RDSP the Savings Plan Nobody Knows About

I seem to have collected a few dedicated readers who continue to struggle with the RDSP (Registered Disability Savings Plan) vehicle (as do we all), and from one of them, I got the following e-mail:

Thanks! There are some non-independent advisors out there (associated with a bank or other financial institution) who have developed a specialty in RDSPs out of personal interest, but I have yet to meet an independent one. So far independent advisors know less about RDSPs than we do.

This e-mail came in response to an answer I had written about the ability to slide funds from an RESP to an RDSP (should the child involved not go to a registered training program that the RESP could be used for). If you are looking for more information on this read the CRA page, RDSP Bulletin No. 4it explains the rules around this.

I try very hard to help folks with RDSPs as best I can, but sometimes I am out of my league. With most of my advice, I tell folks they should check with the CRA or another trained professional in most areas, but it is really disheartening to hear that most independent advisors don’t know about the program either.

I continue to harass the big banks about this, but the RDSP continues to not be on their radar scopes. TD Waterhouse offers an actual account, that is as good as it gets for folks who want to have a finer control on the investments (i.e. not just buy Bank Mutual Funds), but it continues to have shortcomings too (i.e. unable to set up an automatic savings schedule transferring money from a checking account directly to the RDSP account).

Friend of this site Ellen Roseman continues to try to help out as well, and for that I am thankful.

{ 10 comments }

Happy Father’s Day

Happy Father’s Day to all my fellow Fathers out there. My Dad passed away a few years ago, but I still think of his wisdom, humour and how he was Superman to me. One of my favourite stories he told me I include for your enjoyment.

Dad Day

Father’s Day: Dad Just Wants to Know You Are OK


RESP Questrade Banner

{ 0 comments }

Fathers Day, Trump Housing Bubble, and #MoneyTalk

Hope you realize that Sunday is Father’s Day, formerly, the year when the most collect (i.e. reversed charges) phone calls happened (I bet there are folks who are going to have to Google what that means). As I have said, all Dad’s want is to know you are OK. As long as your Mother knows everything, Dad just wants to know you are OK.

Stats Canada published a neat survey about the Diversity of young adults living with their parents (speaking of Father’s Day), which highlights the number of young folk still living with their parents. The telling statistic that I read in the report was:

Of the 4.3 million young adults aged 20 to 29 in 2011, 42% (or 1.8 million) lived with their parents. This compared with 27% in 1981.

That is a lot of folks still living at home. Some financial folks are saying it is a symptom of the problems with the housing bubbles in major cities, I don’t think I agree. I have stated before that young folk should not aspire to live at their parents’ lifestyle when they first move away from home, but that seems to have fallen on deaf ears.

Given the rhetoric coming out of the United States about whether Mr. Trump gets elected, remember that Canada welcomes everyone (however leave your guns down south). My guess is that this could be like the Draft Dodgers that moved to Toronto in the mid-60’s, and help the Canadian economy greatly. I guess another interesting question is if there was a sudden influx of “Yankee Dollars” would this cause even more inflation of the housing bubbles in Toronto and Vancouver (likely places for our American cousins to move)? A ludicrously over-priced condo in Toronto might seem cheap, if you got a 25% discount due to a low Canadian Dollar.

My Writings for Week Ending June 17th

Not much writing this week, busy time of the year, and after watching the Last Week Tonight Video, I am starting to wonder why I write.

Stealing an idea from Mr. Oliver, I wrote No Good News Has Been Delivered Using Excel, now don’t take this as me dumping on Excel, it is an exceptional tool, which anybody doing anything financial should be proficient in using the tool. My commentary is based on the fact that if someone sends you an Excel spreadsheet, the news in it cannot be made to look good.

Video of the Week

Normally I include a video at the end of this article, but John Oliver has (in 20 minutes) summed up pretty much everything I have ranted about for the past 11 years, so have a watch of this, but keep reading my stuff too

👇 For more great financial articles from this week click here 👇

{ 2 comments }

No Good News Has Been Delivered Using Excel

This is paraphrasing something from John Oliver, on his HBO show. Excel is Microsoft’s spreadsheet/swiss army knife tool (i.e. you can do anything with it), but I agree with Mr. Oliver, I have never seen someone give good news using an Excel Spreadsheet.

These are the WORST PIN you can Have!

A great example of Excel Bad News, a list of bad PINs!

During my career I have seen the following information sent to me in Excel format:

  • Ranking of employees,  used to figure out who gets laid off
  • How much over-budget project is.

In defense of Excel, it is a magnificent tool in terms of accounting and complex arithmetic and such, and usually any good news that might come from an Excel S/S usually ends up being encapsulated into a Powerpoint presentation. If I receive only the data in an Excel S/S it is saying,

“… this is bad news, we don’t feel like “flowering it up” by putting it into a Word Document or a Powerpoint Presentation…”

I have seen this when folks discuss their finances, as soon as an Excel Spreadsheet is opened the level of tension goes up. Rarely does anyone bring up an Excel Spreadsheet up, with your budget on it, to show “… how well you are doing…”, it is to show where (precisely) you are failing.

Can you send good news in an Excel Spreadsheet?

{ 2 comments }

This week in Ottawa, a very large sinkhole opened on Rideau Street, and there were conflicting stories about whether it was a new Gateway to Hell, or whether it was simply the exposure of an existing personal gateway to hell. Either way, it just goes to show that in the Nation’s Capital when we make a hole, we really make a hole.

Ottawa Sinkhole

Ottawa SinkHole

I was downtown on Thursday for meetings, and while the downtown is a bit of a mess, all I could think was that I wished I was either in the Concrete, or Concrete Delivery business, as the entire downtown seems to be littered with Cement Delivery trucks (to fill the hole). Ottawa does seem to be prone to sinkholes, as we have had more than our share over the past while.

The Bank of Canada thinks the economy is unchanged, as it announced the Financial System Review this week, however, three risks were noted:

The Bank continues to highlight two vulnerabilities related to Canadian households: the elevated level of household indebtedness and imbalances in some regional housing markets. A third vulnerability identified is the fragility of fixed-income market liquidity.

This translates to continued big debt and ludicrous house prices in Vancouver and Toronto (and a few other places) are worrying the Bank. A major financial event (say like a recession) might cause some big issues in the current economy.

My Writings for Week Ending June 10th

I have written about how I am an attractive bag of medical conditions, but after my latest yearly check up I came up with the question What Would You Pay $213.52 For ? For me it was simple, I really, really don’t want to get shingles, so I would pay for the vaccine myself if I had to.

I must write a thank you note to TD for continuing to motivate me to write about my issues with them, and so another fine rant was written, Automatic Withdrawal Audits. I still await the results of the problem ticket I opened with TD Mutual Funds.

A Money Thought

“Never buy anything from someone who is out of breath.”

–BURTON G. MALKIEL

Surprisingly, that makes good sense!

More Disturbing Financial Images

Monopoly Rule 11

Same is True of Bank of Canada Too?!?

👇 For more great financial articles from this week click here 👇

{ 3 comments }

%d bloggers like this: