go back





Registered Education Savings Plans (RESP)

By investing regularly in a Registered Education Savings Plan (RESP), you can start saving for your child’s or grandchild’s education early on.  Education costs are on the rise and it should be a priority concern for your child’s future. A four year degree program costs approximately $50,000 today. Projecting this cost into the future, it can cost as much as $100,000 over 10 years!

Education is a big investment and you can prepare for it today by setting up a sound savings plan. An RESP will allow you to invest the money so there is earning potential as well. You can choose among various investments such as mutual funds, segregated funds and guaranteed investment options. Also, investment income from a RESP is tax deferred.

You can contribute up to $4,000 per year per child. The Canadian government will add 20% of any contributions you make, up to a maximum of $400 per year per child, through the Canada Education Savings Grant (CESG). This government grant can add up to $7,200 for the life of the plan! Start early and benefit from the government’s contribution and gain from compounding.

You can 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. However, for family plans, the beneficiaries must be related to the subscriber by blood or adoption. You can change the plan beneficiary at any time. The beneficiary also obtains an income tax deferral on his or her investment income.

THERE IS A BONUS OPTION YOU CAN HAVE IN YOUR PLAN! You can get an education bonus of up to 15% of the total monthly contributions paid into the RESP. The bonus varies according to the beneficiary’s age at the time of enrolment. The earlier you start, the better. This option is not available with all products so check with our agent for more details.

Talk to our agent for more information.






Got a question? Go to our feedback form





[About Us] [Privacy Policy] [Legal] [Contact Us]