Wealth Creation
Are you
Investing in your children’s future?
Newsletter Date: September 03, 2007 Volume 1
In This Issue
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FACTs
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RESP and CESG
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Why RESP?
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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!”
By Patricia Ball
Contact Us
Phone: (905) 212-9149
Fax: (905) 212-9201
Office:
ON L4W1E3
RESP: All Upside in this Investment strategy!
FACT: Your Children will cost you money if you don’t invest today! By the year
2020, a four year university or college education could cost you up to $96,000+
if you haven’t 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
doesn’t 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 child’s 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 RESP’s 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 RESP’s 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 RESP’s.
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 children’s 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 child’s
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 “remove me” in the subject and reply to us.