Everything that you should know about RESP
RESP or Registered Education Savings Plan is a comprehensive savings vehicle for all children living in Canada who want to pursue higher studies. Alongside parents and family members investing in this policy, it’s also sponsored by the Canadian government and encourages everyone to invest in a child’s future. If you want to know more about this scheme, you can speak with our team at InsLyf Brokerage. Schedule an appointment today, we look forward to hearing from you.
Helping Canadians plan to make higher education possible
To know a bit about the background of the scheme, the need for this policy rose out due to the everchanging increasing fee structure of well-established educational institutes throughout the country. As of now in 2022, students have to pay up to a total of more than $50,000 to complete a four-year graduate programme and that becomes very difficult for children who are raised in low-income families. This results in children dropping out after high school which is not a good outcome for the country’s youth. That’s why this innovative savings vehicle was introduced to make savings easier for parents and other family members can chip in as well.
RESP accounts offer tax-deferred growth to support saving for post-secondary education. A family contribute a maximum of $2,500 per annum to the account and the government will match 20% of that contribution which comes up to $500. Lower-income family groups have some more good news as for them the government will match up to $40%. Over time, regular investments in this scheme can accumulate savings of $50,000 (the lifetime cap), all that any child would need to complete their higher studies. At InsLyf Brokerage, we believe that every child has a right to achieve what they aspire to be and proper education is a must for that. Investing in an RESP scheme can make that happen. Contact us for further details.
Some features of the RESP scheme:
In an RESP account, your savings grow completely tax-free, the funds are only taxed when they are withdrawn.
In some regions, the provincial government also match a percentage of the contribution alongside the Federal government.
You will have the option to invest in a wide range of options such as GICS, mutual funds, GICs, bonds and stocks.
The account in itself can remain active for 36 years and beneficiaries may also be eligible for a disability tax credit.
Different types of RESP accounts that we offer at InsLyf Brokerage
At our brokerage, we offer three major types of RESP plans, these are as follows:
Individual plans: Made for only one beneficiary, anyone can open and can contribute to this plan. If the policyholder decides to drop their studies, the beneficiary can be changed.
Family plans: In the plan, the beneficiary will have to be someone from the same family and there can be several beneficiaries. The policyholder decides how to invest and divide the contributions.
Group plan: The account can be for anyone and the minimum deposit amount has to be maintained. There are additional rules and you can find out about them by getting in touch with our team.
We also have RESP schemes for adults which is ideal for anyone who had to leave studies and want to start again. After all, there is no age for learning!
To find out more about RESP schemes, contact InsLyf Brokerage. Schedule an appointment today!