All posts by : Finorbit

When it comes to a savings plan, aren’t we all very inclined for the same? But especially when it comes to education savings plans, no parent wants to compromise. There are plenty of plans which are offered by the Government to the residents, for their security. One such plan we are going to talk about is – RESP – Registered Education Savings Plan.

RESP, or right registered education savings plan, is ideally a savings plan offered by the Government of Canada that allows you to save for your kid’s education plan. You can use this money to cover the education cost after high school. 

The tax-advantaged plan will enable you to save regularly and help your kid achieve their objectives without breaking the bank. Anyone, including parents, grandparents and other friends and family members, can open a RESP for their child. The best part is that the plan can be opened individually or joined jointly by joint partners or spouses. Even the child care agencies can open the plan, and you can be named a beneficiary.

How can you choose the right RESP?

You need to choose the right RESP, and if you don’t know how to select, you can consult a financial institution to help you. Group plans are also offered by some organizations that provide group scholarship plans.

Family plan

The plan is your best bet if you have more than one child in the house. You can easily name one or more children to get the required savings when the deadline nears their high school education. The only condition here is that the kid must be related to you by adoption or blood. They can be anyone from your kids, grandkids, step kids or step grandkids. As per the income tax act, a blood relationship is that parent and kid or that of sister and brother. Nieces, nephews, aunts etc., are not considered as blood relatives.

Additionally, you cannot be considered your blood relationship. The best part about the family plan is that you can share the earnings between the kids, and the RESP is mainly used for beneficiaries named under the program up to $7200. If all the beneficiaries are siblings under the plan, then an additional Canada education savings grant and the Canada learning bond can be paid.

Individual plan

It is also known as the non-family plan, and if you are not related to the child, you plan to save for it. Under this plan, only one beneficiary is named, and they don’t need to be related to you by blood or so. You can open this plan for yourself or any other person. But the Canada education savings grant and Canada learning bond are likely to be paid to the eligible beneficiaries only.

Group plan

This plan is mainly available for one child only, and the best of all is that the child doesn’t have to be related to you. A group plan is your best bet if you can make payments regularly throughout the term. Under this plan, your savings are combined with other people’s savings. The amount each child gets depends on how much money is available in the group account and the number of kids of the same age in school these days.

These plans can be easily availed through group plan dealers who ideally aim to invest their money in low-risk investments. All the group plans are different and have their terms and conditions. Before investing in the program, you need to check the terms and conditions.

Additionally, ensure that you read the plan rules thoroughly. Ideally, it would be best to commit to making regular payments in the plan. Fees tend to be applicable if you stop their stock price. Group plans are your best bet if you choose to have someone else decide how to invest the funds in school for you, and you are sure that the child you are saving money for is likely to continue their education after completing RSEP. 

Perks of RESP

You can get several tax benefits when you open a RESP account as it is a tax-advantaged account, and your money can quickly grow tax-free. The best of all is that withdrawals are tax-free, so you don’t need to stress. But you need to know that investment gains are taxable, and the responsibility to pay the tax gains fall on your kids. 

You can consider that your kid’s income will grow by that time so they can pay the tax on gains without any hassle. Irrespective of your contributions, the government will pay you to get extra money from the state. The best part is that you don’t lose anything here, and the extra money can help you pay your kids’ education fees. 

Generally, investors choose to buy at a low price and sell at a high price. But in the real world, investors do not do that as their exact opposite because they buy at high prices and sell at low prices. It mainly happens during a volatile time. Stocks go up and down due to various reasons like political uncertainty coronavirus.

You might be wondering when you will make the right decisions for retirement. If you have made the investments in the long run, your family would be counting on you. So, it is better off staying the course other than just jumping in the market as you have a lot of responsibilities at the back.

How to stay invested during the volatile market?

It can be pretty appealing to change how you can get a better return during the wall tile times. There are different ideas to help you stay in control during volatile times. When choosing Ez financial, you can stay afloat in any market condition.

Saving for retirement needs you to trade near-term games for what may be long-term perks. It would be best if you had a goal, stuck to it, and had a perspective to stay afloat during the market ups and downs.

You need to ensure that you know where you stand as you have to check your retirement Wellness score to see how you are doing with the savings. Ensure that you have the right blend of investments on how comfortable you are with the risk-return factor and how long you would have until you choose to retire.

The value of the investment mix can change over time as some investments grow more than others. You can minimize the impact of market volatility by choosing us, as we can help you re-balance the investment portfolio and set everything back to the original mix.

While you choose Ez Financial, you can get help from the best experts as we help you plan and deal with the ups and downs of the market. We also update or create a customized financial plan for you.

How can Ez Financial help you?

The ironic thing about vitality is that people think a lot about it and stress it. Instead of feeling uncomfortable, you need to embrace it and create opportunities for long-term growth. The bottom of a bear market is investors think the worst and are not optimistic. Our experts help you stay the course and also assist you to understand the significant portion of the market so that you don’t miss out on any chance of recovery.

Our professionals are well trained to review your objective’s risk tolerance and time horizon. If there is a need, they will tell you to change the goals to quickly write out the market volatility. If changing the plan is not possible, then realigning your allocation based on the risk tolerance is what we will help you with. We can help you with long-term success as we will help you understand how long until you need the money will help you achieve the goals.

We help you focus on what you can control as our day-to-day finances are set up as per the budget. For example, we help you build an emergency fund or pay down the debt. These are the things you can do right now, irrespective of what the market is doing. It will help you improve the financial situation in the long term.

What happens when the market falls, and how can we save you?

The stock market is a game of inflation and deflation, so you don’t need to stress as investors need to have a good mindset and the right professionals by their side to get going with the market. Often when investors don’t have professional help, they have the gut instincts that tell them to sell now and buy again later when the market falls.

It might seem logical, but it is not right to pick the stock or exits the market. Our investment solutions help you solve the actual needs when the market starts falling, including growth or income protection. Whatever is your objective, there is a solution for you.

Ez Financial – Here to Help In Every Possible Way

Our professionals are always by your side from start to end. We have a team of experts committed to preserving your wealth and well-being. Unlike insurance companies or banks, we don’t have any products on the shelf. We help you make intelligent investment decisions.

If you are ready to start investing and saving, our experts are prepared to help you open your RRSP. They can also help you make better financial decisions to make the of your savings. In addition, you can connect with our advisor and learn how the RRSP fits your financial goal.

If you are planning to retire, you must be wondering about going for a registered retirement savings plan. It is a type of savings account specially designed for Canadians to save some money for retirement. If you wish to learn more about it, you are on the right page, as Ez Financial has your back. 

The best part about the registered retirement savings plan in Canada is that it has several tax advantages that allow your money to grow while you save. First, you need to pay taxes on the withdrawal amount but pay at a much lower rate than what you pay now.

The working of register retirement savings plan

When you choose Ez Financial, our experts will help you understand the working of RRSP. It means any contribution you make to this plan will help you reduce your taxable income currently. In addition, it means you don’t have to pay taxes on the contributions until you withdraw the money.

It means you will pay much less tax in the later point of life while you are in your 60s or 70s. Additionally, you can hold various investments in your RRSPs like bonds, stocks, mutual funds and segregated funds.

The RRSP is registered in your name, and only you can contribute to it. Besides any unused surplus from the previous years, you can contribute around 18% of your income. You also need to know that only you can make the withdrawals.

The contribution limit to your RRSP is calculated every year and would appear at the notice of assessment. You would receive it from the revenue agency of Canada after filing the taxes. It would be best if you remembered the money, you earned the last year plays a crucial role in calculating how much you can contribute to your RRSP account for the current tax year. The only reason you should consider investing in RRSP is that all your contributions are tax deductibles. It means you can reduce the amount for your taxable income when you choose to invest here.

You can contribute to this account whenever you want. There is no deadline, but the deadline for contributing will affect your tax bill for any given year after 60 days of the end of the tax year. The date is always in March.

You can withdraw from the RRSP account whenever you want, but you need to pay taxes whenever you withdraw some funds. The tax amount depends on how much money you withdraw besides your income bracket. For instance, you start withdrawing your money when you are 65, and at that point, you may be in a lower tax bracket.

How can you benefit from the RRSP plan?

When you retire, you can use the money from these funds for several expenses like your medical or health-related expenses, prescription drugs, health insurance etc. you can also use the money for your travel and vacation plans and also take up some hobbies that you always wanted to take up while you were young.

Retirement is one of the best times to focus on yourself and enjoy some years for your leisure activities. But all of these comments with a price tag, but you don’t need to stress as RRSP can help you cover all the expenses of retirement.

How can Ez Financial help you?

We are expert insurance and investment advisors having more than 13 years of experience. So when you choose us, you get only the best services.

We are a team of professionals committed to preserving your wealth and well-being. We are different from the typical banks and insurance companies as we do not have any shelf products to sell or shackle you. Instead, we help you make intelligent financial decisions to improve your life, family work and future.