Minimize the cost of education
The cost of higher education is rising. Your child and child can pay these fees by registering for an education savings account RESP Canada(RESP Canada). RESP Canada maximizes the use of tax wise investment and government subsidies for annual growth to provide children with adequate education savings and create investment returns.
What is the current cost and what is the expected growth?
consider:
• In 2009, a study by one of Canada’s five largest banks showed that the total cost of a four-year degree(including living expenses and academic fees) was $77000.
• For people living at home with their parents, the cost is $52000.
• The study predicts that the cost will almost double by 2027. Students who live away from home will receive $137000 and those who stay at home will receive $101000.
• Statistics Canada recently reported that undergraduates paid 4% more and postgraduates 6.6% more this year than last year.
How to maximize CESG?
To receive the highest Canadian Education Savings Grant(CESG), you can donate to the RESP every year instead of investing a lot from the beginning. The grant is 20 per cent of the initial $2500 per year, with a maximum of $500 per year. However, RESP policies are not always fixed. If there is a large amount of one-time funds(the maximum lifetime RESP supply limit is 50000 dollars), we will be able to seek its full investment as soon as possible to obtain benefits and tax avoidance benefits. Although some government subsidies will be given up, tax relief compensation will be immediately available. The best strategy for managing donations depends on discussing the client’s requirements and circumstances.
What are the advantages of RESP?
Flexibility itself RESP Canada provides flexibility to maximize the customer’s extensive investment in RESP Canada. Your policy can work with you to maximize the savings and investment potential of RESP Canada and make the most effective use of the government budget.
Regardless of a child’s career direction, post-secondary education is one of the key factors for his or her success. It is never too early to start saving and planning for children’s education.
