How are you saving for your children's education (or your grandchildren's)?
The average cost of University tuition in Canada is $7,437 in 2016-17. It tripled in the last 20 years and it's expected to triple again in the next 20 (see sources below). If you want your kids to go to school like you did, how will you pay for it? The Alberta School Board Employees Group Registered Education Savings Plan (RESP) can help.
The Alberta School Board Employees Group RESP features tax sheltered investment growth to provide for post secondary education costs.
You can invest in a diverse selection of investment funds through major investment fund companies -- and if one child decides not to use it, you can even transfer the funds to a different family member for complete flexibility.
Unlike an RRSP, you don't get to deduct the payments that you make. But they grow tax sheltered -- so you don't pay tax on the interest while it's in the plan. When it comes time to take it out, it's taken out in the student's name, so they'll likely pay little to no tax on it.
As a Non-Teaching Employee of an Alberta School Board, both you and your spouse can contribute to this plan, and you can even use the funds yourselves if it turns out that your kids aren't going to post-secondary school. The ASBE Group RESP can be used by anyone enrolled in full time study at a post secondary institution in Canada (or at a specified institution abroad). The RESP holder can draw on the funds to defray such education-related costs as tuition, books, travel, food or accommodation.
The most compelling part of the Alberta School Board Employees Group RESP, though, is the Canada Education Savings Grant. With this, the Federal Government will match up to 20% of your contribution, with an annual contribution limit of $2,500. If you've contributed less than your maximum ($50,000), then you can contribute up to $5,000 per year. The net result: you could get up to $7,200 in free grants from the Federal Government (the maximum allowed)!
Contact us today to get your annual RESP contributions started -- and take maximum advantage of the grants available!