How a RESP works


Worried your child will not get the education they deserve? Is there a way you can save for the future without having to sacrifice their present? Read on to find out!

RESP or Registered Educations Savings Plan can help you to save for your child’s future very easily! It is a plan started by the government of Canada to help promote post secondary education and make it easier for every kind of family to afford it!

RESP has the benefit of being able to receive contributions from various family members, be it parents or grandparents. This helps the amount to become quite large and remain as a helpful sum for use at any time in the future for your children!

Call Harpreet Puri today to begin saving for your child’s bright future!

What are the benefits of RESP?

  • A money source whenever you need it!
  • It has tax benefits!
  • There are government grants!
  • There is flexibility in the plans!

RESP can provide you with a money source whenever you need it. Its primary purpose is for education but it can also serve as a reserve when you are short on funds for current necessities. This helps you and your child to have a secure future as well as present!

Since RESP is a government program, it has a lot of tax benefits! All the income which is received via this plan grows on tax sheltered until removed! The plan also protects your child from paying heavy taxes on the plan’s proceeds! This helps you save a lot of money in the long run!

With a RESP you can definitely receive a government grants and incentives which make the plan even more attractive to individuals with a lower income threshold. These also help your savings grow faster!

The flexibility in the plan comes in the form of choice. You can choose when you want to withdraw the amount saved up and how much you want to withdraw. This can help you maintain your savings!

How does RESP work?

A RESP account can be opened with any financial institutions or with a scholarship dealer. The plans are usually opened for children but in some cases it can be opened for adults as well. Your broker can help you to decide which would be appropriate for you.

  • Carry the right documents
  • Know what kind of investment you want to make
  • Set up a plan with savings
  • Find out if your child is eligible for other plans like CLB
  • Government matches the savings you make for your child

The person who opens the account will be called the subscriber and the person receiving the benefits will be called the beneficiary. Your child will benefit immensely if you start saving at the earliest as you can gain more from the government grants! Once your child enrols for post-secondary education they can start taking payments!

Give your child a shot at an education and a settled future with RESP! Call Harpreet Puri today!