WHO CAN HELP YOU DESIGN THEIR FUTURE?
It is easy to imagine your child, degree in hand, ready to start a professional career. But do you ever ask yourself how you will be able to give your child this chance with all the financial demands of today’s world?
Giving their children access to post-secondary education is something parents hope to be able to do. Unless you decide to take out a loan, it may be difficult to find the money needed to pay for a 4-year educational program for just one child. Statistics Canada revealed that university tuition fees have risen 135% in the past ten years!
ADVANTAGES OF A DIPLOMA RESP
- Accumulate the necessary funds to finance a child’s post-secondary education.
- Eligible for a federal government grant equal to 20% of your annual contributions to the RESP (up to $500 per year).
- An education bonus of up to 15% of the contributions to the RESP will increase the income paid as Educational Assistance Payments (EAPs).
- The chance to watch your money grow sheltered from tax.
- Flexibility to change the plan’s beneficiary.
- Withdrawals of contributions are tax-free.
- The investment income is transferable to your RRSP if the child chooses not to pursue a post-secondary education.