Get smart about education
A Mackenzie Investments Registered Education Savings Plan (RESP) is an effective way to save for, and maximize the money available to, children when they enroll in a post-secondary program. The government of Canada and certain provinces offer several grants to help investors build their education savings. Contributions are not tax-deductible, but money inside the plan and any grant they attract can grow tax-free until it's withdrawn for education purposes.
The benefits: government grants and tax-deferred growth
- The government of Canada offers the Basic and Additional Canada Education Savings Grant (CESG).
- Additional grants are available including the Canada Learning Bond (CLB), the Alberta Centennial Education Savings Grant (ACES), the Quebec Education Savings Incentive (QESI), and the Saskatchewan Advantage Grant for Education Savings (SAGES).
- RESPs allow the flexibility to share grant and income with beneficiaries.
- Although contributions are not tax-deductible, both personal contributions and grant contributions grow tax-free.
- No annual contribution limits – the maximum lifetime contribution per beneficiary is $50,000.
Who should invest in an RESP?
- Parents who want to prepare for rising education costs and save for their child’s education.
- Grandparents – RESPs are an effective way to pass down money to grandchildren to use for education costs.
- Anyone (friends, aunts, uncles, cousins) who wants to help out with the education of a child close to them.
Maximize your RESP savings
- Talk to your advisor about the best plan for you – you can choose between an individual or family RESP.
- Mackenzie Investments offers a large selection of investment options to use within a RESP.
- Enroll in a pre-authorized chequing plan for automatic investing.
- Use Mackenzie One-Step Dollar Cost Averaging service for regular systematic investing.
Contribute at least $2,500 a year to get the full $500 federal grant each year. Note: if you withdraw RESP contributions before the child starts post-secondary school, you will have to pay back part of the grant.
Find out more
Speak to your financial advisor about opening an RESP and investing with Mackenzie Investments.