So what is Education Planning?
It is a program to help children continue with their studies after completing high school. A child can attend a college, a university or any other program as long as it is recognized by Canada Revenue Agency (CRA). This can be anywhere in the world.
With the cost of a post-secondary education rising every year it is vital children and parents of children take full advantage of a government program called Registered Education Savings Plan (RESP)
An RESP is a great way to grow money tax free for your child’s post-secondary education. There are many companies offering RESP. Be sure you get the one that is right for you. Some companies will allow you to contribute to a wide variety of investments where others have some restrictions and fees to set up. There is a lifetime maximum contributions of $50,000 per beneficiary. The government will contribute a minimum of 20% on the first $2500 per year in the form of a grant. Ask us how to maximize the grants that are available.
A few things to consider:
How much is needed to save for an education?
How much can you afford given other goals you may have already?
What investment will achieve this goal?
Things to look for:
- How easy is it to start and stop the regular contributions?
- Choice of investments available
- Beneficiaries can be changed
- What happens if the beneficiary does not pursue a post-secondary education? What happens to the growth and grants in the account?
Be proactive ... Invest in your child’s future!