September 2016

Welcome back to the routine! The leaves are browning and the frost is on its way back already, even though June still feels like yesterday. With school back in session we thought it would be timely to go over the ins and outs of saving for education, whether for your child, grandchild, or even yourself!

Now that school is back in session and the flurry of summer vacations are behind us until next year, it’s time to get back into the swing of things. As exciting as it is sending the kids back to school, the time is fast approaching that they’ll face the decision of what to do after graduation.

If you’re one of the many parents who have already sent their kids off to college or university, perhaps for the first time this year, your routine probably looks a bit different than it used to, maybe including a trip moving the new freshman to campus, or to the bookstore to buy up to $1,000 of textbooks (for one semester at university!). If part of your new routine is a trip to the bank for a loan, this Education Savings edition of our newsletter may have been helpful about 18 years ago! 

Along with a look at the effect the U.S. election may have on the markets, in this newsletter Rick takes an in-depth look at details of Registered Education Savings Plans, the government grants awarded to these plans for qualifying holders, and the particulars of using RESPs when the tuition bill arrives. 

There are other ways to save for an education besides RESPs, however. Melissa discusses the additional benefits of insurance policies for your children and how these can be used for more than just life cover, Patricia tackles education for our generation: how to use RRSPs to go back to school, and Lorna gives an outline on how to use Registered Disability Savings Plans in conjunction with RESPs to maximize your savings after high school.

We hope you’ll find this education savings edition of our newsletter both helpful and insightful. As always, if you have a topic you’d like to see covered, let us know!


Articles:

September 2016 Market Watch

Posted 21 Sep 2016 by Rick Irwin, CFP, CLU; Patricia Bell, PFP; Melissa Allan, Lorna Maughan

After a sharp, but short, sell off at the end of June in the wake of the Brexit vote, financial markets staged a strong recovery which tapered off towards the end of the quarter. October tends to be one of...

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The Necessity of Education Savings

Posted 07 Sep 2016 by Natalie LeBlanc

The price of a good education has skyrocketed over the past few decades, leaving recent graduates buried in debt. Making an effort to plan and save for these expenses ahead of time is certainly the best way to alleviate future...

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Why You Should Open an RESP for your Child

Posted 14 Sep 2016 by Rick Irwin, CFP, CLU

Just like you save for your retirement, your child (or grandchild’s) education should be a savings priority, if you don’t want the ever-increasing costs to fall on them when they graduate high school. An RESP is usually one of the...

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Education Savings Grant & Learning Bond

Posted 16 Sep 2016 by Rick Irwin, CFP, CLU

One of the primary benefits of opening an RESP is the government grants that are available through this plan. The Canada Education Savings Grant is open to all Canadians and the Canada Learning Bond is a bond designed for lower...

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Taking Income from an RESP

Posted 19 Sep 2016 by Rick Irwin, CFP, CLU

Putting money away covers the bulk of the planning to be done for education savings, but the details of how you take money out of the plan can be just as crucial to ensure the money is available to your...

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What if We Never Use Our RESP?

Posted 20 Sep 2016 by Rick Irwin, CFP, CLU

If your child doesn't immediately go on to post-secondary education after high school, don’t worry. You have lots of options. Whether using the money for another child, or for yourself, it won’t have gone to waste.

First of all, an...

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Investing in Knowledge: Lifelong Learning Plan

Posted 21 Sep 2016 by Patricia Bell, PFP

An investment in knowledge pays the best interest… At least according to Ben Franklin. Whether you’re retired or considering a career change, you may have one more option to pay for furthering your education than your classmates: your RRSP.

Does...

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Insurance for Your Child's Future

Posted 02 Sep 2016 by Melissa Allan

The idea of having a life insurance policy on your child or grandchild is one that makes many clients feel uneasy, particularly at the prospect of its potential necessity. I’ve had many experiences where I’ve brought it up to parents...

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Using Disability Savings Plans for Education

Posted 21 Sep 2016 by Lorna Maughan

If your child qualifies for the Disability Tax Credit, an RDSP might help with the costs of tuition and living expenses while going to school, if you plan ahead accordingly. The plan receives grants like an RESP but making withdrawals...

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