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RESP plan for your child's future
Responsibilities grow with time. Marriages kids, home, renovation, education and another day to day education are few to name. After your child’s birth, soon enough you will have big plans for him or her. Before you realize time fly and comes the time when these dreams should turn into reality. Understanding your child’s needs is important to get the right start to your child’s education.
What is RESP?
It is a special savings account where the Canadian Government will help you to save for your child’s education after high school. Many families now understand the need of saving before him or her entering into higher education.
You can reach your saving goals by government assistance, investment growth, tax saving, and flexibility.
A RESP can put as many beneficiaries as they want. From your children to grandchildren, nephews to nieces and many friends, all are invited as a beneficiary. The people who open the plan and contribute towards are called as subscribers. A subscriber will designate the beneficiary who will use the funds, provided that the beneficiary is a resident of Canada, having a Social Insurance Number (SIN).
In RESP, a subscriber is subjected to contribute up to the limit of $50,000 per beneficiary. The contribution to a RESP plan cannot be deducted from the taxable income, though the subsequent investment on RESP is tax-deferred. When the earnings because of the plan are taken away to cover qualifying higher education, they are taxable to the beneficiary instead. The contribution to RESP is made for 31 years with plans remaining open for a maximum of 35 years.
If your net family income is below $35,595*, 40 cents on every dollar is the grant on the first $500 you save for your RESP.
If your net family income is between $35,595* - $71,190*, 30 cents on every dollar is granted on every $500 you save for your RESP.
*This amount is updated each year
For more information, talk to our financial advisor Harpreet Puri.
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Our RESP plan will help you save for your child’s higher education.
For many years now, our RESP savings have offered peaceful mind to our Canadian families for many years.
There are normally three types of RESP:
- Individual Plans
- Family Plans
- Scholarship Trusts or Group Plans
Call us today to know more about what exciting do we have for you!