As you probably know, the Registered Disability Savings Plan (RDSP) is an important tool to enhance the long term wealth of a disabled person.
With the help from the Government of Canada, one could obtain up to $90,000 of disability savings benefits. Unfortunately, many families set up their RDSP with local financial institutions, only to realize they can’t get the help they need. I’ve talked to many families, and here are some common problems they face.
3 Common Problems Many Families with Disabilities are Facing Today
Problem #1: Working with Incompetent Rep
RDSP is not just about opening an account and forgetting about it. There are a lot of complex considerations involved. For example:
- Does the disabled person have the capacity to manage their finances?
- If not, who should be the suitable account holder in the future?
- What happens if the current account holder passes away?
- What if the Disability Tax Credit expires?
- Will the RDSP affect other government benefits like the Ontario Disability Support Program?
- How much should you contribute to maximize matching grants?
- What investments align with your situation?
- When can you withdraw money without clawing back government benefits?
As you can see, there’s a lot to think about when planning for an RDSP. Unfortunately, many families tell me that their local banks often lack experience in this area. The reps usually have little to no expertise with RDSP, thus many of their concerns that did not been properly addressed.
Problem#2: No Continuity to the Discussion
Believe it or not, many financial institutions are very transactional. They often assign random reps to your account without considering your unique circumstances.
Since most staff in the local branch are not well equipped to serve families on their RDSP, these families would be directed to a hotline whenever they need help. They would have no choice but to speak with different random reps, and having to re-explain their entire situation during every call.
Many families told me that they received no proactive advice in the planning process. Yes, when they asked the branch to make a transaction, they would do that. But whether that was a suitable decision for the families, they did not provide any guidance.
Instead, the responsibility of asking the right questions will lay entirely on the families. However, the challenge is RDSP planning indeed involves lots of complex considerations, and most families do not know what they need to be aware of.
Would you prefer going to walk-in clinics and dealing with random doctors all the time, or would you rather have a family doctor who knows you and provides constructive advice? Similarly, do you want a ‘walk-in’ approach or a ‘family professional’ for your finances?”
Problem#3: Broken pieces of advice
As I mentioned earlier, finance isn’t just about setting up an account. It involves careful considerations like the impacts on government benefits, taxation, balancing short-term cash needs, and long-term investment growth.
For example, RDSP can be great for the long-term, but if you are planning to purchase a home in the next few months, is it still a suitable option? What about upon receiving an inheritance, should you put them all into the RDSP? What are the withdrawal restrictions or limitation on the matching grants that you need to be aware of?
Many families get bits and pieces of advice, but this scattered approach doesn’t provide a complete picture. It makes planning for the future much more challenging.
How Are We Different?
At this time, you might be thinking, ‘Okay, I understand there are lots of problems that need to be addressed, but how are you different from the rest?‘
Allow me to introduce myself briefly. I’m Samuel Li, and I started my financial advisory practice back in 2005, Canadians grow their long-term wealth while protecting their assets. One area I specialize in is serving families with disabilities.
Since the RDSP was launched in 2008, I’ve had the privilege of supporting many different families in planning for their financial needs.
For example, I’ve helped:
- A single mother of an 8-year-old child diagnosed with Autism.
- A middle-aged lady whose daily activities are restricted due to brain damage.
- A family where two members are diagnosed with prolonged mental disabilities.
- And many other families in the special needs community.
“People Always Come First” Approach
Throughout the years, I have the privilege in sharing my financial knowledge with many families and disability support groups.
Whenever I work with clients, we always start with a meeting to understand their current financial situation and needs. For example, we would have discussion on many practical topics:
- Does the disabled family member has the ability to look after themselves? (i.e. If not, what’s the plan?)
- What are your income sources?
- Are there any government benefits that your family could be missing out?
- Do you have enough savings to cover your short-term needs?
- Where will the disabled family member live in the future? (i.e. group home? buy a house?)
- Do you understand the benefits and withdrawal rules of the RDSP?
We take a holistic approach, looking at different areas of planning, from short-term cash needs and saving for home buying to long-term investing and estate planning.
We will review the planning regularly, and I’ll continue to provide you with updates and suggestions.
You don’t need to worry about working with another random rep again, as my intention is to serve in this industry for many years to come. My goal is to build long-term, trusted relationships with all my clients.
Below are some success stories from our clients:
“His expertise in RDSP’s impressed me…thoroughly explained again about the in’s and outs of RDSP’s and then helped us setup an RDSP fund for my son with developmental delay syndrome.”
“I first met Sam at an orientation meeting organized by Community Living Toronto way back in 2013. His expertise in RDSP’s impressed me at that meeting. We scheduled an appointment with him and a few days later Sam came home and thoroughly explained again about the in’s and outs of RDSP’s and then helped us setup an RDSP fund for my son with developmental delay syndrome.
Since that time Sam became my financial advisor, I would seek his opinion before signing up for an insurance and when my mortgage renewal was up I sought his assistance in finding a good lender with much better rates. Recently when I thought I needed a personal loan he not only looked into finding which financial institution I could get it from but gave me the best financial advice that stopped me from getting back into debt. He’s one of the best financial advisers out there, I highly recommend him.”
Phillipa Lubin, London, Ontario
“…He offers top-notch customer service as well. He will often times three-way call so that he can ask the proper questions on my behalf. I don’t think anyone could get that in a bank….”
“Samuel Li is the best Financial Advisor I have dealt with. His service goes beyond after the transaction has ended. He is very personal and I know that he always puts our best interests first. He is very knowledgeable in his field and always offers options and leaves the decision making to us. He never pushed anything. I really appreciate that he takes time to explain everything until we fully understand what we are getting.
He offers top-notch customer service as well. He will often times three-way call so that he can ask the proper questions on my behalf. I don’t think anyone could get that in a bank. Thank you for all you do for us Samuel and in helping us secure our children’s future and ours. I will never stop recommending you to my friends and family as I would like them to have the same quality of service and care!
All the best for the New Year and many more years to come. “
– Leah and Kristian
If you are serious about working together in growing your long-term wealth, I’d be happy to set up a preliminary meeting with you. But first, I’ll need to know more about your situation. Please fill out the form below.
Is this a Legitimate Business?
We are talking about managing your financial well-being. Of course, it’s understandable that you want to make sure that we are a legit financial company.
I’m a licensed financial advisor currently working with Investia Financial Services Inc, one of Canada’s largest independent dealers, with over 59 billion dollars in assets under administration (As of Jan 31, 2024), and thousands of advisors across various provinces.
You may also find me listed on the Investia official website: Samuel Li – Investia.
Here’s a Relationship Disclosure Information Document, outlining our commitment to you, the governing body that regulates us, and your rights as an investor.
Being part of Investia allows my clients access to investment solutions from over 60 reputable companies, including RBC, TD, CIBC, BMO, AGF, CI, Fidelity, Dynamic, Mackenzie, Franklin Templeton, Sunlife, Manulife, Invesco just to name a few. With this massive support, my clients have access to a complete range of financial solutions to reach their goals.
Unlike many banking institutions that only promote their own products, we are independent and have no quota requirements, ensuring that my team and I always work in your best interest.
Where are we located?
Our office is at 80 Acadia Ave., Suite 205, Markham, Ontario. While we can meet in person at our office, technology allows us to arrange virtual meetings as well. (Note: All meetings are by appointment only. Please do not show up at our office without scheduling. Sometimes, I would be out of the office doing presentations.)
l was very impressed with all the knowledge he has about special needs he helped us set up many different accounts…Samuel is very hard working and very honest…”
“I met Samuel about a year ago through face book and l was very impressed with all the knowledge he has about special needs he helped us set up many different accounts , like TFSA account and Disability insurance , as my daughter can not get life insurance because of her special needs and many more things . Samuel is very hard working and very honest . He has also helped us consolidate our finances . He is amazing !!”
Maria Agosta, Markham, Ontario
Top 10 Reasons Why So Many Families Decide to Work with Us
- Expert Knowledge on the RDSP
- Holistic Approach in Providing All-Round Financial Advice
- Ongoing Proactive Advice and Regular Updates
- Long-term Trusted Relationship with Your Family
- Quick Turnaround Response Time
- Flexible Communication Methods
- Unlimited Email and Virtual Supports
- Access to Solutions from a Wide Range of Reputable Financial Companies
- Seamless Documentation Process
- Benefits from Top Notch Industry Expertise of the Tax & Estate teams of Our Partnering Companies
If you are serious about working together in growing your long-term wealth, I’d be happy to set up a preliminary meeting with you. But first, I’ll need to know more about your situation. Please fill out the form below.
Disclaimer:
The comments contained herein are a general discussion of certain issues intended as general information only and should not be relied upon as investment, financial, legal, accounting or tax advice. Please obtain independent professional advice, in the context of your particular circumstances. This newsletter was written, designed and produced by Samuel Li for the benefit of Samuel who is Advisors at : SamuelConsultant.com is a registered trade name with Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia Financial Services Inc. The information contained in this article comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any securities.
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