» the financial corner
FINANCIAL
CORNER
BY ROCCO DIPASQUALE
GIVING THE
GIFT OF
KNOWLEDGE
Recently I met with a young couple that
just had their first child. This recent
addition to their family brought them
a whole new list of priorities when they
looked at their financial goals. spent
some time with them and explained the
updates we’d need to make to their
financial plan, including saving for postsecondary education costs.
I HAVE RECENTLY
BEEN ASKED TO BE
NAMED AN EXECUTOR IN MY FAMILY
MEMBER’S WILL. I SAID
YES, HOWEVER, I AM
NOT SURE WHAT THIS
MEANS AND WHAT
RESPONSIBILITY I
HAVE TAKEN ON. CAN
YOU PROVIDE ME WITH
ANY GUIDANCE?
The RESP is set up as a amily Plan,
which can be set up for various family
members, including children, grandchildren and even siblings by blood
or adoption .
amily Plan offers several advantages,
including the ability to name one or
more beneficiaries in the same plan.
n addition, the funds in the plan do not
have to be shared equally among the
beneficiaries, giving you more flexibility
when it comes to making withdrawals.
Making Contributions to an RESP n RESP
is subject to a lifetime limit established
for the beneficiaries. lthough you
cannot deduct the contributions made
to an RESP from your taxable income,
the subsequent investment earnings on
RESP contributions are tax-deferred.
ualifying investments include G s,
stocks, bonds, mutual funds and professionally managed investments.
The Canada Education Savings Grant: A Potential 20% Return on Investment Perhaps
the biggest advantage to contributing
to an RESP is the anada Education
Savings Grant ESG
a powerful
incentive from the federal government.
ith the basic ESG, for an eligible
beneficiary under the age of , the
34
• fredi spring 2016
Committing to Your Child’s Future One
point I emphasized with the two new
parents was the importance of committing to a regular, periodic investment
plan. t’s truly one of the most effective
ways to reach your goals. There are three
key benefits to committing to making
regular payments towards an RESP
- LAUREN FROM MAPLE
1 It’s a convenient, yet disciplined
way to save.
The Foundation of Your Education
Savings Strategy As I explained to this
young couple, there are several different
ways you can save for a family member’s
education – but a Registered Education
Savings Plan RESP o