Last updated on July 18th, 2016 at 02:12 pm
Get smart about education
We all want our children to have bright future. Education is one of the best gifts you can give to your kids and it will open many doors for them. Watch out- educational costs keep on rising- with tuition costs nearly doubled in 10 years- which can make school unaffordable without proper planning.
Want to make sure your kids will have enough to fund their college education? There are several steps you can take to help them. RESP program was created by Canadian government to encourage people to save for children’s education. Treat it as an investment account- with money coming in from 3 different sources- your contributions, government grants, and investment income you make.
Here’s how it works – you deposit your money and watch it grow, and in the meantime the government of Canada will throw in some free money to get you going!
Who should invest in an RESP?
• Parents who want to prepare for rising education costs and save for their child’s education.
• Grandparents – RESPs are an effective way to pass down money to grandchildren to use for education costs.
• Anyone (friends, aunts, uncles, cousins) who wants to help out with the education of a child close to them.
The answer is simple- government grants aka free money. You can get up to $7200 in government grants provided you contribute your own money as well. Several provinces will give you even more if you qualify.
Quick Tip: Contribute at least $2,500 a year to get the full $500 federal grant each year.
Lower income families may receive an additional grant – Canada Learning Bond- up to $2,000.
What we offer:
A Diploma Registered Education Savings Plan (RESP) is an effective way to save for children’s education when they enroll in a post-secondary program. Diploma RESP takes advantage of the government grants while at the same time giving you flexible investment options. Here are some key benefits below:
Diploma RESP: key benefits
• Take advantage of government grants- up to $7,200. For lower income families this amount is increased up to $2,000
• Diploma RESP- additional bonus of up to 15% of your contributions
• Make your money grow tax free
• Investment protection of up to 100% with Diploma RESP
• Additional grants available in Alberta, Quebec and Saskatchewan
• Take advantage of an RESP loan to increase your contributions
• Your money is accessible at all times
Maximize your RESP savings
• We can find an optimal solution for you – you can choose between an individual or family RESP.
• Industrial Alliance offers a large selection of investment options to use within a RESP.
• Enroll in a pre-authorized chequing plan for automatic investing.
How to Apply
Contact one of our agents to get the application form. Once preapproved we will contact you to set up the plan.
To learn more about RESPs, visit our website today and speak with an experienced Advisor.