Our services have been designed to cater for the financial welfare of your post-secondary school financial plans.
Are you worried about the future of your education or that of your children in regards to financial transition?
What is RESP?
These plans are characterized by tax benefits and have been designed to help people save for their post-secondary education. In this plan, the contributor names a beneficiary and makes a contribution to the RESP which in return they are paid to the beneficiaries including the earned interests. The payments are also called educational assistance payments.
How does RESP work?
It offers the option of investing in two different plans; these are family or specified beneficiaries depending on the situation. Regardless of the plan chosen, the annual maximum contribution is unlimited with a lifetime contribution limit of $50,000.
The RESP contributor can select either a domestic or international investment with no foreign content restrictions. Should the beneficiary fail to pursue the post-secondary education, and another beneficiary not appointed, the contributor has to repay the grant portions. The money can then be withdrawn in cash.
Who should purchase RESP?
RESP is used by anyone who wants to save for post-secondary education for themselves or that of a loved one/beneficiaries. Ideally, it can be opened by anyone or jointly by a group of people with a common goal. In most cases, this plan is used by the parents to save for the education of their children.
Is RESP a liability or an asset?
RESP is definitely an asset because financial support is there for the beneficiary when they need it.
Benefits of RESP
- The money is there when you need it.
- Flexible saving schedule.
- Tax-sheltered growth.
- Flexibility in use.
- Variety of investment options.
- Friends and family can contribute.
- RESP accounts can stay open for 36 years.
- Government matching of 20%/government grants.
- Back to school convenience.
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