As explained in our guide to RESPs, the Registered Education Savings Plan is Canada’s most advantageous savings vehicle for your child’s post-secondary education. In fact, this savings account allows you to obtain tax benefits and government grants, as well as invest in a tax-deferred plan. In this article, we introduce you to the Embark Student Plan offered by one of Canada’s largest RESP companies: Embark.
Embark Student Corp. (Embark) is a Canadian RESP management company dedicated to education savings and planning. It is the largest RESP company in Canada with over 600,000 students. Every year, it helps approximately 60,000 young people pursue post-secondary education using an RESP.
To date, Embark has paid out $8.2 billion to students from their education savings plans. It currently has $6.1 billion in assets under management.
Embark is registered as a scholarship plan broker across Canada. It is a subsidiary of Embark Student Foundation, an authorized promoter of RESPs at the federal level (to obtain the CESG and CLB grant, where applicable) and in Quebec (to obtain the QESI grant – for Quebec residents only).
Embark offers an education savings account, Embark Student Plan, as a group plan. It also offers RESP planning and management services.
In the Embark Student Plan, savings are invested in several different types of investments, depending on the child’s age and the length of time before high school graduation. In the early years, investments will tend to focus on growth. Over time, the mix of investments will change and become increasingly conservative to help secure savings as your child approaches post-secondary education.
A group plan is a type of RESP in which your money is pooled with several subscribers. The amount your child receives depends on several factors. Group RESPs generally have more restrictions and higher fees than an individual or family plan RESP opened at a bank. But the group plan does have its advantages. In fact, it can be less stressful for many parents to choose this type of plan. All you have to do is set an amount to save in the RESP and let the company manage the investments and rebalancing of the funds.
To save in the Embark Student Plan, you have a number of options, such as automatic contributions (scheduling automatic withdrawals or recurring bill payments) and lump-sum contributions (when you have extra funds available).
Like most investments, contributions to the Embark Student Plan are not guaranteed. It is also possible to transfer and/or merge old education savings plans into the new Embark Student Plan.
The Embark Student Plan’s management expense ratio (MER) is 1.65% per year, plus taxes. Specifically, a fee of $16.50 per $1,000 invested in the plan is charged, plus applicable taxes.
Of course, these fees are deducted from the returns generated by the plan. However, if the return is insufficient, the fees will be deducted from the contributions. For more information, please consult the Embark Student Plan prospectus.
Management fees are used to pay costs related to investments, the plan (management, operation and administration of the plan) and the trustee.
Opening an RESP account with Embark is easy. In fact, you can open an Embark Student Plan in 10 minutes online with their digital platform. If you’d prefer to talk to an expert, you can make an appointment by phone. Service is available in English and French.
Make sure you have your social insurance number and your child’s.
Once you have registered for the Embark Student Plan, you will have access to the digital investment platform. This secure platform will enable you to manage your savings and obtain customized guidance. In addition to access to your documents, account statements and tax slips.
You have several options for contacting Embark customer service. In particular:
You can also make an appointment with one of Embark’s education savings specialists.
In short, Embark is one of the largest RESP companies in Canada. It offers an education savings account, the Embark Student Plan, in the form of a group plan. It also offers RESP planning and management services. Don’t hesitate to contact one of their education savings specialists to find out if their service offering is right for you. To find out more, visit their website: embark.ca.
With or without Embark, don’t forget that the Registered Education Savings Plan (RESP) is the most advantageous savings vehicle in Canada for your child’s post-secondary education.
Embark is a Canadian company specializing in RESP savings and planning. It is one of the largest RESP companies in Canada, with $6.1 billion in assets under management. Every year, it helps approximately 60,000 young people pursue post-secondary education using an RESP.
You can speak with an Embark Education Saving Specialist by phone (1-800-363-7377) or e-mail (contact@embark.ca). What’s more, you can book a telephone appointment at a time that suits you.
Savings are here:
