5 reasons to invest responsibly in a child’s future

invest responsibly in a child's future

Behind the columns of figures, there are above all people and stories, and that, Laurentian Bank has grasped. By favoring a human approach at all stages, the banking institution helps its customers improve their financial situation and gives them the chance to prosper. It is in this spirit that the bank recently enhanced its investment product offering by launching a Registered Education Savings Plan (RESP) that responds to parents’ desire to give their child the best possible future.

To give her a priceless gif

All parents want their child to be able to reach their full potential and achieve their ambitions, whatever they may be. The RESP is the ideal vehicle for financing a child’s post-secondary education and giving him the means to achieve his full potential and exercise the profession of his choice once he grows up.

Because the RESP pays off!

Each time parents (or grandparents, uncles, aunts or family friends) contribute to a child’s RESP, the provincial and federal governments back up the investment through grants deposited into the plan. ⁠1 . Even teenagers with student jobs can contribute to their own RESP!

In addition to saving up to $50,000 per child (before grants and income), the RESP is the only registered plan that gives access to government grants of at least 30% on the annual contributions made by the subscriber. . For families with less income, these grants can even be topped up by governments, making the RESP a savings vehicle within reach of all wallets.

Learn more about Laurentian Bank’s new RESP

By investing early, the magic of compound interest will work, and when the time comes for post-secondary education, the RESP beneficiary will have a nice boost to fund it, in part or in whole. If, however, the RESP was not one of your financial priorities when your little one was in diapers, do not despair: catch-up strategies could allow you to recover the unused government grants, provided you start before the 15th birthday of your child . child.

To create a better world

By opening an RESP at Laurentian Bank, you can invest the amounts deposited for post-secondary education in one of the bank’s three new ESG model portfolios ⁠2 . Composed of socially responsible funds, these ESG portfolios — which therefore integrate environmental, social and corporate governance criteria in the selection and management of investments — contribute to building a better world for future generations. Parents who save for their child’s future therefore have the opportunity to invest in funds that are both profitable and reflect their values.

To ease the financial burden

By preparing for a child’s financial future, you ensure that the cost of education and student debt do not become obstacles to their ambitions. It doesn’t matter his dreams and the rate at which they evolve — because one thing is certain, they will evolve! —, the money that grows in the RESP will help your child start their adult life without financial stress. It’s a bit like that too, building a brighter future for the generations that follow!

Canada Education Savings Grant (CESG) corresponding to 20% of contributions paid annually, up to a maximum of $7,200 in lifetime grants for each beneficiary + additional contribution of 10% depending on family income. Canada Learning Bond (CLB) corresponding to an amount of $500 in the first year and $100 in subsequent years to the beneficiary (born in 2004 or later) who meets the conditions. Québec Education Savings Incentive (QESI) corresponding to 10% of net annual contributions to the plan, up to $250 per year and per child + additional subsidy of up to $50 per year for low-income families income, up to a maximum of $3,600 in lifetime grants for each beneficiary.

funds are distributed by LBCSF, a subsidiary of Laurentian Bank of Canada (“Laurentian Bank”). Fund Facts contain important information. Please read this document(s) carefully before investing. For more information on the funds you trade, you can consult the funds’ simplified prospectus. You can obtain the simplified prospectus(es) and/or fund facts by contacting a LBCSF representative at a Laurentian Bank branch. There is no assurance that the fund will be able to maintain a fixed net asset value per unit or that the full amount of your investment in the fund will be returned to you. Fund values ​​fluctuate frequently, and past performance is not indicative of future performance.

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