Last year, my son’s Registered Disability Savings Plan (RDSP) had a rate of return of 14.4%.
Is that a fluke?
No, not really. In fact it’s in line with the industry benchmark. My portfolio is based on the Canadian Couch Potato TD e-Series model portfolio . Last year, the model portfolio returned 14.8%.
It’s important to look at the long term picture. We opened the RDSP in 2013. The rate of return from then to the end of 2019 is 7.2%.
And we care because……?
I have talked with too many parents who think investing in an RDSP is complicated and a professional is needed. Nothing could be further from the truth. Anyone can manage RDSP investments without paying for a financial advisor or having any investment knowledge. All you have to do is setup a low cost portfolio (such as the one linked above), add money every year, let the government add the grants and bonds and in the long run, you will be well ahead of those who pay too much for financial advice.