A Brighter Future Starts Today

With the cost of a post-secondary education rising every year, there is no better time than today to start saving for your child’s (or grandchild’s) future, and no better place to start than with a Registered Education Savings Plan (RESP). Establishing a Echelon Wealth Registered Education Savings Plan can help you save for the large financial burden that higher education presents.     

RESP PLAN TYPES  
Individual Plans:

- A plan with only one beneficiary.

- The beneficiary does not have to be related to the subscriber by blood or adoption and can be over 21 when named as a beneficiary.
Family Plans:

- These plans can have one or more beneficiaries.

- Each beneficiary must be connected by blood or adoption to the subscriber(s).

- One major benefit of a family plan is the ability to allocate the RESP’s assets to the beneficiaries in any proportion you wish. For example, if three children are named as beneficiaries and only one pursues post-secondary education, all the assets in the RESP can be allocated and paid to that one student.​


THE BENEFITS OF RESPs

  • Tax deferral -

    •  Interest, dividends and capital gains are not taxed as long as the funds remain in the plan. Withdrawals are taxed at the student’s marginal tax rate, which often means paying little or no tax.

  • Government Grants - 

    •  Plan beneficiaries may be eligible for a number of different grant program by the federal and provincial governments. Through the Canadian Education Savings Grant(CESG) the Federal government will match 20% of the first $2,500 contributed to each beneficiary under the age of 18, annually, up to a maximum lifetime amount of $7,200.

  • Flexibility -  

    • The RESP can be used for a variety of educational pursuits, including university,college, apprenticeships and programs offered by a trade school, and CEGEP. A Echelon Wealth Partners Advisor can help determine which investments are suitable to meet the future needs of each beneficiary.  

  • Compound Growth - 

    • As the age-old adage goes, the sooner you invest, the longer your funds have o compound and grow in size. In an RESP, the ability to grow is significantly enhanced with the addition of the grant money available.

IMPORTANT INFORMATION:

  • Almost anyone can open a RESP for a child: a parent, guardian, grandparent, other relative or friendThe maximum contribution limit is $50,000 lifetime per beneficiary

  • The maximum annual CESG is $500; maximum lifetime CESG is $7,200

  • You can receive grants on up to $5,000 in contributions in a given year if accumulated grant room is available

  • Contributions can be withdrawn at any time, taxfree, for educational purpose Contributions to an RESP can be made for 31 years following plan opening  and RESPs can remain open for 36 years

  • If the beneficiary does not attend a qualified postsecondary program by age 21, you have several options

    •  Transfer the funds to a sibling’s individual 

    • In a family plan, you may designate the funds, including CESG grant money and earnings, to another beneficiary, within allowable amounts

    • Transfer the earnings portion to your (or your spouse’s) Registered Retirement Savings Plan, provided there is enough room available and the plan is at least 10 years old

Please note that only Echelon Wealth Partners is a member of CIPF and regulated by IIROC; *Chevron Wealth Preservation is not regulated by IIROC nor is it protected under the CIPF

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