AVOID "Knowledge First Financial (KFF)" for RESP - A legal SCAM | Page 5 | General financial discussion | Discussion forum

I want to thank everybody on this thread for their super helpful advice. I have several children (some by adoption) and I put them all into KFF. Because of the strange staggering of how children joined our family, some have been in KFF a very long time (like 18 years!) and others have been in for very short periods (1 to 2 years).

Sadly, a couple of my "2 year KFF" children have already been charged ~$2K in fees each. My own dumb fault for not asking more questions.

Interestingly, some kids have not been charged any fees yet, perhaps a mistake on KFF's mismanaged side of things.

I think I'm going to move the "no fees yet" kids out of KFF and into Wealthsimple or QuestTrade, and fight the fees on my other $2K fee kids. The one who has been in for 18 years, I will just cash out - and I will also fight their additional ~$1K fee that they have been planning to levy against him.

This has been an invaluable discussion forum, thank you everybody! Now to figure out which company has better robots for RESP portfolios: Wealthsimple or QuestTrade 🙂

trhaynes said
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Sadly, a couple of my "2 year KFF" children have already been charged ~$2K in fees each. My own dumb fault for not asking more questions.
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You may wish to have a look at an earlier discussion RESP with "Knowledge First Financial" about these group RESP plans.

We saw questionable sales and marketing. I also found hefty front-end loading of sales fees.

That front-end loading of sales fees you experienced is how parents, who had to drop out of the plans, lose not only the interest and the grants but also a significant portion of their contributions! In the example I gave back then, someone leaving at the end of year #2 would lose at least 2/3 of their contributions!

In general, with fees, one needs to weigh the fees paid, how ever significant, with what one gets for the fees. Some of my mutual funds charge 1% to 2% per annum in fees. Over 20 years that adds up to at least 20% to 40% of my initial investment. If the mutual funds are, after fees, now 4X my initial investment 20 years later, then it wasn't a bad deal.