2026 August Newsletter - Back-to-School Planning: RESP Reminders and What's Ahead

 

 

Back-to-School Planning: RESP Reminders and What's Ahead

 

With the school year approaching and the second half of the year underway, August is a timely opportunity to review education savings, registered account activity, and upcoming changes to investment cost reporting as part of your broader financial planning.

 

This month, we share Registered Education Savings Plan (RESP) withdrawal reminders for families supporting students, along with Total Cost Reporting (TCR), an upcoming change designed to provide clearer cost information on client statements.

 

1. RESP Withdrawals: A Back-to-School Reminder

If your child or grandchild will be attending post-secondary education this fall, August is a good time to review RESP withdrawal requirements.

• RESP funds can generally be withdrawn for education-related costs once the beneficiary is enrolled in a qualifying post-secondary program.
• To help avoid delays, please prepare proof of enrollment and contact us in advance for the required withdrawal form.
• Contributions withdrawn as Post-Secondary Education payments are generally not taxable, while Educational Assistance Payments are generally taxable to the student. Individual tax implications will vary based on personal circumstances.
   

Please contact us if you would like to request a withdrawal.

 

2. Understanding Total Cost Reporting (TCR)

Total Cost Reporting (TCR), also known as Client Relationship Model Phase 3 ("CRM3"), is a new Canadian regulatory requirement designed to enhance transparency of investment fund costs. TCR introduces changes to the annual charges and compensation report by including the embedded costs of investment products in both dollar terms and percentage terms.

 

What to expect:

• CRM3 / TCR came into effect on January 1, 2026, with enhanced client statement reporting.
• Clients will receive notices about CRM3 / TCR with their October 2026 statement, a guide to the new statement format with their December 2026 statement, and their first enhanced statement with additional cost information in January 2027, based on the December 2026 statement period.
• These enhanced statements are intended to make existing investment costs easier to understand; they do not mean new fees are being introduced.
   

As more information becomes available on client statements, you may have questions about pricing, performance, and overall value. We welcome these conversations and can review the information in the context of your long-term goals, portfolio construction, risk management, and broader wealth strategy. You may also visit the TD Asset Management website to learn more about Total Cost Reporting.

 

Wealth Perspectives

Here are a few articles and insights you may find helpful this month. Click here to read more articles.

 

• Monthly Portfolio Outlook | July 2026
  Market Perspectives + 10 Minutes = Current Insights
  A monthly update of the outlook from WAAC including the strategic and dynamic asset-class weights by investor profile as determined by the Wealth Investment Policy Committee.
• Assisted reproduction and estate planning: 3 key considerations
  TD Wealth's Monique Shebbeare on why it's important for individuals looking into fertility options to have complete and updated estate documents.
• Wave of AI bond sales comes to Canada: What it means for investors
  The buildout of AI has led to record-setting bond issuances in Canada, which is causing some "indigestion" in the markets and impacting more traditional issuers says Benjamin Chim, Head of Credit with TD Asset Management. 
   

Useful Tips

1. Use Extra Caution: Phishing Scams and Added Protection

Phishing emails and text messages may appear to come from TD in an attempt to collect personal information. TD would never ask clients to complete tax forms through email or text links. Here are some useful tips:

• Watch for red flags, such as urgent requests, suspicious sender addresses, unusual links, or messages asking for confidential information.
• Do not click suspicious links or respond to unexpected messages.
  Report phishing attempts by forwarding the email or sending a screenshot of the text message to phishing@td.com.
• Consider adding a Trusted Contact Person (TCP), which is someone we may contact only in specific situations, such as concerns about fraud or difficulty reaching you. Please contact us if you would like to add a TCP to your account.
   

2. How to Check Your Contribution & Withdrawal Totals

Keeping track of your contributions and withdrawals can help ensure you stay within limits and avoid unexpected tax implications. You can review these details in your monthly statements. Your contributions and withdrawals year-to-date totals are shown at the end of the statement.

 

If you would like to schedule a mid-year check-in or annual review, simply contact us and I would be pleased to connect with you.