Advanced education play vital role in increasingly knowledge based economy by efficient Education Planning. Ace Financial Group Inc. provides you Education Funding for your children. Over the past decade, annual post-secondary tuition fees in Canada have on average more than doubled. Students now graduate from post-secondary studies with an average debt load of $25,000-a huge increase from $9,000 just a decade ago. All this means that you need every advantage you can get when saving to help your children pay for their university education. And you need to get started saving as soon as possible. Most effective way to create an adequate education fund is through a Registered Education Savings Plan (RESP). The investments are sheltered from taxes, and when pulled out for your children’s education, they are taxed in their hands. RESP act as powerful cash-accumulation vehicle for securing the fund for children education. Canada government grants program i.e. The Canada Education Savings Grant (CESG) tops up RESP contributions.* A regular annual contribution of $2,000 will generate an annual grant of $400 for most beneficiaries. The CESG program is administered by Human Resources Development Canada (HRDC).
Three significant strategies that you should try to secure your children future to succeed:
- Try to invest at least $2,000 per year. A $2,000 contribution for an eligible child will receive a $400 CESG. But remember, age matters. If you invest the annual $4,000 maximum, you’ll reach the $42,000 lifetime limit in less than 11 years.
- Obtain a Social Insurance Number for your child. You cannot open an RESP without one.
- Update your will RESPs have estate implication. Speak with your Investors Group Consultant about using your will to name a new subscriber, decide if the beneficiary will receive the plan’s principal in addition to its earnings, and provide directions in case the beneficiary does not pursue post-secondary studies.