Investing in Your Child’s Future with RESP
For many parents, it is for their children to receive an education that leads to a fulfilling life, including imparting skills that broaden their horizons as well as provide them with valuable life experience. It is something that most parents aspire for their children. However, the value of quality is reflected in its cost. With tuition costs rising slowly, there are many hindrances such as costly textbooks and student housing for certain families.
For a lot of Canadians, student loans play a vital role in helping their children achieve their education goals. However, there is an alternative, you can start investing in your children’s future with a Registered Education Savings Plan (RESP). Rai Rupinder can help you get in touch with several expert financial advisors that support Canadians in achieving their goals.
With years of experience in the trade, Rai Rupinder has become an expert in education savings by offering straightforward and professional advice to invest in your child’s educational future. There are plenty of benefits to a Registered Education Savings Plan. Rai Rupinder can help you learn to make the most of the government grants, including all you need to know when your child is all set for post-secondary education.
What is a Registered Education Savings Plan (RESP)?
An RESP is a financial savings tool that can help accelerate your child’s education savings. The contributions made to this plan are free from tax, furthermore, the government provides generous matching grants. It can offer peace of mind to help get your child to a fantastic start and even reduce or eliminate the need for student debt. Below mentioned are the benefits of an RESP:
- It allows families to grow education savings tax-free until withdrawal
- Matching grants from the government
- Withdrawals can be made when the child enrols in post-secondary education
- Growth of the investment is taxed in the hands of the student who is likely to pay little or no tax.
- There are no tax deductions from contributions
- Covers the child’s living expenses, tuition costs, books and much more
As long as they have a social insurance number and a resident of the country, there is no set annual limit, so the contribution limit is up to you. Just like a Registered Retirement Savings Plan, your RESP can accumulate several investment products like mutual funds, stocks, bonds etc. Even though you cannot deduct the contributions made to an RESP from your taxable income, the earnings are free from being taxed.
When you withdraw the contributions and grants to pay for your children’s post-secondary education, they are counted as the child’s income and not yours – therefore, there will be little or no tax owed. Most students have a very minimal tax rate.
Types of Registered Education Savings Plans (RESP):
- Family RESP plans
- Individual RESP plans
Give your children the education they deserve
Whether they are still toddlers or in those awkward teenage years, every parent wants to give their children the best education possible, including help with their post-secondary education. Rai Rupinder can offer expert advice and provide professional support, as well as show you how a Registered Education Savings Plan (RESP) can help you save for college or university, including how you can add it your savings with free grants from the Canadian government.
If you are looking to buy a Registered Education Savings Plan in Mississauga or buy a Registered Education Savings Plan in Brampton, please do not hesitate to talk to Rai Rupinder today to help you get your savings started.