College Planning

Malcom Forbes once said, "Education's purpose is to replace an empty mind with an open one." Though one cannot deny the value of a quality college education, the costs associated with going to college are alarmingly on the rise. Today, sending a loved one to college requires proper financial planning, discipline and advice.

Of all the college planning tools available today, the Registered Education Savings Plan (RESP) is one of the most popular savings vehicles used by parents to save for their children's post-secondary education. RESP's are registered by the Canada Customs and Revenue Agency and allow investors to contribute funds in a tax-advantaged environment.

RESP's can be established either for an individual (single beneficiary) or a family (multiple beneficiaries) and contributions can be made to the plans from family members, friends, or neighbors, subject to the annual contribution limits. The current limit on contributions is $4,000 per year per child to a lifetime total of $42,000 per child. Most importantly, RESPs offer tax deferral on the interest earned within each RESP account, effectively compounding growth.

As you can see, there are a multitude of different choices available. If you would like to discuss your college planning options with a WFG professional, please click here to find a WFG associate in your neighborhood.