Monthly Archive: October 2018

Notes on Withdrawing Funds from RESPs

When the RESP beneficiary (the child) is ready to attend post-secondary education, you can easily start withdrawing money from the account, though there are important notes to remember to a provider like heritage education funds RESP.

Before we dig deeper into this topic, it’s important to clarify some terms in relation to RESP accounts.
• Contribution Amount – this refers to the total amount of all the contribution you made to the account through the years.
• Accumulated Income – this refers to the combined grants, capital gains, interests, and dividends, among others, earned in the account. Basically, any money other than contributions falls under this category.

Why is the distinction important?
Differentiating between the two terms is important largely because of tax considerations:
• Contribution withdrawals are NOT taxed.
• Educational assistance payments (EAPs), which come from the accumulated income portion of the plan, are taxed as income under the student’s name.
Students who receive funds from RESPs should claim their EAPs as income. However, depending on individual circumstances, they may not be required to pay any income tax on this amount. You must consult with your RESP provider about such taxation rules and ask for a T4A slip for such purposes.

You also have to consider the limit on the amount you can withdraw from each portion:
• Contribution: no cap on the amount you can withdraw once the child is attending post-secondary school.
• Accumulated Income: Only $5,000 can be withdrawn from this portion of the RESP in the first 13 weeks of school. After the 13 weeks, the limit is removed.

Required Documents for Withdrawal Requests
Upon withdrawal request, your heritage RESP provider will seek official proof of enrollment before they issue EAPs. Thus, you must ensure your child is attending an approved post-secondary school.
You might also have to provide some receipts for school purchases for the heritage RESP provider to decide if the money is spent on allowable educational expenses. They will also decide what is considered as “reasonable expense,” or those that can be paid for with the savings.

Timing the Withdrawal
It’s wise to withdraw as much accumulated income as you can tax free.
Let’s say the child has just started going to post-secondary school, only finishing up around two months. The student probably won’t have much income for the year, making it a good time to maximize the payments from the accumulated income part of the heritage RESP plan.
On the flip side, if the student has more than one work term and just one school term in a year, it’s better to withdraw from the contributions portion of the plan.

And if the child doesn’t go to school…
You will have to wait a little longer before collapsing the RESP and paying some serious taxes. The account remains open for as long as 35 years after you opened it. You can hope the beneficiary changes his or her mind about not going to school. Perhaps you can still use the RESP later on.
If you decide to collapse the plan, the accumulate income will be added on your gross income for taxation purposes. Aside from that, the accumulated income will suffer a 20% tax. The contribution amount, however, is not taxed.

7 Powerful Writing Tools for Crafting SEO Optimized Content

Writing content for your blog? While what you have to say is important, it is equally important for your audience to be able to find the content.  This is why you need to optimize your content for SEO. After all, it’s no use having exemplary content when no one actually sees it. Here are some SEO article writing tools to help you create SEO optimized content.

1.      Hemingway App

Your content should be simple, concise, and readable since people have very short attention spans. Not many people will read your content if it is too complicated and long. The Hemmingway app can help improve your writing since it provides a color-coded list of errors and recommended improvements. It will catch grammar errors, run on sentences, and spelling mistakes. It will also provide a grade on the readability level of your content. When your content is clear and to the point, it becomes easier to hold the interest of your reader.

2.      PaperRater

This is one of the most comprehensive and powerful online proofreaders available. You get grammar, plagiarism, and spelling checks immediately. This is achieved by running the content through cloud-based software. This is one of the best SEO article writing tools you can have in your arsenal.

3.      Keyword WordStream

You’ll need to use the right keywords and use them in the right way. Overuse of keywords is a red flag for most search engines. This is why you need to find the right balance.  Keyword WordStream allows users to find new relevant keywords for your niche. You’ll also get a competition score, opportunity score and estimated CPC to help optimize your campaigns. While it is a paid tool, you get 10 free searches the first time out and a free search per day thereafter. You can also get help with your keywords at an SEO agency Toronto where a professional will guide you through the process.

4.      Read-Able

It’s difficult to connect with your audience if your writing style has flaws. This will lead to an increase in bounce rate and low traffic numbers. Use Read-Able to check the readability of your content. You can either post a link to the content or paste it into Read-Able.

5.      Language Tool

This is an open source proofreading tool that is available in more than 20 languages. You get color-coded readings of any errors in your content. You simply need to paste your content into the text-box provided. You can select a language of your choice before the proofreading is done. This is one of the SEO article writing tools that’s available for free.

6.      Keyword Density Checker

Keyword density is still an important metric to consider in your content. Having a keyword density that’s too high might get your content flagged as spam by search engines. Run your content through the keyword density checker before publishing it to make sure you have a keyword density of less than 1%.

7.      Ginger

This is a nifty little tool that helps catch those pesky grammar errors you’re likely to miss in one fell swoop. Ginger offers free spell and grammar check and also comes with a premium online proofreading tool.

For more tips on making the most of your content, talk to a professional at


7 Most Important Ranking Factors in SEO

If you are the owner or manager of a website, finding ways to generate traffic is very important. One of the best ways today that you can get more visitors to our website is through search engine optimization. When you are looking to improve your SEO ranking with the major search engines, it is important to understand the factors that drive the rankings. There are several factors in particular that impact your SEO ranking.

1. Content Quality

quality content

The most important component of the overall SEO website ranking process is the quality of your content. The major search engines want to make sure that you have quality content filled throughout your website. If you have a content that is full of errors or is not deemed to be of the highest quality, it will have a very negative impact on your overall website ranking.

2. Broken Links

When you are developing a website, it is very natural to add links into it that will link to other websites. However, you need to make sure that these links continue to be active and are working properly. If there are many broken links on your website, it will have a negative affect on your overall ranking.

3. Security


The amount of data risks and concerns that are present is higher than ever before in the history of the Internet. Because of this, all people and website managers need to make sure that they are doing everything they can to properly protect the website. When the major search engines are ranking website, they will take into account whether or not you have adequate security protocols set up.

4. Mobile Capabilities


Today, more people than ever before do the majority of their Internet searches through their phones, tablets, or other mobile devices. Because of this, having a quality website that is also capable and useful on a mobile device is very important. When the major search engines are ranking website, they will take into account whether or not your website is designed to handle mobile searches.

5. Keywords

Once you are looking for ways to improve the ranking for your website, you will need to focus on the keywords. Having the right keywords placed strategically into your website will have a major impact on where your website rakes. You should complete some keyword research to figure out which keywords would be the most optimal sets of words for your website. When hiring a professional for SEO services Toronto website owners will be assured that good keywords will be incorporated into their site.

6. User Experience

Finally, the overall user experience will have a major impact on where your website ranks with the surgeons. If you have many different users that have reported negative experiences, are frequently dropped by the website, or otherwise have issues, it will negatively affect your ratings. Because of this, you should focus on improving user experience whenever you are improving or designing a website.

7. Updates

The SEO rankings will also include how recent your websites have been updated. If you do not update anything on your website for days or weeks at a time, your website will be hurt. It is important to update it with quality content on a regular basis.