It seems like a long time ago that you began to regularly contribute to a Registered Education Savings Plan (RESP) for your child or grandchild and, suddenly, it’s time! In a month or two, that ‘child’ will be heading off to university or college and the accumulated cash in their RESP will begin to pay off. You’re far from alone: Canadian families have amassed over $44 billion in savings to help pay for their children’s post secondary education and 379,120 students had RESP withdrawals for a total of $3.04 million in 2014.
You’ll want to get the most from your RESP – and with the right withdrawal strategies you will save on the taxes your student will pay and get the full benefits of the Educational Assistance Payments (EAPs) that consist of the Canada Education Savings Grant (CESG), the Canada Learning Bond (CLB) and the income earned on the money you saved in the RESP. Here’s how:
Education is expensive so starting that RESP years ago was a sound financial decision. Your professional advisor can help you make other good decisions that will provide financial stability for your family and a debt-free education for your children or grandchildren.
This column, written and published by Investors Group Financial Services Inc.(in Québec - a Financial Services Firm), presents general information only and is not a solicitation to buy or sell any investments. Contact your own advisor for specific advice about your circumstances. For more information on this topic please contact your Investors Group Consultant. Insurance products and services are distributed by I.G. Insurance Services Inc. (in Québec - a Financial Services Firm). Insurance licence sponsored by The Great-West Life Assurance Company outside of Québec.