To date, I contribute to my and my spouse’s registered disability savings plan (RDSP), then our TFSAs. When I max out these savings plans, should I contribute to a RRSP, or should I use an unregistered trading account?
A. Structuring your cash flow so that you have more money coming in than going out is an important first step in the retirement planning process. But once you have that extra cash flow, deciding the best ways to allocate it is not always simple.
I would generally prioritize paying off high interest-rate debt like credit cards before saving, but I will assume that is not a consideration for you and your wife, Jason.
It sounds as though you both qualify for the disability tax credit (DTC), which is a requirement to open a registered disability savings plan (RDSP)…
First smile. First word. First steps. First degree.
In this age of lifelong learning, a post-secondary degree or diploma is not only important for future prospects but may also be one step among many in your child’s educational experiences after high school.
Your child may get an undergraduate degree, then add a college diploma in a specialized field. Your child may go on to graduate studies or want to gain international experience and study abroad. There are several scenarios that you need to plan for because making sure your child gets the necessary education does not come cheap. Many parents want to help ease the financial debt burden on their kids, which stands at an average of $28,000 for an undergraduate, according to the latest numbers from Statistics Canada.
Fortunately, for parents who start early, the savings can add up to giving your child a leg up on paying for it.
Additional benefits of RESPs
Withdrawing from an RESP
Saving for education beyond an RESP
Tips for saving
The student’s responsibility
Here are some of the figures for Canadian students to give you a sense of what you may be looking at down the line…