Timely template letter: Back to school, forward to RESP savings

(September 2003) A recent Statistics Canada survey showed that nearly 90% of Canadians want their children to attend university or college. Unfortunately, the same survey showed that only 40% of parents have actually started setting money aside for post-secondary education (a recent Ipsos-Reid poll conducted for Scotiabank had similar findings). Use this customizable template letter to introduce and highlight the benefits of an RESP with your clients and prospects:

Dear [Client/Prospect name]

It’s September and the kids are back at school. Although you may have purchased new clothes and supplies to help them start their academic year, are you prepared for the day when your children actually finish high school?

A recent Statistics Canada survey showed that nearly 90% of Canadians want their children to attend university or college. Unfortunately, the same survey showed that only 40% of parents have actually started setting money aside for post-secondary education (a recent Ipsos-Reid poll conducted for Scotiabank had similar findings). Due to rising tuition fees, you may need to set aside more money than you had counted on.

According to Human Resources and Development Canada, a child born today can expect to pay about $85,000 for a four-year undergraduate degree. If your son or daughter wants to enter one of the professions — such as medicine or law — that number could be even higher. Tuition at Queen’s University’s medical school has already risen 300% over the past five years to just under $12,000 per year, while the University of Toronto law school plans to increase its yearly fees to $22,000 by 2006.

The good news is that there are specialized savings plans available to help you deal with this coming cash crunch. A registered education savings plan (RESP) could allow you to place up to $42,000 per child in a tax shelter, and also receive an additional $7,200 in grant money from the government!

If you’d like to learn more about how this kind of plan could work for you, please don’t hesitate to contact me at the number above.

Sincerely,

[Your signature]

[Your name]

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.