Rob Kimball, B.A., CSA, RHUFinancial Advisor September 2007

Hi-ho, hi-hoIt’s Offto School They Go

Post-Secondary Education Start planning and saving

Several options

Regardless of budget

How Much Does aPost-Secondary Education

Cost?

Resources Websites of schools of

interest

Education Cost Calculator www.canlearn.ca

Financing YourChildren’s Dream

Cost of obtaining a degree has risen by 180% since 1990/91Source: “Average Cost for Undergraduate Fees”, CAUT Education Review, Vol. 5, No. 1, 2003

Tuition $6,000

Fees (athletic, health services, student association and other)

$1,000

Residence with meal plan $5,000

Books and supplies $1,000

Technology (laptop, cell phone) $1,500

Transportation (public) $800

Pocket money ($50/week) $1,600

Total $16,900

Estimated Annual Cost of University

All costs are averaged across all provinces and rounded to the nearest hundred, based on a 32-week school year.

One way to save is toInvest in RESPs

What are RESPs? Savings plan registered with Canada

Revenue Agency Not tax deductible Some tax benefits

Income is tax-deferred Beneficiary is taxed when savings

are withdrawn Often, little or no tax payable

RESPs and Taxes

New Voluntary Benefit

As a new voluntary benefit available to employees of Hamilton Health Sciences, we are pleased to allow you the opportunity to contribute to your children’s education through payroll deduction. Contributions are 100% employee paid.

Deductions will begin October 17th and thereafter, the first of each month.

Payroll deduction

Anyone can contribute to a RESP

Maximum is $2500 per year that the Government will match with 20% (per child)

One year of unused contributions can carry forward and be eligible for grant

Maximum contribution is $50,000 (per child)

Maximums apply to beneficiary

RESP Contributions

CESGCanada Education Savings Grant

Contributions of 20% on the first $2,500 each year (per child)

Maximum of $500 per year, but one year of unused contributions are also eligible for the grant

Available until age 18

Maximum of $7,200

CESG room carries forward

A social insurance number is required for each child

Income is tax-sheltered Contributions are after-tax dollars Principal is tax-free

Faster Growth

Transferable to another child*

Transfer RESP income into RRSP Tax-free if sufficient room Maximum of $50,000†

*Provided certain conditions are met.

†Government of Canada

…And If the Child Doesn’t Use It

Additional Sources for Funding

Child works part-time during school

Co-op program

Pursue Scholarships $200 million

distributed annually

Value from $100 to $19,000

70% go to first-year studentsSource: Maclean’s Guide to Canadian Universities, 2006, page 174

ScholarshipsTwo Categories

High-Ranking Academic Students Entering into a program or after completion Community services may be considered

Need-to-apply Offered by corporations, charities,

governments, private philanthropists Thousands available

Surf the Internet www.ScholarshipsCanada.com

Customize your search

Over 7,000 listings of scholarships, bursaries and awards

Resourceswww.scholarshipscanada.com

www.aucc.ca/scholarships/open_e.html

www.millenniumscholarships.ca

www.studentawards.com

www.schoolfinder.com

www.canlearn.ca

www.canadian-universities.net

Motivation toContinue Learning

Diploma Pays Dividends Graduates can expect to

earn 12 – 20% more than non-graduates

Source: McLeans Guide to Canadian Universities, 2006, page 46

Important Notes

The commentary in this presentation is for general information only and should not be considered investment or tax service to any party. Individuals should seek the advice of professionals to ensure that any action taken with respect to this information is appropriate to their specific situation.

Plan Details• RESPs are offered through Fidelity

Investments• Contributions are made monthly – minimum

of $25/mth up to lifetime maximum of $50,000

• Voluntary lump sum contributions can be made at anytime

• Amounts can be changed, postponed or stopped at anytime

• Detailed statements sent to your home • On-line access to your account

Rob Kimball is an Account Representative sponsored by Manulife Securities International Ltd., a Mutual Fund Dealer. Please note the following: Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the fund’s simplified prospectus before investing. Mutual Fund Securities are not guaranteed. Their values change frequently and past performance may not be repeated. This is intended for use by residents of the Province of Ontario. Manulife Securities and the block design are registered service marks and trademarks of The Manufacturers Life Insurance Company and are used by it and its affiliates including Manulife Financial Corporation.

How to obtain a Social Insurance Number

Visit government website at:http://www1.servicecanada.gc.ca/en/cs/sin/010.shtml

Download application and take it, along with original birth certificate to your local Service Canada Centre

You should receive your child’s card in the mail in approximately 3 weeks

For additional one-on-one advice please contact:

Rob Kimballrob@selectpath.ca | (888)327-5777 | www.selectpath.ca

Services include: Investment Management

RRSP’s, and Non-Registered Accounts

Insurance Life, Mortgage Insurance, Critical Illness Coverage and Long Term Disability