Aucun titre de diapositive

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R E G I S T E R E D E D U C A T I O N S A V I
N G S P L A N
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RESP

• Ideal investment product for investing in a
  childs future.
• Advantages
• Tax-sheltered investment income
• Canada Education Savings (CES) Grant
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• SUBSCRIBER AND BENEFICIARY

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Who can susbcribe to a Diploma RESP?

• Any person of legal age
• Parent, grand-parent, uncle, aunt, friend of the
  family, etc...

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Who can be designated beneficiary of a Diploma
plan?

• Any child 14 years of age or less
• Need not be related to the subscriber
• One per contract
• Can be changed at any time
• Can be the beneficiary of more than one RESP.

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• ACCUMULATION

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The accumulation in Diploma is made up of...
RESP
Education bonus
Exclusive to Diploma
Investment income
Grants
Contributions
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3 types of contributions

• PAC contributions up to the beneficiarys age 18
• Minimum 25 per month
• No enrolment fees
• Additional deposits
• Transfers from other plans.

Contributions
until December 31 of the year in which the
beneficiary reaches age 17
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Maximum contributions...

• Annual 4,000
• Lifetime 42,000

Maximum per beneficiary for all RESPs held
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The accumulation in Diploma is made up of...
RESP
Grants
Contributions
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The Canada Education Savings Grant (CES Grant)

• A gift from the government

• Contirbutes to the plans success
• Substantially increases the returns.

RESP CES Grant
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RESP
Accumulated Deposits
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The CES Grant

• Beneficiary eligibility

• Must be 17 years of age or younger
• Social insurance number
• Canadian resident.

• Do 16 and 17-year-olds receive the grant?
• Certain conditions apply.

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The CES Grant

• The amount of the Grant

• 20 of the annual contributions
• 400 annual maximum
• 7,200 lifetime maximum
• Paid monthly by the Federal Government
• Tax deferred until the amounts are withdrawn
• Unused rights can be carried-over.

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The accumulation in Diploma is made up of...
RESP
Investment income
Grants
Contributions
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Investment Fund
An index based investment fund
MSCI EAFE
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40
25
 B  Fund
SP 500
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Fixed proportions
SP TSE 60
Potential for superior returns
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Investment Fund
Estimated annual returns as at January 1, 2001
net return
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Investment Fund

• Offers an optimal diversification between
  several asset classes
• Simplified choice offering an index based
  management
• Guarantee at death and maturity

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The accumulation in Diploma is made up of...
RESP
Education bonus
Exclusive to Diploma
Investment income
Grants
Contributions
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The Diploma Education Bonus.

• of the total PAC contributions made

• A one time payment at the end of the commitment
  period.

Example Deposits 100 X 12 X 18 years
21,600 Bonus 21,600 X 15 3, 240
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• LATE MONTHLY PAC PAYMENTS

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Late PACs 1-2-3 process
1. Grace period
2. Charge/fee
3. Reinstatement period
(0 to 24 months)
(3 to 6 months)
Issue
0
6
24 months
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18
PACs stopped
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Late PACs1. Grace period
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Late PACs2. Charge/fee
A charge/fee is applied to the Diploma contract
at the end of the grace period
- RESP remains in force - Charge/fee is also
applicable on surrender
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Charge/fee
50 X PAC amount X number of PACs paid (max. 18)
Example 25/ month, age 0
This charge is very competitive vs Enrolment
fees of Scholarship Plans

• duration charge
• 6 months 75
• 12 months 150
• 18 months 225

No charges once commitment period ended
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Late PACs3. Reinstatement period
If the PACs are paid back to the plan (without
interest) We reimburse the charge (a 24
month decreasing )
(0 to 24 months)
(3 to 6 months)
Issue
0
6
24 months
12
18
PACs stopped
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Late PACs 1-2-3 process
1. Grace period
2. Charges
3. Reinstatement period
(0 to 24 months)
(3 to 6 months)
Issue
0
6
24 months
12
18
PACs stopped
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NEW RESP

• EDUCATIONAL ASSISTANCE PAYMENTS

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When the subscriber requests the Educational
Assistance Payment (EAP) for the beneficiary
RESP
Education bonus
Investment income
TAXABLE
Grants
Contributions
NON-TAXABLE
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Eligibility to receive the EAP

• 1. The beneficiary must be a full-time student in
  a post-secondary educational institution

2. Most colleges and universities qualify
3. Program must be of a minimum duration of 3
consecutive weeks or 13 weeks for an institution
outside Canada.
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The Diploma Educational Payments.

• Great flexibility of EAP payments
• The frequency and the amount of the payments are
  at the discretion of the subscriber
• Maximum for the first 13 weeks 5,000
• There are no restrictions as to the amounts paid
  after the first 13 week period.

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NEW RESP

• ADDITIONAL INFORMATION

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Insurance Riders

• Two choices
• - CID disability protection
• - CIDE death protection
• Insured Subscriber
• Benefit monthly PAC premium

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THE
...
RESP

• INVEST IN THE FUTURE OF YOUR CHILDREN

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NEW RESP

• An unbiased comparison between Diploma and
  Scholarship Trust Funds

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Scholarship Trust funds
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Scholarship Trust funds