This week our friend Kerry K. from Squawkfox appeared on CBC On The Money and did an excellent job explaining the issues with the RDSP. The video of her interview is at the end of this post. The major things to take away are:
- The system is daunting for disabled folks (or their families) to set things up. No argument from me, we are lucky we got help.
- It is not used by 85% of folks eligible (over 500,000 Canadians who could use it, don’t)
- These folks need help, but not from the “Helpful firms” that will scrape up to 30% of their tax refund to do
I applaud Kerry for her hard work in this area, and her excellent presentation on the topic. She was also kind enough to mention me (by so for those of you wonder who the Big Cajun Man is watch the Video) and the help Mrs. C8j and I gave her on the topic. Luckily Kerry presented it (and wrote it), so it made sense and was easy to understand.
Let me point out that I do not claim to be an expert on the topic of DTC or RDSPs, I simply have lived the system and have many useful tips for those trying to use it.
Democracy was in evidence in B.C., when an election was decided by 9 votes (effectively). The riding of Courtenay-Comox was won by a 9 vote margin, in the Wednesday Election. There will be a recount, but if the NDP holds the seat, there is a minority Government in B.C., with the Green Party holding the balance of power. If the Liberals win the seat, they will have a slim majority. Yes, this is why you should always vote.
It is Mother’s Day on Sunday in North America, so remember your Mother. We all had one, and all she wants is for you to give her a call, and maybe visit sometimes.
The Real Estate market in Toronto might be slowing down, but in Ottawa it is starting to heat up. Have not heard of many bidding wars, yet, but maybe folks are thinking Ottawa is a suburb of Toronto?
All you folks who collect Aeroplan Points (like I have for over 25 years) must be shocked as I am that Air Canada is severing their relationship with them. I don’t have many points left, but evidently there is no transferral of points to Air Canada’s new point system either.
Things I wrote this Week
I wrote three articles this week #Wow. On Monday I wrote about an older book Preet wrote RRSPs: The Definitive Book on Registered Retirement Savings Plans, which is still topical. It was written before the TFSA, so it could use an update with the TFSA added in, but still a very good reference book.
After working with Kerry K. on her research, I came across a great quote about an issue with the RDSP program, and its horrible subscription rate. DTC RDSP Vicious Circle talks about how you need a DTC to set up an RDSP, but why some folks don’t bother with the DTC.
On the sister site to this site, I wrote about an important personal security issue, The Difference Between Phishing and Spear-Phishing,outlines what to look for in both cases. If you are under a Spear Phishing attack, it is most likely due to your friends having their accounts compromised.
A Money Thought
Here we have a great resource for RDSPs, reporting on their investing success with the RDSP.
Flood Waters Abating For Now
In Ottawa and Montreal we have had tremendous flooding, which should cause everyone to check their home insurance policies to see if they are covered. Is it mentioned in your policy? You should carefully read your home insurance policy. Plenty of interesting stories for your weekend reading as well.
- Preet seems to be back into the pocasting groove, and this week on his Mostly Money Podcast he has Dan Hallett talking about Roboadvisors and other interesting topics.
- Doug Hoyes has another bangup podcast as well, with Banks Behaving Badly, Who To Trust, and Has Toronto Real Estate Peaked? It is a roundtable with some of our favorite financial folks.
- The Canadian Couch Potato brings us Bond Basics 3: Should You Wait for Higher Yields? These kind of questions, I always get wrong, due to my awful prognostication skills.
- Why Aren’t Boomers Downsizing, is a good question asked at 2nd Career Search. One of the problems in Toronto is boomers not selling.
- Will Fintech in Canada be the boon to the financial world that many folks think it is going to be? My opinion is no, and Michael James seems to have a strong skepticism as well.
RDSP the Under used Savings Plan
As I mentioned, an excellent piece of work by Kerry K. about the RDSP program. Remember that I have an entire page dedicated to this subject.
Other Mother’s Day
- Plenty of Money talk on Mother’s day back in 2018.
- What do RDSP’s have to do with Mother’s Day? Well in 2017 it had something to do with it.
- OK everybody take a Valium? On Mother’s Day 2015
- In 2014 it was a happier Mother’s Day to be had
- Long Distance calls and Mother’s Day? Yes they are related back in 2007
- How much to pay for a Mother’s services, a lot more than you might think in 2008.
- Mother’s Day and hens? Back in 2009 this happened.
- Model Trains and Mother’s Day, what the deuce?
- The Grandma in Giles is the atypical Mother in my books.
2017 Random Thoughts
- Thanks Prince Phil, More Old Than Young and #MoneyTalk (May 5th)
- MLM, Balanced Budgets, and #Moneytalk (April 28th)
- Overheated Housing Market, Rent Controls and #MoneyTalk (April 21st)
- Ladies on Panels, Good Friday, Friendly Skies, Loose Money and #MoneyTalk (April 14th)
- Tax Time, Housing Bubbles, Financial Easter and #MoneyTalk (April 7th)
- April Fools, High on Life and #MoneyTalk (March 31st)
- Ho Hum Budget, Brackets Busted and #MoneyTalk (March 24th)
- Naughty Banks, March Madness, Big Snow and #MoneyTalk (March 17th)
- Teller Upselling, Auto-filling Taxes, Spring Forward and #MoneyTalk, (March 10th )
- Lent Begins, Loose Money and #MoneyTalk (March 3rd )
- RRSP Season, Tax Time, and #MoneyTalk (February 24th )
- Farewell Vinyl Café, Snow, Monopoly and #MoneyTalk (February 17th )
- RRSP , Tax , TFSA , RESP, and RDSP Time and #MoneyTalk (February 10th )
- Year of the Fire Rooster, Financial Groundhog Day and #MoneyTalk (February 3rd )
- Alternate Financial Facts, 1984 and #Moneytalk (January 27th)
- Bungled Mortgages, Friday the 13th and #Moneytalk (January 13th)
- Merry New Year, CPP, EI and #MoneyTalk (January 6th)
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Fintech is great as long as you keep jumping to the bank offering the best deal. That’s what I do.
I like that cynical but functional. Everyone is in it to make money, that is what to remember.