KYC Financial

Education Saving Plan (RESP)

The RESP is a government initiative to encourage families to save money for their children for post-secondary education, is essentially the meaning of RESP.

The money that you put into your RESP plan grows tax free.

On top of that, the government matches your RESP contribution with a 20% match from the Canada Education Savings Grant (CESG). So if you contributed $2500 into your child’s RESP, you would get $500 from the government.

Just like with other registered products from the government of Canada (like the TFSA or the RRSP), the RESP is like a ‘basket’ where you can hold and invest in what you please. For example, you can hold stocks, dividend paying stocks, ETFs, high interest savings accounts, GIC’s, or mutual funds.

RRSP:

An RRSP is what’s called a tax-advantaged account, which is something the government created specifically to provide tax breaks to anyone who takes the time to use them. The money you put in your RRSP is not taxed. At least not right now. That’s the advantage. So, your taxes for the year are lower, but also, you have more money to put into your RRSP. That money grows, tax free, until it’s time to retire.

How much you can contribute depends upon your previous years’ income. But how much you ‘should’ contribute depends on your current year’s income to make sure you reduce your Marginal Tax Rate (MTR) to the next bracket and utilize the unused room for next year.

TFSA:

A Tax-Free Savings Account (TFSA) is a powerful registered investment account you can use to save for any big-ticket item or small goal. If you like more flexibility and no taxes, consider opening a TFSA.

You can have more than one TFSA at any given time, but the total amount you contribute to all your TFSAs cannot be more than your available TFSA contribution room for that year or available to you from the previous years.

Non- Registered Investments

This is a unique type of investment that not many people talk about, this investment vehicle is not regular by the government, you can invest as much or as low to gain the growth for long and short time. The benefits are also unique with this non registered income.

Estate Planning:

Having a comprehensive estate plan in place can help you feel more confident about the future and that your loved ones will be taken care of. It can help you achieve a variety of goals and objectives, including: • Providing support and financial stability for your spouse. • Preserving assets for future generations. • Supporting a favorite charity or other worthy cause. • Ensuring all of your assets, including those that pass by beneficiary designation (e.g., retirement accounts and life insurance policies), will be distributed according to your wishes. • Minimizing taxes and expenses. • Ensuring thatindividuals you choose can make decisions on your behalf in the event of your incapacity.

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