Registered Education Savings Plans allow you to make a tax-deferred investment which is expected to go towards a child's post-secondary education tuition.

When withdrawn, the funds are transferred to the student and are included in their income. Generally student income is lower, thereby reducing the overall tax liability on the proceeds of the plan.

It's been widely demonstrated the direct relation to higher education and future earning potential.

Do you want your children (or grandchildren) to benefit from post-secondary education? With a projected cost of around $60,000 for today's young children to attend university, you may want to move this planning up on your priority list.

Essentially, there are four ways to pay for a university or college education:

1. Save.Let the power of compound growth make your investment work for you.
2. Borrow. When needed, you borrow the funds and pay them back over time. This would be similar to choice number 1 except compounding and time is working against you.
3. Pay as you go. The tuition comes in and you write a cheque. This works great if you have many thousands of dollars just sitting around waiting to be spent. If not, go back to methods 1 or 2.
4. Let the kids pay. While there is a great deal of value in having your children take ownership of their education, they will have trouble covering the cost and will graduate with substantial debt to repay.

The Registered Education Savings Plan (RESP) is a tremendous vehicle to assist us with our education savings. The growth accumulates tax deferred and the government provides a 20% incentive to help us save.

Please contact us and we can help you get started.

The informational links below will provide you with additional details on the RESP program.

Human Resources and Social Development Canada RESP

Human Resources and Social Development Canada - RESP FAQ

AIM Funds RESP Product Page