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RESP or RRSP? Cover Both Bases With One Investment!

January 21, 2019

What if I told you that you could put your money to work twice with no risk of loss? That you didn’t need to prioritize education or retirement, that you could cover both bases with the same investment. Intriguing, right?

And I'm not talking about some shady gambling or investment strategy. I'm talking about very serious and very worthwhile investments that are simply waiting to be used to their full potential: the RESP and the RRSP.

Also known under their “formal” names: the registered education savings plan and the registered retirement savings plan. As you probably have guessed, the first one allows you to save money for your child’s post-secondary education, and the second one to save for your retirement.

Step 1: the RESP

As a parent, I would never risk leaving my children penniless when the time comes to start post-secondary education; I want a serious investment that pays off! With the RESP, I hit the jackpot! The government supplements the amounts invested in an RESP by at least 20%1 in grant money on the first $2,500 contributed every year.

And you don’t need to contribute $2,500 each year, every contribution will still attract grant money.1

As soon as your child (the RESP beneficiary) enrols in a post-secondary program,2 he or she can claim the RESP grant money and investment returns (on grants and contributions) in the form of educational assistance payments (EAPs).2

What's more, with Kaleido, your initial investment is refunded 100% once your RESP reaches maturity!3 It’s a win-win!  

This is where it gets interesting. Funds have suddenly become available for your retirement, so the next step it quite obvious! 

Step 2: the RRSP

Invest your refund in an RRSP! The EAPs from your RESP will help put your child through school and you can reinvest the refunded contributions in your RRSP―if you have contribution room.

In sum, your RESP investment attracts grant money AND your RRSP will make for a nice tax credit and help with retirement! All that with the same investment!  

Personally, I’m still at stage one: contributing to my RESPs. But, without the shadow of a doubt that once I recover investment at maturity in a few years, I’ll take advantage of this strategy and reinvest in my RRSP.

Ready to cover all your bases?


A parent who loves an investment that pays off!


Legal Notes

1. Canada Education Savings Grant (CESG) from 20 to 40%. Based on the adjusted family net income. Québec Education Savings Incentive (QESI) from 10 to 20%. Based on the adjusted family net income. The maximum annual amount paid in CESG is $600 and $300 in QESI. The maximum lifetime amount paid per beneficiary is $7,200 in CESG and $3,600 in QESI. Certain conditions apply. See our prospectus. 

2. See the eligible post-secondary programs of studies in our prospectus. Certain conditions apply. Maximum authorized withdrawal subject to the requirements of the Income Tax Act.

3. Investment made under Treasury bills and government bonds. The refund at maturity includes the sales charges of $200 per unit in the REFLEX Plan. The sales charge of up to $200 in the INDIVIDUAL Plan is not reimbursed. Certain conditions apply. See our prospectus.

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