Education investments for their future
A RESP, or Registered Education Savings Plan, serves as a valuable investment tool for parents and guardians in Canada, encouraging savings for a child’s higher education. The main advantage of a RESP is its tax-free investment growth until funds are used for educational purposes, even though contributions are not tax-deductible. Understanding the specific rules related to contributions, withdrawals, and asset transfers within a RESP is essential for effective planning.
A Registered Education Savings Plan (RESP) involves contributions, government grants, and tax-free investment growth. This results in disbursements called Educational Assistance Payments (EAPs) for eligible post-secondary expenses. A subscriber, usually a parent or guardian, sets up a RESP and contributes funds. Although these contributions aren’t tax-deductible, they qualify for government grants like the Canada Education Savings Grant (CESG) and the Canada Learning Bond (CLB). These funds and grants are then invested, growing tax-free within the RESP.
Enhance a child’s future by investing up to $50,000 (per child) in a Registered Education Savings Plan (RESP). While RESP contributions aren’t tax-deductible, taxes on investment income are postponed until the child accesses the funds. Whether you’re seeking information on setting up a RESP contribution or require a review of your current investment strategy, choose Globalex and experience coverage that goes further. To get started on your RESP investments with Globalex, click below.
