Is the RDSP right for you
For many of you, the decision is clear and the answer is yes.
Are you a young person with a low income, who qualifies for an RDSP? All you need to do is open your RDSP, file your taxes, and sit back and wait. Without paying in a dime your plan will grow to $50,000 or $60,000 over 30 years if you make wise investment decisions.
Are you a young family with a qualifying child, and able to spare $1,500 per year? Open an RDSP, make your contributions, report the taxes correctly, and in 30 years your child will have assets of about $400,000. It is not always so easy to decide though.
If you are unsure, we have a few resources to assist you:
Here are several different scenarios on how different people of all ages are using the RDSP to build an asset.
1. Maggie is 12 years old – her parents, Bruce and Flora, would like to see her in a home of her own one day
Maggie is a gifted young girl who enjoys dance classes and singing in choirs. She attends grade 6 in her hometown of Lethbridge and has an inexorable desire to learn about everything around her. Maggie, having just returned form an overnight class field trip to the Royal Tyrell Dinosaur Muse, has her parents very excited. Sleeping in a museum overnight with your elementary class, without your parents along, is a big step for any 6th grader. The fact that Maggie has a severe disability and was able to participate represents a big step for the young girl who is staring to become more independent.
2. Josh is 25 years old, receives government disability benefits and has complex medical needs
During Josh’s childhood, Cathy and I knew that our son would not grow up to be independent. Josh would require care and support for the rest of his life. We recognized that our responsibility to Josh didn’t end when we died, rather it ends when Josh dies. Our greatest challenge was to find a way to care for our son after we died or became unable to care for him.The most valuable lesson that we have learned in our journey with our son has been PLAN’s advice that we need to think about both Josh’s social and financial well- being if we want to secure a good life for him. The RDSP provides a way forward.
3. Maska is 25 years old and is employed
Maska has been working at a technology call centre in Manitoba for the past 2 years. After graduating college, he focused on finding flexible employment that provided accommodation for his physical needs. With his enjoyment of working with people and his quick problem solving abilities, the job is a perfect fit. However, because of Maska’s concern that his disability may result in lost work days and maybe even a need for part-time employment, the RDSP provides additional security on top of his employers RRSP retirement plan.