In this series of articles we’ve looked at a number of topics around RESP accounts: One important observation is that even under the best scenarios, an RESP may not fully fund a post-secondary education including tuition, fees and living expenses. So its important that families still explore other ways to fund a child’s education including […]
The scenarios presented in Part 2 and Part 3 are mostly just thought experiments to get a general idea of how an RESP account can be used to save and grow investments to fund a child’s education. In this article, we will create a scenario that makes two important changes. First, we extend the RESP
In this second set of scenarios, we look at what some might call more “realistic” sequences of contributions. While the scenarios in Part 2 offer the best results in terms of education funding, the reality is that many young families are not going to have 10s of thousands of dollars on-hand for large initial contributions.
In this first set of scenarios, we look at what happens when we try to front-load the RESP contributions in two ways. First, we maximize the contributions as quickly as possible and second, we maximize grants as quickly as possible (while still maximizing contributions). Prioritize Maximizing Contributions This scenario maximizes contributions as soon as possible
A Registered Education Savings Plan (RESP) is a type of Canadian registered investing account designed to save for a child’s post-secondary education. In this series of articles we’ll take a look at the basics of these accounts and do some modeling of various contribution and drawdown scenarios. RESPs can be opened up at most Canadian
