A Registered Disability Savings Plan (RDSP) is a relatively new plan offered by the Canadian government that is intended to help parents and others to save money for people who are eligible for the Disability Tax Credit. The plan is designed for long-term savings and it’s best to keep any contributions in the plan for at least 10 years.
Contributions are not tax deductible, however the major advantage to an RDSP is that the government will pay matching grants of up to 300% depending on the beneficiary’s family income and the amount contributed. Over the beneficiary’s lifetime, they can receive up to $70,000 in grant money and they may also be eligible for Canada Disability Savings Bonds of up to $20,000.
The grants and bonds can be paid into the plan until December 31st of the year the beneficiary turns 49. For specific details on when the government grants or bonds would need to be repaid, check out this link.
In order to qualify as a beneficiary of an RDSP, you must be eligible for the Disability Tax Credit, have a valid SIN, be a Canadian resident, and be under the age of 60. Anyone can contribute to an RDSP as long as they have the permission of the plan holder.
There is no annual limit on amounts that can be contributed to an RDSP of a particular beneficiary. However, the overall lifetime limit for a particular beneficiary is $200,000. Contributions are permitted until the end of the year in which the beneficiary turns 59 years of age.
For more information on RDSPs, click on this link. RDSPs are a great way to help people with disabilities to become financially secure. Partnering with the government, you can ensure that you or your loved ones can achieve their financial goals.
While flipping through David Bach’s book 
, I came across a section on payday loans. I have always known that payday loan companies ripped people off, but after reading this section of the book, I am more convinced than ever that payday loans should be absolutely the last resort in a financial emergency. In fact, I wouldn’t even consider a payday loan as a feasible option.
Interest rates have been historically low over the past years and many households have been tempted with the opportunities to borrow to service their wants and needs. As a result many are now realizing that they have created an unserviceable debt situation and are looking for options to get them back on their feet. One of the common avenues to get out of debt is through a debt consolidation loan. While this might seem like a holy grail to get out of your debt situation there are some pitfalls that you need to be aware of.
Although you may have failed at managing your money wisely in the past, it’s never too late to start to develop good habits. Whenever you begin to feel it’s a losing battle or that there is just no way you can make ends meet let alone save for your retirement, think of WD-40.
Dollar cost averaging is what you are doing when you contribute to your investments on a periodic basis such as monthly or biweekly, rather than putting down a one-time lump sum. The advantage to dollar cost averaging is that you don’t have to worry about “timing the market”. Instead, you buy units or shares when the market price is both high and low. Over time, this results in a lower average unit price then if you made a lump sum contribution.