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Investor education

April 15, 2019

Maximize savings for your child's education

It's never too early to start planning for your child's education. One important consideration is how will you pay for it? The sooner you start saving, the better position you will be in.

Benefit from the reassurance of a guaranteed maturity value, tax sheltered growth and diversification.

It's never too early to start planning for your child's education. One important consideration is how you will pay for it. The sooner you start saving, the better position you will be in.

A Registered Education Savings Plan (RESP) is a tax efficient way to save for education and can help maximize your savings for your child.

Be proactive. First ask yourself these two questions:

  1. When is your child likely to be participating in post-secondary education?
  2. How much will your child need?

Now you can start deciding what plan best suits you and your family.

RESP benefits at a glance

  • It pays you to do it. Well, the government does. The federal government may add to your RESP contributions (up to a maximum of $500 per year, per child) with the Canada Education Savings Grant (CESG).
  • Flexibility. With no annual limit, you can invest when it suits you, up to a maximum of $50,000 per child over the lifetime of the plan.
  • Tax sheltered growth.The investment income generated is tax-sheltered, which means the investment is compounded and grows faster than when invested in a non-registered investment. When money is withdrawn, tax will be paid at your child's income tax rate, which means they may pay little or no taxes on the money.

A unique RESP solution: The Sun Life Milestone funds

Use the Sun Life Milestone Funds as your RESP solution for even more benefits:

  • A guaranteed maturity value per unit on units held to maturity that provides you reassurance you will be able to pay towards your child's education. At maturity, your child will receive the highest month-end unit value achieved over the Funds life. Learn more about the Milestone Funds guarantee.
  • A range of maturity dates. You can select the one that best fits your needs:
  • Diversification – the portfolios are built using global equities, fixed income and cash. The mix grows more conservative over time, reducing volatility as the maturity date approaches.

This reassurance means you know you can provide for your child's education because your investment is protected, regardless of what the market is doing.

For more information about making Sun Life Milestone Funds the solution for your RESP needs, please contact your financial advisor.

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