introducing a unique segregated fund resp

R E G I S T E R E D E D U C A T I O N S A V I N G S P L A N

Introducing A Unique Segregated Fund

RESP Introducing A Unique Segregated Fund

RESP

Dramatic increases in cost of higher education are anticipated …….

Diploma segregated fund RESP..

A unique investment vehicle which provides the opportunity to invest in a child’s future.

Advantages: Tax-sheltered investment income

Canada Education Savings (CES) Grant : 20 %Plus…...Plus…...

Some standard RESP

information...

Some standard RESP

information...

Annual: $4,000

Lifetime: $42,000

Maximum contributions...

Maximum contributions...

Maximum per beneficiary for all RESP’s

Maximum per beneficiary for all RESP’s

The amount of the Grant:

20% of the annual contributions $400 annual maximum $7,200 total maximum Paid monthly by the Federal Government Tax deferred until the amounts are withdrawn Unused rights can be deferred

The CES Grant.The CES Grant.

Who can susbcribe to a

Diploma RESP?

• Any person of legal age (not a company or a trust)

• Only one subscriber per contract, is permitted

• The subscriber can contribute to several RESPs at the same time

Diploma : who can be designated as a beneficiary?

• Any child 14 years of age or less

• Need not be related to the subscriber

• There can be only one beneficiary per contract (individual plan)

• The beneficiary can be changed at any time

• The beneficiary can be the beneficiary of more than one RESP

Accumulation…..Accumulation…..

The accumulation in Diploma is made up of...

The accumulation in Diploma is made up of...

Contributions

Contributions

PAC contributions up to the beneficiary’s age 18* Minimum : $25 per month No enrolment fees

Additional deposits are possible; Transfers from other plans are

welcomed.

* until December 31 of the year in which the beneficiary reaches age 17

The 3 types of Contributions:The 3 types of Contributions:

Contributions

Grants

The accumulation in Diploma is made up of...

The accumulation in Diploma is made up of...

Contributions

Grants

Investment income

The accumulation in Diploma is made up of...

The accumulation in Diploma is made up of...

Contributions

Grants

Investment income

Education bonus

The accumulation in Diploma is made up of...

The accumulation in Diploma is made up of...

Exclusive to DiplomaExclusive to Diploma

The Diploma Education Bonus.

The Diploma Education Bonus.

% of the total PAC contributions;

A one time payment at the end of the commitment period.

EG: Child Age 0 yrs @ $100per month

Deposit: $100 X 12 X 18 years= $21,600Bonus: $21,600 X 15% = $3,240

The Diploma Education Bonuscont...

The Diploma Education Bonuscont...

Investment FundInvestment Fund

40%

25%

25%

10%

« B » Fund

S&P TSE 60

S&P 500

MSCI EAFE

An index type of investment fundAn index type of investment fund

Insurance Riders Insurance Riders

Two choices :

- CID : disability protection

- CIDE : death protection

Subscriber = insured

Benefit : monthly PAC premium

The educational assistance payments

The educational assistance payments

When the subscriber requests the Educational Assistance Payment (EAP) for the beneficiary:

EAP for the beneficiary

«TAXABLE»

The subscriber can withdraw contributions

«NON-TAXABLE»

Contributions

Grants

Investment income

Education bonus

Eligibility to receive the EAP:

1. The beneficiary must be a full-time student in a post-secondary educational institution;

2. Most colleges and universities qualify;

3. Program must be of a minimum duration of 3

consecutive weeks.

The Diploma Educational Payments.

Great flexibility of EAP payments; The frequency and the amount of the

payments are at the discretion of the subscriber; Maximum for the first 13 weeks: $5,000; There is no restriction in the amount payable

after the first 13 week period.

For more information and enrollment, please contact us:

Tel: 239 3850

E-mail: info@insuranceconcepts.ca