Education IRAs allow you to save for qualified higher educational expenses for a beneficiary. Parents and guardians are allowed to make nondeductible contributions to an education IRA for a child under the age of 18.
Contributions are allowed prior to the beneficiary turning 18, and contributions may not exceed $2,000 per beneficiary per year.
Not sticking to your plan. The market has been up and down in recent years and this makes people very emotional with their investments and jittery about short-term losses, says Saar. The result for some has been to 'cash out' of poorly performing mutual funds. "If you established a proper, diversified plan when you invested, it is important to stick to it even through the dips in the market," says Saar. "The market may get bumpy but because the RRSP is a long-term investment, you should ride out these bumps. The plan accounts for fluctuations but should still reach its goal in the long run." Investors who contribute regularly to their plan are less impacted by swings in the market and can benefit from an investment strategy called dollar cost averaging.
We find the biggest problem beginners have is that they spend too much time going out to look at property. We teach our students that you do not leave the office unless you are certain there is a deal. Remember, you are not a Realtor. You are not getting paid to look at houses all day, so you need to be sure before you leave your office there is a deal. The best way to do that is to ask all the questions when you do your telephone calling. We do it, and we expect our students to do so also.