Milestones & Purchases

Giving your children the best gift of all with an RESP

Access to a post-secondary education is no longer a sure thing. With costs rising steadily, this privilege is becoming a rare thing.

As with most things in life, giving your children the choices that come from a higher education means planning it now. And planning for an education fits very nicely with a long-term investment plan.

With a Registered Educational Savings Plan (RESP) you have up to 20 years to benefit from regular investments and compounding. In addition, while governments are cutting costs in other areas, they have actually established an RESP program to help encourage you to save for your children's education.

Benefits

Like an RRSP, an RESP is registered with the Federal government and assets held in the plan grow tax-free until they are withdrawn. This feature allows assets to accumulate faster than those held outside an RESP.

Unlike an RRSP, contributions to an RESP are not tax deductible.

When the money from the RESP is withdrawn, the earnings are taxed in the child’s (beneficiary’s) hands. Usually, the beneficiary is in a lower tax bracket, or possibly not taxable due to personal, education and tuition tax credits.

As your child grows and becomes more involved in their educational portfolio, they will also learn important lessons that will last them a lifetime:

• Anything worthwhile takes time to build
• By investing, you can build the financial assets you'll need later on
• Life has ups and downs
• With a good plan and good values, you can weather any storm

Use our Find An Advisor tool to locate a CIBC Wood Gundy Investment Advisor near you and take the first step to achieving the financial future you want.

The information contained herein is considered accurate at the time of posting. CIBC and CIBC World Markets Inc. reserve the right to change any of it without prior notice. It is for general information purposes only.