RESP

An RESP is a special savings plan (like a savings account) that helps you, your family or friends to save early for a child’s education after high school which is registered by the Government of Canada and allows savings for education after high school to grow tax-free and could also gain government money through the Canada Education Savings Grant and the Canada Learning Bond, if you qualify.By opening up a RESP, your deposits grow on a non-taxable basis plus attract the government grants that are available.Upon enrolling in a qualifying educational program – a course of study that lasts at least three consecutive weeks, with a minimum of 10 hours of instruction or work per week – the child named in your plan will become eligible to receive payments from the RESP to help cover the costs of education after high school.

Child Education

RESP:Registered Education

Registered Education Savings Plan, or RESP, are a smart way for Canadians to plan ahead and save for post-secondary education.

Tax-free growth: RESP let your money grow tax-free until your child becomes a qualified post-secondary student. When your child receives education assistance payments from their plan, the income is taxed in their hands – so there’s usually little or no tax paid at all.

Government grants: When you save with an RESP, the Canada Education Savings Grant (CESG) and other federal and provincial incentives help you save more by matching some of the money you contribute – making your savings work harder.

Investing in post-secondary education is investing in your child’s
future earning potential.

Studies show that university graduates will earn $1 million more over their lifetime than high school graduates and 70% of all new jobs in Canada require post-secondary education.

Education Loans

Education loans are meant for people whose income is not high enough to attend school. With high education costs high and the availability of education loans, many people are opting for these loans.

Types:-
*  According to the private,
*  According to the beneficiary :-undergraduate, continuing education, insurance loans, parent loans, payment loans
*  According to the course: law school, medical school, dental school, MBA, general graduate, or post graduate.

Education loans are for graduate and post graduate courses. There are certain eligibility criteria to be met for getting these loans sanctioned. The applicant should be a graduate or professional student in a degree or certificate program and should be enrolled in school at least half-time.

College is so expensive many people do not further their education because they think they will never be able to afford it. Government loans not only give you money to pay for attending the classes, but the loans also include additional money to help you live. The money will be dispersed to the school and the remaining balance each quarter will be given to you to help you with your living expenses. This is because the government expects people to work and make less money while they are going to college courses.

Education loans come in secured as well as unsecured forms. If you are a homeowner then you can apply for secured loans. This form of loan is collateral-backed. You will get a good chunk of funds with the loan form. But, if you are a tenant or non-homeowner and unable to manage collateral, even then, unsecured loans are there for your help. They provide you fund without pledging-placing in no time.

Registered Retirement Savings Plan

Registered Retirement Savings Plan (RRSP)

A registered retirement savings plan (RRSP) is a flexible, attractive savings tool. In addition to reducing your tax bill, it enables you to accumulate significant amounts and to defer income tax on your investment returns. The sooner you start saving, the more quickly your savings will start working for you.

Who Should Consider an RRSP?

Any person under the age of 69 who has employment income.

Features and Advantages
*  You deduct the amounts paid from your taxable income.
*  You obtain an income tax deferral on your investment income.
*  Your protection against financial market fluctuations may attain and even exceed 100% of the capital invested.
*  You can borrow to increase your contributions through the Ecoflex RRSP line of credit.
*  You can protect your savings against potential creditors.
*  You may pay by pre-authorized cheques if you wish.
*  You pay no annual administration fees.

Amounts withdrawn are taxed according to the tax tables in effect.
Under the regulations, an RRSP must be converted to a registered retirement income fund (RRIF), or another retirement income instrument by December 31 of the year you turn 69.

Products Available
When you enrol in an RRSP, you can invest in the following investment vehicles:

Daily Interest Funds
For persons wishing to accumulate money to make investments and accumulate interest on a daily basis.

Principal Guaranteed with Market Investments (PGX)
For persons seeking access to new investment strategies and a diversified portfolio with an emphasis on capital security.

Guaranteed Interest Funds
For persons seeking capital protection and a stable return.

Investment Funds
For all types of investors, from cautious to aggressive, who are seeking sound diversification of their investments. No matter what the investment horizon, our wide range of investment funds can satisfy the needs of every investor.

Investment Managers

Investment management is the professional management of various securities and assets in order to meet specified investment goals for the benefit of the investors. Investors may be institutions, Private investors

Investment management, have two main words are:-
*  Invested in a company
*  Organization.

The professional investment managers who specialize and deal in advisory often have their services referred to as portfolio management or wealth management.  The term asset management is often used to refer to the investment management of collective investments.

If you  are interested in safety and in professional management of your assets in keeping with your specific needs and objectives. Each Member firm manages investments for clients only on this basis. They charge fees for their services as a percentage of the asset value of your account. In this way, your interests and theirs are aligned.

Tips:-
* Revenue is directly linked to market valuations, so a major fall in asset prices causes a precipitous decline in revenues relative to costs;
* Successful fund managers are expensive and may be headhunted by competitors;
* Above-average fund performance appears to be dependent on the unique skills of the fund manager; however, clients are loath to stake their investments on the ability of a few individuals- they would rather see firm-wide success, attributable to a single philosophy and internal discipline;
*  Middle office investment banking services include compliance with government regulations and restrictions for professional clients such as banks, insurance companies, finance divisions,

Myths:-
*  Rich folks get the best management and always make money.
*  Investors get what they pay for.
*  Average people can’t afford professional money management.

The truth of the matter is that very few investment advisers  outperform the market averages; and fewer yet do so and make profits for their clients every year.

Investment

Investment is related to saving or deferring consumption. Investment is involved in many areas of the economy, such as business management and finance whether for households, firms, or governments.

In finance, the purchase of a financial product or other item of value with an expectation of favorable future returns. In general terms, investment means the use money in the hope of making more money.

A good choice is an investment fund that is a mixture of savings and investments in shares or bonds. The good thing about this funds are that you do not have to choose the bonds or shares yourself and keep track of all market turnovers – this would mean you should have at least some knowledge about investments in shares and bonds and for most of us that is not the case.

You must find and invest in advantageous areas that have employment opportunity and easy yet complete infrastructure. This is true as there will be available tenants where there are commercial offices and establishments because workers need a place to live in.

There are 3 important things

1. Low Fees
2. High Interest
3. Customer Service

Your best bond fund investment strategy for 2011 and beyond: cut your general exposure to income funds; go with shorter-term quality (not the highest) funds, lower costs with index funds, and dollar cost average back into intermediate-term funds. The bond bubble may or may not deflate significantly. If it does millions of average investors will take it on the chin and wonder what happened.

The most important part when planning to acquire an investment property is to carefully choose the property. This is a crucial decision that you need to make as this can make or break your investment and your money as well.

Safe Investment Options

Bank  Saving Schemes
Gold
Bonds
Residential Real Estate
Mutual Funds

The best safe investment strategies going forward will focus on reducing risk in the stocks and bonds department, while getting the best rates available on the truly safe investments in your portfolio. With increased diversification you can lower your overall risk and still make your money grow over the longer term. If another financial crisis rears its ugly head… you now have investment strategies geared to the safe side to keep you out of major trouble in 2011 and beyond.