Financial Planning for higher Education
• Saving for the child's future is every parent’s responsibility. They try to save as much as possible to meet the rising cost of education in the country. The Registered Education Savings Plans offer a way to invest and save for the long term goal of their child’s post secondary education. • The RESP is registered by the government of Canada and offer a tax sheltered investment plan to the parents. Parents can invest in the plan for 31 years and up to a life time limit of $50,000.
• The plan remains active for 35 years during which the beneficiary can withdraw money as many times as required to pay for the tuition fees, books and other expenses related to the education. This money is then taxed as income for the student. But the tax will be very less or no tax at all.
• The Heritage Education Funds offer different plans to subscribers that suit different needs. The individual plan is best suited to the people who have only one child. And the family plans suits the people who wants to save for more than one child. These beneficiaries need not be related to the subscriber in the family plan. The Heritage RESPs beneficiaries also get the financial aid from the federal government plans like the Canada Education Savings Grant (CESG) and the Canada Learning Bond (CLB) and from other qualified provincial grants.
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