It’s Never Too Late to Start an RESP!
It’s never too late to start saving with an RESP, regardless of your child’s age. However, the sooner you contribute, the greater your return on your investment, because interest accumulates, on both your donations and the government grants, over time, the interest compounds. As a result, the sooner you start saving for your child’s future, the sooner your investment will exponentially grow! And then add in the extra 15% from donation from Industrial Alliance (conditions apply), and you’ll start to see the magic happen! So don’t delay, enroll in IA’s Diploma RESP, as soon as possible, and make the commitment, to develop an education fund, that will allow your child to thrive and pursue post-secondary education, they deserve.
For as little as $25 per month, a subscriber can pledge to make monthly contributions with a PAD payment (pre-authorized debit payment) until the designated beneficiary turns 17 on December 31st of that year. At any time, you can make additional lump-sum donations (minimum: $100) or raise your donation amount, at the subscriber’s discretion, and the payments you make as a subscriber are not deductible from your taxable income, so they won’t be taxable until you remove them! Furthermore, two additional incentives are included with the RESP to help you keep your commitment and meet your savings target. These benefits help you ensure the continuation of your contributions in the event of a subscriber’s death or disability. These two incentives consist of the following:
- 1] Contribution in the event of the insured’s death (subscriber) (CIDE) — Contribution in the event of the insured’s disability (subscriber).
- 2]Contribution in the event of the insured’s death (subscriber) (CID).
$50,000 Donation Limit
Each beneficiary is limited to a total maximum donation of $50,000. This implies that, for example, a parent and a grandparent may both contribute to an RESP for the same beneficiary. It’s important to note, that the contributors can avoid paying penalty taxes, by making sure they don’t go over the total permissible limit. Furthermore, contributions to the RESP may be made for a duration of 31 years, after the plan’s effective date, however, the RESP must be completely liquidated no later than 35 years after it was created.
Have questions about the Industrial Alliance Diploma RESP, please contact Mike or Amanda from Platinum Mutual Ltd., at (416) 315 8569 and they’ll be happy to show you how to claim your 15% IA bonus, discuss the Educational Government Grants and enroll your children into the Industrial Alliance Diploma RESP. Call today!