The top 5 reasons to start a Registered Disability Savings Plan (RDSP) for your loved one
A Registered Disability Savings Plan (RDSP) is a savings plan designed to help individuals with disabilities and their families save for the future.
If you have a loved one with a disability, here are the top five reasons why you should consider starting an RDSP for them:
Financial support. An RDSP can provide financial support for individuals with disabilities, helping them to cover the costs of things like medical care, education, and housing. This can be especially important for individuals with disabilities who may not be able to work or earn a regular income.
Tax benefits. Contributions to an RDSP are eligible for a federal grant and a matching provincial or territorial bond, which can provide a significant boost to your savings. In addition, investment income earned in the RDSP is tax-free as long as it remains in the plan.
Flexibility. An RDSP allows you to choose how and when to make contributions, so you can tailor the plan to your loved one's needs and your own financial situation. You can also make lump-sum contributions or regular contributions over time, and you can choose how the money is invested.
Security. An RDSP provides a secure way to save for the future, as the funds in the plan are protected from creditors and are not considered as income or assets when determining eligibility for government benefits. This can provide peace of mind for both the individual with a disability and their family.
Control. With an RDSP, you have control over how the funds are used, so you can be confident that the money will be used for the benefit of your loved one. This can be especially important if you're concerned about your loved one's ability to manage their own finances.
In conclusion, starting an RDSP for your loved one with a disability can provide a range of benefits, including financial support, tax advantages, flexibility, security, and control.
If you're considering starting an RDSP, be sure to talk to a financial advisor or disability support organization for more information and guidance.