As I’ve stated before, I am by no means a financial advisor. I don’t know nearly as much as I would like to about the more complicated aspects of money management. But I’d like to learn more, and I have an unprecedented set of circumstances that give me more opportunities to educate myself.

RRSPs: The Thing we are Supposed to All Invest In

I’ve heard the radio advertisements every year – “Make your RRSP contributions!” – but I never really understood how an RRSP would benefit me. In short, an RRSP lets you register an account, make contributions that help you save for retirement, and let you defer the taxes you would’ve paid on that amount. For example, if you earn $50,000 in 2021, and contribute $5,000 to your RRSP, you would pay taxes as though you earned $45,000 in 2021.

The RRSP has a couple of minor drawbacks. There are limits to the amount you can contribute (based on your annual income), and there are penalties and tax implications for withdrawing from the account prior to retirement.

Creating my RRSP

I recently opened two RRSP accounts (more on why later). I started out by going to the bank where I do my day-to-day banking. It was a seamless process, though if I am being honest I found the adviser I spoke with to be condescending.

My second account was created online, with another financial institution. I found this process considerably quicker and less an investment of time, particularly without the condescension of my first. While I may diversify when, where and how I invest, I certainly hope there are no commissions going toward someone who chose to talk down to me as soon as I signed the paperwork.

RDSP: Special Account for Special Expenses

Similar to an RRSP, an RDSp is a registered long-term savings account for people with disabilities. Eligibility is confirmed by the Canada Revenue Agency, based on the ability to claim the annual Disability Tax Credit. The contributions you make to the account grow tax-free, and can receive matching government grants. In addition to that, depending on your family income, you may be able to apply for and receive government bonds. Both of these can provide ways for long-term savings to grow exponentially. Like an RRSP, withdrawals and interest – in addition to the government grants and bonds – are taxable upon withdrawal. There is a lifetime contribution limit of $200,000, regardless of your annual income. And if you withdraw from the RDSP so that the government grants and bonds are withdrawn within ten years of the contribution, that money needs to be paid back. but since my current goal is long-term saving, I don’t have any concerns – at least right now – of touching my recently opened account.

Opening My RDSP

I first asked the financial adviser at my day-to-day banking institution about setting up an RDSP. He didn’t seem to know how to set one up, even though when I made the initial appointment I indicated I wanted to set up an RRSP and an RDSP. I was sent away with a phone number to call during business hours. When I called the number, I asked what I needed to do to set up an RDSP. I was told I needed to fill out a form T2201, which is the form I filled out when I first applied for the Disability Tax Credit. So I needed to apply again for something for which I am already eligible? And send that to the bank?

Frustrated, thinking there was a better way, I went online and located another financial institution which had a dedicated line to create an RDSP. I called, and received some great information about what I needed, including a designated number for ESDC Canada who could provide some further clarity on what is actually needed. I created a new checking account and bank #2, then waited for my card. Once I got my new card – and read its numbers 100% independently with Lookout – I called the RDSP phone number again and got things rolling. I’m now just waiting for the paperwork to come so I can sign it, and my account will be open! I find it interesting how much simpler a process is when people who are supposed to know about parts of their job (like registered accounts) know about… registered accounts!

What’s next?

In short: I don’t know! I have time to decide what I want to do, and how I want to invest for my future. But I know more now than I did yesterday, and I know what I’m willing to accept as treatment from a business or an entity that I’m supposed to trust with my financial future.

What about you?

Do you invest? Do you find it thrilling, overwhelming, or something to be avoided? Where did you learn about registered accounts? Share your experiences in the comments below!

A year ago, I’d never heard of Quber. but one day in late fall, I was browsing my news feed and found an article about an Alberta nonprofit partnering with a fintech startup to help vulnerable Albertans save money. The more I researched, the more I was intrigued by this Quber app… and the rest is history.

What’s Quber?

Quber is a Canadian financial app that, partnered with Alterna Savings, operates a “vault” where your funds are stored. I’ve read it described as a digital change jar, or maybe more like a safe. However you describe it, there’s no shortage of ways you can save.

I Challenge You…

There are several saving challenges that earn extra cash for successfully completing the challenge. It could be $500 in six months, $1000 in a year… but once the challenge is met, you’d earn an additional 2% value (more than the interest on any savings account this blogger’s ever had). You can choose to save a set amount weekly, bi-weekly, or monthly, but there’s unfortunately no way to expedite the saving process; the challenge is accepted on the specific terms, and that’s it. one caveat: Some employers or memberships have their own specific challenges, so if you use the app and qualify for those challenges, your “interest” upon completion could be higher.

The Digital Change Jar

The vault not only holds the challenges. It can also hold a variety of saving jars. Each milestone or goal can have its own jar – an emergency fund, the next vacation, etc. Each jar can have its own saving rules, using your funding source – a Canadian financial institution – as its base: rounding up each purchase to the nearest dollar; a set dollar amount each week, second week, or month; a percentage of a purchase or a deposit; a budget challenge, where the amount you don’t spend at McDonald’s or Amazon or whatever gets put in your jar. You can save as frequently or as irregularly as you like, and the ways to customize these jars is nearly endless. But once the jar is full, it’s full, and the ability to increase the saving target is no longer available.

Save to Win

It speaks for itself – the more you save, the more chances to win. Every $20 your vault increases during the saving period, you win an extra ballot for the Save to Win draws, which have both been short term (weekly or monthly) or long-term (quarterly or twice a year) in 2021. Referring friends also gives both the referrer and the referree a ballot into the draws. In July, Quber partnered with Sunlife for additional save to win draws during the latter half of 2021.

Financial Literacy

Quber posts a weekly blog series – Money Talks – that addresses issues around financial literacy. It’s not always glamorous (Emergency Funds 101, Money mistakes to avoid). They might seem like common sense, but sometimes seeing things in writing can help them stick. And if you already have an emergency fund, and/or are good with personal finance strategies, there are posts that address the basics of investing, cryptocurrency, RESPs, and more. And you don’t need to be a Quber subscriber to take advantage of these bits of wisdom!

Accessibility

The Android app is generally accessible. I’m able to get done everything I need to using my screen reader. There are a handful of unlabeled buttons throughout the app, but most of them are either constant (such as the main menu button on the top left) or provide stop-gaps so that you don’t do anything permanent if you click on a wrong one. I’d like to see Quber address these issues, but I have not reached out to them to advise them of this as of this writing. I must say they have been extremely responsive with any other attempts to contact them, so I can’t see them not wanting to acknowledge and fix this once they become aware of it.

The Bottom line

There are a lot of things to recommend Quber. It’s simple, easy to use, and you can customize it pretty much however you’d like to. It doesn’t have the benefits of a registered account, such as an RRSP or a TFSA, but that also makes it liquid, and easy to access if you have the emergency and need to dip into your fund. Throw in their approachability, their cashback rewards program (which they are revising as of September 28, 2021), and their contests several times a year, and it’s an app I’ll keep around.

Disclaimer

I have not been asked by Quberor any of its parent companies or subsidiaries (if applicable), its sponsors, or its partners, to write this review, nor have I received any incentives, benefits, or compensation from Quber for doing so.