Registered Education Savings Plans (RESP's), got a nice boost. You're no longer limited to $4,000 in annual contributions; the maximum Canada Education Savings Grant annual amount that provides 20 cents for every dollar you put in an RESP has increased from $400 to $500; and the lifetime contribution has jumped from $42,000 to $50,000.

2. Registered Education Savings Plans
Education Funding Strategies

3. Max Smart C.F.C. Doug & Laurel Wood
Introducing
RESP’s
Introducing

4. Education Funding strategies
Max: People recognize that dramatic increases in the
cost of a post secondary education

5. …are causing parents and grandparents to begin
saving for their children or grandchildren as early as
possible to assist with their education.
Education Funding strategies

6. Max: Doug, there are several education-funding
strategies that are effective, regardless of your stage
in life or family circumstances
Education Funding strategies

7. Education Funding strategies
Max: You may even choose to implement a
combination of strategies.

8. Education Funding strategies
Max: These could be an assortment of strategies:
Scholarships, Bursaries, Part Time Jobs, Summer
employment, RESP savings , General savings,
Insurance Cash Value

9. Registered Education Saving Plans
Max: One strategy is to Invest in Your Own Name to
save for a child’s future education needs, while
retaining ownership and control of the funds

10. Registered Education Saving Plans
Max: The advantage of investing in your own name is
that you will always be in the driver’s seat as to how
your assets are distributed.

11. Registered Education Saving Plans
Max: If you invest in your own name, any interest,
dividends or capital gains earned on the investments
will be taxable to you at your own tax rate

12. Registered Education Saving Plans
Max: Saving for a child’s education, while retaining
ownership of assets by contributing to a Registered
Education Savings Plan or RESP, offers some tax
advantages.

13. Registered Education Saving Plans
Max: Although RESP’s are subject to contribution
limits and various other restrictions, they can be very
effective under the right circumstances.

14. Registered Education Saving Plans
Max: Whether you are an aunt, uncle or grandparent,
as long as the limits are not exceeded, the grant will
be applied to the students account

15. Registered Education Saving Plans
Max: Other options could be support from aunts,
uncles, or grandparents.

16. Registered Education Saving Plans
Max: For example, many grandparents are unsure
about how they can help with their grandchild’s
education.

17. Registered Education Saving Plans
Max: According to a national survey, many
grandparents have the means and the desire to help
fund their grandchildren's college education, but few
are actively saving for that need,

18. Registered Education Saving Plans
Max: The findings highlight a curious phenomenon
in financial planning circles: Even though greater
numbers of elderly people are amassing
significant assets; the grandparents surveyed with
investable assets indicated that money is not
being allocated or invested in a way to offset the
rising costs of a college education for their
grandchildren.

19. Registered Education Saving Plans
Max: Grandparents are realistic about the high costs of
college education. When asked if their children have the
means to save enough for their grandchildren's college
education the majority say “No.".

20. Registered Education Saving Plans
Max: Since they are parents themselves they know their
children need to focus on paying down a mortgage and/or
save for retirement, and may have to take a gradual, long-
term approach to education funding.

21. Woodruff: We want to participate in
our Grandchildren’s future by
depositing funds into an RESP so they
can benefit from the RESP grant, but
are unsure about how to proceed.

22. Registered Education Saving Plans
Max: In case the child does not pursue post
secondary education, they also do not want to lose
control of the funds, or they want to put the funds
toward another child.

23. Woodruff: If one of the
Grandchildren decides not to further
their education we want a say in how the
funds are distributed: for example
allocate the funds to another child or
back into our RRSP’s

24. Registered Education Saving Plans
Max: The following slides will give you a brief outline
of the rules that govern RESP’s:

26. Registered Education Saving Plans
Max: The following graph indicates average earnings
by education level.

27. $13,705 $24,606 $34,709
Thousands
547
832
Median Annual Income Estimated Lifetime
A v e r a g e E a r n i n g s B y E d u c a t i o n L e v e l
1388
Non – High High College

28. Registered Education Saving Plans
Max: This following chart illustrates the cost of one
year of college today through eighteen years in the
future

30. Registered Education Saving Plans
Max: The next chart shows how much will be
available by saving $2000.00 per year.
Assumes a 6% average return including the CESG grant.

32. This concludes our discussion regarding RESP’s,
however it is by no means a thorough commentary…..
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