RESP Investments

An RESP is a savings vehicle generally used by parents to save for their children’s post-secondary education. More precisely, it is a contract between an individual (the subscriber) and a person or organization (the promoter). The subscriber makes contributions that accumulate tax-free earnings.

In return the promoter agrees to use the accumulated funds to pay or to cause to be paid educational assistance payments to one or more beneficiaries designated by the subscriber. A RESP is registered with Canada Customs and Revenue Agency.

The RESP plans I recommend offers you Options and Advantages

• Eligibility for government grants
• Low risk investments
• Choice of Colleges or Universities Worldwide
• Many flexible plan options that makes saving easier

Build up a tax-sheltered fund to finance a child’s post-secondary education. A registered education savings plan (RESP) is the ideal financial vehicle to meet the job market’s education requirements and help you defray mounting education costs.

You may designate a child, grandchild, nephew, niece, etc. as the beneficiary of an individual plan. There is no restriction on the relationship between the child and you. For family plans, the beneficiaries must be related to the subscriber by blood or adoption.

RESP Loan

The RESP loan is recommended to maximize the CESG, especially when a child is older and on the verge of pursuing high school studies (age 12 and over).

The Minimum loan is $500 per request and a maximum of $4,000 per beneficiary per year. The Maximum loan corresponds to 100% of the RESP contribution amount. The initial loan ratio is limited to 50% (loan/total value of the contributions including the loan) and 75% thereafter. This means that the loan balance can increase up to 75% of the total value of the contributions before a reimbursement is required by the company.

Reimbursable at any time and due and payable at the end of the contract. The interest rate is prime + 0.75%

In Addition

You are eligible for a government grant of up to $7,200, or 20% of your annual contributions to the plan. Eligibility age is 17 years old or less. And for low income families, grants can be as much as 40% of the first $500 in contributions. The beneficiary may also be eligible for a Canada Learning Bond ($2,000 over 15 years).

To find out what RESP plan is best for you and your children, please contact Pravesh Vesudeva today for a personal and confidential assessment at: info@trustlife.ca

In return the promoter agrees to use the accumulated funds to pay or to cause to be paid educational assistance payments to one or more beneficiaries designated by the subscriber. A RESP is registered with Canada Customs and Revenue Agency.