Registered Education Saving Plans are a great way for parents across Canada to save for their child’s future. While RESPs are often the only logical solution to the expenses of post-secondary education, it can be difficult to know where to start when researching the benefits of RESPs from Heritage Education Funds. In this article, we will address five things you must know about RESPs. Take a look!
1. Your Savings In The Registered Education Savings Plan Are Tax Free
Yes, you read that right. When you invest in a Registered Education Saving Plan for your child, there will be no taxes deducted from your savings (as long as they stay in plan and are not collect-ed in a separate bank account). Saving you money, hassle, and headache.
2. Children 17 And Under Receive Extra Funds From The Government
If you start a Registered Education Saving Plan for your seventeen-year-old (or younger) child, the federal government will contribute to your child’s RESP in the form of a bond or grant. Depend-ing on which province you live in, the provincial government could also lend a hand and provide money for your child’s Heritage RESP.
3. Some Plans Require Regular Contributions, But Not All
Registered Education Saving Plans vary. Many of them allow you to contribute money (up to $50,000 per child) whenever you want. But some RESPs will want you to contribute monthly or annually. However, don’t worry. There’s a perfect Heritage RESP plan for everyone and if you don’t want to contribute so regularly, keep searching for a plan that suits you.
4. The Possibilities For Investments Are Almost Limitless
Whether you prefer to invest your money in bonds, stocks, GICs, or mutual funds, Registered Ed-ucation Saving Plans has you covered. Whichever way you like to invest, there’s an RESP plan and program for you. And if you don’t want the hassle of deciding how you’d like to invest your savings, there are some RESP programs that will take that responsibility upon themselves and in-vest for you. It all depends on what you want.
5. Your Savings Are Available To Your Child When They Need It Most
When your child takes the big step and enrols in the collage or university of their dreams, the sav-ings you have so carefully kept for them in your Registered Education Saving Plan will be availa-ble to them as needed. They may withdraw those funds when they enrol; the hard work of saving has paid off and now your child will reap the rewards for the rest of their life.