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Opting Out of a Savings Program?!

November 15th, 2004 at 03:05 am

Yup, that's what I did today. On Thursday we had a lady out to tell us about an RESP plan the she was selling. She was really nice and gave us a rundown of the "pooled" RESP plan that she was selling. Just when things got hairy with the kids she pulled out the paperwork and said "Can you spare $25 a month?" Well, that led to us buying 5 "units" of this plan for each of the kids and an 18 year commitment to at least that $25 per month per child. Before I knew it she had us signed up. Boy, she was slick.
After she left I started looking at the prospectus for this plan. $100 per unit signup fee (that's $1000 right there). 100% of contributions to go toward fees until fees are 50% paid. 50% of monthly contributions to go toward fees until the remaining 50% is paid. Fees may be refundable if child qualifies when education assistance amounts are disbursed. HUH?
It all just didn't sit right with me. I mentioned it to Dh and asked for his opinion. His response was "If you're not comfortable with it, I'm okay with cancelling it." I wish he actually had an opinion sometimes... I tossed it around in my head all weekend. RESP- good, Fees- bad, Nice lady- good, Increase in cost per unit based on age- bad etc, etc.
Then I was reading another financial planning book and came to a chapter on "Free Financial Seminars" and the pitfalls therein. Something in that chapter hit me. I remembered that the reason this woman started calling me 4 months ago was because I agreed to receive information about RESPs when I purchased Zach's hospital pictures. The catch was that if I agreed to receiving the information I got a free 5x7 print. Hmmmm. Do I really want to give my money to a company that solicits customers this way? Do I really want to give my money to someone who works for a company that solicits customers this way? Um, no. So I called and cancelled the plan. luckily the paperwork wasn't processed yet and it was easy to opt out. What a relief. Beware the travelling RESP salesperson.

1 Responses to “Opting Out of a Savings Program?!”

  1. Anonymous Says:

    We went with CST for DD's RESP. They didn't pressure us at all to buy anything and it doesnt' cost us anything other than the units we want to buy (which is one right now at 9.50/month, we'll do more later after WE go to school).

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