Last year my Registered Disability Savings Plan (RDSP) returned 8.2% and had an average rate of return of 7.9% since 2013.
Why is this important and why should you care?
The number of institutions offering the RDSP is rather limited. Many of the banks that do offer the RDSP restrict the allowable investments to in-house products which either have very low yields or very high investment fees.
TD Direct Investing is one of the few banks which allow a self-directed account with few restrictions on the investment options. I’m no investing genius, but I know enough that fees matter. TD e series funds have a very low management fee and I follow the Canadian Couch Potato Balanced Portfolio recommendations.
I’m sure some of you investing geniuses can do much better, but if you are stuck with some lackluster products you may wish to consider this approach.
Read RDSP – Change of Financial Institution to see how I made the change.