Why it is Best to Consider Saving for Your Child's Post-Secondary Education with Registered Education Savings Plan
If it comes to securing the very future of your child, then chances are that you will want this to be made accordingly. While it is possible for you to consider starting saving in the soonest means you can, to also choose a reliable savings plan or program you could invest on will definitely be appropriate. In this article, we will be discussing more about a specific type of global financial savings plan in Canada that you will surely find appealing and worth your time, the Registered Education Savings Plan or RESP.
Right off the bat, this brings in quite a number of benefit and advantage for contributors or parents for their beneficiary or child. In this article, we will be discussing more about it just so you will be able to make the right investment.
Among the very benefits you are entitled to, you can assure that the money is there when the time comes. For you to be able to get it done right, all you need is to assure that you will want to start right and secure that you will provide regular contributions. When the time comes and you need the funds, it will then be released for your child's education needs.
Aside from you, parent or contributor, the government of Canada will also add contributions to your RESP to as much as $500 a year, per child. This is made possible with the Canada Education Savings Grant or the CESG. This basically goes on every end of the calendar year until the beneficiary reaches 17, summing up to as much as $7,200 if you started early.
Yet another thing that is great about global financial is the fact that the contributions will be not tax deductible. So as long as the contribution stays in the plan, then you can be certain that this is tax-sheltered throughout.
Furthermore, you will also have the very capability and chance to decide how much money will be withdrawn should the time comes that you need to have it withdrawn. This will then be used to cover a wide range of educational uses for the child, ranging from the tuition, living expenses, educational costs, books, and the list goes on, so as long as this has something to do with the child's post-secondary education.
This basically is great in a way that when the money is withdrawn, the tax will be included when in the child's hands and used for post-secondary education. But considering the fact that this is taxed in the hands of the child as a student, chances are that there will only be little tax included or none at all, depending on various circumstances.You might want to check out this website at http://money.cnn.com/2017/06/29/pf/education-costs-hong-kong-tuition/index.html and know more about educations.