RESP - The Definitions

With rising costs of living and education more and more people are taking advantage of the Registered Education Savings Plan (RESP).

In Canada we have a program to help us save for education by offering an incentive program called the Registered Education Savings Plan (RESP).

When purchasing an RESP there is a few things one needs to understand.

1) How much does education cost - There is a direct corelation between how much you save and how much you will have in the future. Many people open an RESP, put a bit of money in and expect that it will cover costs of education in the future. It is important to have an idea of how much money you want and need in the future and save accordingly

2) The grant program - We have two grant options in Canada.

Canadian Learning Bond
Canadian Education Savings Grant - 20% grant to a maximum contribution of $2500. So the most you will get is $500. In your lifetime you can contribute $50,000. If you miss a year, you can buy one year back at a time.

3) The investment options - We have the following options;

- Scholarship Plans
- Guaranteed Investment Certificate (GIC) 
- Mutual Funds
- Segregated Funds

There is pro's and con's to each option. Our job is to educate you enough on the options so you can decide what is the right solution for you.

For more information on RESP's check out these great resources;

- RESP Calculator
- Ontario Securities Comission Brochure
- RESP two page fact sheet
- Government of Canada info sheet


“They took the time to teach and mentor me.”

- Ossa Zebian


“I felt like I was in control and was making informed decisions about my future....”

- Glenn Tunstall


“In my first meeting with Infinite FInancial I felt their honesty, integrity, and...”

- Joan Palmer

Ask an advisor:

Your question submited.

One of our advisors will reply as soon as possible. We treat you like family and we don't spam family.

Dont Forget These Two Simple Steps When Estate Planning

The pure purpose of Estate Planning is to make an efficient transfer of wealth. Efficiency of Estate Planning is measured in two parts:1) Tax: It is important to plan your estate in a way that will transfer wealth in a tax-efficient manner—set...

Read more
How to Save the Family Cottage

We have all heard the old saying, “Two things are guaranteed in life: 1. Death 2. Taxes.”We are at an interesting time right now where prices of assets over the last 50+ years have seen a tremendous growth spurt. I always find it interesting talk...

Read more
Infinite Newsletter

Subscribe to our email newsletter for useful tips and valuable resources!

You are subscribed.
Email already exist!