Benefits of a Having Your Registered Education Savings Plan with Global RESP Corporation (GRESP)

education fundGetting the Most from Your RESP

A Registered Education Savings Plan (RESP) is an excellent way to save for a child’s post-secondary education. Anyone can open an RESP and anyone can contribute, up to a lifetime total of $50,000 per child.

While the contributions to this education fund are not tax deductible, any investment income that is earned is not taxed until it is withdrawn. In addition to tax-deferred growth, the Canadian government automatically gives you 20% on the first $2,500 placed in the child’s RESP each year—that’s $500.00 per year up to a lifetime maximum of $7,200.

Understanding the Canada Student Grant

If you come from a low-income family, you can receive an even bigger Canadian student grant. Full-time students from low-income families qualify for a grant of up to $3,000. Part-time students from low-income families can qualify for a student grant of up to $1,800. Students from middle-income families can receive a student grant of $1,200. The best part of the Canada Student Grants is that you don’t have to apply for it. You are automatically eligible for a student grant if you qualify for a Canada Student Loan.

RESP Investment Options

It’s important to remember that RESPs are a type of investment account and not a type of investment. Even though an RESP is the perfect way to help save for a child’s post-secondary education, the majority of parents are unsure about what kind of investments they can hold in the RESP.

Many might think it’s a good idea to just leave the money in the RESP alone and let interest accrue. Unfortunately, with interest rates near record lows, the tax deferred growth in this education fund is going to be virtually non-existent. That’s why it’s important to understand your investment options with an RESP.

Because the RESP is an investment account, you can purchase investment products with the money in the account. Mutual funds, guaranteed investment certificates (GICs), stocks, bonds, and exchange-traded funds (ETFs) are all eligible for an RESP.
It’s important to remember that RESPs are not a self-directed product either. The best thing to do is to talk to someone who puts investing plans together and can manage it for you. After all, it can be confusing and time-consuming to navigate the financial markets on your own.

Remember, there might be a maximum to how much you can contribute to an RESP, but the sky’s the limit to making that money grow. And if you’re not familiar with different investing strategies and the markets, you could end up losing everything you put into the RESP account in the first place.

GRESP Helps Canadians Maximize Their RESPs

The experienced Dealing Representatives at Global RESP Corporation (GRESP) are dedicated professionals who can help you develop a financial plan that meets your child’s post-secondary educational needs. As financial professionals, their goal is to help Canadian families build financial stability and ensure their investment into an RESP is secure and growing.

GRESP offers its clients a choice of two scholarship plans that provide more innovative planning and fee options:

The Legacy Education Savings Plan (LESP)

is designed for clients looking to maximize their education savings investment and prefer a structured, disciplined approach to investing and saving.

The Advanced Education Savings Plan (AESP)

is for families that are committed to saving for their children’s education but are looking for a more flexible contribution schedule, and no up-front sale charges.

In addition to helping set up the RESP and manage it, GRESP Dealer Representatives can also help you decide—when the time comes—how much money you should be withdrawn and when.

GRESP is one of the fastest-growing companies in the RESP industry with offices in British Columbia, Alberta, Ontario, and Quebec, and hundreds of independent representatives across the country.

If you’re interested in finding out more about Canada Student Grants or getting started with a RESP Plan, find a Global RESP representative in your area. Or fill out a form  and a Global RESP Dealer Representative will contact you.