Your children may not choose to go to medical school, or start a million dollar company. But now they don't have to...
Creating wealth for your children to use in their life time.... done, by the time they turn 20
Lets face it. As parents we worry about our kids, we worry about their friends, their health, and we worry about their future. We also know that our ability to prepare them for life's lessons is a short window of time, and every moment counts.
One area that we as parents have a great opportunity to influence the direction of the children's lives is through education. By having our kids have the opportunity to gain post secondary education, we have empowered our kids along a road that ultimately will guide them to success. This in nothing new to any of us. We have all heard for years that education opens doors for families... it is not about if you should plan for your kids financial future, its about what system will provide the biggest benefits.
How is Ethereal better?
Lets look at a direct comparison of the RESP and what Ethereal and what it can do in the real world, using accurate historical data. If we compare that 20 years ago, you had set up both Ethereal and an RESP, using an RESP contribution of $2,500 per year and the government contribution of $500, for a total of $3,000 per year, invested in a balanced fund that is based on the S&P/TSX composite index, compared to Ethereal, where you only contribute $2,500 per year. The results are shocking.
Average rates of return calculated using a geometric mean, Past performance is not indicative of future markets, dividend scales are not guaranteed. Information sources include Equitable Life of Canada, Statistics Canada, and Bank of Canada.
How Does Ethereal out perform traditional RESP's?
Ethereal is not an RESP... its much more than that. It is a participating whole life insurance policy, that uses tax free dividends to grow and shelter the contributions. Because of this, we can make use of the tax favored growth in the policy, and have the funds grow tax sheltered for your child's life.
Here are even more advantages that Ethereal has over the traditional RESP:
Ethereal; the ultimate in child savings plans. The education savings plan that is not just for education. Ethereal has the ability to accumulate, tax free savings for your child, for their entire life. By receiving tax free dividends your child's savings account can be used for education, home down payment, start up money for a business, or even a pension for retirement.
Ethereal is a signature series children's savings plan that uses the tax sheltered benefits of permanent whole life insurance to create a financial future for your children, that is only offered by Insurance Life Canada. If you are thinking about starting an RESP, ensure that you get your illustration.
Traditional RESP's aren't great
Jonathan B Patten R.R.C.