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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.
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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
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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. |
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