RESP: Every child must have the freedom to choose their future

RESP: Every child must have the freedom to choose their future (1 min 57 s)

Added on September 9, 2015

Investing in RESPs is an effective way to empower your children so they can decide what they're going to do with their own lives. Angela Iermieri, Financial Planner at Desjardins, explains RESPs and how to make them work for you.

RESP: Every child must have the freedom to choose their future (1 min 57 s)

Added on September 9, 2015 | Personal

Note: The information in brackets describes the audio and visual content of the video that is not dialogue or narration.


[In a large room filled with windows, we see a television screen on which ...] A woman approaches.]

[The woman's title appears at the bottom of the screen: Angela Iermieri, Financial Planner for Desjardins Financial Services Firm Inc.]

Today, I'd like to talk to you about what most people say is the most important day of their lives: the day a child enters their lives.

[The screen behind the woman shows an illustration of a baby rattle and the text, "Arrival of a baby."]

Whether you're a parent, grandparent, uncle, aunt or friend, the moment a child comes into the world is truly magical. I bet you're thinking about a child or children in your life right now.

As soon as we welcome a new child in our lives, we envision a beautiful life for our new bundle of joy. We may already have big plans for the future—doctor, journalist, entrepreneur, or we may simply get excited thinking about what our baby might want to become later on in life. We're all allowed to dream as we please.

[The screen behind the woman shows a silhouette of a bird and the text, "RESP. Giving the freedom to choose."]

An education savings plan, the RESP, is a powerful way to give kids the freedom to choose a career path. With the inevitable rise in tuition fees, putting money aside in an RESP can provide the means to offer your child a promising future. It can make all the difference in the world.

It's best to get a head start, but it's never too late to contribute to an RESP for that special person in your life. You can open one any time until your child turns 15 and you're eligible for grants until he turns 17. And, if you have large sums of money to invest, you can even get grants for the previous years.

The subscriber always owns the funds in the RESP, whether or not the beneficiary pursues an education. The investment income generated remains tax-free until withdrawal, after which, it's converted to taxable income for the child.

Also, did you know that a large portion of the capital in an RESP comes from different government sources? A $1,000 investment can generate government grants of $200 to $600, depending on the province you live in and the child's family income.

[The screen behind the woman shows a bar graph and the text, "$1,000 invested. Grants between $200 and $600."]

As of 2012, almost half of all Canadian children had an RESP. That tells us that many parents made a smart choice. And most subscribers start contributing on average as soon as the child turns 3. Because, as you know, the sooner you start saving, the better.

Talk to your advisor, who can work out a strategy that suits your needs. After all, investing now for your kids, means investing in their future.

Celebrate the big day and give them the freedom to choose.

On that note, if you have questions please email me at the address you see on your screen. See you soon!

[An email address appears on the screen:]


[On-screen text on a green background: Desjardins Wealth Management logo]