As someone with a disability, you are faced with unavoidable expenses. Getting ahead and saving for the retirement lifestyle you desire can be challenging.
But you deserve to live the life you want to live in retirement.
So if there was a way to be guaranteed $3 for every $1 you saved for retirement, would you take advantage of that?
Absolutely.
What if that $3 was free government money?
Even better!
The Registered Disability Savings Plan (RDSP) can offer exactly this.
Canadians who qualify for the disability tax credit are able to tap into an RDSP and access substantial government grants and bonds to save for retirement.
How does it work?
If you or a dependent qualify for the disability tax credit, you can open an RDSP yourself, or work with a financial advisor to open one.
How do you get free government money?
The government offers funds to plan beneficiaries in the form of grants and bonds.
Grants are paid at 300%, 200%, or 100% of contributed funds, depending on your net family income.
If your family income is less than $97,069
On your first $500 contribution, the government will contribute $3 for every $1 you contribute, up $1,500 every year.
On the next $1,000 contribution, the government will contribute $2 for every $1 you contribute, up to $2,000 per year.
That means that if you contribute $1500, the government will contribute $3500.
That is an excellent return on investment!
If your family income is more than $97, 069
On your first $1,000 contribution, the government will contribute $1 for every $1 you contribute, up to $1,000 per year.
That means that if you contribute $1000, the government will contribute $1000.
That is a 100% return on investment!
Bonds are paid by the government for Canadians with a net family income less than $48,535. Simply for opening an RDSP, the government will contribute $1000. You do not have to contribute a single cent.
You can contribute to an RDSP up until age 59. Over that time, you can receive up to $70,000 in grants, and $20,000 of bonds.
That is $90,000 of free government money that you could be eligible to receive.
There is absolutely no reason that you shouldn’t be taking advantage of these programs. Working with a knowledgeable financial advisor means that you can ensure you are cashing in (literally!) on these opportunities!
Book a call to learn more about the RDSP and other ways to take advantage of free government money to further your retirement goals.