RESP

Everything you need to know about investing in an RESP. We can help.


RESPs also known as the Registered Education Savings Plan helps you save for your child's post-secondary education. An RESP can help you tide over the rising costs associated with a college or university degree for your child. Plus, government grants also provide relief while the savings grow tax-deferred until withdrawn.


Start saving early: We recommend that you begin saving early in your child’s RESP. You can also take the benefit of the various grants that the government provides.


Contribute to RESP regularly: Your contributions accumulate over time and the grants also will grow as part of your investments. Plus, your RESP contributions growth is 100% tax-free.


Benefit in the long run: In the long-term, your contributions are given back to your child’s qualified college and university education for Canadian universities and some international educational institutions. The total interest from the RESP is also added to the government grant to pay for college or university.


How we can help: At LifePlan, our Advisers can help you with more savings, more flexibility and more possibilities. This means, you contribute the amount you want when you want and have access to advantageous investment options to help you save more.


Caution:


  • According to OSC- Ontario Security Commission, you have to be careful and read the Prospectus of the institution thoroughly before you invest in any type of RESPs (mostly called Scholarship type plan or Diploma plan)
  • Some scholarship plans may have more restrictions than other types of plans on how much and how often you can make withdrawals. Make sure you read the fine print and understand the restrictions of the plan
  • There are many penalties in place with RESP cancellations, especially when you choose the Scholarship type plans. If you cancel the plan after 60 days, you receive your contributions back, less the fees. Since substantial fees are paid up front, the amount of money you get back is always less than what you put in
  • Contribution Amount and Accumulated Income are two parts of an RESP account. When withdrawing, clarify if the amount will come from contributions, non-contributions or both
  • You can not withdraw more than $7,200 of grant money per beneficiary (Not include the grand growth of $7200 within the plan).
  • With proper planning you may able to defer or eliminate unnecessary penalty or excess taxes when withdrawing from RESP. Talk to the right professional or we can help you.



Contact our Qualified LifePlan Consultant or Financial Planner Today.


Our qualified consultants will take the time to review your current investment account and see if your investments holding have the right asset allocation and are managed according to your risk tolerance.