FREQUENTLY ASKED QUESTIONS
LEARN MORE ABOUT THE TOP REGISTERED DISABILITY SAVINGS PLAN (RDSP) QUESTIONS.
There has been a lot of discussion regarding the 10 year rule now that the RDSP is more than 10 years in existence. Can a person with a RDSP that has government from 10 years ago withdraw it?
The short answer; Yes, however, you will lose 3x what you withdraw up to what the government has put in during the last 9 years.
The RDSP is a long term savings plan for Canadians that qualify for the Disability Tax Credit (DTC). To collect money from this plan without losing any of the government money will take at least 30 years (retroactive grants and bonds can shorten this timeframe) so that all of the money is theirs. OR at 60, as this is when the account starts paying out.
Please contact us if you are unsure of how the 10 year rule works.
If I have a child that may not qualify for the Disability Tax Credit when they become an adult, is it even worth setting up a RDSP?
Definitely YES! Think of it this way, if you could borrow money without any interest so that you can earn investment income, wouldn’t you? Any grants and bonds that have been in the account for 10 years are yours to keep as well! Start a RDSP today to start collecting the money!
I do not have any money to put into the RDSP, should I still open one up?
Yes. Once the RDSP is open, there may be bonds that will go into the account without any deposits made by you. When the time comes that you can make a deposit into the account, then the grants will start matching. Even $25 a year will collect applicable grants.
I am now 50 and can no longer get any grants or bonds, is it still worthwhile to open a RDSP?
Yes. Once the RDSP is open, there may be bonds that will go into the account without any deposits made by you. When the time comes that you can make a deposit into the account, then the grants will start matching. Even $25 a year will collect applicable grants.
How do we get paid?
As financial advisors, we are paid for our expertise in providing financial solutions that are tailored to our client’s specific needs and goals. In Canada, there are several ways in which we can be compensated for our services, including client fees and commissions
As your financial advisor(s), we are compensated by the financial institution that holds your investment. The financial institutions that we work with compensate us the same so there is no bias in choosing which investments we recommend. As per the Fund Facts document, we are compensated from the Management Expense Ratio (MER) that is embedded in each investment. Our dealer receives 1% of the average of your holdings over the year. Out of that, we receive a portion to cover our expenses and expertise.
Our clients must understand how we are compensated, as it can affect the type of investments and recommendations we make. Trust is an essential foundation for any financial advisor-client relationship, and it’s crucial that our clients fully understand how we are being paid for our time and services.
DON’T HESITATE, GET THE FINANCIAL ASSISTANCE AVAILABLE TO YOU TODAY!
The Registered Disability Saving Plan (RDSP) is a passion of ours and we want every eligible Canadian to have one. We live and breathe this program and look forward to helping you.
Our RDSP Expert serves people all over Canada.
To Open An RDSP Account, BOOK AN APPOINTMENT TODAY!