Consolidating debt into mortgage scotiabank
Related: Money Sense article on RESPs; Comments section of Million Dollar Journey’s post on RESPs.For people with credit card debt, perhaps there’s no better bank-beating strategy than having a bank lend you its own money for free!The little I did read about them suggested that I should stay away.Nothing that I learned while researching this post made me change my mind. In a Group RESP plan, contributions are pooled together and invested in fixed income instruments.Also, you’ll derive full benefit from the program only if your child attends a four-year degree program.Returns: You should keep in mind that scholarship plans are invested in low-risk and low-return assets like T-bills, bonds and mortgages.
Though I have set up a self-directed RESP for my boys, I had not researched scholarship plans in detail.The enrolment fee may be refunded to you, in portion or in full, when your newborn enrols becomes a qualified student.Note that you won’t receive any earnings on your enrolment fee.Remember, most people have other priorities like saving for a retirement and paying off their mortgage) and control (my kids are very young, so the portfolio is heavily tilted toward equities.If your kids have five years or so till university, you should be invested in bonds or GICs).
Not sure if you should go for a card with a low interest rate for a short length of time or a card with a higher interest rate for a longer period of time?