Hi-ho, hi-ho It’s Off to School They Go

1. Rob Kimball, B.A., CSA, RHU Financial Advisor September 2007 Hi-ho, hi-hoIt’s Offto School They Go

2. Start planning and saving Several options Regardless of budget Post-Secondary Education

3. How Much Does aPost-Secondary EducationCost?

4. Resources • Websites of schools of interest • Education Cost Calculator www.canlearn.ca

5. Financing Your Children’s Dream • Cost of obtaining a degree has risen by 180% since 1990/91 Source: “Average Cost for Undergraduate Fees”, CAUT Education Review, Vol. 5, No. 1, 2003

6. Estimated Annual Cost of University All costs are averaged across all provinces and rounded to the nearest hundred, based on a 32-week school year.

7. One way to save is toInvest in RESPs

8. What are RESPs? • Savings plan registered with Canada Revenue Agency • Not tax deductible • Some tax benefits

9. RESPs and Taxes • Income is tax-deferred • Beneficiary is taxed when savings are withdrawn • Often, little or no tax payable

10. New Voluntary Benefit As a new voluntary benefit available to employees of Hamilton Health Sciences, we are pleased to allow you the opportunity to contribute to your children’s education through payroll deduction. Contributions are 100% employee paid. Deductions will begin October 17th and thereafter, the first of each month.

11. RESP Contributions • Payroll deduction • Anyone can contribute to a RESP • Maximum is $2500 per year that the Government will match with 20% (per child) • One year of unused contributions can carry forward and be eligible for grant • Maximum contribution is $50,000 (per child) • Maximums apply to beneficiary

12. CESG Canada Education Savings Grant • Contributions of 20% on the first $2,500 each year (per child) • Maximum of $500 per year, but one year of unused contributions are also eligible for the grant • Available until age 18 • Maximum of $7,200 • CESG room carries forward • A social insurance number is required for each child

13. Faster Growth • Income is tax-sheltered • Contributions are after-tax dollars • Principal is tax-free

14. …And If the Child Doesn’t Use It • Transferable to another child* • Transfer RESP income into RRSP • Tax-free if sufficient room • Maximum of $50,000† *Provided certain conditions are met. †Government of Canada

15. Additional Sources for Funding • Child works part-time during school • Co-op program

16. Pursue Scholarships • $200 million distributed annually • Value from $100 to $19,000 • 70% go to first-year students Source: Maclean’s Guide to Canadian Universities, 2006, page 174

17. Scholarships Two Categories High-Ranking Academic Students • Entering into a program or after completion • Community services may be considered Need-to-apply • Offered by corporations, charities, governments, private philanthropists • Thousands available

18. Surf the Internet • www.ScholarshipsCanada.com • Customize your search • Over 7,000 listings of scholarships, bursaries and awards

19. Resources www.scholarshipscanada.com www.aucc.ca/scholarships/open_e.html www.millenniumscholarships.ca www.studentawards.com www.schoolfinder.com www.canlearn.ca www.canadian-universities.net

20. Motivation toContinue Learning

21. Diploma Pays Dividends • Graduates can expect to earn 12 – 20% more than non-graduates Source: McLeans Guide to Canadian Universities, 2006, page 46

22. Important Notes The commentary in this presentation is for general information only and should not be considered investment or tax service to any party. Individuals should seek the advice of professionals to ensure that any action taken with respect to this information is appropriate to their specific situation.

23. Plan Details • RESPs are offered through Fidelity Investments • Contributions are made monthly – minimum of $25/mth up to lifetime maximum of $50,000 • Voluntary lump sum contributions can be made at anytime • Amounts can be changed, postponed or stopped at anytime • Detailed statements sent to your home • On-line access to your account Rob Kimball is an Account Representative sponsored by Manulife Securities International Ltd., a Mutual Fund Dealer. Please note the following: Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the fund’s simplified prospectus before investing. Mutual Fund Securities are not guaranteed. Their values change frequently and past performance may not be repeated. This is intended for use by residents of the Province of Ontario. Manulife Securities and the block design are registered service marks and trademarks of The Manufacturers Life Insurance Company and are used by it and its affiliates including Manulife Financial Corporation.

24. How to obtain a Social Insurance Number Visit government website at: http://www1.servicecanada.gc.ca/en/cs/sin/010.shtml Download application and take it, along with original birth certificate to your local Service Canada Centre You should receive your child’s card in the mail in approximately 3 weeks

25. For additional one-on-one advice please contact: Rob Kimballrob@selectpath.ca | (888)327-5777 | www.selectpath.ca Services include: • Investment Management • RRSP’s, and Non-Registered Accounts • Insurance • Life, Mortgage Insurance, Critical Illness Coverage and Long Term Disability