I did something else for my kids education. Saved money in spousal rrsp . 3 years prior to first child going to school stopped. Withdrew rrsp funds up to max no income tax point, every year until gone. I got the rrsp rightdowns every year. There is a claw back of grants if money isn't used for education.
Question: while a student can get OSAP and often a big portion of it is grant; does it still make sense to register for RESP? I know we will lose that $500 per year from government, but isn't it better for parents to invest their own money in the real state?
Great video well explained 👍👍 I have two kids 15 & 10. Started RESP when they turned 4 years. But only contributing $100 each in group plan with Global educational trust foundation but I came to know that this company is no longer and I am not getting any return other than contributions and now I don’t know how I can open new account (with which broker) and how transfer funds to new account? I will really appreciate if you can guide me. Thanks in advance 🙏
That was a very clear breakdown of the three options. Question though...I have individual plans for my two kids; can I combine them after the fact into a family plan as I have learned there are more options?
Thanks for the informative video. In the rare case that a child does not use the money in the RESP, and the parent has to return the grant money back to the government, does the parent have to pay interest on the grant money lent? Thanks again!
I understood that it was possible to transfert an individual the resp to a sibbling account if he/she is under 21 without impact on the grant or tax implication. Is that wrong?
Hey Adam, I've decided that I would like to stop contributing to our kids RESP and invest it into their "retirement" (financial independence) I see so many kids waste 4 yrs and just come out in debt. What is the most effiecient way to getthat money out of rrsp and what account can I use to do that?
The resp can be used for a lot of other things. As long as they enroll in post secondary, you can then use it for other daily items (car, house, etc). The RESP gets a 20% grant, tax deferred growth, and taxed to them on withdrawal. I would discuss with your planner to see is your plan is the best way forward.
When do you recommend to stop contributing? Obviously it’s different for every family. Some context, I have 4 boys 6,4,2.5,0 years old. We don’t know what they are going to do for post 2nd education. But I do know that I’m going to retire someday, so when is it better to divert the money that we are contributing to resp for them to an rrsp for us?
Tough to answer here focus more on your retirement. Once you know what is required there try and carve out as much as possible for the boys. Good luck! You r in the grind!
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Your video was spot on! Thank you for taking the time to explain this information!! It was very helpful 😊
I did something else for my kids education. Saved money in spousal rrsp . 3 years prior to first child going to school stopped. Withdrew rrsp funds up to max no income tax point, every year until gone. I got the rrsp rightdowns every year. There is a claw back of grants if money isn't used for education.
Question: while a student can get OSAP and often a big portion of it is grant; does it still make sense to register for RESP? I know we will lose that $500 per year from government, but isn't it better for parents to invest their own money in the real state?
Great video well explained 👍👍
I have two kids 15 & 10. Started RESP when they turned 4 years. But only contributing $100 each in group plan with Global educational trust foundation but I came to know that this company is no longer and I am not getting any return other than contributions and now I don’t know how I can open new account (with which broker) and how transfer funds to new account? I will really appreciate if you can guide me. Thanks in advance 🙏
That was a very clear breakdown of the three options. Question though...I have individual plans for my two kids; can I combine them after the fact into a family plan as I have learned there are more options?
Yes you can.
@@ParallelWealth Fantastic....and thanks for the the quick reply!!!! Keep the great content coming!!!
Thanks for the informative video. In the rare case that a child does not use the money in the RESP, and the parent has to return the grant money back to the government, does the parent have to pay interest on the grant money lent?
Thanks again!
Can you explain RDSP?
My son has a RDSP can you explain about that? When he gets access and taxes and implications on possible need for disability benefits.
It's on the list. Likely August this year we will have it out.
I wish they explained it to me this way. When I opened up my RESP plans the banks set me up with individual even though I have two children.
You can combine them now if it's not too late.
How can someone get a 1 on one consult with you about RRSP setups. Thanks.
Can you use funds from RESP for driving course for your child. I.e the $2000 type of driving course.
Nope
Is it better to contribute the maximum $50k and let it grow tax free from year one (foregoing the grant) or contribute $2500 per year?
I prefer to max the grants. At 20% I think the numbers would back it up too.
I understood that it was possible to transfert an individual the resp to a sibbling account if he/she is under 21 without impact on the grant or tax implication. Is that wrong?
Correct, if siblings you can combine individual RESPs to a joint/family plan
Hey Adam, I've decided that I would like to stop contributing to our kids RESP and invest it into their "retirement" (financial independence) I see so many kids waste 4 yrs and just come out in debt. What is the most effiecient way to getthat money out of rrsp and what account can I use to do that?
The resp can be used for a lot of other things. As long as they enroll in post secondary, you can then use it for other daily items (car, house, etc). The RESP gets a 20% grant, tax deferred growth, and taxed to them on withdrawal. I would discuss with your planner to see is your plan is the best way forward.
We set up 2 resp is that a good thing or not?
It's fine, but might make sense to consolidate them. Can't see a benefit to have 2
When do you recommend to stop contributing? Obviously it’s different for every family. Some context, I have 4 boys 6,4,2.5,0 years old. We don’t know what they are going to do for post 2nd education. But I do know that I’m going to retire someday, so when is it better to divert the money that we are contributing to resp for them to an rrsp for us?
Tough to answer here focus more on your retirement. Once you know what is required there try and carve out as much as possible for the boys. Good luck! You r in the grind!
why would anyone choose a group resp?
because sometimes people are not educated on these plans properly that's why it happens Sir. You sound like you like financial education I like that.