Wealth Creation

Are you Investing in your childrenís future?

Newsletter Date: September 03, 2007                                                                                                 Volume 1

In This Issue

  • FACTs
  • RESP and CESG
  • Why RESP?
  • How we can help?

Web site links






What our client says:

"Harpal Dharna and his associates have been my financial advisors for over 3 years, and thanks to Harpal's advice, my net worth has doubled in that time. Harpal is always available to discuss my financial situation and is patient and takes the time I need to explain financial matters, sometimes more than once! As my life situation changes, Harpal makes suggestions as to my investments and I very pleased with the results. I frequently recommend his services to my friends and family. Thank you, Harpal!Ē

By Patricia Ball





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RESP: All Upside in this Investment strategy!

    FACT: Your Children will cost you money if you donít invest today!

  • By the year 2020, a four year university or college education could cost you up to $96,000+ if you havenít set aside any investments.

  • Your child with a university degree or diploma earns an average of $48,648 per year where a child with a high school education only earns $25,477.

  • 6 out of 10 people earning $100,000/year had a university degree

  • If your child doesnít go to University of college you can then transfer up to $ 50K into your RRSP tax free!

RESP: Even the Government pays in!

RESP is one of the best strategies to save for your childís post-secondary expenses. Surprisingly only a small percentage of Canadians are taking advantage of Registered Education Saving Plans (RESPs).  With early planning, you can sidestep the financial challenges that many parents and students are facing today and save yourself a fortune.

RESP beneficiaries are eligible for Canada Education Savings Grant (CESG) of up to 20% on the first $2,000 contributed to an RESP on their behalf each year. Maximum full advantage of CESG is $400 in a year and $7200 for life time.

In order to maximize CESGs from the government, it is recommended that RESP contributions are made each year by December 31. Each year, the subscriber can contribute up to $4000 for each beneficiary with a lifetime contribution limit of $42,000 per beneficiary.    

New rules of RESPís allow the transferring of RESP funds between beneficiaries. If the intended beneficiary of the RESP decides not to attend college or university by the age of 21, and the RESP has existed for 10 years, you can transfer the income earned to a maximum of $50,000 directly into your own RRSP tax-free.





Why RESPís and not Scholarship plans?


An RESP is a Self Directed plan that gives you Total Control of the type of investment versus a Scholarship plan that may have loaded up front costs and limits the choice for investments of your money.  They also have limits on how and when the money can be used.    With Self Directed plans you have the flexibility of payment schedules, investment choices and it is your least cost option.


If you have an existing Scholarship plan and are not happy, contact us for an evaluation of your investment or talk to us about RESPís.


You can rely on us to help you by simply:

Clicking here or calling 905-212-9149 for a FREE initial half hour consultation on your childrenís RESP needs, its quick and easy and we can start to help you Future Proof your wealth, while helping you to create more when you need it the most.


Dharna & Associates are qualified accountants who can analyze your current tax & financial position and guide you in your best interest to maximize your childís investment. Mutual fund and insurance business is placed through Dharna & Associates affiliated companies Progressive Financial Strategy Capital Group Corp. and Progressive Financial Strategy Insurance Agency Ltd. respectively.


*Statistics Canada, 2001 Census of Population

The information contained in this newsletter are obtained from various sources and believed to be reliable, but their accuracy cannot be guaranteed.  Readers are urged to obtain professional advice regarding his/her specific circumstances before acting on the basis of any material contained in this newsletter. To unsubscribe, update your account information, change the frequency with which you receive emails from us, or submit questions or comments, please reply on info@dharnaassociates.ca rather than replying to this e-mail. To be promptly excluded from future mailings please type "exclude" or ďremove meĒ in the subject and reply to us.