The RDSP is Rigged for Anyone Living With a Disability

 Money is a tricky thing, no one goes around town blurring out their networth or how much they have in their savings account. 

The reason for this is simply because money is a touchy subject. Most of the time, where we sit financially is from how well our parents did financially. This is a hard reality we always should strive to work for our success. 

The main reason why we don't talk about our finances is because we are all in different stages of the pyramid for lack of better term. For one, 5,000 dollars could be a lot of money but for another person 5,000 is pocket change. 

Despite the numbers being personal, we should always be allowed to share strategy of how to become secure with money. 

Before I get into that, let me explain how rigged the RDSP is to Canadians. 

I have one unfortunately and I'm not happy with the terms. I put $125 into the RDSP every month and the government doubles that to the account. It sounds great and all but there is a catch. I can't take any money out without penalty until I'm 60 and when I am 60, I have to divide the total of my RDSP by 23. From what I have read and understood, that means that I have to live until 83 to reach the rewards and all the benefits. 

This is a problem because the average Canadian male lives until 78. However, I have Cerebal Palsy and can't imagine living until 78. Therefore, I won't be getting all the money back I put into it. For instance, my RDSP has about 72,000 in it. Give or take but I haven't check in awhile and I'm only telling you this to put my example in perspective.     

I have been over 18 for 110 months now. So 110 * 125 is  13,750. I have put 13,750 in my RDSP. Looking at the penalties that are there if I take money out is three quarters goes back to the government. That means that 72,000 / 4 = 18,000. 

If my math is correct, that means I have gained 4,250 from starting one. Sounds amazing but I can't take that money out until I'm 60. News flash, not everyone gets to 60. 

What my suggestion would be is to put in 125 to a Qtrade account and buy stock. You can take the money out whenever you want. Find something that is a dividend stock like BNS and see your money grow without penalty. Your 13,750 on October 15th would be easily around 17,000 and maybe higher. 

You can take out the Qtrade money out without penalty. It's that simple. 

By the way, if I'm wrong. Please tell me how I'm wrong as I'm always wanting to learn.