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Unlocking the Power of the RDSP: A Lifeline for the Future

By Corey Butler

Imagine a savings plan so powerful, the government not only matches your contributions but sometimes gives you money even if you don’t put in a cent. Welcome to the Registered Disability Savings Plan (RDSP)—a little-known but life-changing financial tool available to Canadians living with disabilities.

For families navigating the added costs and uncertainties that often accompany disability, the RDSP is more than just another bank account—it’s peace of mind, security, and a way to build a future with dignity and independence.

What Is the RDSP, and Why Should You Care?

Launched in 2008, the RDSP is a federally registered savings plan designed to help people with disabilities build long-term financial security. It’s similar in some ways to a retirement plan, but tailor-made to support individuals who qualify for the Disability Tax Credit (DTC).

What makes it remarkable? Free government money. Through a combination of grants and bonds, the government can contribute up to $90,000 over the lifetime of the plan.

This isn’t just smart saving. It’s strategic empowerment.

Who’s Eligible?

To open an RDSP, a person must:

• Be under 60 years old
• Be a Canadian resident
• Have a Social Insurance Number (SIN)
• Be approved for the Disability Tax Credit (DTC)

Parents or guardians can open the account on behalf of a child, and contributions can be made by family or friends—anyone looking to invest in the future of someone they care about.

The Two Magic Words: Grants and Bonds

Canada Disability Savings Grant (CDSG)

This is a government match program that can triple your contributions. For lower- and middle-income families, the government will contribute up to $3 for every $1 saved, depending on income and amount contributed. Over a lifetime, you can receive up to $70,000 in grants.

Canada Disability Savings Bond (CDSB)

Even if you can’t afford to contribute, the government may still deposit up to $1,000 per year into the plan—no personal savings required. That’s up to $20,000 for those with lower incomes.

Smart Money, Tax-Free Growth

The RDSP allows savings to grow tax-free, and withdrawals are designed to supplement—not replace—income and disability benefits. That means you can plan for the future without risking access to vital programs like the Guaranteed Income Supplement (GIS), Old Age Security (OAS), or provincial social assistance.

In fact, in most provinces, money held in an RDSP is fully exempt from asset and income testing—making it a rare and powerful exception in the financial world.

Can You Access the Money?

Yes—but with caveats. The RDSP is meant for long-term use, so early withdrawals come with potential clawbacks. Any grants or bonds received in the 10 years prior to withdrawal may need to be partially repaid.

After age 60, beneficiaries can begin receiving regular payments without penalty, creating a steady source of income during retirement or later life stages.

Getting Started: No Experience Required

Setting up an RDSP is easier than it sounds:

1. Get approved for the Disability Tax Credit (DTC).
2. Visit a financial institution that offers RDSPs (most major banks do).
3. Open the account and apply for the grants and bonds.
4. Start contributing—if you can. Even small deposits can unlock thousands in support.

The Bottom Line

In a country with universal health care and social safety nets, the RDSP stands out as one of the most generous and empowering programs for people with disabilities. And yet, it remains underused and often misunderstood.

If you, your child, or someone you know is eligible, don’t wait. This is a rare opportunity to secure a future on your own terms—with help from a system that, for once, truly works in your favour.

Corey Butler

To see this blog published in the Mingo Magazine Fall 2025 issue – click HERE

By: Corey Butler, Wealth Advisor

Meriam Webster’s definition of succession:

“The order in which or the conditions under which one person after another succeeds to a property, dignity, title, or throne.”

The next 10 years will be the largest period of succession for business owners like never before. Aging demographics are highlighting this exposure for business owners. Who, what, and how will one take over the business practice. Biz owners of all walks of life have the same trait of control hardwired in them. Control is what has allowed him/her to make those hard decisions. Control has offered a sense of freedom with direction and outcome. For most the thought of succession equals loss of control, purpose and the end of the chapter.

The reality is something much different with a well thought out and executed succession plan the business owner can have their cake and eat it too. How is that possible? Share structure and tax planning are the key ingredients to make this happen. The buy/sell agreement that has not seen the light of day since inception must have the I’s dotted and T’s crossed so revisiting and reviewing is so ever important. To ensure you have a successful passing of the torch you really need to make sure you and your buyer are not just on the same page but same paragraph and better yet same sentence. Having a trusted advisory team representing all parties will ensure that all parties are happy with the result.  Everyone may not get exactly what they want as everyone may have to give a little, this is where your advisory team is key.

Too much time is spent on making sure everything is perfect with a succession plan when the reality is that success can only be achieved when all parties are willing and able to come back to the table anytime there are challenges. Life is never dull, and the grind is real in business. Stuff always happens and to be successful one must accept that stuff will happen.

A succession plan starts by planning from “Right to Left”. You know where you want to be but how do you get there? Creating a succession plan pending complexity can take anywhere from 6-18 months. As you know the days and weeks pass by quickly, and with every year we continue to age, so completing a plan that will provide for 20-25 years of income certainly will take a considerable investment of one’s time. Let alone the sheer fact that business keeps happening each and every day. No one solution but a combination of solutions will equal success.

Ecivda Financial Planning Group is trusted advisory team with over 50 years of experience helping business owners pass their torch! We have recently completed our own in-house succession plan and can so relate to your concerns and challenges. If this resonates then you know what to do next!

By: Corey Butler, Wealth Advisor

2022 is in our rear-view mirror and 2023 is now staring us in the face with a sea of uncertainty. Inflation, supply chain, Covid, China, Ukraine war, stagflation, interest rates… it never ends. This is where you come to the realization that you can only control your own day to day decisions and life. The world has, and will always have, issues. As far back as we can look, there is always civil unrest, famine, war, and natural disasters. So why do we react with such negative assumptions when we know history always repeats itself? Markets go up and markets go down. Buyers and sellers get to make their decision on what something is worth and whether there is upside or downside.

If we look at real estate which is under pressure as of late with massive interest rate increases by both the Bank of Canada and Federal Reserve. Market values have certainly retreated as of late, offering a lower entry point for buyers, but with interest rates at current levels, we essentially end up in the same place with monthly payments vs 2021 pricing. The exposed variable rate debt has gotten much more expensive but when compared to the 5-year fixed rate, the variable is still cheaper option. We need to accept that these rates are going to stay much higher than what we experienced throughout the pandemic. Historical Prime Rate Average has been 5-6%.  If you look out over the next 20-25 years at a modest 5% growth rate on real estate, you still have more than doubled the home value.  It is an incredible asset class.

There are so many conflicting outlooks across all sectors which result in complete paralysis in making decisions or taking a stance. A well-diversified investment portfolio is truly the key to your success during turbulent times. “The trend is your friend until it’s not, and trying to catch a falling knife hurts a lot.” These are wise words bestowed on me from mentors that I have had the pleasure to work beside.

An Investment Policy Statement “IPS” is one of the best ways to keep yourself on the straight and narrow to not get tactical during turbulent times. An IPS becomes your compass to help you find the North Star. It should be reviewed annually with your wealth advisor to ensure risk, goals, and behaviour are on track. If you currently have not created an IPS roadmap, please feel free to reach out and we can grab a coffee to discuss.