Create Distinct Plans for Future Education
Registered Education Savings Plans (RESPs) have been around since 1998, but haven’t taken off like wildfire, possibly because they’re a bit complex to understand. The short story is that you can dedicate resources to fund the cost of a child’s — or grandchild’s — post-secondary education. The amounts you invest don’t result in a tax deduction, but the money compounds without tax just like an RRSP. What makes RESPs attractive is the 20% (and sometimes higher) federal grant that is earned on the first $2,500 invested each year up to a maximum of $7,200 per child.
Whether you’re wondering how to set up an RESP, how to maximize your contributions or how to start payments to your new student, please
contact us and let us guide you through the next steps.