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RESP is an excellent way to build up a tax-sheltered fund to finance a child's post-secondary education. A registered education savings plan (RESP) is the ideal financial vehicle to meet the objective of accumulating funds for your child's post secondary education and help you defray mounting education costs
- You may designate a child, grandchild, nephew, niece, etc. as the beneficiary of an individual plan. There is no restriction on the relationship between the child and you.
- For family plans, the beneficiaries must be related to the subscriber by blood or adoption.
- You are eligible for a government grant of up to $7,200, or 20% of your annual contributions to the plan (up to a maximum of $500 per year).
- The beneficiary obtains an income tax deferral on his or her investment income.
- You may change the plan beneficiary.
- Your protection against financial market fluctuations may attain and even exceed 100% of the capital invested.
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