Free money – I just had to share

I don’t know about you, but I like free money. I really like free money. Additionally, I get a kick out of discovering hidden gems. So, when I find a little-known secret that offers free money to people, I get really jazzed. 

If you have a Registered Disability Savings Plan (RDSP) or think you might be eligible for one, this article is for you. If you know someone who has one or you think they might be eligible, then this article is for you, too.

Let me tell you about the Endowment 150 grant which is both a hidden gem and a source of free money. It’s a program which is (at least in part) designed to encourage eligible BC residents with disabilities to open and contribute to an RDSP. Think of it as a jumpstart. If you already have an RDSP, don’t despair—you may still be eligible. 

In short, a handful of charities (specifically the Plan Institute, Disability Alliance of BC, and the British Columbia Aboriginal Network on Disability Society along with the generous financial support of the Vancouver Foundation) have partnered to help British Columbians with disabilities learn about and access tax benefits that will help them save for the future. As part of this initiative, Plan Institute is distributing a one-time $150 grant to help low-income British Columbians start growing their RDSP.

You might be thinking “but it’s only $150.” I get it, but don’t forget about the government matching program. Eligible individuals can get up to three times matching from the government ($450 in this case), increasing that initial $150 to a much more meaningful $600. Also, depending on income, just setting up the RDSP may lead to government bonds of up to $1,000 per year of eligibility. That could add up to $20,000 of free money by just opening a plan and applying for that $150. And that could be even more if you invest it!

Let me be absolutely clear on this. Each of these organizations is a charity working alongside the government, so while this is indeed a bribe to encourage individuals or families to open up an RDSP, it is not in any way like the timeshare presentation you have to sit through just for some free snacks. These groups do not sell RDSPs. They are not trying to get you to buy an RDSP from them. They don’t care where you establish an RDSP or where you hold it. They just want you to have one (if you’re eligible), because they are awesome.

There is a simple form to complete and then, if eligible, you will receive the funds to your RDSP wherever it is held. Again, the charities have no hidden agenda. Each of them simply recognizes the enormous benefits of contributing to an RDSP and is also aware of how many eligible Canadians still have not opened one yet.

I don’t normally do this, but I’m going to provide links to the applications and FAQ pages. I’ve included the direct links since most of them are fairly straightforward. If you ‘re reading in print, you can type them into your browser, but feel free to reach out if you’re having difficulty and we can give you the links directly. If you’re reading online, just click the links.

Endowment 150 grants are available for individuals and families with low incomes who are residents of BC and have an RDSP. It’s worth noting that it’s very likely that once they reach the age of majority, individuals with disabilities will qualify based on the income criteria. So, if your child isn’t eligible right now, make a note in your calendar and try again after they reach the age of majority. 

I suggest reading all the requirements directly from the RDSP site on your own, and when you apply, make sure you send in all the items on the checklist with your application form.

“…never inspect the teeth of a given horse.”

• St. Jerome, Preface to the Commentaries of the Letter to the Ephesians

To apply for the Endowment 150 grant:

• for a child, go to rdsp.com/how-to-apply-for-a-child
• for an adult, go to rdsp.com/how-to-apply-for-an-adult

More questions?

• To find out more about the RDSP, navigate to rdsp.com/about
• Find the answers to frequently asked questions about the Endowment 150 program on the FAQ page at rdsp.com/endowment-150-faqs
• To find out more about how you can benefit from the Endowment 150 grant, go to rdsp.com/free-money
• For more information about additional supports and services related to this partnership, go to rdsp.com/supports-and-services
• If you have more questions, you can contact us at dr.rrsp@visionvest.ca or Plan Institute directly at E150@planinstitute.ca.

Arnold Machel lives, works, and worships in the White Rock/South Surrey area. He holds the Certified Financial Planner® designation, is the Founder of Visionvest Financial Planning & Services, and sits on the board of Abundance Canada. Visionvest (his firm) has been voted Best Investment/Financial Advisor by Peace Arch News readers for the past three years in a row.

Questions and comments can be directed to him at dr.rrsp@visionvest.ca. Please note that all comments are of a general nature and should not be relied upon as individual advice. While every attempt is made to ensure accuracy, facts and figures are not guaranteed.