Thanks for sharing the RESP detail. I loved to watching all your other videos. I am not accounting person but I believe that investing in kids is also one of the best investments. In my view the key point is investing less than $200 per month per child will also support by government . The gain per year is 20% assuming that kids will go to university after grade 12. Cap for annual resp limit per child is $2500 and government will give 20% additional, that’s the much higher gain than any other investment + kids will remember your support forever that’s the bonus for me. I will be happy to cut my daily TH coffee instead of resp. Again that my thoughts. Thanks again.
@user-dv8bs7tb5c2 жыл бұрын
100% agree on not funding the whole education. They need to be invested in it too. We save $50 a month in a family plan, and put gift money in there. we will have about $15,000 per kid at a 7% interest rate (not actually sure of what return we've been getting that's a question I have for next time we have an appointment)
@natalee66542 жыл бұрын
I wish I knew more about this when my first daughter was born, I signed up for an RESP at the mall with CST (that was a horrible mistake) I lost alot of money on that and I had a low income for many years. I eventually stopped putting money in and set up another one elsewhere. As a single mother, no one really tells you how to plan for your future or your kids further. I decided that I would focus on the household and my retirement because I've noticed that I won't be able to save what they are projecting to be tuition fees once my kids are off to college/university. I stopped putting money in the RESP for now, I told my daughter i wouldn't be able to afford her education so she needs to find a job and help herself (she doesn't seem to be in a hurry to do this). You can't borrow for retirement but you can for college/university. I've take the pressure off myself.
@carlphinney402622 күн бұрын
You need to put your own retirement ahead of your kids education cost if you have to choose one over the other. They can borrow for education. You can’t borrow for retirement.
@davinson66782 жыл бұрын
Excellent video, perhaps one of the most informative videos on the subject out there. Thanks
@rahmalejri55219 күн бұрын
Aviation Tip : Help yourself before you help others 😊
@TheLyonsDen652 жыл бұрын
What about RESP alternatives? I put money away in an “in-trust” brokerage account, in addition to an RESP just in case the kids decided to pursue a post-secondary path that wasn’t covered by RESPs. In the end the first two kids didn’t need it, but it became the foundation for their TFSA. My third child is pursuing a more skills based path and so the money will help them start their own business.
@bunkerhill48542 жыл бұрын
John Lyon: don’t forget that if the money in the “in trust” account came from parents or certain other people, the income earned on the account is usually taxable to the person providing the capital in the year it is earned, not to the child. One of the benefits of an RESP is that that rule does not apply.
@jonathankr9 ай бұрын
5:15 at what interest rate does it make sense to pay your mortgage over saving for an RESP?
@Globaler2 жыл бұрын
Hey. I have an RESP for my child and I contributed 36K to get max grant of $7200. I have more money to invest and I found that I can invest 14K more for a max of 50K. My question is can I leave all but say 25K after my child graduates and grow it to 50K (or whatever it grows to) till my child turns 31 and withdraw the 50% tax-free as my original after tax contribution?
@ParallelWealth2 жыл бұрын
Not a great idea. You want to wipe the account out by graduation so you don't need to pay back grants. Anything left at 31 would be transferred to your RRSP if you have room, minus grants back to the government.
@Globaler2 жыл бұрын
@@ParallelWealth Tanks for the quick response. I just realized after posting the questions that contributions are fixed and cant count growth as contribution. There is a such a thing as (too much) money problem :-(
@jessicarenyan Жыл бұрын
I like the video! I have a question though. I've maxed out my RRSP, but still have room in TFSA and RESP. I thought it would be a good idea to prioritize RESP over TFSA, as I can withdraw my contribution from RESP (with kid's proof of enrollment) without any tax implication anyway, but at the same time I can get 20% of government match. If I do exactly the same investment in TFSA, I wouldn't earn as much as in RESP, right, because of the 20% government grant. Is this thought right? I can withdraw from RESP once my kid is in post-secondary education and then put that money into TFSA at that time.
@napalm80303 жыл бұрын
What if money, for any various other reasons, was not an object/concern? Would using an RESP be a way to save a few bucks overall/in the end??
@ParallelWealth3 жыл бұрын
Good question. A major benefit to using an RESP is the 'Canadian Education Savings Grant.' The government matches 20% of your contribution, up to a maximum of $2,500 each year. This means you can get up to $500 of free money every year if you contribute the maximum! There are a number of other benefits that relate to RESPs as well, if you want to learn more we got a video on that: kzbin.info/www/bejne/d4u6cmyindZ0ppI