Set up an RESP account for your child’s higher education
Our team at Top Choice Insurance can help you with that. If you are new to this matter and don’t know much about the topic, speak with our experts. We will share all the important details with you so you can make a well-informed decision on how to set up the account. You can customize how much you want to contribute every month and we can tailor the contract accordingly. Schedule an appointment with us today, and discuss your investment needs with us. We look forward to hearing from you.
Understanding what an RESP is
You can consider RESP or the Registered Education Savings Plan as a long-term investment strategy that can help your children with the expenses of higher education in Canada. Over the years, education costs in the country have sky-rocketed, but as a parent, you would want your child to have the best. Well opening an RESP account can help you with that. This type of account is specifically made as a savings vehicle for your child’s education. The funds cannot be used otherwise. The money you contribute grows tax-free and additionally, the Federal government also matches up to 20% of your contribution. These contributions from the government are made in terms of the Canada Education Savings Grant and Canada Learning Bond. The lifetime contribution limit is $50,000. If you want to know more or have some queries, feel free to speak with our team members.
A wide range of RESP policies we offer
At Top Choice Insurance we offer three types of plans for RESPs, these are:
Family plans: It’s ideal for families that have more than one child, as you can name more than one beneficiary. You should know that the beneficiaries must be your children or stepchildren or grandchildren or siblings- all in all, the beneficiary has to be related to you by blood or by adoption. The main advantage of this type of plan is that any beneficiary can use the funds.
Individual plans: You can name only one beneficiary under an individual plan, but the primary advantage of this plan is, that you won’t have to be related to the beneficiary. So, if you want to contribute to an RESP for your nephew or someone dear, this is a perfect choice. You can open this type of RESP for yourself as well.
Group plans: In this plan, the funds are invested in low-risk products such as guaranteed investment certificates and they grow tax-free. The pooled funds are later distributed amongst the contributors as annual payments during the first four years of the higher education course. Each group has its own rules, however, to participate, you are generally asked to commit to a strict payment schedule and you can only name one child as the beneficiary, but they may or may not be related to you
RESP encourages savings
You will be happy to know that RESP plans come with built-in safeguards to make sure that your investments grow. There are tax penalties and grant clawbacks to discourage you from withdrawing funds early. In addition, your investments grow tax-free as well as your withdrawals. You also have several options to invest your funds into- such as GICs, ETFs, stocks, bonds and mutual funds. Contact Top Choice Insurance today and discuss your investment opportunities with us. We look forward to hearing from you.
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