Derek Donald is 21 years old and was diagnosed with Multiple Sclerosis (MS) last year and lives in
Sudbury, Ontario. He was just approved for the Disability Tax Credit (DTC) last week and received the certificate in the mail yesterday. He attended a presentation entitled, “Financial Wellness Plan for Individuals who have Disabilities.” by Dave Copeland today. Dave is a Financial Advisor who specializes in the special needs market. Having Cerebral Palsy himself he
knows the difficulty of saving money for the future while receiving income support from the Ontario Disability Support Program (ODSP).
During the presentation Derek discovers what a Registered Disability Savings Plan (RDSP) is, what the criteria is to open one, and what the benefits are. The presentation explains that an RDSP is a savings vehicle designed for individuals with disabilities and their families to help them save money for the future and it was also explained that an RDSP is considered an exempt asset which means that having an RDSP will not affect the income support from ODSP.
Being a Canadian citizen over the age of 18, Derek meets the criteria to open an RDSP because he has obtained the DTC and his MS restricts his body movement where he has to use a mobility scooter to get around.
Derek also learns that the federal government will deposit up to $3 in grants for every $1 he contributes to a maximum of $70,000! In addition to the grants, and without any contributions being made, the government will deposit up to $1,000 a year for 20 years. This is another $20,000!!!! This totals $90,000 in grants and bonds which will be deposited until the end of the year of Derek’s 49th, birthday.
Since Derek’s income is below the $100,392 limit, he qualifies to receive the maximum grants of $3 for every $1 he contributes for the first $500 in a 12-month period and the $1,000 bond. Derek meets with Dave, fills out the necessary paperwork to open an RDSP and within a few weeks he discovers that he’s already accumulated $1,200! His monthly contribution of $50, attracted $150 in grants and then the government deposited the $1,000 bond.
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Dave Copeland is a Financial Advisor with Monarch Wealth Corporation who specializes in the special needs market. Derek Donald is a fictional client used to illustrate the ease, criteria and the benefits of opening an RDSP. The information about government grants and bonds are derived from www.rdsp.com