Tackling the RESP Withdrawal Hurdles

Now we're going to talk about that withdrawal stage. So the withdrawal stage comes from. Well, if it meets the approved usage. So there's three options. You can withdraw it at any point in time. Of course you're going to face potentially penalties which is not really actually disclosed to you up front. Then there's the approved usage of it, which is where it meets qualification. And then there's the last one where it doesn't meet qualification and there's no usage of it. So there's kind of three routes on that end stage which most people are actually not talked about right at the beginning before they enter into it. The focus is do this right now, be responsible and get this and you're going to get insight incentivized by the government grant. But they don't talk about the end stage component of it. So this is where there's a withdrawal stage. If you withdraw the gains in the portfolios, there's a tax on that. If you are withdrawing it before the eligibility period and there's also a penalty involved.