In order to get the right answer from a salesperson, you have to ask the right questions.
The RESP was first created in 1972. It was a tool that likely helped your grandparents save for your parents’ education.
But the world we live in has changed quite a bit since then.
Your children’s future education and life choices are going to be quite different. When it comes to saving for your child’s future, you want to know all the conditions…
Not just the one benefit they keep dangling in front of you to open up an RESP.
These are the top 6 questions every parent should ask their bank advisor or group RESP salesperson before opening an RESP.
1) Is $7,200 the maximum RESP matching grant I will receive by the time my child turns 18?
2) Do I need to deposit $36,000 to get the maximum RESP grant by the time my child is 18?
3) For my child to use their RESP, does the university or college program have to be approved by the Government of Canada?
4) If my child doesn’t choose a university or program from the Government list of pre-approved schools or chooses a different path, do I have to close their RESP?
5) If my child’s RESP has to be closed because they chose a college not pre-approved or chose a different path, do I have to pay any income taxes? And if so, how much of the money that was earned in their account during 17 years?
6) In addition to the income taxes I’ll have to pay if my child’s RESP account has to be closed, is there a 20% penalty on top of the taxes we have to pay on the growth if I’m forced to close the RESP?
Insurance For Children has always believed that if information is power, then education is empowerment.
Before committing your child’s future to a government program, make sure you get the right information by asking the right questions.
Child Plan is the fastest growing alternative to the RESP and the only tax-free savings plan parents and grandparents can open for their children and grandchildren in Canada.
From the day you open a Child Plan your child will receive a tax-free annual dividend for life which will give them the freedom to choose the best education around the world without restrictions, buy their first house, and have the financial security in life to follow their dreams.
Child Plan – the fastest growing alternative to the RESP.