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Frequently Asked QuestionsWho is eligible to participate in the Canadian Dentists’ Investment Program? How do I apply for the investment plans available through CDSPI? What types of investment plans are available through the Canadian Dentists’ Investment Program?Where can I get help in making investment decisions? How do I change the beneficiary for my investment proceeds? What is the minimum amount of money I need to invest in the Program’s plans? I have an investment contribution issue. Who do I contact? Are Canadian Dentists' Investment Program participants subject to a short-term trading penalty? Who is eligible to participate in the Canadian Dentists’ Investment Program?Dentists who are members of the CDA or the ODA are eligible to participate in any investment plan offered through the Canadian Dentists’ Investment Program.The spouse, children, parents, grandparents, grandchildren, siblings and in-laws of CDA or ODA-member dentists are also eligible to participate.As well, dental office staff who work for a CDA- or ODA-member dentist are eligible to participate in the Investment Program, as are their spouse, children, parents, grandparents, grandchildren, siblings and in-laws. Staff members of the CDA and all provincial associations are also eligible to participate.How do I apply for the investment plans available through CDSPI?To apply for any Canadian Dentists’ Investment Program plan, eligible participants simply need to complete and submit an application form. You can obtain any Program plan application by mail or fax by contacting CDSPI Investment Services. You can obtain applications for the CDA RSP, CDA RESP, CDA Investment Account and the CDA RIF now by visiting our On-Line Forms Page.When you apply for the first time, simply enclose a minimum $50 contribution cheque (and a void cheque if you wish to contribute through pre-authorized chequing). What types of investment plans are available through the Canadian Dentists’ Investment Program?The Canadian Dentists’ Investment Program offers investment plans to help dental professionals and their families reach their investment goals. Click on the name of the plan to learn more about it.
For more information, contact CDSPI Investment Services. Where can I get help in making investment decisions?You can access no-cost investment planning assistance through CDSPI’s affiliated company — CDSPI Advisory Services Inc.* Regardless of your experience with investing, CDSPI Advisory Services’ non-commissioned certified financial planners, serving dental professionals and their families can help you understand all of your investment options and assist you in implementing an investment strategy that right’s for you.Additionally, information on investment basics
can be found on CDSPI Advisory Services’ website. For contact
information, click here. How do I change the beneficiary for my investment proceeds?To apply to change the beneficiary designated on any Canadian Dentists’ Investment Program plan, you will need to complete a change of beneficiary form. You can obtain this form by mail or fax by contacting CDSPI. You can also download this form.I make investment contributions through pre-authorized chequing. How do I increase or decrease the amount I contribute?By using pre-authorized chequing (PAC), your Canadian Dentists’ Investment Program contributions are automatically deducted from your bank account. To increase or decrease this amount, CDSPI requires that you submit a signed request. Please include your account number when sending this request via fax or mail. Click here for our mailing address and fax number.What is the minimum amount of money I need to invest in the Program’s plans?An initial minimum contribution of $50 is needed to open the CDA RSP, CDA TFSA, CDA Investment Account and the CDA RESP. Future deposits can be as low as $25.I have an investment contribution issue. Who do I contact?If you have a question or wish to change your investment contribution method, amount or frequency, contact a CDSPI telephone representative. Dial 1-800-561-9401, and enter extension 5020. Are Canadian Dentists' Investment Program participants subject to a short-term trading penalty?Yes. The investment fund industry has found that when frequent fund switches are made by investors in a given fund over a short period of time, the result may have an adverse impact on the fund’s performance. As a result, the Sun Life Assurance Company of Canada (the issuer of the annuity contract for the CDA investment funds) has instituted a new short-term trading policy designed to protect all CDA fund unit holders. The policy is effective immediately and will not affect normal trading activity for the vast majority of Canadian Dentists' Investment Program participants. (CDSPI’s records indicate that only a small number of Investment Program participants have made transaction that could be considered short-term trading.) Under the terms of the policy, a 2 per cent “short-term trading penalty fee” may be levied when an Investment Program participant transfers money from one fund into another, then transfers some or all of that money back out of this second fund within 30 days. The 2 per cent fee will be charged on the amount transferred out, to a maximum of the amount transferred in within the 30 day period. (In other words, an investor may be penalized for taking money out of a fund that they transferred into within the last 30 days, but no penalty will apply for taking out any amount beyond what was transferred into the fund.) The penalty does not apply to transactions in the CDA Money Market Fund. Further, the penalty does not apply to automatic scheduled fund transfers such as maturity transactions and asset mix rebalancing. (If asset mix rebalancing is done more frequently than 30 days, the penalty may apply.) CDSPI and the Sun Life Assurance Company of Canada do not benefit from the collection of these penalty fees. Any fees collected go back into the fund for the benefit of all fund unit holders. If you have any questions about this policy, please call CDSPI Investment Services at extension 5020 by dialing 1-800-561-9401 (toll-free) or (416) 296-9401. What Are Segregated Funds?All of the CDA funds are “segregated” — a type of investment fund that offers distinct advantages to dental professionals and their families. In some respects, segregated funds are no different than other types of investment funds. Like mutual funds for instance, segregated funds offer: • Low-cost professional money management However, because segregated funds are offered by life insurance companies (as opposed to investment firms), they offer additional benefits that can protect your money and minimize taxes. Since segregated funds are an insurance product, their assets may, under insurance law, be protected from seizure by creditors if certain conditions are met. The conditions include naming your spouse, child, grandchild or parent as your beneficiary. If you name a beneficiary other than your estate, the proceeds of your Segregated Funds may be paid out directly to your beneficiary. This means your beneficiary receives the proceeds quickly and probate fees will not be payable on those proceeds. Many segregated funds available to the public have higher management fees than their mutual fund counterparts. However, this is not the case with the CDA funds. In fact, the CDA funds have some of the lowest management fees available anywhere — compared to all types of investment funds, including mutual funds. CDA fees stay low because the segregated funds in the CDA plan (like most group plans) do not offer a capital guarantee. In contrast, some individual seg fund plans will guarantee the principal you invest when you have been in the plan for 10 years or more. This guarantee can be costly, adding one percentage point or more to management fees. Many investment experts have questioned the value of this guarantee, citing the improbability of a sustained 10-year drop in the market. CDSPI | Insurance | Investment | Affinity Services | New Dentists/Students | Dental Staff
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