All the gobblety gook numbers...

"It's too good to be true" is, under most circumstances, an accurate statement. However, when it comes to the government's Registered Disability Savings Plan, it really is good, and I'm watching the results unfold before my eyes.

The intention is for the the program to be available for individuals with a disability for twenty years or until they reach the age of 49, which ever occurs first.

You can read the details on the website, but the short story is, if the individual contributes $1500 to the savings account during the year, the government match it up to 3:1 and potentially will add another $4500 each year. Even if you cannot afford to contribute any money yourself, just by having the account the government will deposit $1000 each January.

The numbers in Jed's case are this: If he contributes $125 per month (or a combination of lump sums totalling $1500 per year) for the full twenty years (of course, this assumes the government continues the program) he can quit contributing at age 44 and begin drawing on it at age 55 at which time the value of it will be $350,000. (He will have contributed a total of $31,500) 

At 55 he will draw $1,200 per month. Payments will increase at 3.5% per year (for inflation) and by the time he reaches 83 years old the monthly amount will be $4,000. The total he will have drawn by age 84 (when the well will run dry) will be $857,216.

I hate numbers and it's all gobblety-gook but the fact is we opened the account 15 months ago and have contributed a total of $1720. His balance currently sits at $7005. My new mission is to make sure anyone who qualifies for the disability savings plan gets signed up - even if they can't afford to deposit their own money.

I fully anticipate that the government initiative will peter out before the 20 years is up, but why the heck would one not take advantage of it while they can.