how does this work?
it's an rrsp, so i can buy stocks, bonds, mutual funds, etc
- the account opens with $10000
- the government will deposit $1000 per year for the remaining five years, for an additional $5000.
the maximum amount of matching grants i can get are as follows:
- the first $5000 (500*10) deposited into the rdsp will be matched at 3x (for 2015-2025)
- the next $10000(1000*10) deposited will be matched at 2x (for 2015-2025)
- amounts for 2026-2030 will be an additional 500 per year matched at 3x and additional 1000 per year matched at 2x.
but there is a maximum matching amount of $10500 per year, to a total of $70000. it will carry forward each subsequent year.
that means that the max for 2025 (i deposited before dec 31, 2025) will be $3500. the government will match 500 for the years 2015-2021, that is 7 years at 500. so, if i can get $3500 in the account somehow by dec 31, 2025, the government will deposit an additional $10500.
the max for 2026 will then be 500 for 2022-2025 (3*500 is 1500 multiplied by 3 is $4500) plus 1000 each for the next 3 years, 2015-2017 (3*1000 is $3000 multiplied by 2 is 6000). that would be a total of $1500+$3000 = $4500. so, if i can somehow get $4500 in the account between jan 1-dec 31, 2026, the government will deposit an additional $10500.
the max for 2027 will be the $500 for 2026 (500*3 = 1500) plus 1000 each for the next four years (2018-2021) (4*1000 is 4000 multiplied by 2 is 8000), plus 1000/3 is 333.33 of the 500 for 2027. that adds up to 4833.33. so, if i can get $4833.33 in there over 2027, the government will deposit an additional $10500.
the max for 2028 would be the 166.67 left from 2027 (166.67*3 = 500) plus 1000 each for the next five years (2022-2026) (5*1000 is 5000 multiplied by 2 is 10000). so, if i can get 5166.67 in there over 2028, the government will deposit an additional $10500.
the max for 2029 would be the $500 from 2028 (500*3 = 1500) plus $1000 year for 2027, 2028 ($2000*2 = $4000) + 500 from 2029 ($1500) plus $1000 from 2029 ($2000). so, if i can get $4000 in there over 2029, the government will deposit an additional $9000.
the max for 2030 would be $1500, and the government would deposit an additional $3500.
the government would stop contributing when i turn 50. so i would max out at 54500, less than $70000. however, with the extra 15000 in bonds, it's almost $70,000.
that means i'm currently looking at getting $3500 in there by the end of the year to get the $10500 for 2025 and $4500 in there next year to get the $10500 for 2026.
4500/12 = $375.
i could do that.