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Part Two of RESPs for the educated mind

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If you missed the first part of this article, please go here to see it.  

  • Organize your books Get the required documentation from the post-secondary institution your child’s going to be attending. RESP carriers need proof of enrollment. Make sure you’re going to have the cash when your child needs it. Get the needed documentation to the plan carrier as early as possible.
  • Leftovers can be better than an apple a day Should you find yourself in the position at the end of your child’s post-secondary education where you have contributions left in the plan, do a little dance. You can use that cash any way you want. Transfer the money to another child’s plan, or withdraw it and use it yourself.
  • Do your homework on tax savings If you withdraw earnings from the RESP, it’ll be taxed as a portion of your child’s income. But your child’s income is likely to be low. In fact, children’s incomes are often effectively tax-free because their income is usually very low.

An RESP is an enormous benefit for those using the plan. It’s the correct answer when it comes to the cost of education, and the government helps you with education expenses. A better educated workforce and a helping hand go a long way toward helping parents and society in general – let the government help you keep your kids in school. With inflation once again looking like it may rear its head, an RESP is a significant tool when used intelligently. Financial security and a paid post-secondary education give kids, and parents, a hand up when they need it most.


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