Comments on: Frugal With Babies Part I: People around You http://www.thefinancialblogger.com/frugal-with-babies-part-i-people-around-you/ This is where your finance takes place Wed, 19 Nov 2008 16:29:44 +0000 http://wordpress.org/?v=abc By:   The 89th Edition of the Festival of Frugality by FILAM Personal Finance http://www.thefinancialblogger.com/frugal-with-babies-part-i-people-around-you/#comment-388   The 89th Edition of the Festival of Frugality by FILAM Personal Finance Thu, 30 Aug 2007 20:14:37 +0000 http://www.thefinancialblogger.com/frugal-with-babies-part-i-people-around-you/#comment-388 [...] Financial Blogger presents Frugal with babies Part I: People around you. “Having children is a blessing for many reasons. Unfortunately, it has also a big impact on [...] [...] Financial Blogger presents Frugal with babies Part I: People around you. “Having children is a blessing for many reasons. Unfortunately, it has also a big impact on [...]

]]> By: FourPillars http://www.thefinancialblogger.com/frugal-with-babies-part-i-people-around-you/#comment-373 FourPillars Sat, 25 Aug 2007 04:44:53 +0000 http://www.thefinancialblogger.com/frugal-with-babies-part-i-people-around-you/#comment-373 Thanks Gates - I suspected that too :) Re: resp - anyone can set up an resp for anyone else. The annual contribution limit used to be $4000 so if you set up an account you kind of had to coordinate with other contributors in order not to exceed the limit. The new rules are more lenient so you don't have to worry about contributing too much in any given year. To set up an resp you need the child's SIN number, name, address etc. The tax break with RESPs is that the income and cap gains are tax sheltered in the account - there is no tax rebate like with an rrsp. The grants, capital gains & income are all taxable in the hands of the student at withdrawal. It's a pretty good deal. My parents set up an resp for my niece for the very reasons you mentioned. The person who sets up the resp controls the money and the student (beneficiary) receives the money. Their parents have nothing to do with it. Mike Thanks Gates - I suspected that too :)

Re: resp - anyone can set up an resp for anyone else. The annual contribution limit used to be $4000 so if you set up an account you kind of had to coordinate with other contributors in order not to exceed the limit. The new rules are more lenient so you don’t have to worry about contributing too much in any given year.

To set up an resp you need the child’s SIN number, name, address etc.

The tax break with RESPs is that the income and cap gains are tax sheltered in the account - there is no tax rebate like with an rrsp. The grants, capital gains & income are all taxable in the hands of the student at withdrawal. It’s a pretty good deal.

My parents set up an resp for my niece for the very reasons you mentioned. The person who sets up the resp controls the money and the student (beneficiary) receives the money. Their parents have nothing to do with it.

Mike

]]> By: The Financial Blogger http://www.thefinancialblogger.com/frugal-with-babies-part-i-people-around-you/#comment-371 The Financial Blogger Fri, 24 Aug 2007 23:05:52 +0000 http://www.thefinancialblogger.com/frugal-with-babies-part-i-people-around-you/#comment-371 FP, Gates, I was wondering if it was too small as well! I,ll change that shortly :-) Gates, I'll get more info on the subject for you. From what I know, if you withdraw money and it is not for the kid (you have to provide proof that he achieve a certain school level), you will loose all the Gov contribution. I'll get the info and write a full post on it. Thx for the idea! FP, Gates,
I was wondering if it was too small as well! I,ll change that shortly :-)

Gates, I’ll get more info on the subject for you. From what I know, if you withdraw money and it is not for the kid (you have to provide proof that he achieve a certain school level), you will loose all the Gov contribution. I’ll get the info and write a full post on it. Thx for the idea!

]]> By: Gates VP http://www.thefinancialblogger.com/frugal-with-babies-part-i-people-around-you/#comment-370 Gates VP Fri, 24 Aug 2007 21:01:20 +0000 http://www.thefinancialblogger.com/frugal-with-babies-part-i-people-around-you/#comment-370 No FP, you're not just old, you're blind too :) Actually, the font is a little small. I like the RESP idea, my fiancé and I have been secretly setting aside for some newborns in our "extended family" that both came around this year. However, it's just sitting around right now (no savings etc.) Do you know what's involved in setting up someone else's RESP? Do I still get the tax break? What is the parent's involvement? Truth is, the parents in question are both pretty bad with money, which is one of the reasons we're secretly setting aside. So if we give the money to "the kid", we actually want to be sure that it belongs to "the kid". What are the provisions for this? AFAIK, it's just best to keep the money in a personal account and then figure it out when they hit 18, but I'd definitely like to hear other options. No FP, you’re not just old, you’re blind too :)
Actually, the font is a little small.

I like the RESP idea, my fiancé and I have been secretly setting aside for some newborns in our “extended family” that both came around this year.

However, it’s just sitting around right now (no savings etc.) Do you know what’s involved in setting up someone else’s RESP? Do I still get the tax break? What is the parent’s involvement?

Truth is, the parents in question are both pretty bad with money, which is one of the reasons we’re secretly setting aside. So if we give the money to “the kid”, we actually want to be sure that it belongs to “the kid”. What are the provisions for this?

AFAIK, it’s just best to keep the money in a personal account and then figure it out when they hit 18, but I’d definitely like to hear other options.

]]> By: FourPillars http://www.thefinancialblogger.com/frugal-with-babies-part-i-people-around-you/#comment-368 FourPillars Fri, 24 Aug 2007 11:31:24 +0000 http://www.thefinancialblogger.com/frugal-with-babies-part-i-people-around-you/#comment-368 Interesting article. I agree - the relatives want to help so the best thing is to allow them in a constructive way ie RESP! Also - maybe it's because I'm a lot older than you but I have a hard time reading your blog - any chance you could increase the font a bit? Mike Interesting article. I agree - the relatives want to help so the best thing is to allow them in a constructive way ie RESP!

Also - maybe it’s because I’m a lot older than you but I have a hard time reading your blog - any chance you could increase the font a bit?

Mike

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