There are a lot of acronyms in the world of finance. If you are just starting to learn more about your own financial position and invest your money smarter, stronger and with a focus on the future, it can be overwhelming and confusing to keep up. Luckily, TSG Insurance is here to provide residents of Calgary, Medicine Hat and Brooks with guidance and advice when it comes to their personal finances. Alongside comprehensive insurance services, we offer financial planning assistance so that you can understand where and how your money will serve you best.
One acronym you don’t want to ignore when planning for your family is RESP. It stands for Registered Education Savings Plan and can make a huge difference in how your child is supported throughout their education. Read below to learn more about this popular and important investment option, or contact the team of dedicated professionals at TSG Insurance today to get answers to your questions.
Benefits of an RESP
An RESP makes it simple for you to regularly contribute to your child’s education fund. You’ll be able to start early and give your child the chance to focus more on studying and less on saving when the time comes for them to attend post-secondary school.
Here are just a few benefits of setting up an RESP for your child or children:
- Government Contribution: The Canadian government will contribute up to $500 per year, per child through the Canada Education Savings Grant (CESG). You can take advantage of this perk until your child turns 17, so the sooner you set up your child’s account, the better.
- Flexibility: RESP accounts offer many options. You can determine how much you want to withdraw and when you will take the money. The funds can be put towards any education-related expenses, from tuition to books or living expenses.
- Tax Benefits: When used, the earnings and government contributions will be taxed to your child. As a student, that typically means very little taxes need to be paid. Additionally, the growth of the RESP is tax-sheltered as long as it remains in the plan.
Want to learn more about financial planning for you and your family’s future? TSG Insurance has a team of financial services experts who are eager to help. We can listen to your unique concerns and priorities and direct you towards the products, services, and investments that are best suited to you. Our team has over thirty years of experience providing residents of Alberta with insurance quotes and financial planning assistance. Get peace of mind that your money is going as far as possible with an RESP and other smart investments. Contact us to make an appointment, request a quote now, or call us to schedule your appointment.
Start financial planning for your children’s future today. Visit TSG Insurance in Calgary, Medicine Hat or Brooks or contact us online today with your questions. You can also give us a call toll-free at 800-830-9423.