The Rewards of Learning
For many children, a post-secondary education is a very important step in the growth to independence and fulfillment. Research indicates that the higher the education, the higher the income and lower the unemployment rate. We believe that all children should be encouraged to strongly consider the benefits that higher education can provide for them.

LEVEL OF EDUCATIONAVERAGE INCOMEUNEMPLOYMENT PERCENTAGE

Less then Grade 9 $20,672 14.6%

Grade 9-13 (No certificate) $22,498 13.5%

High School Certificate $23,245 9.9%

Some Post-Secondary - Trade Certificate$26,416 9.4%

University $40,293 5.5%

RESPs, NOW MORE IMPORTANT THEN EVER

Parents and grandparents should be excited about the new RESP (Registered Education Savings Plan) rules. Now, not only do RESPs provide a great tax benefit, but the government will contribute up to $7,200 per child.

The current cost of a four-year undergraduate university education in Canada is about $46,000. In 18 years it will be over $75,000. At a private university in the United States, such as Harvard, a four-year undergraduate degree today cost about $129,000 U.S. In 18 years it will be over $260,000 U.S. (based on a projected increase in tuition of about 4% a year).

RESPs Huge Tax Benefit. The maximum collective contribution to RESPs for each child or grandchild is $4,000 per year up to a lifetime limit of $42,000. Although the initial contributions are not tax-deductible, every cent in the RESP grows tax-free until it's withdrawn. By compounding tax-free, your savings will grow faster. When your child or grandchild withdraws the money, they pay tax on the growth portion at their own marginal tax rate.

Free Money. For every dollar contributed to an RESP, the government will contribute an additional 20% to a maximum of $400, per child per year, up to a maximum of $7,200 over the life of the plan.

You're the Boss. You control how the money is invested and paid out for up to 25 years.

You Save it, You Keep it. You can withdraw your contributions anytime you want, tax-free. If your child is over 20 and doesn't pursue a post-secondary education, you can transfer up to $50,000 of the growth into your RRSP if it has existed for 10 years and there is contribution room. You can also name multiple beneficiaries if all are related to you so if one child doesn't go to school, another child can use the money.

Sound Investment Advice is Essential. You can choose between a wide range of investment advice.