Registered Education Savings Planning
It's may be tempting to buy another colourful toy or adorable outfit for your baby, but saving for their education is a wiser choice. Even though it may be difficult to save for your child’s education due to other financial commitments, it’s a worthwhile investment given the rising costs of education.
Most sleep-deprived new parents find it hard to think beyond their baby's next feeding, but if you start early and build some education savings into your living-expense budget you will be amazed at how much you can save up.
The most common way of saving for a child's education is through RESPs.
RESPs offer two advantages. The first is that the money in the account can grow without the government taxing the returns each year. When the money is used to pay for a college or university education, it's the child who will report the income, not the parents. Since the child’s income will most likely be low, the tax bill will be small.
The second draw is the financial contribution the government will make to a child's education. Depending on the family income, the Canada Education Savings Grant will pay out between 20 and 40 per cent of the first $500 the parents save each year for their child's RESP There will be an additional grant of as much as $400 annually on the next $2,000 worth of contributions. That’s a guaranteed return on investment of 20 per cent!
The hard part is deciding how and where to invest the RESP. Talking to an expert in financial planning and RESPs is the best way to wade through the many different options.
In Kelowna there are many Financial Planners & RESP experts:
Here are a few that would love to help guide you through all of your options.
Brett Millard is a Certified Financial Planner who focuses on planning for young couples and families. He realizes that new parents are often constrained by limited budgets and works hard to find solutions that are practical and affordable.
With a firm belief that RESPs and other investments for children are luxuries, and not always a necessity, Brett works with his clients to implement these savings plans only if and when they fit in with a family’s overall budget and finances.
Brett recently designed a program to show grandparents how they can get involved and gift their grandchildren investments such as RESPs and Universal policies.
Deciding what type of RESP and other investment plans are right for your family is not a hasty decision that can be made by a phone call or quick stop at your local bank. It should start with a proper assessment of your full financial picture. This can only be done by a Certified Financial Planner such as Brett Millard. There is no cost to meet with Brett to discuss what options might be right for your family - so call Brett today and set up a time to talk.
250-863-6505
Brett Millard, CFP
Thom & Associates Financial Planners Inc.
Investia Financial Services
201 - 3001 Tutt Street,
Kelowna, BC, V1Y 2H4
(250) 863-6505
brett@thomandassociates.com
www.thomandassociates.com
 |
