I need to plan for my children’s education
Education is the key to your children’s future. But attending a post-secondary institution is more expensive than ever. Early planning is the answer.
As a parent, you’re concerned about your children’s future. One of the best ways to ensure they have a bright future is to invest in their post-secondary education now.
How we can help
At BMO Nesbitt Burns, we offer education savings plans and investment options. Your BMO Nesbitt Burns Investment Advisor will help you determine how much money you will need to save. Your Investment Advisor will work with you to get an early start on an investment strategy that will satisfy those needs — including investment solutions chosen from BMO Nesbitt Burns wide range of solutions.
One of the best ways to save and invest for your children’s education is through a Registered Education Savings Plan. An RESP allows the money you contribute to grow tax-free until it is withdrawn. An RESP is also eligible for the government-sponsored Canada Education Savings Grant, which increases the value of the plan. To see how RESPs can work for you, visit BMO Bank of Montreal’s RESP Essentials. If you want to go further than an RESP, we’ll show you other ways to save and invest for your children’s future, including using a Tax-Free Savings Account (TFSA) to supplement education savings.
When it comes time for your children to attend college, university or another post-secondary institution, we’ll show you innovative ways they can make the most of the money you’ve put away for their education. We can help create income streams for your children, and even show you tax-effective ways to provide housing for your children while they attend school away from home.
And when it’s time for your child to put his or her education to good use, we’ll be there to offer the same trusted financial and investment guidance you’ve received in your years as a BMO Nesbitt Burns client.
Advice in action: Carson and Helena
Carson, 36, and Helena, 32, have a two-year-old son and another child on the way. Lately, they’ve been discussing how they can save and invest for their children’s education. They know an early start on education savings is a necessity, but they’re not sure how to go about it.
Carson is currently the sole breadwinner in the family, so the couple’s resources are taxed — even though he earns a good living as a real estate agent. Helena plans to return to work in two years, but then the couple will face day-care costs. Carson and Helena have other goals as well, including building up their RRSPs and possibly purchasing an investment property. But they have a considerable mortgage, monthly payments on a leased car and other major expenses. And there’s always the possibility that a softening housing market could hurt Carson’s income.
A BMO Nesbitt Burns Investment Advisor can show Carson and Helena how setting up an RESP now will help them benefit from long-term tax-deferred compound growth and qualify for the Canada Education Savings Grant. But with another child on the way and pressures on their financial resources, this isn’t a time for Carson and Helena to focus only on education savings. It’s a time to review their overall financial strategy. Their Investment Advisor will help them find ways to use Carson’s uneven income from real estate commissions to invest for the future most effectively, and work with the couple to ensure that education savings for their growing family become part of a comprehensive financial plan that addresses all the couple’s current needs and future goals.