A Meaningful Way for Grandparents to Pass Down Their Wealth

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.

Prefer to watch the video?

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.

Click here to book a free consultation with our team.

Watch the full video breakdown here.

Marc Sabourin is a Winnipeg-based Financial Advisor and Retirement Specialist with Harbourfront Wealth Management. His specialty is working with pre-retirees and retirees who are looking for retirement, investment, & tax advice. 

Disclaimer: The views expressed are those of Marc Sabourin, Certified Financial Planner, and Investment Advisor, and not necessarily those of Harbourfront Wealth Management Inc., a member of the Canadian Investor Protection Fund

SUBSCRIBE TO GET WEEKLY UPDATES

Get expert retirement insights straight to your inbox

20 Retirement Tips

When entering retirement or having recently retired, these 20 tips should be considered. A thorough retirement plan will touch on all 20.

Drastically change the lookout of your retirement

Get your guide below

Name