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 | Investing for education
With you in helping to create a brighter future for you child.
WHAT IS AN RESP?
A Registered Education Savings Plan (RESP) is a registered plan that allows family and/or friends to contribute towards a child’s education. Contributions to the plan can grow tax-free over the life of the plan.
BENEFITS OF RESPS
- Tax-deferred investment growth
Contributions made to an RESP can accumulate and grow tax-free over the life of the plan. When withdrawals are made for the purpose of education, only the growth and grant portion of the plan is taxable in the hands of a child. Moreover, because your loved one will likely be reporting a low level of income while they are attending school, the amount of tax they can expect to pay should be minimal.
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- Easy access to government grants
Your contributions to an RESP may qualify for the CESG. Through the Canada Education Savings Grant (CESG), the federal government will contribute 20 per cent of your annual RESP contribution to a maximum of $500 per child per year.
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- More control and flexibility
With an RESP, you have complete control over how much you contribute each year, subject to a lifetime contribution of $50,000 per beneficiary. Furthermore, you can invest in a portfolio of growth-oriented investments from a wide range of Manulife mutual funds.
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- No account or administration fees
With an RESP from Manulife Mutual Funds, there is no charge for opening or maintaining an RESP account.
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- No foreign content restrictions
There are no foreign content restrictions on your RESP. Therefore, mutual funds that invest outside of Canada make it easy to build a properly diversified RESP portfolio.
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- Low minimum investment
You can open an RESP with Manulife Mutual Funds for as little as $25 per month*.
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To find out more about opening an RESP with Manulife Mutual Funds, please speak with your advisor.
*Higher minimums may apply | |
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INVESTING FOR EDUCATION
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INVESTING
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