differences between the plans
Every plans are different and every life situation is different - this is not a cookie cutter approach process! Each plan below serves a different purpose and according to what you are looking to create for your kids, your plan selection will vary. We are here to show you the many avenues and let you make an educated decision which fits best!
This is why, it is important to speak to one of our Money Mama advisors and let them guide you through a fully customized and tailed plan to set you kids' financial path for success and give them a head start.
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differences between the plans
Headstart Plan
Headstart™ uses a Participating Whole Life (WL) or a Universal Life (UL) insurance plan to build some tax-sheltered money (called Cash Value). The beauty of these plans is that you don’t have to contribute for life!
RESPs Plan
A RESP (Registered Education Savings Plan) is a plan provided by the government where parents can contribute up to a max of $50K for the lifetime of the plan and then collect a 20% grant on their contributions up to a max of $7,200. The money can be used for post-secondary education, and your child is the annuitant.
Real Estate
Investing in a Real Estate property is, in my opinion, one of the best ways to gain financial stability as you have someone paying a portion of your mortgage, if not all, depending on where you are located, and get to accumulate the equity over the years which you can, in return, leverage back to pay for your kids’ education. One obstacle is the initial down payment required. With the Headstart™ Plan, you also build wealth without having to output a huge amount to get in.
Stocks
Are when you purchase shares of a specific company. Owning shares in a tax-sheltered environment is the most advantageous way to grow your wealth without having to pay taxes. There is no such account as a TFSA (tax-free saving account) for the child(ren), unfortunately, unless you use some of your TFSA room.
More about the Headstart Plan
There are a few differences between the plans.
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