Introducing A Unique Segregated Fund RESP
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Transcript of Introducing A Unique Segregated Fund RESP
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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
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Dramatic increases in cost of higher education are anticipated …….
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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…...
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Some standard RESP
information...
Some standard RESP
information...
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Annual: $4,000
Lifetime: $42,000
Maximum contributions...
Maximum contributions...
Maximum per beneficiary for all RESP’s
Maximum per beneficiary for all RESP’s
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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$400 annual maximum $7,200 total maximum Paid monthly by the Federal Government Tax deferred until the amounts are withdrawn Unused rights can be deferred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.
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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
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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
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Accumulation…..Accumulation…..
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The accumulation in Diploma is made up of...
The accumulation in Diploma is made up of...
Contributions
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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:
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Contributions
Grants
The accumulation in Diploma is made up of...
The accumulation in Diploma is made up of...
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Contributions
Grants
Investment income
The accumulation in Diploma is made up of...
The accumulation in Diploma is made up of...
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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
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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
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The Diploma Education Bonuscont...
The Diploma Education Bonuscont...
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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
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Insurance Riders Insurance Riders
Two choices :
- CID : disability protection
- CIDE : death protection
Subscriber = insured
Benefit : monthly PAC premium
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The educational assistance payments
The educational assistance payments
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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
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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.
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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.