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Contributions are not tax-deductible, but money inside the plan and any grant they attract can grow tax-free until it's withdrawn for education purposes.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 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.

Additional tips

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.