Many Canadian parents diligently put money aside every month for the kids’ post-secondary education. But what happens to that cash if those young ones later decide not to go to university?
It’s a question Robert Armstrong, vice president and head ofmanaged solutions at BMO Global Asset Management in Toronto, hears all the time.
“The number one concern I get with all our clients is ‘If our children don’t pursue post-secondary education, do we lose our money?’
“That’s one of the key reasons why some people are hesitant to open an RESP,” he adds. “Who knows what your child’s going to do in 18 years? That scares a lot of people.”
Rest assured, parental units: You do not lose that money.
“Whatever you put into your RESP you get back, no question, no tax, no issues whatsoever,” Armstrong says.
But an added bonus is that anyRead More »from RESPs: What happens if your child doesn't go to university?