Skip Navigation

Contact Us

Bernard Leblanc
Johanne Marien
Olivier Fugère-Nadeau

Address
1501, avenue McGill College
32e étage
Montréal, QC
H3A 3M8
Map

RESP

Registered Education Savings Plan

Planning Education

The privilege of learning – For children you care about and for you.

A university education is something most parents want, with good reason, for their children. According to a Statistics Canada study, 65% of new jobs require post-secondary education. In the first half of the 90s, the number of jobs accessible to people who had not finished secondary studies fell by 30%, while those reserved for university graduates (paying 45% more on average) rose by 20%.

Unfortunately, at current pace of change, many families will be unable to afford this opportunity. And many others will succeed only with great difficulty. This is not a gratifying situation, but then those without post-secondary studies are likely to pay for it their whole life.

Unless parents, grandparents or friends take constructive steps. Fortunately, by establishing a complete education plan early on, even with limited amounts of money, the child you love will not be obliged to stop their education with high school.

The exact cost varies by university, degree sought and subject studied. The cost of post-secondary studies, already high in Canada, is rising quickly. On average, tuition, room and board for a full-time undergraduate university student currently run about $12,000 per year. Transportation and books are additional. The cost of a four-year degree is thus more than $50,000, and while the number of students pursuing graduate studies is tending to increase, the total cost of university education is going up

On top of that, these numbers are not indexed. With governments continuing to reduce their share of educational funding, it is virtually certain that the increase in the cost of post-secondary education will exceed inflation in the foreseeable future.

Choices

There are many ways to fund advanced education. The way that suits you depends on a number of factors, including your net capital, the age and number of children concerned, and whether you want to waive the right to reclaim the money you spent.

You can, for example, hope that your child will obtain a scholarship or will be able to earn enough money from seasonal or part-time jobs. You can defer the problem and decide to write a cheque or get a loan on registration day. You can put money aside in a savings or investment account or start to invest in an official education program. Your strategy can use a registered education savings plan (RESP), in which your investments grow sheltered from tax – and in which the federal government contributes directly by the Canadian Education Savings Grant (CESG). You can also opt for a formal trust, which offers greater flexibility in certain respects.

The choice is yours. However, we strongly advise you to act as soon as possible – and take advantage of all the assistance offered to you to increase the funds that will be available and the rate at which they accumulate. Our experience brings us to think that the adoption of a strategy of education savings represents the best guarantee that the funds will be available when you need them.

To help you,

So where will the money to pay for your child’s university studies come from?

By preparing a personalized analysis, your BMO Nesbitt Burns investment advisor will help you estimate the costs and determine the best way to save in order to meet them.
The customized analysis evaluates a number of factors, such as the number of children concerned and their age, the number of years of post-secondary studies you expect for each of them, your current savings and your ability to save as well as the possible rate of return, given the level of risk you can comfortably tolerate. This analysis will also help your investment advisor review the relevance of various planning instruments, ranging from RESPs to trusts and the various kinds of investments you hold in them (GICs, mutual funds, equities or bonds).

Our analysis and our recommendations will enable us to help you set up your program and keep track of it.

Sustainable relationships

At BMO Nesbitt Burns, we are financial experts. Most of all, became masters of the art of helping Canadians, at every level, give their children post-secondary education.

We can help you at every step of the way, whether it is to identify the problems at hand or by seizing the best opportunities as they arise.

Like most relationships, ours will begin with a simple conversation during which we will evaluate all your personal needs. You will then be able to personally verify the extent of our resources and determine how there could be a match.

Call us today to discuss about your goals and determine how we can help you reach them.