Dynamic RESPs

1 Your child’s success in a globally competitive society Developing your child’s innate talents How to benefit from changes to RESP rules

2 Dynamic RESPs Your child’s success in a globally competitive society Post secondary education has become the foundation for a full, rewarding life Canada’s future labour market will have a preference for skilled workers in a global, technologically advanced economy It’s already become almost essential: In 2001, 61% of Canadians between 25 and 34 had completed post secondary training vs 49% in 1991 (2001 Census data)

3 Dynamic RESPs Your child’s success in a globally competitive society College and university graduates: typically earn more are already more likely to have a full time job more likely to keep it during an economic downturn (Source: Statistics Canada)

4 Dynamic RESPs Your child’s success in a globally competitive society Education is getting more and more expensive Between and the cost to study: dentistry quadrupled medicine more than tripled law more than doubled (Source: Statistics Canada)

5 Dynamic RESPs Your child’s success in a globally competitive society Undergraduate tuition fees have been rising faster than the rate of inflation Careful planning now can make it easier to finance your child’s education down the road

6 Dynamic RESPs Developing your child’s innate talents A few things to consider: What levels of education do your family members have? What other friends and family members want to see your children succeed? How many children do you expect to be saving for? When will they graduate from high school? Do you expect your children to make some financial contribution to their education?

7 Dynamic RESPs Developing your child’s innate talents Registered Education Savings Plan Tax sheltered growth for investments marked for a child’s education All investment income is taxable in child’s hands – and not until funds are withdrawn Combined contributions of up to $50,000 can be made by parents, grandparents, other relatives and family friends

8 Dynamic RESPs Benefit from changes to RESP rules Maximum contribution limits raised to $50,000 (from $42,000) (One time contributions are now allowed but you are not entitled to CESGs) Contributing a full $50,000 per child allows you to make the most of 15 years of tax sheltered compounding Benefits of compounding are significant whether you are comfortable with high growth funds or take a more balanced approach that is buffered from market swings (up and down) Making a one time contribution to fully fund your child’s RESP can have a significant effect on the education your child can afford

9 Dynamic RESPs Proactive planning: upfront contributions $238,233 $168,550 As at Nov 30, 2007 $50,000 invested Dec 31, 1993

10 Dynamic RESPs Benefit from changes to RESP rules Slow but steady strategy can also pay off in the long term Invest $3500 annually over 14 years, topped up with $500/year government grant (CESG) Benefits of compounding are still significant

11 Dynamic RESPs Consistency pays off – regular annual contributions $179,907 $116,078 As at Nov 30, 2007 $3500+ $500 invested on Dec 31 each year, beginning Dec 31, 1993

12 Dynamic RESPs Recap Education will play a big factor in your child’s success in a globally competitive society Developing your child’s innate talents is expensive New RESP rules make it easier to finance your child’s education

13 Dynamic RESPs Next steps

14 Important Information Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Views expressed regarding a particular company, security, industry or market sector should not be considered an indication of trading intent of any funds managed by Goodman & Company, Investment Counsel Ltd. These views are not to be considered as investment advice nor should they be considered a recommendation to buy or sell. This document is not to be distributed or reproduced without the consent of Goodman & Company, Investment Counsel. Dynamic Funds is a division of Goodman & Company, Investment Counsel Ltd.