Investing In Learning

Today, more than ever, a post-secondary education is key to a successful career. But, as tuition costs continue to increase, many students are left with overwhelming debt after university or college.

You can provide your child or grandchild with the gift of a post-secondary education by establishing a Registered Education Savings Plan (RESP), a tax-effective account that offers many benefits to help you make the most of your savings:

•You can contribute up to a lifetime maximum of $50,000 per RESP beneficiary.

•Contributions to an RESP are not tax-deductible, but your investment grows tax-deferred until withdrawal.

•The first $2,500 you contribute each year may be eligible for the Canada Education Savings Grant (CESG) of up to 20 percent, to an annual maximum of $500 and a lifetime limit of $7,200.

•Amounts withdrawn from an RESP to pay for eligible post-secondary education expenses will be taxed in the beneficiary's hands, generally at a lower tax rate.

•Additional provincial grants if applicable

Regardless of your stage of life or family circumstances, there are several effective education-funding strategies that may suit your needs.

The Alberta Centennial Savings Grant

CIBC Wood Gundy is a qualified provider of the Alberta Centennial Education Savings (ACES) provincial grant, offered by the Alberta Government to all eligible Registered Education Savings Plans (RESPs).

If applied for the ACES grant allow for an initial contribution of $500 into the RESP of every child born to or adopted by a parent or an appointed legal guardian who was an Alberta resident in 2005 and later. In addition, grants of $100 are available to children whose parents or legal guardians are or were Alberta residents when they turn 8, 11 and 14.

Eligibility Requirements

•An application must be submitted within six years of each milestone birthday for each eligible grant to be received.

•The beneficiary must be attending, or was attending, school on their relevant milestone birthday to receive the $100 grant.

•A minimum of $100 must have been contributed to the RESP (and designated to the beneficiary being applied for, in the case of family plans) during the 12 months prior to the application (excluding the year they were born).

•For Family RESPs, all beneficiaries must be siblings.