Rob Kimball, B.A., CSA, RHU Financial Advisor September 2007 Hi-ho, hi-ho It’s Off to School They Go

Post-Secondary Education  Start planning and saving  Several options  Regardless of budget

How Much Does a Post-Secondary Education Cost?

Resources  Websites of schools of interest  Education Cost Calculator

Financing Your Children’s Dream  Cost of obtaining a degree has risen by 180% since 1990/91 Source: “Average Cost for Undergraduate Fees”, CAUT Education Review, Vol. 5, No. 1, 2003

Tuition $6,000 Fees (athletic, health services, student association and other) $1,000 Residence with meal plan $5,000 Books and supplies $1,000 Technology (laptop, cell phone) $1,500 Transportation (public) $800 Pocket money ($50/week) $1,600 Total$16,900 Estimated Annual Cost of University All costs are averaged across all provinces and rounded to the nearest hundred, based on a 32-week school year.

One way to save is to Invest in RESPs

What are RESPs?  Savings plan registered with Canada Revenue Agency  Not tax deductible  Some tax benefits

 Income is tax-deferred  Beneficiary is taxed when savings are withdrawn  Often, little or no tax payable RESPs and Taxes

New Voluntary Benefit As a new voluntary benefit available to employees of Hamilton Health Sciences, we are pleased to allow you the opportunity to contribute to your children’s education through payroll deduction. Contributions are 100% employee paid. Deductions will begin October 17th and thereafter, the first of each month.

 Payroll deduction  Anyone can contribute to a RESP  Maximum is $2500 per year that the Government will match with 20% (per child)  One year of unused contributions can carry forward and be eligible for grant  Maximum contribution is $50,000 (per child)  Maximums apply to beneficiary RESP Contributions

CESG Canada Education Savings Grant  Contributions of 20% on the first $2,500 each year (per child)  Maximum of $500 per year, but one year of unused contributions are also eligible for the grant  Available until age 18  Maximum of $7,200  CESG room carries forward  A social insurance number is required for each child

 Income is tax-sheltered  Contributions are after-tax dollars  Principal is tax-free Faster Growth

 Transferable to another child *  Transfer RESP income into RRSP  Tax-free if sufficient room  Maximum of $50,000 † *Provided certain conditions are met. † Government of Canada …And If the Child Doesn’t Use It

Additional Sources for Funding  Child works part-time during school  Co-op program

Pursue Scholarships  $200 million distributed annually  Value from $100 to $19,000  70% go to first-year students Source: Maclean’s Guide to Canadian Universities, 2006, page 174

Scholarships Two Categories High-Ranking Academic Students  Entering into a program or after completion  Community services may be considered Need-to-apply  Offered by corporations, charities, governments, private philanthropists  Thousands available

Surf the Internet   Customize your search  Over 7,000 listings of scholarships, bursaries and awards

Resources

Motivation to Continue Learning

Diploma Pays Dividends  Graduates can expect to earn 12 – 20% more than non-graduates Source: McLeans Guide to Canadian Universities, 2006, page 46

Important Notes The commentary in this presentation is for general information only and should not be considered investment or tax service to any party. Individuals should seek the advice of professionals to ensure that any action taken with respect to this information is appropriate to their specific situation.

Plan Details RESPs are offered through Fidelity Investments Contributions are made monthly – minimum of $25/mth up to lifetime maximum of $50,000 Voluntary lump sum contributions can be made at anytime Amounts can be changed, postponed or stopped at anytime Detailed statements sent to your home On-line access to your account Rob Kimball is an Account Representative sponsored by Manulife Securities International Ltd., a Mutual Fund Dealer. Please note the following: Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the fund’s simplified prospectus before investing. Mutual Fund Securities are not guaranteed. Their values change frequently and past performance may not be repeated. This is intended for use by residents of the Province of Ontario. Manulife Securities and the block design are registered service marks and trademarks of The Manufacturers Life Insurance Company and are used by it and its affiliates including Manulife Financial Corporation.

How to obtain a Social Insurance Number Visit government website at: Download application and take it, along with original birth certificate to your local Service Canada Centre You should receive your child’s card in the mail in approximately 3 weeks

For additional one-on-one advice please contact: Rob Kimball | (888) | Services include:  Investment Management  RRSP’s, and Non-Registered Accounts  Insurance  Life, Mortgage Insurance, Critical Illness Coverage and Long Term Disability