My 2019 RDSP Report Card

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.

9 thoughts on “My 2019 RDSP Report Card”

  1. Hello there! I am always thankful for the information you provide us over the course of the year! I have a question as 2019 was the first full year we have had my sons RDSP registered. We also have an RESP for him. So my question to you is, are we able to write off the portion of money we are adding every month to his RDSP & RESP plans on our annual income tax? I would appreciate any advice you can give me!

    Kind regards,
    Lisa Gibbs

    1. I’m sorry to say that for both the RDSP and the RESP, contributions are made with after tax dollars. Of course, the upside is that the contribution portion will eventually be withdrawn tax free.

  2. My son’s RDSP continues to grow, and I am using simply ETFs, and Index Funds. I am just not that smart, so I keep it simple that way (and rebalance). Keep up the good work Milburn!

  3. We have been looking to start both an RDSP and an RESP for my son and are finally in a position to do so. However, we are now living in through the Covid pandemic and seeing economic fallout in nearly ever sector. Would you recommend that we still move forward or that we wait?

    1. I would never be one to predict where the markets are going to go….but, if you wait for the right conditions you will be waiting forever. Regular contributions over the years should put you in a good place.

  4. We are with BMO for our son’s RDSP. I find the fees quite high. I don’t believe they allow use of ETF’s.
    Can you tell me what investment companies will handle RDSP that allow this? The company we have for our TFSA will not handle RDSP.
    We are in BC –

    1. Hello. This is the same problem I ran into years ago. The allowable investments at BMO were
      limited to their products only. I found the fees high as well. I have since switched to TD Direct Investing and have been satisfied with the selection of investment products.

      I have been using the TD E-Series mutual funds but I believe they also allow ETF purchases.

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