for your child’s futureRESP PLAN



We all dream of educating our children from the best university for their higher studies. Responsibilities grow with each day as time passes by. And before we know it, the time to turn those dreams into reality arrives. RESP is a registered education savings plan that helps you save for a child’s post-secondary education. To encourage education savings the government of Canada and some provincial government provide annual grants based on how much you contribute to your child’s RESP.

RESP is the most precious gift you could offer to your children: the possibility to pursue a career in their dreams. Based on your family income, you could also be eligible for an additional grant. And your investments, grants, and interest grow tax-free until withdrawal.


RESP Calgary


Registered Education Savings Plan (RESP) for Child Education

Worried about your child’s future? Well, who isn’t? In this fast-changing world, we won’t even realize and our kids will be all grown up looking for their educational institutions. As a parent, we also dream of providing them best education through a top university/college. RESP is such a plan which helps you to fund the education of your children.

RESP is a smart tool for caregivers living in Canada/Calgary to invest in their child’s future, which can be utilized as the child gets enrolled in post-secondary education.


Who can be the Subscriber and the Beneficiary?

The subscriber can be anyone, as long as both the subscriber and the beneficiary are Canadians. It can be

  • child’s parents,
  • grandparents,
  • any family friend, or,
  • joint subscriber (both parents or grandparents)


Why RESP?

  • The benefits of investing in RESP plan can be availed for up to 18 years. The funds can be later utilized for post-secondary education
  • Can be utilized if a child opts for minimum 1 year full time education program or trade schools.
  • One RESP can be created for multiple beneficiaries if RESP Family Plan is set up.
  • Wide range of investment options is available like segregated funds, bonds, equities, mutual funds etc.
  • The monthly contribution can trigger grants from the Government. Residents of Canada may receive a grant under the Canadian Education Savings grants.


How much can be contributed?

One can deposit up to $50,000 for each child and there is no annual contribution limit. Each plan demands contribution at different intervals, be it monthly or annually or whenever one can.


Requirements for a RESP?

  • Social Security Number of the beneficiary as well as of the subscriber will be required.
  • RESP can be opened in a trust account which can be linked to your local Calgary bank account.
  • You could contact our local calgary office for any further information.

Following table shows grants offered by the federal government


Annual grant (% of contributions) Annual limit (per child) Lifetime maximum (per child) Additional grant (% of contributions)
Canada Education Savings Grant (CESG) 20% $500 $7,200 10% or 20% of the first $500 invested each year
Canada Learning Bond (CLB) Limit of $2,000 per child for eligible families

Following table shows grants offered by the federal government


Canada Education Savings Grant (CESG)
Annual grant (% of contributions) 20%
Annual limit (per child) $500
Lifetime maximum (per child) $7,200
Additional grant (% of contributions) 10% or 20% of the first $500 invested each year
Canada Learning Bond (CLB)
Limit of $2,000 per child for eligible families

Flexibility; If your child doesn’t pursue post-secondary education, you can:


  • Designate another child as the beneficiary in the family
  • Withdraw your original contributions tax free
  • Transfer your accumulated investment income to your RRSP under certain restrictions

Contact Munish Mehan at 587-718- 8001 if you would like to start investing into your child`s future from today.

RESP



 

RESP