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Introducing A Unique Segregated Fund RESP

Introducing A Unique Segregated Fund RESP. R E G I S T E R E D E D U C A T I O N S A V I N G S P L A N. Dramatic increases in cost of higher education are anticipated ……. Diploma segregated fund RESP.

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Introducing A Unique Segregated Fund RESP

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  1. Introducing A Unique Segregated Fund RESP R E G I S T E R E D E D U C A T I O N S A V I N G S P L A N

  2. Dramatic increases in cost of higher education are anticipated …….

  3. Diploma segregated fund RESP.. • A unique investment vehicle which provides the opportunity to invest in a child’s future. • Advantages: • Tax-sheltered investment income • Canada Education Savings (CES) Grant : 20 % • Plus…...

  4. Some standard RESP information...

  5. Maximum contributions... Annual: $4,000 Lifetime: $42,000 Maximum per beneficiary for all RESP’s

  6. The CES Grant. The amount of the Grant: • 20% of the annual contributions • $400 annual maximum • $7,200 total maximum • Paid monthly by the Federal Government • Tax deferred until the amounts are withdrawn • Unused rights can be deferred

  7. Who can susbcribe to a Diploma RESP? • Any person of legal age (not a company or a trust) • Only one subscriber per contract, is permitted • The subscriber can contribute to several RESPs at the same time

  8. Diploma : who can be designated as a beneficiary? • Any child 14 years of age or less • Need not be related to the subscriber • There can be only one beneficiary per contract (individual plan) • The beneficiary can be changed at any time • The beneficiary can be the beneficiary of more than one RESP

  9. Accumulation…..

  10. The accumulation in Diploma is made up of... RESP Contributions

  11. The 3 types of Contributions: • PAC contributions up to the beneficiary’s age 18* • Minimum : $25 per month • No enrolment fees • Additional deposits are possible; • Transfers from other plans are welcomed. Contributions * until December 31 of the year in which the beneficiary reaches age 17

  12. The accumulation in Diploma is made up of... RESP Grants Contributions

  13. The accumulation in Diploma is made up of... RESP Investment income Grants Contributions

  14. The accumulation in Diploma is made up of... RESP Education bonus Exclusive to Diploma Investment income Grants Contributions

  15. The Diploma Education Bonus. • % of the total PAC contributions; • A one time payment at the end of the commitment period. EG: Child Age 0 yrs @ $100per month Deposit: $100 X 12 X 18 years= $21,600 Bonus: $21,600 X 15% = $3,240

  16. The Diploma Education Bonuscont...

  17. Investment Fund An index type of investment fund MSCI EAFE 10% 25% 40% « B » Fund S&P 500 25% S&P TSE 60

  18. Insurance Riders • Two choices : - CID : disability protection - CIDE : death protection • Subscriber = insured • Benefit : monthly PAC premium

  19. The educational assistance payments

  20. EAP for the beneficiary The subscriber can withdraw contributions When the subscriber requests the Educational Assistance Payment (EAP) for the beneficiary: RESP Education bonus Investment income «TAXABLE» Grants Contributions «NON-TAXABLE»

  21. Eligibility to receive the EAP: 1. The beneficiary must be a full-time student in a post-secondary educational institution; 2. Most colleges and universities qualify; 3. Program must be of a minimum duration of 3 consecutive weeks.

  22. The Diploma Educational Payments. • Great flexibility of EAP payments; • The frequency and the amount of the payments are at the discretion of the subscriber; • Maximum for the first 13 weeks: $5,000; • There is no restriction in the amount payable after the first 13 week period.

  23. For more information and enrollment, please contact us: Tel: 239 3850 E-mail: info@insuranceconcepts.ca

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