For the majority of my clients, their most essential financial goal is ensuring their children’s education is well funded. This priority even surpasses retirement as the number one priority.

A Registered Education Savings Plan (RESP)

An RESP is one of the best ways to save for your child’s education. The earlier you start one, the more time your money has to grow. Earnings in your RESP are tax-sheltered, helping you save even more. The money in an RESP can be used for various education costs – not just tuition. And, you have the potential to earn grants from the government to help boost your savings.

 

Did you know?

  • The estimated cost of a 4-year degree in 2021 was $100,000.
  • You have 31 years to make contributions after your RESP is set up. This can increase to 35 years if the beneficiary is eligible for the disability tax credit.
  • I can help you make the most of your RESP by helping you to:
  • Ensure the investments in RESP align with your risk tolerance and investment horizon. We will start with long-term investments when your child is young and switch to safer options as they approach post-secondary age.
  • Make the maximum contributions. There’s no annual contribution limit for RESPs but there is a lifetime limit of $50,000. Take full advantage of the RESP’s benefits by contributing the lifetime limit.
  • Open an account early. It’s never too early to plan for a child’s future. The earlier you start contributing to your RESP the more time your money has to grow.
  • Determine if you need to save additional funds on top of your RESP.
  • Take advantage of BMO financing products and services that might help.
  • Determine how much should you be saving for your child’s education.