Wednesday 7 August 2013

RESP Plan Committed to Build Child’s Future


Parents want to give their children best education they can afford. The more a child is educated, the better he/she can be in life. Education is important to build a successful life. Post secondary education makes the child knowledgeable to make right decision in life. A well educated child will become a good citizen and contribute to the development of the country. Today, employers in every field want to hire person with specialized knowledge and skills to do the job. So, the post secondary education has become an essential requirement for a decent well paying job.

The cost of higher education in Canada is very costly. People with modest income find it difficult to afford the expenses. The parents' concern to get their children educated is answered by the Registered Education Savings Fund. The RESP plan is a special type of saving plan that encourages parents to save for the higher education of their children. This plan is sanctioned by the Federal government and the money earned on the investment is not taxed until it is withdrawn from the plan.

Basics:

RESP plan can be opened by anyone. It can be the parents, grandparents, blood relatives or friends. Person who starts the plan is called the subscriber. The person who gets money from the plan is called the beneficiary. In some RESP plan, the subscriber and the beneficiary can be the same person.

Contributions:

RESP contributions cannot be deducted from the income tax. The subscriber can make a lifetime contribution of $50,000 per beneficiary. Any contributions above this amount are taxable. RESP plan generally remains active for 36 years and the subscriber can choose to contribute for as long as he wants. There is no fixed rule in the plan that specifies the subscriber to pay certain amount of money every year.

The beneficiary also gets financial aids from the government sponsored grants liked the Canada Education Savings Grant (CESG), Canada Learning Bond (CLB) and grants offered by the provincial governments of Alberta and Quebec.

EAP:

The funds in the plan keep growing steadily with the contributions made by the subscriber, the money earned by the investments and the financial aids received from the government sponsored grants. The payment made to the beneficiary is called the Education Assistance Payouts (EAP). When the beneficiary is enrolled in a qualified course or a specialized course, he/she becomes eligible to withdraw the money from the plan. The EAP is taxed in the hands of the student who pays little or no tax because of no or low income.

If the beneficiary fails to go for the higher education, the subscriber can withdraw the money which is then taxed or the plan can be transferred to another beneficiary who wishes to pursue higher education.

The provider:

The Heritage Education Funds have been selling RESP plans since 1965. With solid knowledge base of the markets and over 50 years of experience, they are the best service providers in the country. They have been successfully helping families build the future of their children. They have spent $900 million as EAP to 400,000 beneficiaries, who have reached their goals in life. The Heritage RESP plans are committed to help parents achieve their dreams and build the future of their children. 

Friday 2 August 2013

Financial Planning For Higher Education

The cost of almost everything has been on a constant rise during the last 10 years and higher education is not an exception to it. This situation has worried many parents who would like to see their children pursue their higher education. Securing the cost of higher education all at once is utterly impossible for many families in Canada, this is why the government has initiated many financial assistance programs as well as approved a number of beneficial programs that can help many families to send their children to university.

Registered Education Saving Plans (RESP) is a government registered program that is designed to help parents and guardians to financially prepare for the higher education of their children. To enroll a child in this program, the contributor would first require the social's insurance number of the child and have a valid social insurance number themselves in order to register the Plan with CRA. Once the contributor has the social insurance number the next step would be find a suitable RESP provider. Nearly 400,000 children got enrolled in the Heritage RESP. You can contribute every month, once a year, once in five years, once in 10 years or in one single deposit.

Because the contributions are invested in low risk investments, the success of the Plan the money will be there when you need it. Heritage Education Funds Inc. has been successfully helping families in Canada for almost 50 years, with more than $2 billion in assets under management. It has already paid out more than $600 billion and it still continues to do a good job in supporting families all around Canada.The terms and conditions of the Heritage RESPs are highly flexible and are designed to suit almost anybody who wants to financially prepare for their next-generation.

The beneficiary of an RESP can be a single child or multiple children. The Plan for an individual child is known as the Individual Plan while the Plan for multiple children is known as the Family Plan. As per the terms and conditions of RESPs if the child does not opt for higher education your savings are still returned.

Friday 12 July 2013

Achieve Higher Education with Heritage RESP

The constant rising cost of higher education has been causing a tough time to a number of Canadian children and parents. Undeniably, sending a child to an excellent university can cost a lot; therefore, higher education can be impossible for children who come from low income families. This is the very reason why the government of Canada has been working out ways and means on to make higher education possible for anyone who wants to go for it. Thanks to this effort, various programs that aim to help millions of families with regards to providing the highest possible level of education for their children have now been developed.

One of the most effective of such programs is the RESP or Registered Educational Savings Plan. RESP, is created to ensure that each and every Canadian child whether rich or poor is given the equal opportunity to pursue higher education and to push through with whatever career path they may want to pursue. Under this program, parents are given the liberty to embark on a low risk investment plan on which contributions are highly dependent upon their convenience as well as their financial capabilities.
Heritage Resp
 Aside from the returns that parents will be able to avail from their investments, their children, being the beneficiaries of the RESP program are more inclined to benefit from all the other financial assistance programs of the Canadian government, such as the Canada Learning Bond and Canada Education Savings Grant. In this manner, parents can be rest assured that their children will never be deprived of higher standards of education no matter what happens along the way. 

One convenient way to reap the benefits of RESP is by contacting a highly dependable RESP provider. One of the most popular of which is the Heritage Education Funds Inc. This RESP provider has been in the industry for more than 50 years and has since been helping out thousands of Canadian families in providing the highest standards of education for their children. Heritage RESP offers a number of flexible payment terms to prioritize those low income families, when it comes to supporting their children’s higher education needs. Being associated with numerous financial assistance programs by the government, with an unwavering stability and having helped thousands of Canadian children in making their dreams possible; this company is definitely the best choice when it comes to a RESP provider.

Monday 24 June 2013

RESP and Its Importance



With the cost of higher education becoming costlier year by year, parents’ from the lower income groups are worrying about the future of their children. Without higher education, there is no career or life. Good college education makes a person confident and talented. It bring out the potential skills making the person reach new height in his/her career and contribute to the economy of the country.

Many parents wonder how to make money to meet the expenditure of their children's higher education. These parents fail to see the plans available for them to make the financial commitment for the future of their children easy. There are plans and programs offered by the government of Canada that assists parents through financial aid. But this aid is not sufficient to meet the rising costs of the higher education.

The Registered Education Savings Plan allows the parents to invest small amount of money whenever they can, which gives them good returns. This plan is approved by the government. The income that the parents receive on the money invested is exempted from Income Tax. RESP plan is offered by all the banks and the financial institutions. But all are not worth trusting with your money.

The Heritage Education Savings Plan Inc. is the oldest service provider who sells only the RESP plans. They have been helping parents all over the country to save for the future of their children since 50 years. So far they have made payout of $900 million as Education Assistance payments to over 400,000 families. The well trained and knowledgeable professionals at Heritage know where to invest to get competitive returns for their subscribers’ money.

The beneficiaries of the Heritage RESP get financial aid from the other education programs associated with this plan. The parents can choose a plan as per their needs and they can include multiple children under one plan. With some basic documents and the Social Insurance Number of the children, you can easily start the RESP plan. The plan matures on the 31st of July the year the beneficiary turns 18 years old. This plan prepares the parents completely to meet the expenses of higher education of their children.