Objective
Make sure your child is able to pursue post-secondary studies and achieve their academic dreams by making profitable investments.
Duration
While it is recommended to start investing in an education fund while your child is young, you can contribute until they turn 18.
Risk tolerance
This type of investment gives you access to government subsidies and allows you to contribute at your own pace, either prudently or more actively.
Types of savings
An RESP might be the best education savings solution available, but you might want to consider your other options.
- RRSP
- TFSA
- Annuity products
- RRIF
- LIF
- LIRA
Advantages
Putting money toward an education fund will take pressure off your child when the time comes to pick a career. Your contributions will also allow you to benefit from considerable subsidies.
- Tax-free savings
- Registered retirement income
- Life income
- Locked-in retirement fund
- Disability savings
Best practises from your advisor
Post-secondary education is definitely a costly affair, including:
- Tuition
- Supplies, in some study programs
- Accommodations for several years
Contributing as early as possible to an education fund will give more flexibility to your child when they weigh their career options. A registered education savings plan (RESP) allows you to:
- Benefit from government subsidies
- Accrue substantial interest over the years
- Reinvest the sums if your child changes their path
If your household income is more modest, you might be entitled to other benefits. I can tell you in detail what you’ll be entitled to and guide you through the process of opening of an RESP. Book an appointment with me without delay!