Continued from last edition

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 investments may carry similar risk and expected return, but one may have higher fees – all else being equal, the fees would affect your returns.

Not making optimum use of RESP as an investment account

It is a proven fact that among the asset classes, equities provide the highest longterm 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:

  • That the investments that you have bought and sold are correct.
  • The fees and commissions charged on the investment are correct.
  • The 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.

This article is © Copyrighted 2023-01-10 and can be reproduced only with prior permission. You can call at

604-996-6862

Email: [email protected]

Sandeep Ahuja
604-996-6862 [email protected]