My RDSP Report Card

The Registered Disability Savings Plan (RDSP) for my child has performed well with a rate of return for 2016 of 5.5% and an average rate of return of 7.8% since 2012.

Why is this important and why should you care?

The RDSP is an incredibly valuable savings plan.  The federal government is ready to give you buckets of free money and you just have to be willing to accept it.

The financial institutions offering the RDSP unfortunately tend to limit the investment options to their “in-house” mutual funds and GICs, which have higher than average management fees.  I want to demonstrate that it is possible to invest wisely given the limited options available even if you have no investment experience.

How did I do it?

In 2012 I switched my child’s Registered Disability Savings Plan (RDSP) from BMO to TD Waterhouse. I was fed up with the limited investment options at BMO and their outrageous pricing.

I decided that my investment choices would follow the recommendations of the Canadian Couch Potato using TD e-Series funds. For this account I chose the balanced approach.

I love the simplicity of the plan.

  • I make a contribution once a year
  • The government will advise you by letter of the contribution that will attract the maximum grant and bond.
  • Wait for the government to add their contribution.
  • Re-balance the account to the original asset allocation.
  • That’s it.  You are done for the year.

To make the switch refer to my post RDSP – Change of Financial Institution

Disclaimer:  I am not affiliated with any financial institution. I believe you should get the best deal possible, but the prime objective should be to open an RDSP and start collecting free money from the government. If you are more comfortable at a different bank, then by all means go there.

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