Finance

Factors to Keep in Mind While Applying For RESP

In today’s world education is becoming more and more expensive and parents are concerned over that. So in order to counter their anxieties, most parents have started saving up and setting aside education fund so that their child can have access to quality education and does not have a problem later on. Of course maintaining that fund on your own at home is very difficult and that is why different financial organizations have started a plan called Knowledge First Financial in which you can set aside money for your child’s education and can keep on adding to it whenever you want to.

There is no hard and fast rule of adding a specific amount to it, it all depends on your affordability and the amount of money that you can spare for the fund. With that said, you should know that there are certain aspects that need to be considered before you go into the whole process of signing up for it and that is why we would highly advise you all to do your research for it. With that said, following are some of the factors to keep in mind while applying for RESP, check them out below.

Look Into The Service Providers

Always, always look into the background and reviews especially when your money is being trusted with a third party that you have little to no knowledge about. So while you are looking for it, you should also read up other parents’ experiences as well because that will help you in formulating a decision that you will work for you.

Consider Their Policies

There are certain education plans that come with different policies and it is best to read up on those than just shooting arrows in the dark, this way you will know of their rules in depth.

Risks Associated With Penny Stocks

Penny stocks are a different means of investment that is slowly beginning to become popular. Initially, very few people were familiar with the concept of penny stocks, however, given how there are people who are now earning up to millions of dollars like Timothy Sykes thanks to penny stocks, more people want in on it. Now, a lot of people make the mistake of assuming that penny stocks involve trades and investments under just a $1, however, according to the official definition, penny stocks happen to involve all trade which is under $5.

Since you can invest with such a small amount of money, people are able to invest more easily, and because most small businesses have sudden hikes that can go up to double or triple the amount, you are able to earn a lot of money quickly. However, there are risks associated with penny stocks and it is important that you know about them before you go ahead and make your investment.

  • Fraud is really common when it comes to penny stocks. One example of which is promoters suddenly hike up interest in a lesser known stock, which causes a lot of rookie investors to buy up majority shares, and once said stock has reached a certain limit or set point, the promotor ends up suddenly dumping or selling the stock, leaving its investors high and dry.
  • Private companies sometimes end up merging with a public company on its own, also termed as a reverse merger, and because of this they are able to inflate their stock prices, and even falsify their earnings.
  • Since penny stocks happen to involve investing in smaller, lesser known businesses, the market is highly volatile, and because of this, it is really easy for things to suddenly take a turn for the worse.