What Research About Plans Can Teach You

An RESP Plan Will Help You Save for Your Child’s Future

The best way to help your child is by giving them the education. Education is the best investment for humans. Since education can neither be destroyed nor stolen it is the best kind of investment. Education ranks among the best kind of wealth; actually, it is number one. The material wealth could diminish within no time. Having the best car or a big number of shares could not be compared to education. Your best car could be involved in an accident and sustain an irreparable damage; the shares could diminish in value at any time. Everything material that you possess could be destroyed but education will remain unless you die. The knowledge you get through education cannot be destroyed by anybody unless you die. The children of the poor have dined with the high and mighty courtesy of education. …

Education – Getting Started & Next Steps

What is a RESP and How do You Choose the Right RESP Provider?

A Registered Education Savings Plan or RESP is a key to financial health if your kids might want to proceed to post secondary education. It is sponsored by the government and the Canada Customs and Revenue Agency allows it to grow free of tax.The proceeds at maturity which is paid to the student maybe taxed as his/her income.

These plans are managed by private individuals or companies that collect the contributions and then invest them appropriately. Total contributions can be up to $4,000 per year per beneficiary and the plan has a lifetime tax-free cap of $42,000. Students probably would like to have more plans, but the limit is strictly imposed per student.

The RESP’s most significant feature is the government will contribute 20 percent to the initial $2,000 for every calendar year or $400 until and …