Planning for a child's future

Supporting a child’s education can be one of the most important elements in your financial plan. With rising inflation and the high cost of tuition, planning for a child’s education may require an early start.

Registered Education Savings Plans (RESPs) provide an excellent tax-efficient and flexible way to save for this goal. The other compelling advantage is that contributions made to a RESP receive up to a 20% government grant, and with compounding returns, can make saving for an education much easier.

In Trust for Minor Informal Trust Accounts can also be used for a child’s benefit and offer flexibility if the child doesn’t attend post-secondary studies. They offer multiple investment options, limited tax benefits, and the ability to transfer assets to a minor without having to establish a more costly trust account.

Please keep in mind that diversification and asset allocation do not ensure a profit or protect against a loss. There can be no assurance that any investment will meet its performance objectives or that substantial losses will be avoided.

*Alternative investments involve specific risks that may be greater than those associated with traditional investments and may be offered only to clients who meet specific suitability requirements, including minimum net worth tests. You should consider the special risks with alternative investments including limited liquidity, tax considerations, incentive fee structures, potentially speculative investment strategies, and different regulatory and reporting requirements. You should only invest in hedge funds, managed futures or other similar strategies if you do not require a liquid investment and can bear the risk of substantial losses. There can be no assurance that any investment will meet its performance objectives or that substantial losses will be avoided.

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