Investments | Registered Education Savings Plan (RESPs)

Helping a child obtain a good education is one of the best investments you can make for them. Today, a post-secondary education is almost essential in helping to ensure a child’s future well-being. We know how quickly ‘today’ becomes ‘tomorrow’. That’s why it’s so important to begin planning for their education early. For most students, the desire for a promising future is there, but post-secondary education funding can pose a real challenge. We can show you how to gradually work towards realizing this worthwhile goal.

Several types of plans are available to help you save money for your child’s education. Two that you might consider are Registered Education Savings Plans (RESPs) and in-trust accounts.

RESPs – The highlights

• You (the subscriber) can contribute up to $4,000 per year, per child (the beneficiary) to a maximum of $42,000. Any Canadian residents with a SIN can be a subscriber and contribute to an individual plan.
• RESP contributions are not tax-deductible; growth earned on contributions is not taxable until it is drawn from the plan.
• Once the child starts a post-secondary education program, education assistance payments may be drawn from the RESP to pay for tuition, books, accommodation – in fact, anything that will assist the child during their studies.
• If your child completes their education and there’s money remaining in the plan, you may be able to name another beneficiary. Certain conditions must be met in order for any grants to remain in the plan.

Depending on your needs, you may choose either an individual or a family RESP.