St. Cyr and Associates Financial planning

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|Segregated Funds| |Labour - Sponsored Funds| |Annuities|
|Guaranteed Investments (GIC)| |RESP's (Registered Educational Saving Plan)|
|RRIF's/LIF's Registered Retirement Income Funds|


The government is finally giving us some free money with the Canada Education Savings Grant (CESG). How can anyone turn that down?

1. Government Grant - CESG

  • The federal government will contribute 20% of the RESP owner’s annual contribution, to a maximum of $500 a year, $7,200 maximum lifetime, per beneficiary.
  • Benefit – This will potentially add an extra $7,200 to the RESP and will grow to be worth $36,000 if invested for 18 years at 8% annual growth, compounded monthly. NOT BAD!

2. Foreign Content

  • Canadians looking to invest outside of Canada. Can take advantage of the potentially higher returns of foreign markets.
  • There are no foreign content restrictions on RESP investments.
  • Benefit – This will give you the opportunity to diversify globally.

3. Transferability of RESPs

  • If the beneficiary does not attend post-secondary school the parent now has more options than ever before.
  • Benefit – Investment returns are not lost like previous RESP programs. However the government grant MUST be repaid. (There are stipulations involving this transfer.)


  • The average cost of a four-year university education is currently $40,000.
  • By the year 2020, the cost will be approximately $100,000 for four years.
  • Government funding is decreasing dramatically, forcing students/families to look at other options.