Birthday Gifts & Investments

6299 Views 5 Replies 5 Participants Last post by OhGreatGuru, Jul 24, 2009

michika

Discussion Starter · Jul 19, 2009 (Edited)

I'm trying to find out what sort of financial vehicles would be available to invest some money in for my partner's 3 nieces. Every year we give them $500 respectively on their birthdays. We'd originally just given the parent's checks made out to them with notations that they were to be deposited into each child's respective RESP. We were always led to believe this had been done.

It has just come to our attention that the parents, well the mother, has spent all the money we've ever given them. It seems from my understanding is that she spent it on things for herself.

We'd like to continue to invest yearly for this children, however we need a new method in which we can invest for these kids, but that the parents cannot access. We don't want to start a family fight over this or anything, we just need a better way to invest for them.

I was thinking of buying Canada Premium Bonds in the kids' names, but it appears that the parents as guardians will be able to get access to the funds.

What are our other options? The next birthday coming up will be in October.

**edit**
The money is intended for future education. We've given the children to date $2,500.

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Canadian Finance

· #2 · Jul 20, 2009 (Edited)

michika, you can open an RESP in their name. Then, only they can cash it in for education and the parents aren't involved at all. Plus if they don't continue their education, you can transfer it into your own RRSP so your protected from the children's choices as well as the parents.

The amount you're contributing is enough for a $100 per year Canada Education Savings Grant (CESG) and the full $800 lifetime amount of the Alberta Centennial Education Savings (ACES) Plan.

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MoneyGal

· #3 · Jul 20, 2009

+1 :d

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michika

Discussion Starter · #4 · Jul 21, 2009

Thank you.

I'll look into when I next go to the bank.

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arx17

· #5 · Jul 23, 2009 (Edited)

Don't Go to Global Financial! They are the worst!

Hi People
,
Just wanted to warn you before you go to this company, which was my mistake....

I opened RESP with them through an agent, a friend of my family, mother of 3 children ( i just wanted to help her a bit while opening my RESP, you know.. ) and guess what - they gladly opened an account, took my money and DIDN'T pay agent her money! Poor person is still fighting them to get back her fee. I advised her to go in Ministry of Labour or/and a small court against them.
Second part of the story - when I found out about this unfair behavior I naturally decided to switch to another RESP provider, called their customer service and guess what - they said they will keep their FULL TERM service fee, which is about $2,000 just for that. I couldn't believe it and called Canadian RESP services - they said they can only take they service fee for the period while i was with them! which is about $40 a year.
So they basically just lied to make me change my mind.

WHAT A REEPOFF!!!!!!!
PEOPLE STAY AWAY OF GLOBAL
GLOBAL IS A BUNCH OF LIERS
THIS PLACE STINKS!!!

I'm switching to TD!!!

Alexandr Rabota
Thornhill

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OhGreatGuru

· #6 · Jul 24, 2009

arx17 said:
Hi People
,
Just wanted to warn you before you go to this company (Global Financial), which was my mistake....

Alexandr Rabota
Thornhill

A useful rant, but only tangentially on topic. Suggest you post it as a separate thread to see if others have had bad experiences with this company.

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