RESP Plans: Why it is Crucial for Your Child’s Future
You may have already heard about RESP plans but you’re not sure how these work. First of all, a Registered Education Savings Plan is a prominent program under the government that will help you save wisely for the post-secondary education of your child. The best thing about this plan is, the federal government can help you by adding education grants so your savings can grow.
You don’t have to worry about taxes since most grants for educational purposes are taxed at lower rates once students withdraw the investment.
Aside from the federal government, other provincial offices can offer various tax incentive programs that will not interfere with your RESP contributions.
Remember that the sooner you put your child’s name as an RESP beneficiary, the more time you have to save up so your child can have a good higher education.
A good education is very essential in this generation. The rise of education and living costs can hamper your plans for a solid education for your child. With the help of RESP plans, you now have the chance to hone your child’s dreams.
Despite their desires, many parents are unable to send their children to quality schools because of the rising cost of education. This is the reason why an RESP exists. Its main goal is to help parents save enough funds so their children can have good education.
If you’re worried that your savings might not be enough for your child’s future, now is the time to register him or her for an RESP. Consult with a reputable RESP provider that will assist you along the way and will not fail to remind you about the importance of your child’s education.
An RESP provider will first help you choose which RESP will suit your child’s needs best. Once you’ve made a decision, your provider will give you professional advice on how you can make wise investments so the money in your plan can grow.
When your child is ready to use the RESP, your provider will handle the necessary processes involved with the payments to make sure everything is done according to the statements on the plan. If ever your child decides to stop studying after high school, any remaining amount on the plan will be returned to you and you will also be briefed on how much the remaining contributions have generated over the years. Money from the government will also be returned.
Before signing up with an RESP provider, be sure to obtain necessary information about their service including fees, requirements, penalties, and contribution limits if there are any so you won’t be surprised with charges that you may incur in the long run.
Register with an RESP provider today and watch your savings grow for your child’s bright future.