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AVOID THESE MISTAKES while investing for you child
from MARCH 2022
by Sunil Kumar
AVOID THESE MISTAKES
WHILE INVESTING FOR YOUR CHILD
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Sandeep Ahuja
We, as parents remain concerned about the bright future of our children, and we want to ensure that they receive the best education. To fulfil our dreams for our children, it’s vital that we invest for them wisely, and should avoid certain mistakes as discussed below:
Delaying the investment
RESP is a great investment opportunity which enables you to save for the education of your child. It would be better if without any delay, you start investing early as it will give your investment the maximum time to grow.
improper utilization of the available grant funDs
We are indeed lucky to be in the wonderful nation Canada where the government understands the importance of healthy growth of children, and it generously supports parents in this endeavour by providing them a tax-free Universal child care benefit. The maximum Canada child benefit you could get is $6,765 per year for children under 6, and $5,708 per year for children aged 6 to 17. Your Canada child benefit is based on your family income from the previous year, the number of children in your care, and the age of your children (source: Government of Canada, Jan. 27, 2020). Parents can very effectively utilize this financial benefit by investing it in RESP. To further support parents in this savings initiative, for an annual deposit of $2500 in their child’s RESP, the government of Canada deposits $500 into this RESP account with a lifetime maximum limit of $7200. Besides, it provides catch-up provisions to parents who are unable to deposit the maximum amount in any given year. Along with that, an additional amount of CESG is available for eligible children from middle- and low-income families. You need to utilize these grants for maximum permissible benefit.
ill- informeD Decisions about investment- following the ‘herD behaviour’
about the RESP product and company. Instead of simply following the celebrity endorsements or investments recommended by friends; be careful before you choose the investment. investments may carry similar risk and expected return, but one may have higher fees – all else being equal, the fees would affect your returns.
lack of unDerstanDing about how an investment works
Before you make any decision, it is very important to do a thorough research about available investments as it ensures that you: 4understand the risks associated with the investment, including the potential losses or returns; 4consider how it fits in your existing portfolio; and, 4know the amount of fees/ any penalties for early withdrawal that you will pay
avoiDing shopping arounD for an aDvisor
As a first time investor, we feel inclined to approach the same advisor who is being consulted by our parents, friends or relatives. But here, it is important to understand that the advisor that’s right for someone else may not be right for you. You need to choose the advisor as per your needs, the type of clients he/she works with and how involved you want to be in your investing decisions.
improper attention to fees
You need to understand the fees you pay when you invest as they reduce your return. Before making an investment, ask questions and evaluate the available options. For instance, two not making optimum use of resp as an investment account
It is a proven fact that among the asset classes, equities provide the highest long-term rate of return. An early investment into an RESP will let your stocks grow for 18 years or more.
irregular monitoring of your account statements
To show the activity in your account and provide an update on your investments, your financial institution sends you monthly or quarterly account statements via mail or makes them available online. It’s essential that you examine your statements to confirm: 4That the investments that you have bought and sold are correct. 4The fees and commissions charged on the investment are correct. 4The amount of gain/loss of your investments.
If you find anything unclear/incorrect, contact your financial representative immediately.
lack of information about the ways you can utilize resp funDs
You may use the RESP funds for any reasonable post-secondary education expense of your child in Canada as well as out of country (including apprenticeships). An added advantage is- the capital that you have contributed (not the grants or the money made from the grants) can be used for any purpose as per your need.
It is evident that a wisely decided appropriate amount of investment for your child’s post-secondary education will ensure the growth of funds in the best possible manner, which will be readily available when you need them for the intended purpose.
As an independent insurance advisor working through Punjab Insurance Agency, I deal with different insurance companies offering plans for different types of insurance. I can explain to you in detail, the insurance plan options and coverage that are suitable for your needs and resources. Besides, I can also help you to purchase mortgage insurance, super visa insurance, disability insurance, critical illness insurance, extended medical plans, group medical plans, RESP, RRSP, travel insurance, TFSA accounts, health and dental plans along with estate planning suitable for your needs and resources.
For a no obligation appointment, please call me at 604-996-6862 or email me at sandeepahuja@ punjabinsurance.ca This article is © Copyrighted 2022-01-19 and can be reproduced only with prior permission.
You can call at 604-996-6862
Different types of Holi celebrations
in India that foreigners must attend
Nikita Sharma
freelance writer/ Blogger/ content strategist
Holi, the vibrant spring festival, falls in the month of March. People across the country start looking forward to Holi weeks ahead. This year, the pandemic is a huge spoilsport as there are
Covid-related restrictions on big gatherings. It is best to follow the restrictions and be safe.
Holi can be memorable with family members at home too. You can cook Holi goodies together, have a Holi quiz and games and hold a Holi poster or rangoli fest with colours. It’s not necessary to go to large gatherings; for a change think how a virtual Holi party will look like.
holi in Different in parts of inDia
Holi has different names in different parts of the country. In states of north India, it’s mostly called Holi and the celebrations are spread over two days - Chhoti Holi and Rangwali Holi. On the evening of the first day of Holi, people light a bonfire called Holika Dahan signifying the victory of good over evil.
Holi has a slightly different flavour in the eastern part of the country. While in West Bengal, it’s called Dol Purnima, Doljatra or Basant Utsav, in Assam people often call it Phakuwa or Doul. The people of Odisha celebrate Dola on Holi and Lord Jagannath with Lord Balabharda and Goddess Subhadra replace the deities of Radha and Krishna.
In Uttarakhand, the Kumaoni Holi is a grand and colourful musical affair. People sing local Holi songs and folklore. Down south, in Tamil Nadu people celebrate Panguni Uthiram - a festival of love - on Holi. Holi is called Ukkuli in Konkani and is also referred to as the spring festival - Sigmo.
Holi is all about colour, merrymaking, mouthwatering signature delicacies. The most symbolic Holi sweet is ‘Gujiya’, believed to have originated in Rajasthan. Gujiyas are sweet dumplings made of flour and filled with khoya and dry fruits. Malpuas, Dal Kachori and dahi Vada are also Holi specialities and Holi is incomplete without the famous Thandai.
Here are some places in India that are famous for their iconic Holi celebrations. It is said that people from across the world come to India to witness Holi celebrations and merrymaking at these locations: 1. lathmar holi - uttar praDesh
Lathmar Holi Festival is one of the unique and famous ways of Holi celebration in
Different types of Holi celebrations
in India that foreigners must attend
Uttar Pradesh province in India. Lathmar Holi of Barsana is primarily celebrated in the native place of Lord Krishna. All the natives of the area of Vrindavan, Mathura, Nandgoan, and Barsana come together to celebrate Holi with Lathis (Sticks) and colors made up of Kesudo and Palash flowers. As per tradition, Gopalas (men) of Barsana try to invade Nandgaon to play Holi with Gopis (women). In reciprocation, Gopis beat the Gopalas (men) with the sticks to pervert themselves to get coloured. Isn’t that fun to watch and take part in it!! People from all over the world come for Lathmar Holi in Mathura every year. 2. Dola - oDisha
Dola Holi is celebrated in the coastal region of Odisha province of India. Dola Holi Celebration lasts for five-seven days, unlike two days, in the rest of India. Dola celebration starts on Falgun Dashmi (date as per Hindu calendar) when all people take out Yatra (religious gathering) of their deities (especially Lord Krishna) and offer them Bhog (sweets) and Abira (coloured powder). This yatra continues for the next four days and ends on Falgun Purnima (date as per Hindu calendar) by playing Holi. Isn’t that a good idea to participate in Dola and celebrate Holi for five days in a row? 3. basant utsav - bengal
Basant Utsav is the celebration of Holi in the West Bengal region of India. People welcome Basant Ritu (spring season) with open arms in West Bengal. They dress in yellow during Basant Utsav and play Holi with Gulaal (coloured powder) for the whole day. Also, the Dola is a significant part of the Holi celebration in Bengal. Dola Yatra (religious gathering) is taken out on the main day where people play colors with squirt and Abira (colored powder) along with the procession. It is a sight full of bliss, enjoyment, and happiness. 4. yoasang - manipur
Yoasang is the Holi festival celebrated on the last full moon day of Lamda in Manipur province of India. This lasts for six days. The entire valley is covered in festive colors during those days. The youth takes part in this by constructing bamboo huts on the roadside called ‘Yaosang’. An idol of Lord Chaitanya is placed in the hut by a Brahmin (Devotee). Puja is offered and bhajans and kirtans are chanted. On the last day, the idols are removed and the hut is set on fire with the chanting of ‘Hari Bola’ and ‘He Hari’. The Holi is played in the Govindjee temple, colors are mixed in the wells and then sprayed on the people who dance in the beats of the devotional songs in praise of Lord Krishna. 5. hola mohalla - punjab
As we go further up north to Sadda Punjab, an interesting fact comes up. Holi here is actually known as Holla Mohalla here. It is celebrated a day after Holi and is, in fact, a celebration commemorating the bravery of Sikh Warriors. The celebrations are characteristic of a particular sect, known as the Nihang Sikhs. The festivities include an extensive display of traditional martial arts which is later followed by music and dancing.
Follow these Covid-19 guidelines to play safe Holi.
4Wear a face mask during Holi celebrations. 4Make sure no one with signs of cold or fever is involved in the celebration. 4Avoid large gatherings and play with a small group of people. 4Avoid the use of watercolours and play with dry colours only. 4Maintain social distancing, avoid handshakes and hugging. 4It is advised that children and adults should completely avoid Holi celebrations. 4 Don’t eat anything until you take a shower.
