RESPs Another Year and More Fun

Every year, as my children pass through the post secondary system, I withdraw moneys that we have put into our TD Mutual Fund RESP system. If you look at the RESP Menu item, you will see my long record of interesting occurances, putting money into and then attempting to take funds out of the TD RESP Mutual Fund system.

Previously I have had issues with changes in the RESP rules causing me to be unable to easily take money out (without entering a TD Branch), and as each year passes, more interesting things seem to happen, and this year is no exception.

The Circle of Savings in Canada

The Circle of Savings in Canada

This year, I only needed to worry about a single RESP, the one for my youngest daughter. I was quite chuffed, because I was able to navigate the Trent University web site and order a letter stating that my daughter was a full time student (it is not as easy as it sounds, but this letter is crucial to withdrawing RESP moneys from an RESP (allegedly you can use a Tuition receipt, but that strikes me as less likely to work)), but as usual things did not go as smoothly as I would have hoped.

As all I wanted to do was take out money, I had the letter, and had no other requests, I thought I could easily deal with any of the “Mutual Fund Experts” at my local branch (or so I thought).

After having to make an appointment (for a day after I was ready to do my task), I showed up and all seemed to start just fine. The young man I dealt with was polite, if not a little overly nosy (in my opinion), but I noticed that he seemed to be running from a script, which made me very wary.

I had all the relative information I thought I needed, however, a few wrinkles appeared in this “interview” that caused me to get a little confused. First the amount quoted as being the CESG moneys (Government Grant) seemed very high in comparison to what I remembered. Given the grant amount is 20% of up to $2500 per year, it could have been $500 per year, but I was sure I had cashed out some of the grants already, but it seemed like 80% of the remaining moneys was grant money?

I decided to cash out more of the Grant Money this time, however, that is where things got more confusing. The moneys that were not CESG or growth, showed up in my bank account on Saturday (I did this on a Friday), however, the CESG portion which was supposed to show up in my daughter’s account, but it has not shown up as of Monday night. I am hoping that this is just the need to inform the CRA and such, but the fact that moneys showed up in two parts worrie(s|d) me.

The other “grind point” for me was as we went through the steps to get the money, I kept getting sales pitches asking had I spoken to one of their “Investment Specialists”. I really don’t like being upsold services in any situation, and in this situation, I almost got rude, but decided to ignore the statements. I did (however) point out that I own TD E-series index funds, and was not interested in any Balanced Funds or direct stock trading, I thought that warned off my interrogator, however, he did come back again at the end of the interview suggesting I chat with someone about investing, this time I replied a more firm “No!”.

So now I sit and wait hoping for the second portion of my moneys to appear in my Daughter’s Saving Account, or for a call explaining how things may have gone a little wrong (I hope not)?


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