RESP Information Mutual Fund Strategy Raise the Limit Campaign   Raise the Limit, Please! The $60,000 CDIC Insurance Coverage is not enough! Inflation has eroded the present coverage to $34,000! The present limit has not been changed since 1983! Success!! The new limits for CDIC coverage are now in effect and is $100,000.00. Bill C-48 June 29th bringing the insured coverage into play retroactive from Feb. 23/2005. It was with the help of Dollars and Cents Investments and the other members of the Federation of Canadian Independent Deposit Brokers that swayed the Government to look out for your best interests. Who says brokers aren’t working for their clients best interests-ask a FCIDB member.  Dollars and Cents Investments Inc.   Want to know how long it will take to double your money? Use the rule of 72. Take your current interest rate you are receiving eg.6% And divide it into 72. Answer 12 It will take 12 years for you to double your money at 6% interest rate. MUTUAL FUND STRATEGIES Are you interested in trying a Mutual Fund but scared of losing your principle?   Why not try this. Let’s say you have $5000 to invest in a fund and are setting a realistic goal of leaving it there for 5 years.   If 5 year GIC rates are 4.5% you would invest $4012 into the GIC and $988 into the Mutual Fund .   At the end of the 5 years you would be guaranteed your $5000 back and probably more, depending on the growth of the Mutual Fund.   Sound interesting?   Need more info?   Give us a call!   421 Sandwich Street South Unit # 7 Amherstburg , Ontario N9V 3K8 (519) 736-4811

WHAT IS AN RESP ? An RESP is a special savings account to help you, your family or your friends save for your child’s education after high school. The money in the RESP will be invested so that it can grow and earn interest. You will not be taxed on the interest, and your child can usually withdraw the money tax free. What Does it cost to open an RESP? At MGI Financial there is no charge. Ask for advice to find an RESP that suits your needs. How much money do I have to put in the RESP? No matter how little you save in your child’s RESP the Government of Canada will still pay the Canada Education savings Grant. You, your family, or friends can put money into your childs RESP whenever you want, and can save as much or as little as you want. Even $5.00 a week can add up quickly, especially when the Canada Education Savings grant is added to your savings. The sooner you start to save the better. How Much Canada Savings Grant Money Can I Get ? If your net family income is below $35,595 the Canada grant will give you 40 cents for every dollar on the first $500 you save in your child’s RESP. If your net family income is below $71,190 the Canada grant will give you 30 cents for every dollar on the first $500 you save in your child’s RESP. If your family net income is over $71,190 the Canada Grant will give you 20 cents for the first $500 you save in your child’s RESP. No matter what your net family income is, if you save over $500, the Canada Education grant will give you 20 cents for every extra dollar, up to $2000. What if I can’t afford to save for my child’s education right now ? Even a small amount of money can make a difference when the Canada Education Savings Grant is added. Plus, that money will earn interest over time. You may also be eligible for a $500 Canada learning Bond: If your child was born after December 32.2003 and; If you get the National Child Benefit Supplement as part of the Canada tax Benefit. This usually applies to families whose net family income is less than $35,595. You can also get an extra $100 per year for up to 15 years, as long as you continue to receive the National Child Benefit Supplement. You don’t have to contribute any of your own money to get the Canada Learning Bond. All you need to do is open an RESP and the Government of Canada will deposit the money into your child’s account. What Happens If My Child Doesn’t Continue Education After High School ? The RESP can stay open for up to 26 years, so if your child does not continue education immediately after high school, the money can be used if he or she decodes to go to school later. If the money is not used 26 years after the RESP is opened, the amount you saved goes back to you, and the Canada Education Savings Grant may be used for another child’s education. The Canada Learning Bond is returned to the Government of Canada.