As Diwali approaches, families across Canada are coming together for a time of reflection, celebration, and introspection. This festive season is traditionally marked by family gatherings, sweets, and reflecting on the past year’s achievements and challenges. But, it’s also a perfect time to think about financial planning and future investments. Jeet Dhillon, Senior Portfolio Manager at TD Wealth, shares her thoughts on how families can use this time for financial introspection and planning in an interview with Yudhvir Jaswal from Y Media Group.
A Time for Family—and Financial Reflection
“Like most families, we gather during Diwali to celebrate,” says Dhillon. “We go to the Gurudwara, spend time with loved ones, and reflect on how the year has gone. Diwali is also a time when we discuss our financial situation and what changes we need to make in the year ahead.”
This tradition of reflection has long been a part of Diwali celebrations, and it’s an ideal time to take stock of your finances. “Whether it’s budgeting, investing, or planning for retirement, Diwali gives us a moment to pause and assess our financial goals,” adds Dhillon.
Financial Planning: More Than Just Gold
Historically, South Asian families have favoured gold as a go-to investment during Diwali. However, Dhillon points out that while gold remains a popular option, there are now many other avenues to consider. “Gold has always been a traditional investment in our community, but there are many other financial tools available today that offer great opportunities for growth.”
From stocks and bonds to mutual funds and GICs, Dhillon emphasizes the importance of understanding all available options. “The key is finding the investment that fits your needs. Each family’s situation is different, so you need to consider the risks and benefits of each option carefully,” she advises.
Understanding Risk and Reward
“Risk is part of every investment,” Dhillon reminds us. “Whether it’s the stock market, real estate, or even gold, there will always be fluctuations. The important thing is to consider your time horizon and needs for cashflow—short-term goals should not be exposed to high risk, while long-term goals like retirement or education savings for younger children can accommodate a bit more risk.”
By carefully balancing risk and reward, families can create a well-rounded investment plan that serves both immediate and future needs. “It’s all about balance. You don’t want to take unnecessary risks with short-term funds, but for long-term investments, some level of risk is necessary to achieve growth,” she explains.
Newcomers and Established Residents: Different Strategies, Same Goal
According to Dhillon, newcomers to Canada have more tools available, such as the internet, financial institutions focusing on newcomers and their needs, community resources, to be better prepared financially before they move. ” Therefore, newcomers may be more open to considering different financial products, while more established residents might favour traditional options.”
Regardless of how long someone has been in Canada, the goal remains the same: creating a customized financial plan that evolves with changing circumstances. “Your financial plan should be unique to you. As your life changes, your plan should adapt. That’s the key to long-term success,” Dhillon advises.
The Power of Planning
So, how can you create a strong financial future during this Diwali season? Dhillon says it starts with a solid financial plan. “A financial plan is the best tool you can have. It helps you align your short-term, medium-term, and long-term goals with appropriate investments.”
The team at TD Wealth is ready to help you craft a financial plan that’s customized to your needs. “Working with an advisor can be incredibly helpful,” she adds. “They can guide you through the complex financial landscape, ensuring that your investments are aligned with your life goals.”
Conclusion: Plan for the Worst, Hope for the Best
As the Diwali lights illuminate our homes and hearts, it’s also a time to illuminate our financial future. Dhillon encourages everyone to plan wisely. Her motto is “Plan for the worst, but hope for the best. A well-structured financial plan provides peace of mind. It allows you to navigate the ups and downs of the market without losing sight of your long-term goals.”
This Diwali, take a moment to reflect not only on your personal life but also on your financial well-being. With the right plan in place, the future can be as bright as the Diwali lights.
Connect with a TD Wealth Advisor today at td.com/wealth.
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