RESP vs Wealthy Child Plan
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- RESP vs Wealthy Child Plan
First question is, “Why RESP & Child Tax Benefits are introduced by the Government” ?
Ans : It is introduced to limit the number of University drop-outs as University Education is too costly in Canada.
RESP (Registered Education Savings Plan)
- Government gives 20% grants for the education of children over the money we invested for that.
- Great care must be taken in selecting the funds for investment, for getting maximum return.
- Withdrawal is permitted only for education purpose.
Wealthy Child Plan
- Can withdraw money for any purpose, any time.
- Gets dividends.
- Gets cash value over the time.
- Also provides life insurance for their life.
- Its works like one’s own bank.
- In Canada, it is considered as a gift to children, as it is useful for their full life.