Five reasons to invest your
tax refund in a Kaleido RESP
Are you getting a tax refund? Investing the money in a Kaleido Registered Education Savings Plan (RESP) could pay off big time! Here are five good reasons to start contributing to an RESP now.
Get government grants
Did you know that the provincial and federal governments will also invest in your RESP? That’s the biggest advantage of this registered savings plan: you get generous government grants ranging from 30% to 60%1 on every dollar invested, depending on the size of your contributions and your family’s financial situation. In total, you could receive up to $12,800 in grants for each child.2 A great financial boost!
Help pay for your child’s post-secondary education
By investing in an RESP, you are giving your child the opportunity to focus on his/her education without having to worry about the financial burden of tuition fees and other post-secondary education costs. What’s more, kids are generally more motivated when they know their parents are saving for their education, even if it’s not much!
RESP funds can be used to pay for all types of post-secondary education:3 a Diploma of Vocational Studies (DVS), an Attestation of College Studies (ACS), a Diploma of College Studies (DCS), technical training or university studies.
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Take advantage of exclusive accompanying services
In addition to allowing you to invest for your children’s future, opening an RESP at Kaleido gives you access to a range of family support services. Our qualified partners offer the following services for free or at preferential rates: tutoring and academic support, family coaching, health and well-being, career guidance, and family finances.4 Providing families with support that goes beyond RESPs!
Boost the growth potential of your savings
One way to smooth out the ups and downs of your investments and maximize your returns is to save for the long term. If you make regular contributions to an RESP over a long period of time, your investments will generally have higher growth potential, as there will be enough time to level out market fluctuations. In addition, contributions made to a Kaleido RESP are invested in a variety of diversified instruments such as stocks and bonds, and our portfolios automatically adjust for the age of each child.
Reduce (or even avoid) future taxes
The beauty of an RESP is that it has two tax advantages. First, an RESP allows your money to grow tax-free until your child enrols in post-secondary education. Second, when you make withdrawals, you can get your contributions back tax-free.5 Educational Assistance Payments (EAPs), which are made up of accumulated income and grants, are then taxed in the child’s name. Since students generally have low incomes, your child will probably have little or no tax to pay. So your investment can grow tax-free if your child has little or no income. It is important to get good advice on how to make withdrawals in the best order possible and take full advantage of the RESP’s benefits.
Want to invest in the individual IDEO+ RESP and benefit form all its advantages?
Discover Kaleido's RESPs
Already a client?
1. Canada Education Savings Grant (CESG) of 20% to 40%. Based on adjusted family net income. Quebec Education Savings Incentive (QESI) of 10% to 20%. Based on adjusted family net income. Some conditions apply. Check out our prospectus at kaleido.ca.
2. Canada Education Savings Grant (CESG) of 20% to 40% and Québec Education Savings Incentive (QESI) of 10% to 20%, Based on adjusted family net income. The maximum annual CESG payment is $600, and the maximum annual QESI payment is $300. The maximum lifetime payments per beneficiary are $7,200 for the CESG and $3,600 for the QESI. Canada Learning Bond (CLB) of up to $2,000 per beneficiary for a child born after December 31, 2003, whose family is financially eligible. Some conditions apply. Check out our prospectus at kaleido.ca.
3. Some conditions apply. For a complete list of eligible post-secondary programs, see our prospectus at kaleido.ca.
4. Some conditions and limitations apply. The promotions, benefits and other advantages of the family support services are subject to change without notice and may not be available in certain areas.
5. Savings invested in treasury bills, government bonds and high-quality companies. Refunds of contributions are subject to investment risk. Some conditions apply. Check out our prospectus at kaleido.ca.