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Two Easy Ways to Simplify Your RESP Investing

When you’re saving towards a long-term financial goal, less is often more. Whether you’re saving towards retirement, a home or your child’s education, simplicity is your friend.

Investing in your child’s RESP can be confusing when you have your investments scattered across several financial institutions. Consolidating your RESP investments in one place makes sense for several reasons. With one investment statement, monitoring its performance is a lot easier. When it comes time for your child to attend a post-secondary institution, you can benefit from attrition if your child attends a four year program (more on that later).

Without further ado, let’s take a look why you should consider opening an RESP with Heritage Education Funds.

One Statement To Deal With

A lot of people dread making investment choices. Add several investment statements into the mix and it’s enough to make most people throw up their hands in despair. If you’re already struggling to sort through your bills, do you really want the headache of dealing with several financial statements? With people busier than ever these days, wouldn’t it be nice to only deal with one investment statement?

By having one investment statement for your RESP, it will make your life a lot simpler. You can give your investments a checkup to see your investment performance, asset mix and management fees. On top of that, you’ll have a much easier time monitoring your child’s RESP to make sure it’s on track when he or she is ready to attend college or university.

Payout-Out Options

When your child is ready for a post-secondary education, there are two payout options to choose from: a self-determined option and a scholarship option. The self-determined option is typically best for students pursuing programs of study under two years. The minimum requirement in Canada to receive an Educational Assistance Payment (EAP) is a three week program of study.

The second payout option, the scholarship option, provides three payment options and is typically best for students pursuing a program of study of two, three or four years. It has the same minimum requirement to receive an EAP (a three week program of study).

A major benefit of the scholarship maturity option is the potential to benefit from attrition. The idea is the plan is set out to benefit the children that do decide to go to school, particularly programs of four years or more. With the plan changes Heritage implemented late last year, there is even more flexibility for parents saving towards their children’s education. Contact them for a more detailed explanation — they’d be happy to provide it.

Heres a great video that explains the Heritage RESP maturity process and the options available.

The Bottom Line

By consolidating all your RESP investments with one company, it makes life a lot easier. By investing in a low-fee portfolio, your child will be more likely to have enough money to cover his or her education costs when it’s time to attend college or university. Plus, you’ll have the peace of mind of only having one investment statement to look at instead of five.

 

Heritage has an excellent RESP resource guide to provide you with up-to-date information on how you can save for your child’s post-secondary education and leverage the government grants available to you (should you meet the appropriate criteria).

Download the Heritage RESP Guide today!