Many retirees plan to pass down their wealth someday. For Robert, that didn’t feel like the right approach. His children were already financially stable, and he wanted to make a meaningful difference in his grandchildren’s lives while he was still here.
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Their Situation
Robert was a wise and forward-thinking retiree living in a small Canadian town. He had worked hard, saved consistently, and built a comfortable nest egg for his family’s future.
As he watched his children grow older, he realized they were doing well on their own. The traditional idea of waiting to pass down an inheritance no longer felt as meaningful. Robert began to wonder if his wealth could have a greater impact by supporting his grandchildren today instead of many years down the road.
What He Did
Opened an RESP for Each Grandchild
Robert decided to open an education savings account for each grandchild on their first birthday. He saw how the rising cost of post-secondary education was becoming a major burden for young adults.
By contributing to their RESPs, he could help them avoid student debt. He also took advantage of the Canada Education Savings Grant, which added a 20 percent match to his contributions. With tax-deferred growth, this would give each grandchild a strong foundation to pursue their education, while easing the financial stress on their parents.
Shared Financial Lessons Early On
As his grandchildren got older and started their first summer jobs, Robert saw another opportunity to support them this time with knowledge.
He knew that personal finance wasn’t well-covered in school. To bridge that gap, he began sharing his own experiences and lessons. He recommended classic books like The Wealthy Barber and The Millionaire Next Door to spark their interest. He understood it wouldn’t be easy to compete with video games and social media, but he believed these lessons would help them in the long run.
Helped with a Down Payment or Mortgage
Once his grandkids were adults and starting their careers, Robert saw how difficult it had become to buy a home. He wanted to help them build equity rather than spend years renting.
He decided to contribute toward their down payments. For those who already owned homes, he helped with mortgage payments to reduce the burden of high interest rates. That freed up cash flow they could use for childcare or even building their own retirement savings.
Why It Worked
Robert was able to do all this because he had a clear understanding of his own retirement plan. He knew what he needed to spend, how his portfolio was structured, and how much flexibility he had to give while still feeling secure.
It wasn’t always easy. There were difficult market days and times of uncertainty. But having a plan allowed him to stay the course and make a meaningful impact on his family’s future.
Final Thoughts
If you’re a grandparent thinking about how to support your family, you don’t always have to wait until later. If you need any guidance visit our website and book an appointment with us.
