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Thread: RESP targets

  1. #21
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    Quote Originally Posted by killramos View Post
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    I mean if you want your kid to go through school eating Tendies instead of Ramen...
    You need to teach your kids to go big or go home.

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    https://www.canada.ca/en/revenue-age...rant-cesg.html

    Who qualifies for the basic CESG
    No matter what your family income is, ESDC pays an amount of Canada Education Savings Grant (basic CESG) of 20% of annual contributions you make to all eligible RESPs for a qualifying beneficiary to a maximum CESG of $500 in respect of each beneficiary ($1,000 in CESG if there is unused grant room from a previous year), and a lifetime limit of $7,200.

    Who qualifies for the additional CESG
    ESDC will also pay an additional amount of Canada Education Savings Grant (additional CESG) for each qualifying beneficiary. The additional amount is based on the adjusted income and can change over time as the adjusted income changes.

    The following chart gives you a brief overview of how the CESG is calculated depending on the adjusted income:
    Plan is to roll the dice and bet with the kids'/government's money early on:
    1. Go hard and max out contributions to get the full 20% grant on each of the first 14 years
    2. Invest the $42k in long holds during this time
    3. May the stock gods be with me
    4. In year 15-18, exit from long and replace with low risk investments or keep as cash

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    Quote Originally Posted by suntan View Post
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    You need to teach your kids to go big or go home.
    Ma said that you don't want to teach your kids to go home. No siree.

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    Do you guys include potential inflation depends on when your kids goes to uni?

    Tuition tripled from 1990 to 2016. If the trend continues and you have a 3 year old today, expect it would cost $$20-25K/yr in tuition alone by 2035 instead of today's $12K/yr.

    And that's based on current government funding (50% of tuition) and foreign student enrollment rate. Both may change in the future probably to the wrong direction = higher cost.
    Last edited by Xtrema; 10-22-2020 at 02:59 PM.

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    What about factoring in socialist trends towards further subsidizing educations?

    20 years from now going to school will probably be free, and TrudeauBot 3000 will have confiscated our RESP’s
    Originally posted by Thales of Miletus

    If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
    Originally posted by Toma
    fact.
    Quote Originally Posted by Yolobimmer View Post
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    guessing who I might be, psychologizing me with your non existent degree.

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    Quote Originally Posted by killramos View Post
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    What about factoring in socialist trends towards further subsidizing educations?

    20 years from now going to school will probably be free, and TrudeauBot 3000 will have confiscated our RESP’s
    Hmmm, and get UBI on top. I guess I know what I'm doing when I retired. I'll be that old know it all guy that annoys the everyone by asking too many irrelevant questions in class.

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    Quote Originally Posted by Xtrema View Post
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    Hmmm, and get UBI on top. I guess I know what I'm doing when I retired. I'll be that old know it all guy that annoys the everyone by asking too many irrelevant questions in class.
    Dude, there won’t be any retirement. You will get the needle when you turn 65.

    This is the way
    Originally posted by Thales of Miletus

    If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
    Originally posted by Toma
    fact.
    Quote Originally Posted by Yolobimmer View Post
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    guessing who I might be, psychologizing me with your non existent degree.

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    We just started a RESP for our first kid and it didn't even cross our mind that it should be enough to cover tuition AND living expenses like rent and stuff. We just thought as long as it covers her 4 year of tuition + books we have done our part, and if she wants to go out of city, that's on her (and we will partially help) to find ways to do that.. working part time.. student loan.. etc..

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    There is nothing stopping you from supplementing outside of RESP if you need/want to... it’s not that great of a program such that you are very far behind if you don’t shelter everything inside it... ( it’s not like you get tax credits today for contributing a la RRSP)
    Originally posted by Thales of Miletus

    If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
    Originally posted by Toma
    fact.
    Quote Originally Posted by Yolobimmer View Post
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    guessing who I might be, psychologizing me with your non existent degree.

  10. #30
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    https://www.univcan.ca/universities/...by-university/

    Good source here. Keep in mind if the kids go to University somewhere else, multiple flights per year, likely including your own and what not. Also, Inflation + 3% would be a reasonable assumption for tuition increases when projecting out the cost.

    An RESP, maxed out to receive the grant money, with growth factored in, should have no problem funding an undergrad degree in Calgary.
    These opinions are entirely my own and do not represent any other person or organization.

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    I don't think you can use RESP money for flights, can you?
    Quote Originally Posted by killramos View Post
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    You realize you are talking to the guy who made his own furniture out of salad bowls right?

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    Quote Originally Posted by ExtraSlow View Post
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    I don't think you can use RESP money for flights, can you?
    Absolutely you can. All that is required is proof of enrolment to facilitate an RESP withdrawal. Those could go for anything really as long as it is considered “reasonable” education expenses. Transportation would for sure be included in that.
    Last edited by dezmarez; 10-22-2020 at 08:55 PM.
    These opinions are entirely my own and do not represent any other person or organization.

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    Does Vegas have any good schools?
    Originally posted by Thales of Miletus

    If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
    Originally posted by Toma
    fact.
    Quote Originally Posted by Yolobimmer View Post
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    guessing who I might be, psychologizing me with your non existent degree.

  14. #34
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    Quote Originally Posted by killramos View Post
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    Does Vegas have any good schools?
    Haha right? The thing is there is no actual list saying funds need to go towards tuition. If you can make the argument the expense was done for education purposes it should be fine. Food, board, books, transportation, laptop, desks etc.
    These opinions are entirely my own and do not represent any other person or organization.

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    Neat. I thought restrictions were tighter than that. Neato. Don't think any of my kids are going to med school, but maybe welding school.
    Quote Originally Posted by killramos View Post
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    You realize you are talking to the guy who made his own furniture out of salad bowls right?

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    Quote Originally Posted by Xtrema View Post
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    And that's based on current government funding (50% of tuition) and foreign student enrollment rate. Both may change in the future probably to the wrong direction = higher cost.
    There will be far more foreign students in the future, not less. Post secondary loves foreign students because they pay in full. The government subsidies for domestic student are doled out a portion at a time.

    So if a foreign student drops out, 100% of the tuition is still paid, if a domestic drops out, the subsidy is gone, as well as that seat for the rest of the year.

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    Don't think it was mentioned but lifetime grant money is $7200, you can get a maximum of $500 per year of that, so it maxes out around age 15 if you start from birth. Your maximum lifetime contribution limit in an RESP is $50k. So if you do the math the max contribution to ensure max grant money is approximately $3334 per year for 15 years, then you are maxed out and got all of the grant that you could get.

    The money is taxed at the student's rate when they are in school, so if it's going to primarily education there should be no tax impact.

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    Quote Originally Posted by Cagare View Post
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    Don't think it was mentioned but lifetime grant money is $7200, you can get a maximum of $500 per year of that, so it maxes out around age 15 if you start from birth. Your maximum lifetime contribution limit in an RESP is $50k. So if you do the math the max contribution to ensure max grant money is approximately $3334 per year for 15 years, then you are maxed out and got all of the grant that you could get.

    The money is taxed at the student's rate when they are in school, so if it's going to primarily education there should be no tax impact.
    If you just want to max the grant money it's just $2500/year since its 20% grant ($500).

    If you want to hit max lifetime contribution, get all the grant money and have max potential growth for RESP you should invest $15000 when opening it, then $2500/year for the next 14 years.
    ---

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    Quote Originally Posted by kenny View Post
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    If you just want to max the grant money it's just $2500/year since its 20% grant ($500).

    If you want to hit max lifetime contribution, get all the grant money and have max potential growth for RESP you should invest $15000 when opening it, then $2500/year for the next 14 years.

    ^^^this is the correct strategy, if you have the means to do it of course.
    These opinions are entirely my own and do not represent any other person or organization.

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    Quote Originally Posted by kenny View Post
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    If you just want to max the grant money it's just $2500/year since its 20% grant ($500).

    If you want to hit max lifetime contribution, get all the grant money and have max potential growth for RESP you should invest $15000 when opening it, then $2500/year for the next 14 years.
    Nice, didn't think about topping it up year 1 to max growth.

    Quote Originally Posted by dezmarez View Post
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    ^^^this is the correct strategy, if you have the means to do it of course.
    Exactly why I wouldn't have thought of it... lol

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