AN EDUCATED APPROACH TO RESPs

The Globe and Mail – by Rob Carrick

web_dss“RESPs are a must-have savings vehicle for parents because they’re tax-sheltered and they qualify for a federal government grant… But it’s not enough to simply start a plan and contribute money every year.  Parents must also learn to manage their RESP investments over the years, just as they’ll have to adjust their registered retirement savings plans (RRSPs) later on in life. David Shymko, an investment counsellor in Vancouver with Macdonald, Shymko & Co., also said he believes that parents can afford to invest aggressively in the early years of an RESP. However, he has found that parents of young children often struggle to find the money for RESP contributions and are thus very protective of the money they contribute to RESPs. “They’re squeaking out this money and, by God, they want to be confident it will be there,” he said.”  Click here to read the rest of this article

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