The benefits and drawbacks of individual and family RESPs

Globe & Mail
September 6, 2022.

Registered education savings plans (RESPs) are a classic investment vehicle parents take advantage of for socking money away for their child’s post-secondary schooling, mostly to take advantage of the grant money. Financial advisors can add even more value by making sure clients choose the right type of RESP while also taking tax and estate planning strategies into account.

“I find that a lot of advisors usually just automatically go to a family plan when clients come to them with young kids, or they’re expecting their first child,” says Alysha To, senior financial planner, tax and estate planning at Richardson Wealth Ltd. in Vancouver. “But there are benefits to opening an individual plan, … so it really depends on the client’s situation.”

While a family plan can be beneficial, individual plans have a lot more flexibility, she adds.

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