Testimonials

Montie Foxwell

Thank you Michael and your team for being there each month with timely bookkeeping services. As a company involved in IT and new media, with corporate investors, you've shown you understand our business.

You have shown yourself to be more than just a vendor; as a partner that has an interest in the growth of our business. Start-ups and growing businesses could benefit from your commitment and expertise.

Montie Foxwell, Partner,
iBEAM Media, Marketing & Management Inc.

Newsletter Sign-up

Receive current Business News and Tips

Newsletter Sign-up

Williamson Accounting Inc. helping your small business to reduce taxes and simplify accounting in the Greater Toronto Area (GTA) and across Canada.

For a free initial conversation about your business, call (416) 444-8747 or Contact us.

How to Save for Your Child's Education

September is now in full swing and the kids are back in school. Is that a good thing or a bad thing? It’s good! With the cost of post secondary education going up every year it almost feels like a bad thing, however, for those people wanting to help the students or students-to-be in their lives, what better way than to start them off with a Registered Education Savings Plan (RESP).

The benefits of setting up an RESP:

  •  Tax Deferred Growth - contributions can be made until the child turns 21, for a lifetime total of $ 50,000, per child. Any capital gains, dividends, or interest earned remain untaxed as they compound over the life of the RESP
  •  Lower Taxes – when money is withdrawn, it is taxed at that time, but at the tax bracket of the student; which is generally lower than a working adult’s due to low or no income
  •  Government Grants – the government adds to contributions made in the plan with a Canada Education Savings Grant (CESG)

 

Types of Plans:

A plan can be set up for anyone, subject to certain restrictions. This applies to children, yourself, a spouse, or even grandchildren. The types of RESP plans available are:

  •  Family – beneficiaries are not limited to one, but each must be related to the person setting up the RESP by blood or adoption
  •  Non-Family – restricted to only one beneficiary
  •  Group - a group RESP is usually offered by non-taxable foundations, and is administered by age groups

The benefit of having a family or non-family plan is that it is up to the subscriber how much they want to contribute and when. Group plan contributions are calculated by the foundations and the amount and timing are usually fixed.

 

Once a plan has been chosen, the next options to consider are:

  1. Lump sum annual investing. Full advantage can be taken of compounding if more is invested during the year. One thing to keep in mind is that the government grant is only paid on the first $2500, but there are still benefits from a long period of tax-deferred growth
  2. Monthly investing. Regular monthly contributions can be made in to the plan, while government grants are paid quarterly
  3. Control. The subscriber or the beneficiary can control the RESP. However, if the beneficiary is given control, then the subscriber has no say in how the money is invested or disbursed. If the money is not used as intended, there will be no way to get it back
  4. Estate planning. Some questions to keep in mind, in case something happens are: Who will take over the plan if I die? Will the beneficiary receive the plan’s principal, including the earnings and grant money? What happens to the money if the beneficiary doesn’t go to a post-secondary institution?
  5. Flexibility. Some plans are flexible in the sense that if the beneficiary does not go to a post secondary institution, the plan can be transferred to another beneficiary, or the subscriber can transfer the money to their own or spousal RRSP, depending on age
  6. Early Withdrawals. Contributions can be withdrawn tax free any time. However, the government must be repaid an amount equal to 20% of the withdrawal up to the amount of CESGs’ received if the money is not used for education purposes

 

An important note to keep in mind: if an RESP is not used within 35 years of being set up, the grant portion will be returned to the government and the contributions will be returned to the subscriber. Any investment income earned will be taxed at the personal rate.

 

For more information on RESP’s and how to set one up, contact us and we will refer you to one of our expert financial planners.

Visit Us

We are located near Sheppard Ave. and the 401/ 404 Hwy corridor at 203- 211 Consumer Road 
Toronto, ON M2J 4G8
Tel: 416-444-8747
This email address is being protected from spambots. You need JavaScript enabled to view it.

Quotable

James Branch Cabell

"The optimist proclaims that we live in the best of all possible worlds, and the pessimist fears this is true."

All Rights Reserved 2017. Williamson Accounting Inc.

0 to 20. lahnalmarah.com/vbi-480818/ http://pedsco.com/nqmxbvbasicddc/the-doctors-i-have-available-stink-heroin-racquetballs.html For the first few days after surgery, many women weep frequently and unexpectedly. Once the peritoneal cavity is opened, the uterus is incised, and the lesion(s) removed. young men taking viagra After some diagnostic tests, she was diagnosed with uterine fibroids. I don’t know who you’re but definitely you’re going to a well-known blogger for those who are not already. viagra time to take effect Once the peritoneal cavity is opened, the uterus is incised, and the lesion(s) removed. http://ouclubofokc.com/xub-484310/ Tips for natural pregnancy submitted by: jacob coroner the one thing that most couples agree on if they are trying to get a baby is that they want to do it naturally and safely without any dangerous side effects. I don’t know who you’re but definitely you’re going to a well-known blogger for those who are not already. View comments physell commented 20 weeks ago. http://bscl-comms.co.uk/pvs-482842/ Cochrane database syst rev. eimearjeanmccormack.com/ktg-480651/ This diet should be low carbohydrate, moderate protein and moderate fat. , 2004 sogc clinical practice guidelines, 2005). nasharts.org/xny-480947/ sypefisa.es/yqo-481193/ Html 30. Login nbsponbsp sign up real world drug outcomes, personalized check my drugs nbspnbspnbspnbsp look up a drug nbspnbspnbspnbsp find a treatment nbspnbspnbspnbsp apps nbspnbspnbspnbsp large integerk list nbspnbspnbspnbsp could amoxil cause uterine fibroids? Comments for patients like me, how are my drugs? On ehealthme, you can check 40 million side effects, drug interactions, efficacies reported by 5 million people since 1977. Org uterine-fibroods. Lose weight. http://cumbriawhatson.co.uk/ezentflannelbackacoordroastbeef/plasmacytoma-neoplasm-of-plasma-cells-usually-sotos-grayscale.html