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RESPs – Imagine getting a guaranteed 20% return

General Angela Calla 27 Jul

💸 All About RESPs

A Registered Education Savings Plan (RESP) is an investment account designed to help parents save for their child’s education. Like other tax-shelter accounts, an RESP allows investments inside the account to grow tax-free. That means you don’t pay taxes on capital gains, no income taxes on interest, and no tax on dividend payments.

The significant benefit of RESPs is the Canadian Education Savings Grant (CESG). The CESG is essentially free money. For every dollar you put into your child’s RESP, the government will put in up to 20 cents.

If you put $2,500 in your child’s RESP, you will receive $500 for a total of $3,000.

🗹 3 Reasons You Should Open An RESP

1. Post Secondary education is getting more expensive. The burden on students can last years. If you alleviate some financial pressure for your child, you are giving them a massive head start.
2. Tax-free growth. Not only are you getting up to a 20% return, but you can also invest that money for further growth without paying tax. With 20% from CESG and another 8% in the stock market, your child’s RESP will give you a total return of up to 28%!
3. If your child does not go to school, you can transfer that money back into your RRSP. The CESG grant will be deducted, but you can still keep the return you earned.

Need I say more?

📚 Additional Resources

1. 7 Things To Know About RESPs before you start

2. RESP Questions Answered. From how to open one to how to invest using the RESP, this article has the most common RESP questions covered.
3. RESPs are not without fees! Have all your bases covered by educating yourself on fees to look out for.

Angela Calla is a 16-year award-winning woman of influence and mortgage expert. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. She educates and empowers individuals on the “The Mortgage Show”, which she’s hosted for over a decade and is the best selling author of The Mortgage Code available on Amazon. All proceeds from her book sales are donated to Access Youth Outreach services, a local charity in our community supporting our youth.

Angela leads by example with passion and conviction. She is known as an industry expert on TV and radio and the go-to source for publishers across the Country. On top of all her achievements, Angela finds the time to be a loving wife and mother of two beautiful children.

For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at or 604-939-8777.