RESP
Government-subsidized education savings. Guaranteed 20% return on your contributions.
Key Benefits
CESG Grant: Government matches 20% on the first $2,500/year (max $500/year).
CLB Access: Additional Canada Learning Bond for lower-income families.
Tax-Deferred Growth: Investment growth is sheltered until withdrawal.
Tax-Efficient Withdrawal: Income is taxed in the student’s hands (usually zero tax).
"Post-secondary education is expensive, but the RESP is the most efficient way to pay for it. With the guaranteed 20% CESG grant, your investment automatically outperforms the market before it even starts growing. We can set up family plans to share assets between siblings."
RESP: Frequently Asked Questions
The Canada Education Savings Grant (CESG) matches 20% of your RESP contributions, up to $500 per child per year, to a lifetime maximum of $7,200. Lower-income families may qualify for additional grant amounts. It is effectively a guaranteed 20% return on contributions.
Contributing $2,500 per child per year captures the full $500 annual CESG grant. The RESP lifetime contribution limit is $50,000 per child. Starting early maximizes both grant money and tax-deferred growth.
If the child does not pursue post-secondary education, grants are returned to the government, but your contributions come back to you tax-free. Investment growth can often be transferred to your RRSP (up to $50,000) if you have room, avoiding tax penalties.
Ready to secure your RESP?
Book a complimentary 15-minute discovery call to see if this solution fits your portfolio.
