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Give your child

an advantage

for  LIFE.

REGISTERED EDUCATION SAVINGS PLAN

A Registered Education Savings Plan, or RESP, is a government
registered savings plan for higher education. The government
gives free grant money as an incentive to save. Investments
are grown tax sheltered thus interest can compound exponentially.

For as little as $25/month, you can make a big different in a child’s
life. There are many options to choose from. Let us help and educate
you to achieve a good cause.

Benefits of RESP

Government Grants

Governments offer grants to help and encourage you to save for higher education. They match 20% of the first $2,500 contributions in a year.

Tax-deferred growth

Investments grow tax sheltered. Only grants and total interest are taxed when the child withdraws for school. Many students have little of no other income, so they usually withdraw the money tax-free.

The sooner you start, the more you save

With only a Social Insurance Number required for the child, you can start saving for their future. Saving early gives you the advantage of maximizing government grants and compounding interest growth.

1. Starting too late

While starting early has its advantages, it truly is never too late to open an RESP. It’s better to start late than to let the opportunities such as “free money” and taxed-free interest pass you by. The right time to start is now. You can start for as little as $25/mth with Everlife Financial.

2. Not taking full advantage of “free money”

Too many Canadian families leave money on the table instead of putting it into their own pockets. The Canada Education Savings Grant gives you up to $500/year in “free money” simply to encourage you to save. If you come from a low-income family, up to an additional $200/year goes into your pockets.

3. Thinking RESPs can only be used for tuition

As long as the child is enrolled in a qualified educational institution, the money can be used for any reasonable educational purposes. This means much more than tuition, books, and residence. This includes needed equipment such as a laptop, desk, or tablet. Transportation to school, athletic costs or student activity fees would also qualify. Furthermore, there is no requirement to study in Canada. Travel abroad to study or take distance education courses at qualified accredited institutions.

If your child does not go to higher education, contributions and earned interest can be withdrawn by you and used in any way you like to transfer to your or your spouse’s RRSP.

4. Setting up RESPs on “autopilot”

Pay into it and reevaluate your plan regularly. Can you add more money — even $5 or $10 extra a month? Is there a lump sum you can contribute from time to time? Check if you are on the right path to achieving your goals.

5. Not treating it as investment account

Too many Canadian families do not utilize the investment market. They either don’t know there are options to invest or they put it in mismatched investments. At Everlife Financial, we make your money work for you and align your goals with various stages of your life.

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