1. 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 Introducing A Unique Segregated Fund RESP

2. Dramatic increases in cost of higher education are anticipated …….

3. Diploma segregated fund RESP..  A unique investment vehicle which provides the opportunity to invest in a child’s future.  Advantages:  Tax-sheltered investment income  Canada Education Savings (CES) Grant : 20 %  Plus…...

4. Some standard RESP information...

5. Annual:$4,000 Lifetime: $42,000 Maximum contributions... Maximum per beneficiary for all RESP’s Maximum per beneficiary for all RESP’s

6. The amount of the Grant:  20% of the annual contributions  $400 annual maximum  $7,200 total maximum  Paid monthly by the Federal Government  Tax deferred until the amounts are withdrawn  Unused rights can be deferred The CES Grant.

7. Who can susbcribe to a Diploma RESP? Any person of legal age (not a company or a trust) Only one subscriber per contract, is permitted The subscriber can contribute to several RESPs at the same time

8. Diploma : who can be designated as a beneficiary? Any child 14 years of age or less Need not be related to the subscriber There can be only one beneficiary per contract (individual plan) The beneficiary can be changed at any time The beneficiary can be the beneficiary of more than one RESP

9. Accumulation…..

10. The accumulation in Diploma is made up of... Contributions

11.  PAC contributions up to the beneficiary’s age 18*  Minimum : $25 per month  No enrolment fees  Additional deposits are possible;  Transfers from other plans are welcomed. * until December 31 of the year in which the beneficiary reaches age 17 The 3 types of Contributions:

12. Contributions Grants The accumulation in Diploma is made up of...

13. Contributions Grants Investment income The accumulation in Diploma is made up of...

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

15. The Diploma Education Bonus.  % of the total PAC contributions;  A one time payment at the end of the commitment period. EG: Child Age 0 yrs @ $100per month Deposit: $100 X 12 X 18 years= $21,600 Bonus: $21,600 X 15% = $3,240

16. The Diploma Education Bonus cont...

17. Investment Fund 40% 25% 10% « B » Fund S &P TSE 60 S&P 500 MSCI EAFE An index type of investment fund

18. Insurance Riders  Two choices : - CID : disability protection - CIDE : death protection  Subscriber = insured  Benefit : monthly PAC premium

19. The educational assistance payments

20. When the subscriber requests the Educational Assistance Payment (EAP) for the beneficiary: EAP for the beneficiary «TAXABLE» The subscriber can withdraw contributions «NON-TAXABLE» Contributions Grants Investment income Education bonus

21. 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.

22. 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 is no restriction in the amount payable after the first 13 week period.

23. For more information and enrollment, please contact us: Tel: 239 3850 E-mail : info@insuranceconcepts.ca info@insuranceconcepts.ca