Registered Disability Savings Plan
The Client Relationship Model Phase 3 (CRM3), also known as Total Cost Reporting (TCR), is arguably the most significant regulatory change in the Canadian investment industry since the introduction of CRM2 a decade ago. While CRM2 forced advisors to show only commissions and trailer fees, CRM3 mandates financial institutions to disclose all costs associated with … Read more
The Registered Education Savings Plan (RESP) to Registered Disability Savings Plan (RDSP) rollover is used when a disability prevents the beneficiary from attending post secondary school. Normally, the parent can withdraw the earnings as an Accumulated Income Payment (AIP), which counts as regular income, plus a 20% penalty. By rolling the AIP into an RDSP, … Read more
The Registered Disability Savings Plan (RDSP) is arguably the most powerful wealth building tool offered to Canadians with disabilities. With matching grants of up to 300%, plus free bonds without a having to deposit a single penny, it provides a level of government support unlike any other registered account. Despite the potential for long term … Read more
Determining risk tolerance, risk capacity, and time horizon are critical to selecting appropriate investments and creating a viable retirement plan. However, the Registered Disability Savings Plan (RDSP) has some unique characteristics that differ from other registered accounts. While the math of compound growth remains the same regardless of account type, the risks can be higher … Read more
Since Registered Disability Savings Plan (RDSP) grants and bonds end in the year the beneficiary turns 49, many disabled Canadians believe that it is pointless to open an account after this age. Even if they qualified for the Disability tax credit (DTC) in past years, carry forward rules do not allow grants and bonds to … Read more
Both the Registered Disability Savings Plan (RDSP) and Registered Education Savings Plan (RESP) offer generous, income adjusted grants and bonds. To determine the correct government contributions for these accounts, the Canada Revenue Agency (CRA) pulls data directly from tax returns. But how does the government verify a family’s income? One might assume they use the … Read more
It is a common question that arises in lectures and webcasts when a participant asks the speaker how the Registered Disability Savings Plan (RDSP) should be invested. A typical response is to ask a “financial planner”. This isn’t about the instructor being dismissive or rude, but a candid recognition that the question is just too … Read more
A Registered Disability Savings Plan (RDSP) is one of the most generous, yet unknown, financial tools available to Canadians living with disabilities. Despite the benefits, it is estimated tha only 36.3% of eligible Canadians have opened an RDSP as of 2022. What is an RDSP? Simply put, an RDSP is a registered tax deferred savings … Read more
If in a financially advantageous position, making very large deposits into an Registered Disability Savings Plan (RDSP) as early as possible would be most beneficial to maximizing the power of compound interest. Check out the RDSP Contribution Strategy Comparison for ideas of how to best strategize contributions for families with great wealth. However, most won’t … Read more
For parents of a child with a disability, the Registered Disability Savings Plan is an invaluable tool for protecting their dependent’d long-term financial needs. Yet, one its most powerful features may be its ability to inherit the retirement savings of a parent or grandparent after they pass away. The CRA allows a deceased parent’s or … Read more