How to manage your Flex First Plan
Flex First is an individual plan that provides many flexible options. It is easy to make changes to your total contribution goal and schedule with the Flex First plan, as well as you earn a loyalty bonus along the way. With the Flex First plan, you choose the amounts and timing of your Education Assistance Payments. Whenever you want to increase or decrease your contribution goal or alter the timing of your contributions, we can make those adjustments for you.
Total Contribution Goal (TCG)
The Total Contribution Goal (TCG) is the total contributions you intend to make over the life of your Flex First Plan based on a dollar amount. Your TCG was established at the beginning of the plan when it was set up with your Sales Representative. You may want to increase your Total Contribution Goal if your financial situation has changed and you can afford to make additional contributions towards a higher goal. Or your TCG amount can be decreased if you need to contribute a lower amount than originally established. In either case, the sales charge is adjusted according to the new contribution goal.
Your contribution schedule
When you set up your Flex First Plan, you determined how much and how often you would make contributions. These contributions can be based on the following schedule: bi-weekly, semi-monthly or monthly through pre-authorized deposits. Annual deposits can be done by cheque. This schedule can be changed at any time if your needs have changed. With the Flex First Plan, the choice is always yours.
Accelerating your Contribution Goal
With the Flex First Plan, increasing the amounts and timing of your contributions can help you reach your Total Contribution Goal faster. Or consider adding lump-sum or ad hoc contributions to your plan, which can be done by cheque. This gives you the flexibility to direct additional money, such a work bonuses or gift money, to reach your Total Contribution Goal faster. Even a small increase in your contributions can make a big difference in the savings available for your child ten or more years in the future.
Reviewing your Flex First Plan
Your Flex First Plan is an investment in your child’s future. Like any financial plan, it’s a good idea to revisit your goal once a year. A good time to do this is when you receive your annual statement of account, which includes the balances for each component of your plan, your transaction details and the status of your government grant applications. Your statement will be based on a 12 month period from the anniversary of the day you started your plan. The Statement of Account includes an illustration of potential funds available and is great tool to see how you are progressing towards your education savings goal.
How to Read Your Flex First Plan Statement
Your Flex First plan may be eligible to earn a loyalty bonus that will accumulate on behalf of your plan. The calculation of this bonus is based on a percentage of the total amount of Net Contributions that were in your plan at the beginning of the calendar month less any contribution withdrawals you may have made during that month. If you earn a loyalty bonus, the percentage will be no less than 0.66%, per year, expressed as a monthly nominal annualized rate, or 0.66% divided by 12, per month. You can see your accumulated loyalty bonus as an item on your annual statement of account.
Keep us in the know
Let us know about important changes in your life – like starting a new job or moving into a new home. Keeping us informed will help us find ways to make sure you’re getting the most out of your RESP. To update your account information, contact our Customer Service team or complete and send us a Customer Update Form.