If you would like easy to understand information on the new Registered Disability Savings Plan please visit www.rdsp.com.
Beware of Promises Too Good to be True!
by Patricia Bowles, Director of Communications & Education, British Columbia Securities Commission
Almost everyone knows this saying. But we hear over and over again that people lose money when they fall for a scam promising high returns with low or no risk. There is no such thing. If the investment promises high returns, then it is also promising high risks – meaning you can lose all of your money.
The new 2009 Investor Index tells us that 4% of Canadians have invested money in what turned out to be an investment fraud. One of the more surprising statistics in this year’s survey says that 38% of British Columbians are approached for a fraudulent investment. That’s 10% higher than the national average.
It also tells us that people can be approached by strangers, either on the phone or at the door, through the internet, by going to a seminar, through advertisements in the paper, on the radio or TV, or through family and friends.
If you are approached for an investment opportunity, do us a favour. Go to InvestRight.org and check out Protect Your Money. Watch and listen to each of the four modules. It provides investors with checklists and tips to evaluate and research investment opportunities for risks and potential fraud. It tells you how to report a fraud, how to share the information with friends and family. Get a second opinion. Ask an accountant or banker to look at the opportunity. Do your research. Check to see if the advisor is registered or has ever been disciplined by a securities regulator. Simply Google the person’s name.
When it comes to money, make your decision after you have done your research. The worst thing you can do is make an impulsive decision on the spot and write a cheque.
You can call us at 1-800-373-6393.
Patricia Bowles, Director of Communications & Education
2 comments
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October 15, 2009 at 9:09 pm
Beth Marlin
Well, it’s almost a year since I made my son’s $1,500 RDSP contribution and have just discovered – only by calling the ministry itself – that Douglas is ineligible because although he was 18 when he made the contribution, they will go back two years to when he was 16 and assess his family income, rather than his own adult income. This is ridiculous and nowhere in any of the literature did the program communicate that their rules for tax year income differ substantially from those of Revenue Canada in the program. Got to love politicians!
November 2, 2009 at 8:53 pm
Michael
CRA and HRSDC have just discovered that their system did not acomodate this wee problem and it took an hour on the phone today and chatting to a dozen different government people to find the solution for every RDSP set up for a dependant who has never filed a tax return before.
Call 1-613-954-0419 and ask that the Disability Tax Credit be transferred to your child’s SIN. It will take a few weeks and HRSDC will be informed and I am told all will be well after that.
This was a big screw up between CRA and HRSDC that should not have happened and only applies to those trurning 18 and 19 or who have never filed a tax return in their own name as they were a dependant before.
Good Luck
Michael