introducing a unique segregated fund resp
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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. - PowerPoint PPT PresentationTRANSCRIPT
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
Introducing A Unique Segregated Fund
RESP Introducing A Unique Segregated Fund
RESP
Dramatic increases in cost of higher education are anticipated …….
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…...Plus…...
Some standard RESP
information...
Some standard RESP
information...
Annual: $4,000
Lifetime: $42,000
Maximum contributions...
Maximum contributions...
Maximum per beneficiary for all RESP’s
Maximum per beneficiary for all RESP’s
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$400 annual maximum $7,200 total maximum Paid monthly by the Federal Government Tax deferred until the amounts are withdrawn Unused rights can be deferred
The CES Grant.The CES Grant.
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
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
Accumulation…..Accumulation…..
The accumulation in Diploma is made up of...
The accumulation in Diploma is made up of...
Contributions
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.
* until December 31 of the year in which the beneficiary reaches age 17
The 3 types of Contributions:The 3 types of Contributions:
Contributions
Grants
The accumulation in Diploma is made up of...
The accumulation in Diploma is made up of...
Contributions
Grants
Investment income
The accumulation in Diploma is made up of...
The accumulation in Diploma is made up of...
Contributions
Grants
Investment income
Education bonus
The accumulation in Diploma is made up of...
The accumulation in Diploma is made up of...
Exclusive to DiplomaExclusive to Diploma
The Diploma Education Bonus.
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= $21,600Bonus: $21,600 X 15% = $3,240
The Diploma Education Bonuscont...
The Diploma Education Bonuscont...
Investment FundInvestment Fund
40%
25%
25%
10%
« B » Fund
S&P TSE 60
S&P 500
MSCI EAFE
An index type of investment fundAn index type of investment fund
Insurance Riders Insurance Riders
Two choices :
- CID : disability protection
- CIDE : death protection
Subscriber = insured
Benefit : monthly PAC premium
The educational assistance payments
The educational assistance payments
When the subscriber requests the Educational Assistance Payment (EAP) for the beneficiary:
EAP for the beneficiary
«TAXABLE»
The subscriber can withdraw contributions
«NON-TAXABLE»
Contributions
Grants
Investment income
Education bonus
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.
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.
