Registered Education Savings Plans (RESPs) are…great… maybe… if everything goes according to plan. That is, if parents believe that college is the ultimate educational goal for everyone (and it isn’t) and can predict with certainly what a child will ultimately do in life (which is highly unlikely), RESPs could be a good thing.
Indeed, good accountants will advise their clients to look into RESPs, but usually as a last resort to tax saving strategies that include better instruments such as Tax Free Savings Accounts (TFSAs) and Registered Retirement Savings Plans (RRSPs) designed to reduce tax liabilities.
However, in my opinion, the best way to reduce this tax liability is to have lots of children! This is a simple strategy since having more children, besides bringing in more blessings, usually results in less taxable income!
Continue reading “My Opinion on RESPs: Opinions (Part 5)”