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Your retirement could stretch out for many years. According to Statistics Canada, the number of people aged 100 and over will increase nine-fold between 2013 and 2063. All the more reason to start planning now for a lengthy retirement.
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Have you ever thought of enrolling your children in private school? If you have, you’re in good company; enrollment in private school education has increased in almost every province. In recent years, the number of children attending private schools has risen by approximately 17 percent, while the number of children attending public schools has decreased by about 8 percent.*
While you’re considering a private school education for your children, here are a couple facts you should keep in mind--particularly with respect to saving and planning for private school. You should know the cost The cost associated with private schools depends on several variables, including the school type and the program on offer. The most expensive are boarding programs, where tuition includes the cost of room and board. The Council of Ministers of Education, Canada (CMEC), states that tuition and boarding fees for private schools can range from $30,000 to $60,000 per year (private schools located in large cities tend to fall within the high end of the range). Private schools with faith-based missions usually have lower fees, and you will probably pay less in tuition while your child is enrolled in the lower grades. It’s a good idea to be mindful of the fact that tuition can rise every year and does not necessarily include such expenses as transportation, uniforms, books, lunches and laptops. There are many private schools that offer financial assistance, whether in the form of merit-based scholarships or a need-based bursary. You should check to see if your child is eligible for those programs. In addition, if you enroll more than one child at a school, you may qualify for a tuition discount. Know how to pay for it One of the most advantageous ways to pay for a private school education is to plan for the expense ahead of time by saving. A Tax-Free Savings Account (TFSA) is one of the best methods to save, since any earned income is not taxed, and there are no restrictions on the withdrawals: you are permitted to take out as much as you want, whenever you want, with no repayment or tax obligations. However, if you want to grow your TFSA as much as possible, you should start early, even while your child is still very young, and contribute the maximum amount per year, so that you have the longest possible time to save and will receive the largest benefit from compound growth. In addition, you are allowed to use financial gifts from family members--for example, a wedding gift from your relatives--to grow the TFSA through contributions. There are a number of options for selecting a TFSA investment type, including mutual funds, cash, bonds, individual securities, certain shares of small business organizations and guaranteed investment certificates (GICs). To ensure that you get the most benefit out of your TFSA and other savings, whether for your child’s private school education or for your other financial aims and life goals, the best place to start is with a consultation with your professional advisor. *http://www.cbc.ca/news/canada/calgary/private-schools-fraser-institute-enrolment-increase-1.3258743 This is a general source of information only. It is not intended to provide personalized tax, legal or investment advice, and is not intended as a solicitation to purchase securities. Dwayne Rettinger is solely responsible for its content. For more information on this topic or any other financial matter, please contact an Investors Group Consultant. |