It is natural for Canadian parents to feel anxious about their children’s educational future, especially now, at a time when post-secondary education costs more than ever before. With tuition fees getting higher and higher, investing in your child’s education early enough is a wise choice that can save you from future trouble.
The Registered Education Savings Plan (RESP) assists you in funding your child’s post-secondary education. It is a particularly convenient savings plan that has been running successfully for more than half a century. You can simply get in touch with a Heritage RESP representative who will advise and guide you in every step of the way so that you follow the most suitable contribution plan according to your budgetary capacity. One of the strongest assets of the plan is its flexibility. You are free to contribute any amount up to $ 50,000.
The Educational Assistance Payments (EAPs) provided for by the plan may be used for meeting costs at many post-secondary educational establishments all over the world. Only lower risk investments are made by your contributions. Nearly 80% of the savings are invested in governmental bonds, which mean that you can expect a stable return.
Heritage is a provider dealing with the distribution of RESPs exclusively. Thanks to the Heritage Education Funds, you can benefit from numerous government grants. Beneficiaries of these grants have received more than $ 425 million so far. One of them, the Canada Education Savings Grant, actually offers up to $ 7,200 per child. Your offspring may even be entitled to further governmental funding according to your family income. This financial assistance and the safe investment earnings can accelerate the growth of your RESP portfolio.
You do not need to be concerned about tax problems at all, as the earnings on these investments are taxed under the students, who normally have exemption status. If you are unable to pay high sums for such a savings plan, you should not be alarmed either. You can contribute low sums regularly, and these will add up in time. In fact, you can wait until your children celebrate their 15th birthday to add increased funds to their RESP.