Book Review: The RESP Book by Mike Holman
Not only is Mike Holman an amazing writer, but he was one of the bloggers I really looked up to when I first started my personal finance journey. And now, years later, I couldn’t be more excited to review his new book, The Complete Guide to Registered Education Savings Plans for Canadians.
Mike makes learning about RESPs so easy. Unlike a lot of other financial guides which are dry and hard to understand, he writes in a clear, straight forward manner. This book is a fantastic guide for anyone interested in learning more about RESPs.
Here are the main points about RESPs that I took away from his book:
- The government matches 20% of every dollar you invest into the RESP, up to a maximum of $500 per year, or $7,200 over the life of the RESP.
- Lower income families are eligible to receive more money from the government (!!!)
- Money contributed to an RESP can be pulled out regardless of whether the beneficiary student is attending post secondary school – with no withdrawal limits or restrictions.
- RESPs can also be used for trade schools – such as esthiology, culinary arts, massage, and many foreign educational institutions.
- The person who sets up the RESP and contributes to it calls all the shots – from what to invest in to when and how much to take out. The beneficiary has no claim to the money.
I have never done any research into RESPs before reading this book because I don’t have a kid, nor am I planning on having a kid anytime soon. After reading this book, I feel like I know enough about RESPs to invest in them if I wanted to – and I do think that they are an excellent idea and a great way for the government to help invest in your child’s future.
(As a side note, I have always known that I want my future children to pay for their own education. Therefore, while the RESP is a great investment for those that believe in helping out their child in this way, I will most likely not be utilizing it.)
Book Giveaway!
Want to own your very own copy of The Complete Guide to Registered Education Savings Plans for Canadians? Well here’s your chance! Mike has generously offered to provide a free copy to one lucky GMBMFB reader.
Here’s how to enter:
- ONE ENTRY: Comment on this blog entry. That’s it! Simple and straightforward
- ONE ENTRY: Tweet about the contest, linking back to this blog post (leave a comment on this blog entry to let me know you’ve tweeted)
- Winner will be chosen by Random.org
- Anonymous commenters please leave your e-mail address or your entry will not count
- Contest closes November 26, 2010 at midnight PST
- Open to Canadian addresses only
72 Responses to “Book Review: The RESP Book by Mike Holman”
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Why don't you want to contribute to your child's education? I know you had loans, and I've had loans, and I know how long and horrible it is to pay them back, so I know I want to make sure my kids don't go through that so early in life. What's your take on it?
And congrats on your moneyville gig! You're doing great.
Why don't you want to contribute to your child's education? I know you had loans, and I've had loans, and I know how long and horrible it is to pay them back, so I know I want to make sure my kids don't go through that so early in life. What's your take on it?
And congrats on your moneyville gig! You're doing great.
How exciting!! This is a topic that I would like to research but down the line when I do have children I want to help them with their education (because by the time my future children do attend university/college I can't even imagine the tuition fees!)
I would love to be considered for this contest and I am so excited that it is offered to Canadians :) so consider this my official entry!
How exciting!! This is a topic that I would like to research but down the line when I do have children I want to help them with their education (because by the time my future children do attend university/college I can't even imagine the tuition fees!)
I would love to be considered for this contest and I am so excited that it is offered to Canadians :) so consider this my official entry!
Why wouldant you want to help. Its like saying I dont believe in you. My dad put some money into an RESP which the goverment matched. Then it steamrolled intrest while I grew up. Having that money and taking a LOC to go to school made it a lot easier. Also I worked all the way through college. If you put your baby bonus money aside for a year or 2 just that alone plus intrest is an awesome start. Plus any goverment matching incentives.
I was able to pay off what I owed. Plus buy a house at 23. If I was paying back loans I wouldant have been able to do that.
I'm wondering the same thing, why wouldn't you want to help out? Especially since the government helps by matching?
Why wouldant you want to help. Its like saying I dont believe in you. My dad put some money into an RESP which the goverment matched. Then it steamrolled intrest while I grew up. Having that money and taking a LOC to go to school made it a lot easier. Also I worked all the way through college. If you put your baby bonus money aside for a year or 2 just that alone plus intrest is an awesome start. Plus any goverment matching incentives.
I was able to pay off what I owed. Plus buy a house at 23. If I was paying back loans I wouldant have been able to do that.
I'm wondering the same thing, why wouldn't you want to help out? Especially since the government helps by matching?
Wow, what a nice review!
Thanks
My recent post RESP Warfare – Reader Question
Wow, what a nice review!
Thanks
My recent post RESP Warfare – Reader Question
I don't know a lot about RESPs, but I do have one for my son. I don't contribute a lot, but every dollar I can save for him now will be worth several dollars when he needs it. I never received any assistance from my parents when I went to school, but I would really have loved to. So I am doing what I can for my son and his future.
My recent post Woven newspaper bag
I don't know a lot about RESPs, but I do have one for my son. I don't contribute a lot, but every dollar I can save for him now will be worth several dollars when he needs it. I never received any assistance from my parents when I went to school, but I would really have loved to. So I am doing what I can for my son and his future.
My recent post Woven newspaper bag
Cool! I just did the review and giveaway too :) Really? How come you don't want to help support your (future) child's education..even just a little bit?
Cool! I just did the review and giveaway too :) Really? How come you don't want to help support your (future) child's education..even just a little bit?
Sign me up.
Sign me up.
Sounds really interesting. I plan to have kids in a few years so this would be a helpful book to have. I believe my father set up this savings plan for my niece 7 years ago :)
Sounds really interesting. I plan to have kids in a few years so this would be a helpful book to have. I believe my father set up this savings plan for my niece 7 years ago :)
Ok, I have a question: I am a Canadian living abroad and all my kids are Canadian. So what would interest me is this: Does the book go into any kind of detail about this type of scenario or do you have to be residing in Canada to set up RESPs? (So for me, questions like this would be interesting to know if the book addresses: Can I set up ONE RESP per child with my Canadian funds? Do I have to have an income in Canada to do this? I have only got income from interest…)
If I happen to be "randomly chosen", I do have a Canadian address but I would only be interested in the book if it is relevant to the topic of expats, so if the book does NOT deal with that (or RESPs are not allowed to expats), then please choose someone else randomly :) .
I asked the same questions over at Mike’s place and he said the book is something I need not get involved with… so randomly ignore my comments ;)
It would appear that RESPs are only good for residents of Canada. Once we move back I’ll have to then consider grabbing the book.
My recent post How to buy a Home updated Fri Jun 11 2010 2-26 pm CDT
Ok, I have a question: I am a Canadian living abroad and all my kids are Canadian. So what would interest me is this: Does the book go into any kind of detail about this type of scenario or do you have to be residing in Canada to set up RESPs? (So for me, questions like this would be interesting to know if the book addresses: Can I set up ONE RESP per child with my Canadian funds? Do I have to have an income in Canada to do this? I have only got income from interest…)
If I happen to be “randomly chosen”, I do have a Canadian address but I would only be interested in the book if it is relevant to the topic of expats, so if the book does NOT deal with that (or RESPs are not allowed to expats), then please choose someone else randomly :) .
I asked the same questions over at Mike’s place and he said the book is something I need not get involved with… so randomly ignore my comments ;)
It would appear that RESPs are only good for residents of Canada. Once we move back I’ll have to then consider grabbing the book.
My recent post How to buy a Home updated Fri Jun 11 2010 2-26 pm CDT
I've got 2 girls who will definitely end up in University some time. We started an RESP, but have no idea what it's up to, nor have we contributed since start up, so getting up to speed is a great idea.
I've got 2 girls who will definitely end up in University some time. We started an RESP, but have no idea what it's up to, nor have we contributed since start up, so getting up to speed is a great idea.
That sounds like a great book, especially considering I have a 17 month old son.
I love your blog, I read it everyday.
That sounds like a great book, especially considering I have a 17 month old son.
I love your blog, I read it everyday.
what a great giveaway for those who want to know more detail about RESPs. i don't have kids either, but its nice to know that there's an option of saving for your children's education with rising inflation costs & all. thanks krystal for this wonderful post!
what a great giveaway for those who want to know more detail about RESPs. i don't have kids either, but its nice to know that there's an option of saving for your children's education with rising inflation costs & all. thanks krystal for this wonderful post!
I've been reading your posts for a little while – enjoying it so far :)
I'd like to be included in the contest. I set up an RESP a while ago for my child but I still have questions about it…
Thanks.
I've been reading your posts for a little while – enjoying it so far :)
I'd like to be included in the contest. I set up an RESP a while ago for my child but I still have questions about it…
Thanks.
I am contributing the minimum amount required to maximize the free money offered by the government for my son's RESP. I feel that if I don't, I'm just leaving money on the table. I would think that you'd want to take advantage of free money wouldn't you? It's one thing to not want to pay for your kid's education out of your pocket, but why rob your kid of the government's contribution to their education? The government's money is your money to begin with! Might as well use it!
PS: I hope I win the book!
I am contributing the minimum amount required to maximize the free money offered by the government for my son's RESP. I feel that if I don't, I'm just leaving money on the table. I would think that you'd want to take advantage of free money wouldn't you? It's one thing to not want to pay for your kid's education out of your pocket, but why rob your kid of the government's contribution to their education? The government's money is your money to begin with! Might as well use it!
PS: I hope I win the book!
I would love to be able to win this book. I was fortunate enough to have help from my parents when I went to university and I would love to be able to help my children when/should they go. Thanks for the giveaway!!!
I would love to be able to win this book. I was fortunate enough to have help from my parents when I went to university and I would love to be able to help my children when/should they go. Thanks for the giveaway!!!
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I hope to be able to pay for my 3 children’s education and the RESP Book would probably help. Pick me! :)
I hope to be able to pay for my 3 children’s education and the RESP Book would probably help. Pick me! :)
love the blog. consider this my entry
love the blog. consider this my entry
I am relatively new to the RESP world. I have many questions and I believe, having already been enlightened by the author on the RFD website, his book will have as many answers too.
I am relatively new to the RESP world. I have many questions and I believe, having already been enlightened by the author on the RFD website, his book will have as many answers too.
Id love to win the book!
Krystal, I think what my parents did was wise. They had money set away in an RESP for us but they forced us to pay 50% of the education expenses. Yes — I came out with a little bit of debt, but at 22 I am looking to put a down on a house because I was able to pay most of it through school. This forced us to learn how to work hard and manage time as well as money to pay for our education and it relieved the enormous pressure that post-sec education is.
Interesting concept….
Id love to win the book!
Krystal, I think what my parents did was wise. They had money set away in an RESP for us but they forced us to pay 50% of the education expenses. Yes — I came out with a little bit of debt, but at 22 I am looking to put a down on a house because I was able to pay most of it through school. This forced us to learn how to work hard and manage time as well as money to pay for our education and it relieved the enormous pressure that post-sec education is.
Interesting concept….
Sounds awesome :) Seems like a good place to invest regardless, considering you can take the money out at any time.
My recent post Colourful Balloon Card
Sounds awesome :) Seems like a good place to invest regardless, considering you can take the money out at any time.
My recent post Colourful Balloon Card
Love the idea of having an RESP. And thanks for all the info.
Love the idea of having an RESP. And thanks for all the info.
Thanks for the great review. I am definitely going to buy this book (unless I win your contest).
Thanks for the great review. I am definitely going to buy this book (unless I win your contest).
I’m going to be setting up RESPs for my grandchildren – their parents aren’t in a position to right now and this one way grandparents can give a gift that could make such a difference in their lives. Hopefully, no barriers to getting post secondary education!
The book would be a nice way to get me started…..
I’m going to be setting up RESPs for my grandchildren – their parents aren’t in a position to right now and this one way grandparents can give a gift that could make such a difference in their lives. Hopefully, no barriers to getting post secondary education!
The book would be a nice way to get me started…..
Hi Krystal:
NewMama here, nine months pregnant and looking forward to NewBaby#1′s arrival in 2-3 weeks. From fairly early on in my pregnancy, DH and I agreed that we’d like to open an RESP for NewBaby, so as to minimize (thought probably not eliminate entirely) his / her need for student loans (which was DH’s experience) or to avoid having to defer his / her education until saved up for in advance (my experience).
Please pop me into the draw for the book ~ with all the new learning we’ve had to do in prep for a baby, we’d welcome a clear and concise guide to this topic that we’ve already identified as important to us. Thanks!
Best,
NewMama
Hi Krystal:
NewMama here, nine months pregnant and looking forward to NewBaby#1′s arrival in 2-3 weeks. From fairly early on in my pregnancy, DH and I agreed that we’d like to open an RESP for NewBaby, so as to minimize (thought probably not eliminate entirely) his / her need for student loans (which was DH’s experience) or to avoid having to defer his / her education until saved up for in advance (my experience).
Please pop me into the draw for the book ~ with all the new learning we’ve had to do in prep for a baby, we’d welcome a clear and concise guide to this topic that we’ve already identified as important to us. Thanks!
Best,
NewMama
sounds very good ! I have 2 daughters, and I am contributing to their RESPs to give them a bit of help, and also take advantage of this investment…