Paying for the college education of a child can be a formidable task, and parents often have to seek out assistance programs which can help pay for the rising costs of such an education. RESPs or Registered Education Savings Plans are one option, and they can be very effective for preparing families for the eventuality of college costs. With the help of such a program, a child’s further education can be assured, regardless of what the future may bring.
Its benefits with regard to helping college students pay for college is enough incentive for most people, but there are other reasons to sign up for a Registered Education Savings Plans in Canada besides. Such a program also opens up a number of investment opportunities in the form of stocks or bonds, and beneficiaries may be eligible for additional grants or funding from the government besides.
Contributions made to an RESP are also tax deferrable. As long as the funds remain in the account of the beneficiary, they will remain free of tax. Even when the beneficiary later enrolls in college and starts to receive payments from the plan, the taxes he will be liable for will usually be for the minimum rate or even none at all.
One of the keys to gaining the most benefit from an RESP is being aware of the different options available. A reputable RESP advisor in Canada should be able to provide you with more details, but one of the most useful benefits you can avail of is the Canada Education Savings Grant (CESG) offered by the Canadian government to eligible beneficiaries. This grant is offered to beneficiaries younger than 18, and it amounts to 20% of the yearly contributions made by the subscriber. It is limited to $500 for every year until the beneficiary turns 18, with a lifetime maximum total of $7,200. Other assistance programs are offered within the RESP, so make sure to ask your RESP advisor about them.
The Canadian Business Journal spoke to CEO of Heritage Education Funds, about the company, investing, and the current state of the RESP industry in Canada. To focus on what’s important to its clients, Heritage Education Funds offers one product — Registered Education Savings Plans; and two plans — Heritage Group RESP as well as a self-determined, Impression Plan. Its sole purpose is to help parents save funds for their children’s post-secondary education and provide a thorough education about RESPs to its clients.
Heritage Education Funds, a leading, trusted and experienced provider of Registered Education Savings Plans (“RESPs”) in Canada, is delighted to be celebrating 50 years of helping families achieve their educational dreams. The company has successfully administered over 460,000 plans since its inception in 1965.
We specialize solely and exclusively on RESPs – and with branches across Canada, you can be in touch with an RESP representative today. Our RESP representatives provide exemplary customer service and speak a multitude of languages.
As of April 15, 2014: This business operates regionally with independent agents across Canada. The company sells Registered Education Savings Plan (RESPs) which are a vehicle for saving for education costs, for which the government can provide a contribution, and which is registered with the CRA.
Heritage Education Funds Inc is a profile on Industry Canada. When you choose Heritage Education Funds, you will be connected with a dealing representative (an RESP expert) who will meet with you at a convenience time and place to advise you on your childs Registered Education Savings Plan.
At Heritage Education Funds, we help families with their education savings plan from start to finish – including managing your paperwork and providing guidance so that you can plan for your beneficiary’s education
RESP providers generally require proof of full-time status along with the number of credits completed at an educational institution. Students are normally provided a verification of enrolment form (VOE) to be completed by McGill. However, most students can now submit their proof of enrolment letters directly to their RESP provider.