Finance your education
Whether you're looking to update your skills or get a fresh start, the RRSP and TFSA can help you reach your goal.
Going back to school requires solid financial planning
There are many good reasons that might motivate you to make a career change or go back to school. What are your interests? Are there any industries with interesting employment prospects right now? By answering these questions, you'll be on your way to figuring out what type of training will allow you to reach your goals.
Saving in an RRSP to go back to school
An RRSP can help you save the money you'll need to go back to school through the Lifelong Learning Plan (LLP). Accordingly, you'll be able to use your savings today to change careers, upgrade your skills, or go back to school after retirement.
The LLP lets you withdraw money from your RRSP to finance full-time studies for either you or your spouse, without having to pay tax.
Like the HBP, the LLP is like an interest-free loan you give to yourself. The program allows you to withdraw a maximum of $10,000 per year, up to a threshold of $20,000 over four years. The amount is repayable over a 10-year period at a minimum annual rate of 10% of the amount withdrawn.
You must meet the following criteria to be eligible for the LLP:
- Have an RRSP
- Be a Canadian resident
- Be enrolled in a qualifying educational program or have received a letter of acceptance by March of the following year
- Be considered a full-time student at a designated or certified educational institution
- Be enrolled in a program that requires a minimum of 10 hours of instruction or work each week, for a minimum of three consecutive months
This applies to CEGEPs, universities, and many technical and vocational schools.
Go back to school faster thanks to the RRSP+ with the Fonds
In addition to RRSP deductions, the RRSP+ with the Fonds gives you an additional 30% in tax savings.1 If you reinvest these savings in your RRSP+, you'll reach your savings goal much faster.
Keep in mind that in order to be eligible to redeem your shares within the authorized limits, you must have held these Fonds shares for more than two years. Shares purchased after you resumed your studies cannot be redeemed under this criterion.
When you're ready to start the process, contact one of our Saving Services agents. They will be able to answer any questions you may have and send you the documentation you need. Call 1-800-567-3663 or visit our FAQ section for additional information.
Use your RRSP with FlexiFonds to go back to school
In addition providing you with all the tax benefits of an RRSP, the RRSP with FlexiFonds offers you the following:
- Three mutual funds with a strong focus on Québec
- Personalized, objective support from our FlexiFonds mutual fund advisors
- Access to your money when you need it
Keep in mind that, although you can withdraw your money whenever you want, the funds must have been held in your RRSP for at least 90 days to be eligible for the LLP.
The TFSA with FlexiFonds: A fantastic tool to help you go back to school
Because the TFSA allows your savings to grow tax-free, you won't pay taxes on the money you withdraw when you need it. This is extremely practical if you want to go back to school.
Most frequently asked questions
Ready to start saving to go back to school?
The Fonds de solidarité FTQ's shareholders will receive 15% in tax credits from the Québec government and 15% from the federal government. They are capped at $1,500 per fiscal year, which represents a $5,000 purchase of shares of the Fonds de solidarité FTQ.
Please read the prospectus before buying Fonds de solidarité FTQ shares. Copies of the prospectus may be obtained on the Website fondsftq.com, from a local representative or at the offices of the Fonds de solidarité FTQ. The indicated rates of return are the historical annual compounded total returns including changes in share value and reinvestment of all dividends and do not take into account income taxes payable by any security holder that would have reduced returns. The shares of the Fonds de solidarité FTQ are not guaranteed, their value changes and past performance may not be repeated.
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FlexiFonds de solidarité FTQ Inc.
The units of the FlexiFonds funds are distributed solely in Québec by FlexiFonds de solidarité FTQ inc., a mutual fund dealer wholly owned by the Fonds de solidarité FTQ. FlexiFonds de solidarité FTQ inc. does not distribute the units of any other mutual funds. Management fees and other expenses may be associated with mutual fund investments. Please consult your advisor and read the prospectus and the fund facts documents before making an investment. The FlexiFonds funds are not guaranteed, their values change frequently, and past performance may not be repeated.
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