you self manage are fine as well! If you want to learn more about self managing your investments, make sure you've signed up for our free investing masterclass 👌

Nicole Victoria | Money Coach

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Saturday 20 January 2024 15:28:38 GMT