The Top 5 Reasons to Use a Registered Education Savings Plan

This is a very common matter of discussion amongst Canadians, ‘why should they invest in a Registered Education Savings Plan?’ or an RESP plan. Well, RESP was primarily created to save for your child’s higher education. So, after finishing school they can get into a get college and pursue their educational aspiration, and with the rising costs of degree programs, the Registered Education Savings Plan has become the ideal option for parents across Mississauga, Brampton and across Canada, to ease themselves from some financial burden. But that’s not the only reason, here are five more on why you should use a Registered Education Savings Plan.

Five reasons for using RESP

1. Government grants: Then Federal government of Canada also contributes to your RESP savings annually through Canadian Education Savings Grant. In addition, lower-income families can also qualify for the Canada Learning Bond.
2. Tax-free growth of funds: You will not have to pay tax on any of the investment earnings considering as long as they stay in the Registered Education Savings Plan. In turn, your savings will grow faster.
3. Several-investment options: You will have the option to choose your investment options depending on several factors such as risk tolerance and investment objectives. These options can be stock, bonds, or GICs- the list is long.
4. Longevity: An RESP account can stay open for 36 years, you can use it as a savings vehicle, but you should know if your child doesn’t pursue higher education, the government grants will return to the government.
5. Contribute to others’ RESP: You can open up your RESP plan, to let others contribute as well.

You can hire the help of a professional in this field to help you with your queries as well as the paperwork. If you’re living around Mississauga or Brampton, consider getting in touch with Rupinder Rai for top-class service in Registered Education Savings Plan Brampton & Registered Retirement Savings Plan Brampton