"Education is the most powerful weapon which you can use to change the world."

— Nelson Mandela

For many, especially those with school-age kids and grandkids, these are the last few weeks to savour summer. Soon enough, school will be back in session and life returns to its normal, hectic cadence. For a small group, it’s the start of an entirely new chapter — post-secondary education, which in hindsight is a short but enormously influential stretch of our lives.

Before we get to that, a word on what’s been driving the headlines this month

Markets: Steadier Than the Headlines

Talks between Canada and the U.S. broke down in recent days, and new 50% tariffs took effect on roughly 5% of Canada’s exports. Ottawa is matching them dollar for dollar on more than 700 American products starting September 8, with support pledged for the Canadian businesses and workers most exposed.

Markets, so far, have taken it in stride: the TSX gained ground the day the tariffs hit, helped by a gold rally and strong third-quarter bank earnings. The impact has stayed contained rather than the shock the headlines suggest — though there’s room for this to escalate further if talks don’t resume.

While some businesses and workers directly affected face meaningful challenges, our overall view is that the broader economic effect, while negative, will likely stay muted. Helped by earnings growth that has remained strong on both sides of the border, we expect positive economic growth in both Canada and the U.S. this year and next.

Back to School: A Generational Gift

In 1974, the federal government launched the Registered Education Savings Plan to help Canadians save for their children’s post-secondary education. It started slowly and didn’t really take off until 1998, when Ottawa introduced the Canada Education Savings Grant (CESG) to bolster the savings — today, the government matches 20% of the first $2,500 contributed annually. Roughly 43% of Canadian parents now hold a RESP for their kids.

Longtime readers will remember our newsletter on Die with Zero, Bill Perkins’s argument that money does more for the people we love while we’re alive to see them use it than it does sitting in an estate. We’ve watched that idea take hold with more of our clients this year — a growing number of grandparents are funding RESPs directly, using the account as a deliberate, tax-efficient way to move wealth to grandchildren. The same thinking extends to anyone who might otherwise appear in your estate — nieces, nephews, godchildren — since any of them can be named as a RESP beneficiary. The grants and growth come out taxed in the student’s hands, typically at close to zero, rather than in yours.

Accessing the RESP Funds

Once a beneficiary is registered in a qualifying educational program, the RESP can be accessed. Funds come out in two parts: a return of the original contributions, which is tax-free, and a taxable portion made up of grants and growth. By design, that
taxable portion is taxed in the beneficiary’s hands.

What we’ll need to release the funds:

Proof of enrolment — either of two documents works:

1. A proof of enrolment letter from the registrar’s office, or printed from the school’s website on letterhead or with the school’s logo, declaring full-time or part-time status and current enrolment.
2. An invoice or receipt from the registrar’s office, on school letterhead, showing full-time or part-time status, semester or course length, number of courses, and tuition payable.

A withdrawal form — our team is happy to prepare this for the subscriber (account holder) to sign; we’ll need your banking details for the deposit.

RESPs carry plenty of fine print, and the rules shift depending on enrolment status — full-time versus part-time, first semester versus later ones, and any breaks along the way — so it’s worth a call before initiating a withdrawal rather than after.

If you’d like to talk through your own RESP, or you’re considering starting one for a grandchild, let us know. Enjoy the rest of summer, and all the best with the semester ahead.

A Note on Our Team

We’re pleased to share that Santiago Frias has been promoted to Client Associate, a role that reflects his new registration and allows him to begin trading in client accounts. It’s a well-earned step, and you’ll be hearing more from Santiago as he takes on a larger part in supporting our trading activities.

Warmest regards,

Moore-Miller Investment Group