A Registered Education Savings Plan (RESP) is an education savings plan registered under the Income Tax Act. RESP contributions are not tax-deductible but rather an RESP allows your contributions to grow tax-free. Your contributions can grow surprisingly quickly. In addition to the growth the investments in the plan experience, the Government of Canada offers the Canada Education Savings Grant (CESG), Additional Canada Education Saving Grant (ACESG) and the Canada Learning Bond (CLB) exclusively to RESP subscribers. Additionally, many provinces offer further Grants on your RESP contributions such as the Alberta Centennial Education Savings (ACES), the Quebec Education Savings Incentive (QESI), Saskatchewan Advantage Grant for Education Savings (SAGES) and soon the British Columbia Training and Education Savings Grant ("BCTES"). These can operate to “top up” your contributions and will contribute to the investment growth in the plan over the years. For information on the details of these government incentives, please see Government Grants. RESPs have a lifetime contribution limit of $50,000 per beneficiary. You can contribute to an RESP for up to 31 years, and the plan can remain open for a maximum of 35 years.
With the Children’s Education Trust (CET) Education Savings Plans, your child's education funds for college or university are in good hands. Investment income on both Savings and Government Grants are invested primarily in equities traded on a Canadian Exchange. Savings and Government Grants are invested primarily in fixed income investments and PPNs (Principal Protected Notes). The Children’s Education Trust RESPs are easy to enroll into, and flexible enough to accommodate a part-time post secondary program of 3 consecutive weeks with 12 hours per month spent on courses right up to a full-time 4 year post secondary educational program.* At CEFI, we are education funding specialists; education funding is all that we do!
* Please refer to the Plan prospectus for full disclosure of the conditions that apply to Education Assistance Payments