More RESP Ramblings, Insights and Articles

As college, university and some trade school students head back into their labs, classrooms, workshops and work placements, I’ve noticed an increase in articles about Registered Education Savings Plans. I myself contributed

You can probably guess that future articles will include How; What; and Why. (insert cheesy grin)

I still haven’t opened my self-directed RESP so I’m still welcoming feedback from those of you who have about which brokerage you used and whether you like it there.

An Education about Education

Here’s some articles written by others along the RESP spectrum from parents of toddlers to parents of “some have graduated, some are still going through.”

Boomer and Echo discuss starting a Portfolio for toddlers and newborns in My TD e-Series RESP Portfolio

I discuss starting a RESP when the mortgage is paid and your child is 10 in When Should I Start a RESP?

Jane at Solving the Money Puzzle discusses what happens when our children reach university. The section “Summer Vacation Plans” of Erratic Economic Emotions Experienced reminds me of how most students pay for their education: with student loans. RESPs are a financial commitment which many Canadians cannot afford to make.

Michael James on Money has said that he doesn’t think student loans are “good debt” but that student loans are a necessary evil for many Canadians. Check out why in All Debt is Bad.

The costs don’t end at Graduation, either, as Big Cajun Man’s family found out: First you have to pay to attend graduation–and you better make that hotel reservation a year in advance. Check out the foibles and frustrations involved in How Hard Could it be to Book a Hotel Room?

My Own Advisor also described what he would do, pay, and invest in once he graduated if he had to do it all over again in Just Starting Out.

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Have you read an education-related financial article recently that explored a new topic? Please share your recommendations with a comment.

Low Income in Retirement: a Roundup of Articles about the G.I.S.

I haven’t looked at the statistics but I have looked around me and I’ve concluded that most Canadians will be facing a low income in retirement. I know far more people that rent apartments than that own homes, and that work in retail than that work in high-paying corporate jobs. Our own income will take a serious nose dive in retirement, if we actually stop working. As a consequence, I usually read articles I find on low income living in retirement. Sometimes I write them, too.

Previous articles I have written about the Guaranteed Income Supplement include:

Reading around the internet I have found other interesting articles as well.

The Marilyn Denis show offers sound succinct “Advice on TFSAs vs RRSPs for low income earners.

Michael James on Money helps a older couple decide how to best collapse their RRIF to minimize the loss of the GIS in “Handling RRSPs and RRIFs for Low-Income Seniors.”

An older article on CBCnews explains why TFSAs were needed not just wanted. Low income earners should generally be saving for retirement in a TFSA rather than a RRSP to prevent harsh claw backs of benefits including health benefits and the GIS in retirement. See: “Clawbacks: How governments give and take
Some other benefits of TFSAs are explored more recently in: “Tax-free savings accounts are flexible, convenient but underused.”

Solving the Money Puzzle explores a likely low income retirement in How To Budget For Big Expenses In Low Income Retirement?

The Canadian Association of Retired Persons (CARP) website has some useful information for those facing a low income in retirement. You may wish to start with Retiring on a low income – A Helpful Toolkit by John Stapleton
It includes links to valuable articles such as “Determining OAS and GIS (Guaranteed Income Supplement) eligibility for people who come to Canada as adults: A toolkit”

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Do you or does someone you know receive the GIS? Do you have any tips to share with others? If so, please leave a comment.