Harrison Brown, Portfolio Manager at Alitis Investment Counsel, reflects on a conversation he's had often with local parents – often with the child at the heart of the discussion playing quietly nearby, unaware of the weighty topics shaping their future.
“It’s not just about saving money. It’s about giving your child the best possible start in life.” This is what Brown loves most about his work – helping families secure their children’s futures.
One of the most effective tools for doing this, Brown explains, is utilizing a Registered Education Savings Plan or RESP, a special savings account to help save for a child's education after high school. "RESPs are designed not just to make education accessible but to multiply every dollar you contribute with government grants," he says. "For every $2500 you invest, government grants like the Canada Education Savings Grant (CESG) will add an annual maximum of $500 to a RESP, to a lifetime maximum of $7,200."
It’s this tangible, immediate benefit that makes RESPs so powerful for families looking to plan ahead.
For Brown, timing is key. He often urges parents to start investing in their children’s education as early as possible. “Starting early allows compound growth to work its magic,” he says. “Even small, regular contributions add up over time.”
However, Brown reassures parents that it’s never too late to start. Families can catch up on missed years and still benefit from government grants.
What if the child decides not to pursue post-secondary education? “That’s a common question I get,” Brown says. “The good news is, you have options.”
Parents can withdraw their original contributions tax-free and, while the government grants are returned, any investment growth can be transferred to an RRSP tax-deferred or withdrawn with minimal taxation, offering flexibility no matter the path a child chooses.
At the heart of it all, Brown emphasizes peace of mind. "Knowing you've taken steps to give your child an opportunity-filled future is priceless.”
Is the Alitis Approach right for you? Call 250-287-4933 or email info@alitis.ca to learn more. Find them in Campbell River at 101-909 Island Highway, the Comox Valley at 103-695 Aspen Rd., in Victoria at 1480 Fort St., or online at alitis.ca.