What is an RESP?
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An RESP is a Canadian Government approved tax-sheltered method of saving funds for post-secondary education and certain job-training programs. It can be used at any eligible institution at any designated canadian or international educational institution” .
Government cutbacks have caused the cost of education to increase dramatically, thereby increasing the necessity for education planning. The major reason for planning is that more and more families will not be able to finance the cost of post-secondary education out of current earnings. More and more families will have to start saving when their children are very young in order to ensure the opportunity of post-secondary education will be there when the children grow up.
Registered Education Savings Plans (RESPs)
To assist families in this regard the Government has developed Registered Education Savings Plans (RESPs). It’s purpose is to encourage families to save for their children’s post-secondary education by allowing earnings to be tax-sheltered and allowing the tax liability to be transferred to the beneficiary.
Contact a Gatt Wealth Management representative today, and arrange a meeting to discuss your RESP.