Are you leaving money on the table?
Author: Sound Choices
September 6, 2019
Are you taking advantage of the government incentives?
The content in the article below is meant for Canadian investors only.
Did you know RESP (Registered Education Savings Plan) savings can be supplemented with government education savings initiatives, with the main one being the Canada Education Savings Grant (CESG) paid by the federal government?
Key Facts about the Canada Education Savings Grant (CESG)
- All RESPs are eligible for Basic CESG
- The Government of Canada will match a percentage of your RESP contributions by depositing the CESG directly into the RESP
- The basic CESG provides 20 cents on every dollar you contribute, up to a maximum of $500 (20% of the first $2,500 of annual contributions per beneficiary) per year
- $7,200 Lifetime CESG maximum per beneficiary
- CESG paid into a Family Plan RESP may be used by any beneficiary of the RESP to a lifetime maximum of $7,200 per beneficiary
- If you cannot make a contribution in any given year, you can carry over unused Basic CESG. By contributing more than $2,500 in subsequent years, you can get up to $1,000 of Basic CESG per calendar year if unused CESG amounts are available
How much of a difference can the CESG make?*
Family #1 – no CESG
- Invested $100 bi-weekly into a non-registered account
- This investment doesn’t qualify for the Canada Education Savings Grant (CESG)
Family #2 – RESP with CESG
- Also invested $100 bi-weekly – but into an RESP account
- This investment qualifies for the CESG – 20% of their monthly contributions
Talk to a financial advisor to learn how they can help you and visit AGF.com/RESP.
- AGF RESP info sheet
- Special CESG rules for beneficiaries age 16 and 17
- Do you qualify for additional education savings grants?
- Canada Learning Bond: No RESP contributions required
About AGF Management Limited
Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. AGF brings a disciplined approach to delivering excellence in investment management through its fundamental, quantitative, alternative and high-net-worth businesses focused on providing an exceptional client experience. AGF’s suite of investment solutions extends globally to a wide range of clients, from financial advisors and individual investors to institutional investors including pension plans, corporate plans, sovereign wealth funds and endowments and foundations.
For further information, please visit AGF.com.
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