The grant matches 20 per cent of your annual contribution up to a maximum of $500 each year. You can contribute up to $50,000 per child over the life of each plan, and Ottawa will give you up to $7,200 more through its Canada Education Savings Grant (CESG). It’s no surprise, then, that Registered Education Savings Plans (RESPs) are so popular. The price is only going up: the calculator at GetSmarterAboutMoney.ca, a web site run by the Investor Education Fund, will give you an idea. Ottawa doesn’t give you much for free, so take as much as you can get. ![]() ![]() It charges 0.6 per cent of assets up to $100,000, and its web site has a clear explanation of what it charges and its services.įor many young families, finding RESP money is hard enough, so you need all the help you get. Invisor only invests in ETFs or F-class mutual funds, which have low fees. Initially, the money may be 100 per cent invested in stocks, gradually being turned into cash by the time the child starts college or university. And portfolios are automatically rebalanced whereas parents may not be sure what to do and when, the programs never forget. Udiaver says the advantage of firms like his are low fees, since more goes into the investor’s pocket. The bigger risk is not having enough money later on to pay tuition.” “But since you have a long-term horizon with RESPs, time is on your side. “People tend to see things in terms of current events,” Udiaver says. They may not always feel confident about their investing skills or may be rattled by the news of the day and see stock markets as high risk. Udiaver says its target client is between 27 and 42.
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