Laura Mackenrot, a disability advocate from BC recently wrote an article for the BC Coalition of People with Disabilities (BCCPD) on the RDSP that was very interesting and really pinpoints the important characteristics of the plan. She herself is eligible for the RDSP and will be signing up for the plan when it becomes available in December. Her description of how she will use the plan to really accumulate a significant amount of savings is a really good example of how a modest investment can result in a impressive return.
“An important feature of the RDSP is that the Ministry of Housing and Social Development will not classify it as an asset. If you are receiving the Persons With Disabilities (PWD) benefit from the provincial government, you will be permitted to save over $3,000 if it is invested in an RDSP. This means you do not have to worry when the amount exceeds the $3,000 limit that is currently placed on those receiving PWD. As well, money held in an RDSP will not affect the application process if you are applying for PWD or any other government assistance program.
Personally, I will be using my added part-time income to contribute $125 a month into the plan to maximize my investment for retirement. If I do this for 33 years, and don’t take any money out before I turn 60, then I should have $870,000 if I choose mutual funds with an average growth rate of 8%.”
To read the article in its entirety visit: http://www.bccpd.bc.ca/rdsp.htm