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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum

GLD 374.22

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Nov 21 4:00 PM EST

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To: abuelita who wrote (70211)	1/6/2011 3:53:17 PM
From: Cogito Ergo Sum	Read Replies (1) of 217948

rose you can own shares of central fund inside a self directed RESP.. TD for many years (why I have accounts with them) and finally BMO now have those.. pretty well same as an RRSP.. except no tax deduction ... but you get the subsidy... 20% Say you put in 2K and use it to buy CEF.. You then get the 20% subsidy up to 2K of contribution (400$) as I recall and buy more CEF :O). I have not put anything in for 8 years as they got too big :o) but I dunno if the rules have changed on that subsidy amount.. Anyway with a self directed you can buy what you like pretty well.. Only downside is that if RESP gets too big (more than post secondary education requires) or the beneficiary chooses not to go to a qualifying institution at all.. you need to piecemeal the dough out so as not to get a huge tax hit.. worse if the kid does not attend as tax burden falls on you.. if if just a case of too much you can get it out the hands of whoever has the lower tax rate.. Once the kid has finished one term of school you can take anything out and it is taxed in the kid's name.. Before the first term is completed you are limited in how much profit you can remove.. This was a problem for me (nice problem actually) as thew contributions to my daughter's RESP contributions were only 9K so I ended up temporarily out of pocket 2K for tuition and then books etc etc.. So once term one done and kid stays in school. take the money out in a balanced fashion and it his taxed in kids name.. they have lots of deductions.. I see TFSAs and maybe a second car in the near future.. bottom line. estimate your costs as time for use approaches to reduce tax planning (worrying about leftovers) .. Then again it is a good income splitting tool in my case.. so not bad either.. but get all the money out in kid's name for reduced taxes.. or have enough RRSP room left as you can transfer RESP balance tax free up to your contribution limit.. Yeah I know.. more in and outs then I thought also.. but not sorry I did it at all.. B if anything is not clear just ask.. I tossed that out in a hurry..

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