Give the Gift of Education with an RESP

This holiday season, give the gift of education by opening or contributing to a Registered Education Savings Plan (RESP). Whether it is for yourself, your children, grandkids, siblings or even nephews and nieces- an RESP is a powerful tool to support post-secondary academic aspirations.

Why an RESP?

• Rising Costs: Higher education is costly. Annual fees for tuition, residence, books and food are rising and can easily be $20,000 or more per year.
• Tax Benefits: Investment growth in the account is tax-free. Withdrawals for education purposes are taxed at the student’s tax rate, offering reduced taxation.
•  Generous Contribution Limits: You can contribute up to $50,000 per beneficiary, and the account can remain open for up to 35 years.

Don’t leave free money on the table!

If you have not opened an RESP yet, you are missing out on free grant money from the government.

Under the Canada Education Savings Grant (CESG), the government will match 20% of your contributions up to $500 per year with a lifetime maximum grant of $7,200.

To get the full $500, you would need to contribute $2,500 in a year. The grant is available until the end of the calendar year in which the beneficiary turns 17.

If you already have an RESP, don’t forget to make your contribution before December 31st to receive the grant.

Note: Depending on your province of residence and family income, there may be other grants that you can qualify for.

Flexible Withdrawals

You can withdraw the funds for paying tuition, books, residence fees, school supplies such as laptops and even campus meal plans. There are several ways that this plan can be designed to suit your specific needs.

How can CAPCORP help?

Our CAPCORP advisor team can help with the management and design of your RESP account. If you currently have an RESP account at another institution, it can be transferred and managed by your CAPCORP advisor.

If you would like to discuss RESP accounts or other investment accounts further, please contact your CAPCORP financial advisor or simply reply to this email for more information.
Thanks,

CAPCORP team

P.S. Education is a gift that lasts a lifetime. If you think anyone else might benefit from the insights in this message, feel free to forward it along!