Why Invest in an RESP?
RESP investments are excellent methods of ensuring that the funds required for your child’s tuition are available when the time comes. There are many advantages of opening up an RESP account and contributing to it over the course of your child’s life. The biggest advantage is that the money will be there when required when it comes time for your children to start post-secondary education. By contributing a little every month, the money can really add up at the end of the term. Another major advantage of these contributions is that the government will contribute to your investment with a Canada Education Savings Grant. Having extra funds on top of your own can truly make this investment as convenient and beneficial as possible. After deciding on opening up an RESP account, follow these 5 tips for investment.
Top 5 Tips for Investing in an Registered Education Savings Plans
RESPs can be a confusing topic for some parents. How do you invest? Who do you invest with? Are there any factors to consider before opening an account? Follow these tips before you apply RESP:
1 – Start Investing Early
One of the smartest things you can do is to open up a Registered Education Savings Plans account as early as possible. Starting these contributions when your child is an infant will allow you to grow your money faster, and build up more government grants, as noted at TorontoRespAgent.com.
2 – Invest With the Right Provider
You want to be sure that the RESP agent Toronto that is working for you will be able to provide you with the terms you require, and will understand your needs and personal financial situation. Make sure you are comfortable with your provider before investing.
3 – Understand Your Fees and Costs
It is important to educate yourself on the exact fees and costs associated with opening and contributing to a Registered Education Savings Plans account. As stated at TorontoRespAgent.com, the last thing you want is to have any surprise bills show up for this account that you were unaware of.
4 – Don’t Withdraw Money Early From This Account
You need to be aware of the fact that taking money out of your child’s RESP account prior to your child starting a post-secondary education program will most likely result in your government grants being cut off.
5 – Save on the Taxes!
Contributors to RESP accounts should know that contributions that are paid to the beneficiary are tax-free!
Educate Yourself Before Investing
There are many reasons why these accounts makes sense. You’ll have the benefit of government grants and tax savings, which can really help make your money grow within these types of accounts. Make sure your RESP agent Toronto understands your needs, and make sure you are fully versed on the process of this type of investing before you apply RESP.
Amanda Flint – Social Media enthusiast and a dedicated stonographer at the Apalian Arbitration Cavalio Center