Canadian CANNAINVESTOR Magazine November 2017 - Page 136

Here are the quick facts based on questions I’m often asked;

1. You do not get a tax deduction for a contribution. (You’re already getting 20%.)

2. Family RESP makes sense. You can have multiple siblings on the plan and direct the funds to the appropriate child.

3. You can have more than one RESP. But why would you? It is easier to manage the contributions in one place.

4. If enrolled in a qualifying institution the funds can be spent on anything.

5. If none of the children go to a qualify school, the original investment goes back to the contributor. The grant must be reimbursed to the government and the growth or gains may be paid out and tax. The contributors, if they’re parents, can also roll the funds into their RRSP, assuming there is contribution room available.

RESPs are an amazing vehicle to start saving for your children’s education. I often suggest asking grandparents and other family to contribute. Instead of searching the toy store aisles looking to that perfect gift, why not contribute something to better the child’s educational opportunities? The value of education and opportunity will last a lot longer than any new race car with flashing lights!

As with most things financial something sooner is better than more later 

As usual, if you have any questions, please feel free to contact me at jdejean@argosynet.ca or 905.333.4755 ext. 204.

I would love to hear your feedback!

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