As soon as a child is born, the parents have to start thinking about the child’s future. And secondary education is usually on the top of the list. Every parent wants to give their child the best possible education including college, vocational or technical education. There are many ways to save money for your child’s education; however, RESPs seem to be the most effective.
How can RESPs help
The money you save for your child’s secondary education through a RESP such as Knowledge First Financial is completely tax free. On top of that the government also contributes considerably to the fund. Yearly contribution from the government is $500 up to $7,200. It’s a little more for low income families. That is a lot of free money if you think about it.
Researching RESP savings
RESPs can be quite complicated, so before you go any further with your plan of investing with them, it is highly recommended that you thoroughly research RESPs like Knowledge First Financial and find out everything there is to find about them. This will help you take intelligent decisions regarding your investment.
Withdrawing funds from RESP
The biggest argument that critics make against RESPs is that they are complicated to the point of being unfathomable. The unnecessary complications leave hapless parents completely befuddled. The rules and regulations that are associated with withdrawing of funds when the time comes can be really taxing. Though the argument is true to a certain point, the problems can be easily overcome by doing the research properly.
The best time to withdraw the money would be while the child is still in school. The account needs to be emptied while the child is still a student. You can withdraw more money than your child needs for education related expenses like tuition fee, books, housing, food etc. without incurring any penalties. You will have to provide proof that your child has been enrolled to an institution before you can touch the money in that account. If any leftover money above and beyond the expanses is there then you should put it in a separate bank account.
Jun 01, 2020 Comments Off on What Is Forex Trading? A Quick Overview
May 30, 2020 Comments Off on Buy An Engagement Ring On A Budget and make profits
May 21, 2020 Comments Off on How Pawn My Diamond Ring Sydney Can Help You
May 21, 2020 Comments Off on How Pawn My Diamond Ring Melbourne Can Guarantee Some Instant Cash
May 15, 2019 Comments Off on Invest in Bitcoin: 8 Tips to Hit
Apr 08, 2019 Comments Off on What happens to your unsecured business loan if your business loses
Apr 02, 2019 Comments Off on What Are Various Ways to Sell Your Jewelry Online In 2019
Feb 24, 2019 Comments Off on What are The Basics of Binary Options Signals that you Should Remember?