RESP – Registered Education Savings Plan

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One of the best ways to save for your kids
and their future is through the RESP – Registered Education Savings Plan. Today, we are going to talk about what is
an RESP, benefits of an RESP, I will also walk you through couple of examples, then
I am going to show you the most tax efficient way of withdrawing money from RESP account,
and then at the end talk about some important things for you to consider. Usually, when kids are ready for post secondary
education, be it – College or University, its either the parents that have to come up
with the necessary funds to pay for the tuition or students have to take out a loan and graduate
with substantial debt. RESP can help solve both of these problems.

9 COMMENTS

  1. Good video. When you ask "if you need the money?" you say that they will need to return the Canada learning bond. Maybe just to clarify, if you need all the money and close the RESP then you will have to return the CLB payments. But if you just leave the account open and you have received CLB payments, you will get to keep those.
    I will also just suggest that those people thinking about opening an RESP to avoid group plans, unless you understand all the restrictions on your withdrawals or what happens if your child(ren) don't go to school. If you still think a group plan is the way to go after that, do more research.

  2. Thank you for the video, one explanation please.when you max your contribution to 2500 per year to get the max cesg for 7200, the 20% which 500 adds up to 7500 not 7200 ,why is that?

  3. In the example 1, using BA II Plus Professional Financial Calculator, N = 15, I/Y = 4, PMT = 3,000, Future Value comes out to be 60,070 and not 62,000.

    In the example 2, using BA II Plus Professional Financial Calculator, N = 15, I/Y = 4, PMT = 600, Future Values comes out to be 12,014 and not 12,500.

    What am I missing here?

  4. Very informative clip! Here are some alternative strategies to save for a child's education including the RESP https://www.youtube.com/watch?v=iwzwo83Okuw

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