Now that school is out I have a bit of time to figure out the status of things like the boys' RESP (Registered Educational Savings Plan)
I got my quarterly update for the boys' RESP account. I was so pleased at the end of April to crack the $10,000 point (5 grand each) only to watch it, through May go down down down. Once it was as low as $9800. It sure fluctuates a lot.
According to the report, the plan shows a 1 year 2.17%. Since the inception it has a growth of 5.31%
Since I started late, I got a Family Plan. That means that I can allocate the money to the boys however I wish and it isn't necessarily 50/50. That helps if either one of them get scholarships. IF
Since DS1 turned 17 last calendar year, he is past his years of contribution that the govt backs. So off to the bank I went to figure out what is what.
I learned that since it is a family account, the $200 monthly I put in goes towards DS2 now since he is still in the age bracket where the gov't gives grants. That will last until Dec 31, 2014, I believe.
I wanted to see if I should add to the money I put in each month, since I have a bit extra now that the vehicle loan is paid off. I had talked about this HERE when I was redoing my budget. I had $300 extra per month I could contribute.
The agent and I went through the fine print and there is a cap the govt allows you to contribute each year without penalty. The $200 a month will put me close to that. I can go in to the bank in December, see what is legally left in contribution room and top it up to that amount. So that is what I shall do.
In the meantime, I have $300 extra per month starting at the end of July. It needs a home. So right now, it's home will be towards savings goals. That may change in the fall when school starts back up. I am not sure what it will cost me to support DS1's Junior A hockey.
Boy there are a lot of details to money :-)
Today in Happier News...
12 hours ago
5 comments:
That's great that you're doing that, they are lucky to have your support!
Are you planning on snowballing any of your $300 toward the LOC?
good question LBC - I thought about that idea quite a bit yesterday. I decided that I need to get that $1500 Back to School done using July's paycheque and then I can start putting a bit more on the LOC to whittle it down.
Back to school fund then line of credit, great plan!
*I* would feather the nest instead of killing the line of credit. Because of my injury I now have full appreciation for a big emergency fund (haven't had to use knock on wood) but if everything fell apart, disability pay is terrible. When your savings are at a level that you are very comfortable with... Then full force on the LOC. Money is such a painful necessity!
Lotto max is 50 million this weekend...... wish me luck (kidding, I don't think I've spent 10 bucks in my life on lotto!)
very wise words B-Kat. I would wish you luck but I got a ticket too from a student But we could split the 50 if you like :-)
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