Education is not cheap anymore. If you want your child to get a good education, then you should plan for that. You should explore RESP, available in Etobicoke & Brampton, option. Follow these steps to understand which option will work for you better.

A registered education savings plan is also known as RESP. It is an effective way to save for your child’s higher education. The money that you contribute is tax-free until the time it is inside the plan. You can put a maximum of $50,000/child. This plan does not offer income tax rebates like RRSP, but there are many other benefits to consider this plan instead. Through the CESG, the federal government adds up to $500 in a year, till your child is 17 years old. The maximum amount CESG contributes is $7200. You can qualify for additional benefits if you are in the lower income bracket. It varies province to the province.

STEP 1: SIN (Social Insurance Number) for your Child

You will need a SIN number to set up your child’s RESP and to register for the government grant.

STEP 2: Learn about your options

The three types of RESPs are:

• Individual
• Family
• Group

Individual Plan:

This account is set up for a single child’s education. If you have another child, you can start another individual account. Contact Harpreet Puri for your RESP needs in Etobicoke and Brampton now.

Family Plan:

You can also start a family plan, which will cover more than one child in the family, often saving you on the additional fee. If one child fails to complete its higher education, the funds with all the benefits are transferred to the other child.

Group Plan:

As the name suggests, for a group plan is pooled with the contributions from another member too. That is why they are called as pooled plans. To know more, contact us today!

STEP 3: Pros & Cons of Each Option

Understand the pros and cons of every option. All these options come with their own benefits and investment options. Individual and family plans work for parents who want control over their investment. Depending on you’re the amount you want to contribute, you can choose any of these plans. Harpreet Puri will be more than happy to select any of the RESP plans in Brampton and Etobicoke.

STEP 4: Decide on your Contribution

The federal government adds 20% to your contribution, up to $500 for each child every year. Talk to your RESP provider in Brampton or Etobicoke, who can offer you form to set the plan up.

To learn more about RESP, call us in Brampton or Etobicoke, including other areas also!