A PARTNER YOU CAN TRUST. WHO CAN HELP YOU SAVE FOR YOUR CHILDRENS EDUCATION ?

Would you like to ensure that your children or grandchildren have the necessary financial resources to go to university?

S tudies shows that a post-secondary education and training are increasingly important. In the 2000s: 65% of new jobs, or almost 2 out of 3, will require a post-secondary education. Source: Statistics Canada

Choice #1Choice #2Choice #3 Tuition /Program Fees$21,450$31,353$18,972 Compulsary Fees : Athletic Fees$0$237$246 Health Services Fees$1,011$342$468 Other Fees$777$744$573 Student Association Fees$408$336$384 Books$2,613 Supplies$360 Total Cost$26,619$35,985$23,616 These amounts do not include lodging fees In fact, full-time students in Canada paid $14,500 on average to cover a year of post secondary expenses in That's roughly $58,000 for a four-year program. Source:CanLearn First three years of medicine, starting in 2008, dependent single student

Let your children go into debt to pay for their education Pay or borrow the amounts required while your child is at university Save now and be able to offer this opportunity to your child later on. The solution?

The Registered Education Savings Plan, commonly known as the RESP, is the best solution to save for a childs education.

Anyone can open an RESP: Whether youre parents, grandparents, legal guardians, family members or friends, you can open an RESP and offer a gift to a child! In addition, when you open an RESP, the child will receive a lovely certificate explaining that someone close to them is taking care of their future.

To save for your childrens education To take advantage of the Education Savings (CES) Grants To accumulates in a tax sheltered plan To access your contributions To invest in high-performance investments

The RESP is registered with the government of Canada so that the money saved for school can grow tax-free, until the person designated as the RESP beneficiary enrolls in a post- secondary school.

RESP Contributions GrantsIncome

How much can I save? For all RESPs for the same beneficiary: Per year: No annual plan contribution limit Lifetime limit for the plan: Maximum contribution plan limit of $50,000 For how long? Contributions can be made up to the plans 31 st anniversary Plan duration: 35 years

Once your RESP is opened, you have many investment possibilities: Guaranteed rate fixed-term investments Mutual funds: Bonds Canadian equities U.S. and international equities Our RESPs also include a guarantee for sums invested

RESP Contributions Grants Income

Since 1998 (or the year of the childs birth) Each child accumulates $400 (prior to 2007) or $500 in grant room per year. Thereafter, regardless of whether or not an RESP is open in the childs name $400 / year $500 / year

Net family income* lower than $37,885 Net family income* between $37,885 and $75,769 Net family income* over $75,769 Main federal grant 20% on the first $2,500 contributed (since 2007) 20% on the first $5,000 if accumulated room 20% 20% 20% Additional federal grant on the first $500 contributed only 20% 10% CLB Child born after January 1, 2004 Grant not related to contributions $500 (first year) $100 thereafter ACG (Alberta only) Child born in 2005 or later Grant not related to contributions $500 (first year) or, $100 (age 8, 11 and14) $500 (first year) or, $100 (age 8, 11 and14) $500 (first year) or, $100 (age 8, 11 and14) QESI (Quebec only) 10% on the first $2,500 10% 10% 10% Enhanced QESI (Quebec only) Applicable on the first $500 of contributions only 10% 5% * Family income for 2008 – Income bracket revised annually

RESP Contributions Grants Income

Accumulated income on contributions and on grants: Non-taxable as long as there are no surrenders Will be taxable to the beneficiary when Educational Assistance Payments (EAP) are made (as income). If the child doesnt go to university: Will be taxable to the subscriber when Accumulated Income Payments (AIP) are made. Contributions: Surrenders are non-taxable

RESPContributionsGrantsIncome Subscriber Parents; Grand-parents Beneficiary Child; Grand-child

Maximum contribution period = 31 years Maximum duration = 35 years Opening of plan End of contributionsClose of plan Year COTISATIONS

Investment in an RESP Deposit: $2,000/year Interest rate: 6% Taxation rate: 50%* Non-registered RESP RESP+ CES grant

MY EDUCATION DIPLOMA

Offered as an individual or family plan Minimum deposit of $100 Minimum PAC of $25 ($10 per beneficiary for the family plan) Investment funds available MY EDUCATION

Flexible contributions allowed Eligible to government grants No annual contribution required Access to your capital at all times Tax-free withdrawal of contributions Possibility to change the plans beneficiary at any time ADVANTAGES

Offered as an individual plan only Minimum mandatory PAC of $25 per month until December 31 of the beneficiarys 17 th birthday Minimum lump-sum deposits of $100 Pre-determined investments DIPLOMA

Offer an education bonus of up to 15% of the contributions to the RESP will increase the income paid for education Eligible to government grants Access to your capital at all times Withdrawals of contributions are tax-free Possibility to change the plans beneficiary at any time ADVANTAGES

018 $100 x 216 months (18 years) x 15% (bonus according to age) = $3,240 $100/month Years

You would like to increase your contributions, but your current budget does not allow it. Here is a solution that lets you increase the amounts available in your RESP and receive the maximum government grant, while staying within your budget! RESP LOAN

Available for an amount equal to your contracts current contributions (up to 100%) No interest or repayment required until the end of the plan However, it can also be repaid at any time Available for an amount equal to your contracts current contributions (up to 100%) No interest or repayment required until the end of the plan However, it can also be repaid at any time

How it Works Your contribution: $1,000$200 Your RESP loan: $1,000 $200 $2,400 By depositing $1,000, you obtain a $2,400 investment for your childs studies! RESP GRANT

No annual fees Financial institutions and fund companies Annual administration fee (between $25 and $50) IA RESPs

EAP eligibility in the first study session, with proof of registration EAP determined by the subscriber Possibility of AIP Scolarship Plans EAP eligibility in the second year of studies and at age 19, with proof of school success EAP determined by the foundation Accumulated income paid to the foundation The advantage of an IA RESP: FLEXIBILITY DIPLOMA and MY EDUCATION EAP: Educational Assistance Payments AIP: Accumulated Income Payments

For the 20% (or more) grant For the education bonus of up to 15% (Diploma) For tax-sheltered accumulation To maximize the grant through the RESP loan To diversify your investments (My Education) For the flexibility of changing beneficiaries For the possibility to transfer investment income to your RRSP, if your child does not pursue a post-secondary education

THE RESP is the ideal savings vehicle for childrens post-secondary education!

*Estimated with a 3% inflation rate Child living at home Child not living at home