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1. teat Alten O vom Siepby Siap Retremert Ward Complete Puga and Net Tom ET 7 0 oom Tan Mortar Pegar fre rages cf yon stand pan are pur jou aset scan Hay onach gt 2005 a 100 o wa 0 205 2 1000 1 om 0 O ER Ys tse rons Sammy 208 u 1 100 m 0 0 208 5 1 10 76 0 0 y 2010 1 100 an 0 0 Em y 1 100 ae 0 0 Ann EJH 120 75 0 0 120 20 0 0 120 10 0 0 a 130 125 0 0 ame 2 1 00 1413 0 0 E a 100 1514 0 0 208 u 140 18 0 0 ans 5 140 2073 0 0 2000 5 140 230 0 0 w Ea a 150 2610 0 0 er 2002 a 150 294 0 0 Neos He Goeters re E Dates 200000 90000 s e00 1000000 1200000 100000 a ena 17 mil a ole 20000 00000 pam pe mo mo am x K 500000 500000 3 wo xo 00000 2000 100000 o Use of Wizards RetireWare is organized around wizards for all components of the software including Quick Calculation Net Worth Budget Asset Allocation and Step by Step Retirement wizards To make it even easier it also has printable cheat sheets in PDF format that can be used to collect all required information away from your PC Quick Calculation RetireWare is powerful and sophisticated yet it is very easy to use With the Quick Calculation Wizard you can plan your retirement in a few minutes Then you can do a more detailed analysis by using the other wizards and dozens of special features You can easily update your file to monitor your long term financial heal
2. 89 90 31 Defined Contribution Pension Purpose Use to enter the contribution rates market value of your assets in a defined contribution pension plan of a current employer split by asset class Do not include account values or contributions to a Group RRSP a deferred profit sharing plan a defined benefit pension plan personal RRSP LIRA or locked in RRSP Background Enter the employee and employer contributions to the defined contribution pension plan of your current employer If contributions vary with service determine the contribution rate that most closely reflects the average contributions over your future years of service Your selection of the age you expect to leave the company determines the future years of contributions in the plan The summary of plan provisions will provide information on the employee and employer contribution rates Steps Selecting Current Defined Contribution Pension Plan On the Pensions menu click Company On the Future Pensions tab in Pension Plan of a Current Employer select Defined Contribution or Defined Benefit and Defined Contribution On the Other tab select Defined Contribution Pension Plan Click Next Based on your selections the appropriate information appears Enter the information and select options as required Click Next and click Finish N NOD ga Entering Contribution Rate 1 Click the Contributions tab and in Contribution Rates enter the Employee Contrib
3. 1 Introduction How Much Will I Need How much should save How should invest my money Will have enough for my retirement How much money will need How can ensure won t outlive my money With the recent downturn in the capital markets these are questions that have become increasingly important as we get closer to our retirement RetireWare is the only tool that is specifically designed to answer these questions using sophisticated mathematics and leading edge technology including Monte Carlo simulations Total Planning RetireWare is about total planning you can integrate all of your and your spouse s assets and future income in planning retirement education costs for your children and other financial goals RetireWare Fla View Wiad Forecast Frances Perstcra Cptons Mesta Tools Window Heb OSES ALTO DAADA Je Gh MATABA Rie e en 3 dt pour retar plan by eres detras rien en al pas ccoo miset and reanemert econo chico The Wand al dere home much mcr rd be sopa dang reismmerd Accumstation of Assets Spasse 1 8 en Welcome tote Samp tinap Petrer Wind Tre Spy Siap Patent Wizard wa prompt you fo detale rtamaton on sl inancisi sect of ya 2 A A veren of Wiad I engin Ofer scher Sonnen rd erhunce ya innert gm tones Continet erm the Step ty Siep Patent Wewd Oich the Fer buton and the Wend rat a o ET am y Ez p en and Br te
4. Select the assets you intend to use as a source of income during retirement Any item not selected will not be used in the calculations Include temporary income such as part time employment or future expected payments after retirement You can select to preserve non registered capital or use investment earnings only as income Sources Other Non Registered Registered Residence N j IV Tax Free Savings Account RASPs and Defined Contribution Plans Company Defined Benefit Pension Sale of Business Ownership Personal Residence Sale of Other Real Property Canada or Quebec Pension Plan from Age les Old Age Security Other Future Assets Cancel Help Background Select the assets or future income that you intend to use for retirement Any item not selected will be ignored in the calculations You can also add other temporary income such as part time employment or future expected periodic payments If you select non registered assets you can select to preserve your capital and use investment earnings only as income If you select the personal residence as a source of income you can sell it at a future date and use part or all of the proceeds 99 Steps Selecting Sources of Income 1 On the Options menu click Sources of Income or on the Toolbar click the Sources of Income button 2 Enter information and select options as required 3 Click Next click OK or press ENTER Selecting Assets to Draw From During Retirem
5. 26 Budget Information Purpose Use to enter information required to complete the Budget and Net Worth Statement Background Budget information collects data to build the net worth and budget statements Enter the current value of any assets that are not intended to be used for retirement and annual savings to these assets Existing balances of unpaid debt are for the liability portion of the Net Worth Statement Estimated taxes and deductions are used to determine net income in the pre retirement budget You can enter the same information by using the Budget and Net Worth Wizards Steps Selecting Budget Information 1 On the Finances menu click Budget Information 2 Enter information and select options as required 3 Click Next click OK or press ENTER Entering Non Retirement Savings Information 1 Click the Non Retirement Savings tab and in Annual Savings to Non Retirement Assets enter the Amount Duration Use of Funds in Short Term 2 Enter the same information for savings held for specific purposes other than retirement in Medium Term 3 If you want these funds to be invested in a Tax Free Savings Account select Funds in Tax Free Savings Account up to maximum 4 Enter the same information for savings held for children s education in Registered Education Savings Plan Entering Debt Information 1 Click the Debt and Loans tab and in Current Unpaid Balance of Loans and Personal Debt enter the amount of any Car Lo
6. Financial Information Enter information on earnings non registered investments and personal residence Registered Investments Enter information on registered investments and tax assisted savings Other Assets Enter information on other types of assets Other Income Enter information on other types of income Budget Information Enter information on information specific to build the Budget and Net Worth Statement Pre Retirement Expenses Enter information on expected expenses before retirement Post Retirement Expenses Enter information on expected expenses during retirement Pensions Government Select options for Old Age Security and Canada Quebec Pension Plan Company Enter information to calculate company pensions Options Sources of Income Select sources of retirement income and other information Risk Profile Questionnaire Complete questionnaire Asset Mix for Projections Select asset mix to be used in retirement calculations Tax Return Select options for income taxes and deductions Report Settings Select sections to include in report Monte Carlo Settings Select options for Monte Carlo simulation Monte Carlo Edition only Program Options Select options for save files and applying economic basis to one or both workspaces Results Calculate Calculate a retirement plan based on data and selections Summary Show summary of results and recommendations Annual Savings Show annual savings plan Accumula
7. If you have any questions or require any technical support please consult the Frequently Asked Questions section of our support page at http www retireware com getsupport asp If you do not find an answer to your question you can reach us via email at support retireware com Please note that we require 48 to 72 hours to reply and we will not reply if the answer is in the Frequently Asked Questions section of our Website We do not provide telephone support 162 License Copyrights and Trademarks License Agreement Please read carefully the license agreement before using this software Your use of this software indicates your acceptance of the End User License Agreement RetireWare Trademarks RetireWare and RetraiteWeb O are registered trademarks of Apeiron Software Limited and RifWare and RespWare and the RetireWare logo are trademarks of Apeiron Software Limited The software and registration keys are licensed property of and are copyright 1999 2007 by Apeiron Software Limited All rights reserved Copyright This software its documentation and help file or portions thereof may not be reproduced in any form whatsoever without written permission of Apeiron Software Limited Intellectual Property RetireWare is a very sophisticated software that took years of hard work to develop We made an effort to set the price at a level that anyone can afford Please respect the copyright laws of our country and
8. From CD Rom 1 Insert the CD Rom 2 The setup program will start automatically 3 Ifthe setup program does not start automatically click the Start button on the task bar and select Run 4 Click the Browse button to select the setup file on your CD ROM drive 5 Follow the on screen instructions Registering RetireWare Complete the installation of the software On the Start menu select Programs and point to the RetireWare program group Select RetireWare Enter your Name Enter your Registration Key Click OK or press ENTER DAIARDN A message will confirm that you have successfully registered the software System Requirements You require the following specifications to use RetireWare A PC with keyboard and mouse Recent Windows operating System Windows Vista XP NT 2000 ME 98 Pentium II 400 MHz processor or higher Pentium III or higher recommended 32 Mb of RAM 128 Mb recommended 25 Mb of hard disk space Screen resolution of 800 x 600 or higher 1024 x 768 recommended CD ROM or DVD drive 161 Web Support You can find a lot of free resources and information on our Website http www retireware com Updates Please visit our web site regularly to keep informed of the latest developments Interim updates are released from time to time and are free to registered users You can obtain the latest update files at the following address http www retireware com downloads asp Support Options
9. If you want to apply for your Old Age Security pension an Allowance or an Allowance for the survivor complete the application provided in the kit Open Form ISP3000 Print and complete the form Sign and date the form Include your birth evidence and other required documents Mail the completed form at the nearest Social Development Canada Office shown at the end of the form Saa Proof of Birth You must provide a certified copy of your birth or baptismal certificate Photocopies are accepted if someone such as an accountant doctor government official or other professionals mentioned in the application certifies that it is a true copy of the original Proof of Canadian Citizenship To qualify for an Old Age Security pension you must be 65 years of age or older be a Canadian citizen or legal immigrant meet the residence requirements and submit an application with the required documents If you were born in Canada your birth or baptismal certificate is sufficient proof If you became a citizen of another country contact Citizenship and Immigration to confirm your citizenship status If you were born outside Canada provide your Naturalization certificate Canadian passport or Canadian immigration record You must provide information on your residence history since your birth You must prove your entry into Canada or return to Canada by providing stamps in passports airline or travel tickets immigration records or customs
10. Real Estate Fixed Income Dividend Yield Equities Canada Rate of Inflation Equities U S Increase in Eamings Equities International lt Back Next gt Cancel Help Background In the Economic Outlook you enter expected average rates of return and other financial information that will be used to project assets and income in the future You can choose one of the following three approaches RetireWare s Standard Forecast using conservative values and historical relationships between asset classes A forecast based on historical returns in the last 40 years Your own custom forecast by selecting this option and setting values in the Rates tab In the Advanced tab you can specify the breakdown between interest and capital appreciation on fixed income investments and the percentage of capital gains that is expected to be realized each year in the future on average 57 Steps Selecting Economic Outlook 1 2 On the Forecast menu click Economic Outlook or on the Toolbar click the Economic Outlook button Enter information and select options as required 3 Click Next click OK or press ENTER Selecting Basis of Forecast 1 2 3 Click the Forecast tab and in Annual Expected Future Rates of Return select Standard Forecast or If you want a calculation based on average historical returns select Forecast Based on Last 40 Years or If you want a calculation based on your ow
11. RetireWare Version 2 0 Retirement Planning Software User Manual Standard and Monte Carlo Editions Apeiron Software Limited AMTELPOV Table of Contents oa aa az SOON OD OI BR WNHD OONDUIARWNH O DDDDDND PwND Oo N al Auya krhRRRHRPRPRBRRWWWWWWWWWWNHNN D N OCOWONDAARWNH OCOOWANDAIRWNH OOWOND Welcome to RetireWare Version 2 0 Introduction What Is RetireWare Getting started with RetireWare Menus Toolbar Listbar New Open Save and Print Combining Spousal Information Asset Allocation Graphs Budget and Net Worth Statement Data Summary Quick Calculation Wizard Net Worth Wizard Budget Wizard Asset Allocation Wizard Step by Step Retirement Wizard Required Information General Information Savings Plan Retirement Income Target Economic Outlook Financial Information Registered Investments Other Assets Other Income Budget Information Expenses Government Pensions Company Pensions Defined Benefit Pension Defined Contribution Pension Group RRSP Deferred Profit Sharing Plan Prior Pension Plans Sources of Income Risk Profile Questionnaire Asset Mix for Projections Tax Return Doing a Calculation Making Sense of Results Summary Annual Savings Accumulations Income Forecast Recommendations and Report Monte Carlo Settings Monte Carlo Summary Worksheets RetireWare Resources RetireWare Tools Retirement Planning Primer Applying for CPP and OAS Installation and Registrati
12. 1 2 3 Click the Early Retirement tab select Early Retirement Reduction and enter the percentage and the age or click the arrows to select the age or Select Actuarial Reduction and enter the age or click the arrows to select the age Enter Unreduced Pension Paid from Age or click the arrows to select the age 97 Entering Survivor Pension Information 1 Click the Survivor Pension tab and in Terms of Payment of Pension on Death enter the Period Pension Guaranteed to Be Paid in years or click the arrows to select the years 2 Enter the Percentage of Pension Paid to Spouse on Death Entering Other Information 1 Click the Other tab and in Other Information enter Will Start Collecting Pension from Age or click the arrows to select the age Prior Defined Contribution Pension Plan Use to enter the market value of your assets in a defined contribution pension plan of a former employer split by asset class This applies to a situation where following termination of employment the account is left in the plan and is not transferred to an RRSP LIRA or locked in RRSP Selecting Prior Defined Contribution Pension Plan On the Pensions menu click Company On the Future Pensions tab in Pension Plan of a Former Employer select Defined Contribution or Defined Benefit and Defined Contribution Click Next Based on your selections the appropriate information appears Enter the information and select options as required Click N
13. Financial Planners Pension Regulations Government Employees Trade Associations Provincial Assistance Research Home Ownership Education Center Articles on Retirement Planning Articles by Gail Vaz Oxlade Canadian Surveys About Retirement 141 Publications and Forms in Adobe Portable Document Format PDF Financial Planning Retirement Planning Canada Revenue Agency Canada Pension Plan and Old Age Security Applications Canada Pension Plan Pension Plan Information Registered Education Savings Plans Electronic Communication Government Benefits Canada Pension Plan Quebec Pension Plan Guaranteed Income Supplement Federal Allowance Employment Insurance Contributions and Benefits How to Choose a Financial Advisor Things to consider in the selection process 142 50 RetireWare Tools Purpose Use to do stand alone calculations with the RetireWare stand alone tools or the free Web based calculation tools on the RetireWare Website Background In addition to the RRIF Planner the RESP Planner and the Life Insurance Planner RetireWare maintains a number a free Web based tools and calculators on the RetireWare Website Steps Using the Stand Alone Tools On the Tools menu click RRIF Planner or Click RESP Planner or Life Insurance Planner Enter the information and select options Click Next or click Finish to view the
14. e The after tax income required to pay expenses determined in the post retirement budget e The income expressed in terms of a percentage of gross or net earnings immediately before retirement e An amount before or after tax Select the age or date of commencement of retirement whether the retirement income should be increased in line with the rate of inflation You can add special one time or periodic expenses to the retirement income objective and specify increases or decreases in required income in later years 51 Steps Selecting Retirement Income Target 1 On the Forecast menu point to Retirement Objectives and then click Retirement Income Target or on the Toolbar click the Retirement Income Target button 2 Enter information and select options as required 3 Click Next click OK or press ENTER Selecting the Annual Retirement Income Objective 1 Click the Objective tab and in Annual Retirement Income Objective select one of the available options 2 Ifyou have a post retirement budget select Based on Estimated Expenses or 3 Select Percentage and enter the percentage of Gross or Net Earnings During Year Prior to Retirement or 4 Select Amount per Year and enter the amount and 5 If you want the amount to be payable after income taxes select After Income Tax Entering Retirement Age 1 Click the Retirement tab and in Retirement Age select Age and enter the expected age of retirement or 2 Select Date and
15. features of life income funds which for some jurisdictions require the purchase of an annuity with funds remaining at the end of the year of the annuitant s 80th birthday Enter TFSA account balances used for retirement purposes on the TFSA tab in Financial Information You can use part or all of your TFSA for a purpose other than retirement by entering amounts not for retirement purposes in Budget Information and selecting Funds in Tax Free Savings Account up to maximum allowed 105 106 36 Risk Profile Questionnaire Purpose Use to determine the most appropriate asset allocation for your investments based on your time horizon and risk tolerance 10000 40000 20000 Background Answer each of the eight questions and RetireWare will suggest one of the following five profiles Security Income Balance Growth or Aggressive You can then compare your existing portfolio to your preferred asset allocation The Asset Allocation Wizard includes the Risk Profile Questionnaire Steps Selecting the Risk Profile Questionnaire EUNE On the Options menu click Risk Profile Questionnaire The Risk Profile Questionnaire will start Enter information and select options as required When complete click the Finish button The results will provide you an asset allocation profile based on your risk tolerance and time horizon 107 Notes Graphs of Five Investment Profiles Security 10 0 D Cash A Fixed In
16. pension RetireWare uses this information to calculate any early retirement reduction if the age of commencement is before the age of entitlement to an unreduced pension 88 Pension Based on Final Average Earnings The pension statement usually explains the formula used to determine the pension It will state whether the pension for each year of service is based on A fixed amount for each year of service i e a flat benefit pension plan or Total career earnings i e a career average pension plan or An earnings average of the best or more recent years i e a best average earnings or a final average earnings pension plan If the latter case applies select Pension Based on Final Average Earnings Required Employee Contributions Last Year The annual pension statement summarizes not only benefits earned to date but may also show contributions made during the year since the last statement if the plan requires employee contributions If there are no employee contributions enter 0 RetireWare uses this information to determine tax deductions in the calculation of annual income If there is less than one year of service in the pension plan you should convert the required employee contributions in the previous year on an annual basis by dividing the contributions by the service For example if the contribution is 700 00 and the service is 0 42 years the contribution converted on annual basis is 1 667 i e 700 00 0 42
17. 65 0 Lifetime Pension Payable at 4ge 65 0 Years of Credited Service 0 00 lt Back Next gt Cancel Help Background Based on the pension accrued to date and years of service in the plan RetireWare will calculate future pension accruals until the age you expect to leave the company and will apply early retirement reductions and cost of living increases Obtain copy of the latest annual pension statement of benefits to complete effectively the required information A copy of the pension plan booklet which summarizes plan provisions is also useful Steps Selecting Current Defined Benefit Plan On the Pensions menu click Company On the Future Pensions tab in Pension Plan of a Current Employer select Defined Benefit or Defined Benefit and Defined Contribution Click Next Based on your selections the appropriate information appears Enter the information and select options as required Click Next and click Finish N DARIA 85 Entering the Pension Statement Date 1 Click the Pension tab and in Retirement Pension enter the date or click the button and click the arrows to select the month and the year of the pension statement date 2 Click on the day of the pension statement date Entering Pension Information 1 Click the Pension tab and in Annual Amount Payable for Credited Service as at Statement Date enter the Bridge Pension Payable Until Age 65 if any 2 Enterthe Lifetime Pension Payable at
18. Menus Toolbar or Listbar If you use the wizards you will be presented with all relevant settings in a logical sequence General Information Savings Plan Retirement Income Target Economic Outlook Financial Information Registered Investments Other Assets Other Income Budget Information Pre Retirement Expenses Post Retirement Expenses Government Pensions Company Pensions Current Defined Benefit Pension Plan Current Defined Contribution Pension Plan Group Registered Retirement Savings Plan Deferred Profit Sharing Plan Prior Defined Benefit Pension Plan Prior Defined Contribution Pension Plan Sources of Income Risk Profile Questionnaire Asset Mix for Projections Tax Return Report Settings 12 4 Menus Purpose Use the menus to access all commands on the menus Background You can access all inputs selections wizards and results from the menus toolbars and listbar The most commonly used selections are also on the toolbar The listbar controls items displayed in the window launches the various Wizards and provides access to the PDF worksheets and retirement information See below for a quick reference to toolbar and listbar icons Menus File New Work on a new file using the Step by Step Retirement Wizard or your own approach Open Open a RetireWare file Close Close a RetireWare file Save Save a RetireWare file Save As save a RetireWare file under another name Password Add a passwo
19. Other Advanced Investment in Other Properties Current Market Value Purchase Price Mortgage Years Remaining on Mortgage Year of Disposition 201 3 Percentage of Proceeds Used for Retirement Income 100 00 lt Back Next gt Cancel Help Background Other assets include investments in property other than the personal residence an ownership in a business and amounts payable in the future including an inheritance cash value of insurance policy and retiring allowance To use any of these assets as a source of retirement income you must select them in Sources of Income Steps Selecting Other Assets 1 On the Finances menu click Other Assets or on the Toolbar click the Other Assets button 2 Enter the information and select the options as required 3 Click Next click OK or press ENTER 67 Entering Information on Other Property Click the Property tab and in Other Property enter the Current Market Value Enter the Purchase Price Enter the Mortgage Enter the Year of Disposition Enter the Years Remaining on Mortgage or click the arrows to select the years Enter the Percentage of Proceeds Used for Retirement Income DAON Entering Information on Business Ownership 1 Click the Business tab and in Business Ownership enter the Initial Investment and Current Market Value 2 Enter the expected Year of Disposition 3 Ifyou want part or all of the capital gain at the time of sale not to be su
20. Try more than one scenario so you can determine a range of possible future results Be conservative with your forecast It s better to have more money than not enough Advanced Modeling You can model more closely your pattern of investing by selecting an allocation between appreciation and interest and coupon payments for fixed income investments and the percentage of capital gains that are realized each year for fixed income and equity investments These settings affect the annual taxation of non registered investments Investment Statistics RetireWare provides historical investment statistics to help with the selection of your economic forecast of future rates of returns A table shows the average annual percentage increase or decrease of various asset classes in each of the last 40 years The table shows statistics for the following asset classes Cash and Short Term Investments Fixed Income Canadian Equities US Equities International Equities Steps 1 On the Forecast menu click Investments Statistics 2 Review the available information 3 To close click the Close button 60 22 Financial Information Purpose Use to enter financial information on employment earnings retired status non registered investments principal residence life insurance and Tax Free Savings Account TFSA amp Financial Information Spouse 1 Enter your expected employment eamings for the current year or select the opti
21. a plan member who retires at age 62 years and 4 months i e 32 months before the normal retirement age the early retirement pension is 600 00 x 1 144 x 32 months 552 00 The second type of early retirement reduction is an actuarial reduction This reduction is based on life expectancy and interest rates The pension plan administrator or actuary calculates the reduction Notwithstanding the above many pension plans waive the early retirement reduction when the plan member meets certain age or service requirements The summary of pension plan provisions or sometimes the annual pension statement will specify the type of reduction that applies and the age of entitlement to an unreduced pension Select the applicable option in Early Retirement Reduction RetireWare will calculate the early retirement reduction if the retirement age is before the age of entitlement to an unreduced pension Expect to Work for Company Until Age In Expect to Work for Company Until Age enter the age at which you expect to terminate employment with your current employer RetireWare uses this information to calculate years in the plan and project earnings to the time of cessation of employment Enter your best estimate of this age otherwise enter the retirement age if there is no way of establishing a definite age Will Start Collecting Pension From Age In Will Start Collecting Pension From Age enter the age at which you expect to start collecting your
22. annuity income currently in payment Recent financial statements of all non registered investments bank accounts bonds term deposits stocks and mutual funds Recent financial statements of all registered investments RRSPs group RRSP DPSP locked in RRSP or LIRA defined contribution pension plan Estimate of value and equity of personal residence or other property Estimate of value of wholly or partially owned business Notice of Assessment for Unused RRSP Deduction Limit and Pension Adjustment Estimate of retirement living expenses optional Statement of Canada Pension Plan or Quebec Pension Plan statement of benefits optional Statement of employer defined benefit pension plan if applicable Steps 1 On the Forecast menu click Required Information 2 Review information as required on the Required and Optional tabs 3 Click Next or OK or press ENTER 45 46 18 General Information Purpose Use to enter the date of financial information spouse file name and other general information Es General Information The Date of Financial Information should be reasonably close to the date of your latest financial information If you do a calculation for both you and your spouse you must create a file for your spouse and specify the file name here You can use the spouse button to go from one spouse to the other General Information Personal Information Province Date and Spouse Information Date of Financial Information M
23. as a source of retirement income select Use Investment Earnings and Capital Sources of Income Select the assets you intend to use as a source of income during retirement Any item not selected will not be used in the calculations Include temporary income such as part time employment or future expected payments after retirement You can select to preserve non registered capital or use investment earnings only as income Sources Other Registered Residence Use of Non Registered Assets After Retirement Use Investment Earnings Only and Preserve Capital Use Investment Earnings and Capital lt Back Next gt Cancel Help 101 Registered Withdrawal Options Click the Registered tab and in Start Withdrawals of Registered Investments select As Late as Possible to Maximize Tax Deferral or If you want to start withdrawals from registered assets at retirement select Atthe Selected Retirement Age In RRIF Minimum Withdrawals if you want to base age related RRIF minimum withdrawals on your younger spouse s age select Based on Spouse s Age and 3 Enter the Spouse s age on January 1st of Current Year or click the arrows to select the age lt Sources of Income Select the assets you intend to use as a source of income during retirement Any item not selected will not be used in the calculations Include temporary income such as part time employment or future expected payments after retirement You can select
24. avoid the risk of outliving your money Fle Wew Wizards Fonecast Finances Persons Options Res ts Toos Window Help Cae Ss SOTO DEE DA Je SR sSBaras Aen View Standard Edition Edition standard Rotraiteitsb Required Savings You define using one of a variety of ways your retirement income objectives and RetireWare determines whether it is realistic and sustainable If your savings are not sufficient RetireWare will recommend the required annual savings that will let you achieve your retirement income objective and let you see how this fits in your budget along with your other financial commitments Already Retired If you are near retirement or already retired you can see whether your standard of living is sustainable for the duration of your retirement and what rates of returns are required to achieve your goals Risk vs Return RetireWare will help you determine the amount of risk you should take to achieve higher returns and whether it is a necessary and viable long term strategy New Feature Program Options Background You can customize RetireWare to save only one file at a time the file in the active workspace or save files opened in the Spouse 1 and Spouse 2 workspaces at the same time To save time you can select to have changes made to the Economic Basis and Monte Carlo settings and changes to the Date of Financial Information made for one spouse apply automatically to the other spouse Steps Se
25. declaration 157 Residence Outside Canada You must also provide information of departures from Canada by providing stamps in passports airline or travel tickets immigration records of another country U S Green Card or Visa If you worked in another country there may be a social security agreement between Canada and that country Provide the insurance number of that country it may help you meet the minimum residence requirements for an Old Age Security pension Allowance If you apply for an Allowance you must provide a marriage certificate If you apply for an Allowance for the Survivor you must provide a marriage certificate and a death certificate Government Benefits Information Canada Benefits A centralized directory of all Government programs including programs for seniors retirement and tax information Canada Benefits Federal Retirement Income Programs Provincial Seniors Programs Tax Information for Persons Age 55 and Above Canada s Public Pensions Information on Old Age Security Canada Pension Plan and links to provincial programs retirement and financial planning Canada Pension Plan and Old Age Security Page Directory of provincial programs Canada Pension Plan The official Canada Pension Plan CPP Website with information on contributions benefits eligibility and payments Canada Pension Plan Home Page Request a statement of CPP contributions CPP Retirement Pension
26. file using your own approach or resuming work on an existing file If you want a less detailed approach to get an initial assessment use the Quick Calculation wizard Once the wizard is completed you can access any of the other features from the menus or other wizards to explore other solutions and enhance your retirement plan 43 Steps Selecting Step by Step Retirement Wizard CoONADARWNH gt On the File menu click New or On the Wizards menu click Step by Step Retirement or On the Toolbar click the New button or On the Listbar click the Wizards button and click the Step by Step Retirement button The Step by Step Retirement wizard will start When complete click the Finish button The RetireWare Calculation window appears If you want to enter information for the other spouse click the Continue button Repeat steps 2 to 6 for the other spouse If your work is complete click the Calculate button to launch the calculation When complete a Summary appears If you did a calculation for both spouses a combined summary appears to view the Summary for each spouse click the Spouse 1 or Spouse 2 button on the Listbar 44 17 Required Information Purpose Use to view the list of information required to complete a RetireWare calculation Background Required information include the following items Date of financial information Annual employment earnings Net rental income Dividend income Pension and
27. for the purpose of paying retirement income At the time of retirement funds in a locked in RRSP are used to purchase an annuity or converted to a life income fund A locked in RRSP is also referred to as a locked in retirement account or LIRA in certain provinces Registered Retirement Income Fund A registered retirement income fund or RRIF is a withdrawal plan registered with Revenue Canada in which proceeds accumulated in an RRSP are used to provide an annual income Investment earnings continue to accumulate on a tax sheltered basis but withdrawals are taxed as income Revenue Canada prescribes an annual minimum withdrawal which depends on the age and market value of the RRIF at the beginning of the year Once a RRIF is opened payments must commence in the following year There is no minimum age to set up a RRIF An individual may hold several RRIFs with different financial institutions The RRIF holder maintains controls of the investments Funds held in a RRIF may also be used to purchase an annuity from a life insurance company 147 Life Income Fund A life income fund or LIF is a RRIF for funds originating from a locked in RRSP or a registered pension plan Revenue Canada prescribes an annual minimum withdrawal which is based on age and the market value of the LIF at the beginning of the year Provincial legislation requires that the annual withdrawal do not exceed a maximum based on age the value of the LIF and long term interes
28. format Note that RetireWare can only read files in its special file format with extension rp2 You should save files regularly to avoid losing your work if a power or system failure occurs Opening a File 1 On the File menu click Open or on the Toolbar click the Open button or after selecting New click the Open an Existing File button Select the disk drive and folder where the file is located In the list below select a file or In File Name enter the file name Click OK or press ENTER IRUN 24 Saving a File On the File menu click Save or Save As or on the Toolbar click the Save button Select the disk drive and folder where you want to save the file In File Name enter the desired file name If you want to replace an existing file select a file from the list below Click OK or press ENTER NPAON Adding a Password 1 On the File menu click Password 2 Enter the Password and enter it again in Confirm Password 3 Click OK or press ENTER Closing a File 1 On the File menu click Close 2 If you made changes to a file a message will ask whether you want to clear all your work Exiting RetireWare 1 Onthe File menu click Exit or click the Close button 2 Ifyou made changes to a file a message will ask if you want to save your work 3 Another message will ask if you want to exit RetireWare Printing After doing a calculation you can print a report or individual results such as tables text a
29. former employer from which a pension is payable at retirement Background Based on the pension accrued to date in a pension plan of a former employer RetireWare will calculate the pension payable at retirement and will apply early retirement reductions and any cost of living increases Obtain a copy of the termination option statement and if available of the last annual pension statement of benefits in order to input the required information A copy of the pension plan booklet which summarizes plan provisions may also be useful Steps Selecting Prior Defined Benefit Pension Plan N DIRU On the Pensions menu click Company On the Future Pensions tab in Pension Plan of a Former Employer select Defined Benefit or Defined Benefit and Defined Contribution Click Next Based on your selections the appropriate information appears Enter the information and select options as required Click Next and click Finish Entering Pension Information 1 2 Click the Pension tab and in Accrued Pension Payable at Retirement enter the Bridge Pension Payable Until Age 65 if any Enter the Lifetime Pension Payable at Age 65 Entering Cost of Living Adjustments 1 2 Click the Cost of Living tab and in Cost of Living Adjustments select Before Retirement and or After Retirement Enter the annual cost of living adjustment expressed in terms of a percentage of the Consumer Price Index Entering Early Retirement Reduction
30. of the business ownership is the market value at the time of sale minus the initial investment If you select that the special small business capital exemption applies the first 500 000 or any other amount chosen in the tax return of the capital gain is tax exempt The amount that will enter into savings is the market value at the time of sale less the initial investment and is subject to the capital gains tax The Current Market Value is the current market value is the market value of the shares owned in the business The Initial Investment is the purchase price of the shares owned in the business The Expected Annual Growth Rate is your expectation of the annual increase in the market value of the business ownership The growth rate should be consistent with the rate of inflation chosen in the economic outlook A lower growth rate is preferable for a more conservative projection of the value of the business Special Capital Gains Exemption If you want the special small business capital gains exemption to apply on the Business tab select Special Capital Gains Exemption Applies If you select Special Small Business Capital Exemption Applies the first 500 000 or any other amount selected in Tax Return of the capital gain will be tax exempt upon disposition of the business Other Future Assets Other Future Assets are any type of lump sum payments expected in a future year These amounts will be added to non registered assets You s
31. percentile is the 5th lowest result of all observations The 95th percentile is the result that is higher than 95 of all other observations Each iteration performed for the Monte Carlo simulation has its own pattern based on the random rates of returns generated by the program Once all iterations are complete and results for each year are ranked according to their size percentile lines are drawn using the asset value that falls on that percentile Please note that only assets used for retirement are used for the percentile lines display In addition to displaying the Monte Carlo Summary the standard Summary is also displayed in the workspace Simply move the Monte Carlo Summary window to view the standard Summary 136 How Does a Deterministic Projection Work With a Monte Carlo Simulation When you do a Standard calculation with RetireWare the projection of assets in the future assumes that assets will earn each year the expected rate of return you selected in Economic Outlook These types of projections are called deterministic all inputs are fixed and the projection only reveals one single outcome This is a valid approach as long as rates used for the projection are reasonably conservative If rates of returns are too high there is no recognition of the higher risk taken to achieve these higher returns and the results may be at the optimistic end of the scale We suggest you use the deterministic approach with conservative rates
32. previous window View next window Q y t Help Steps Using the Toolbar 1 Click the button representing the menu command you want to access 2 View or enter information and select options as required Hiding or Viewing the Toolbar 1 To view or hide the toolbar on the Options menu click Toolbar 2 A checkmark indicates it is visible no checkmark indicates that it is hidden Notes If you want to register information or options you must always click Next click OK or press ENTER All toolbar buttons have bubble help which is a short description of the function of each button that becomes visible when your mouse pointer is over the button If you want the toolbar in the RetireWare window ensure that the Toolbar command is checked on the Window menu If you do not want the toolbar cancel the selection of the Toolbar command on the Window menu 18 6 Listbar Purpose Use the listbar to select quickly the main commands on the menus Background You can access all data entries selections wizards and results from the menus toolbars and listbar The most commonly used selections are also on the toolbar The listbar controls items displayed in the window launches the various Wizards and provides access to the PDF worksheets and retirement information See below for a quick reference to listbar icons View 8 Spouse 1 View information of spouse 2 Spouse 2 View information of other spouse 2 Spouses Combined View
33. provides a brief outline of the main provisions of the pension plan Pension legislation requires that an employer who sponsors a pension plan provide personal statements each year to all members of the plan Information provided in the pension statement includes the pension accrued to date based on credited service It may also show the pension formula which specifies whether the pension is based on A fixed amount for each year of service or Total career earnings or An earnings average of the best or most recent years The pension statement will also specify the age of entitlement to an unreduced pension the reduction applied to the pension on early retirement and whether the pension has cost of living adjustments before or after retirement and the formula for determining the adjustments Bridge Pension A bridge pension is a temporary pension payable between the date of retirement and age 65 at which time the Canada or Quebec Pension Plan or Old Age Security commence to be paid This is not a mandatory benefit and your plan may not have any bridge pension If there is a bridge the annual pension statement will show the amount accrued as of the statement date The bridge may be defined implicitly that is a higher level of pension will be payable until 65 at which time an offset will be taken from the pension to account for pensions paid from the Canada or Quebec Pension Plan If this is the case estimate the accrued amount
34. results To close click the Cancel button or the Close button OTe ON Using the Web based Tools 1 Ensure that you are connected to your network or that your computer is connected to the Internet 2 Click here to access the RetireWare Tools Web page 143 144 51 Retirement Planning Primer Background The retirement primer provides general information on retirement planning For brief explanations of investment tax and retirement planning terms consult the Knowledge Base in the Help files or the Glossary on the RetireWare Website For information on applying for benefits from the Canada Pension Plan or Quebec Pension Plan or Old Age Security consult the CPP and OAS application page Glossary How to apply for benefits from the Canada Pension Plan and Old Age Security Information on the web Retirement Planning Primer Net Worth The net worth is a person s total assets minus total liabilities Lending institutions require this information to approve credit Net worth also is a measure of a person s financial well being From the balance of all assets and investments is deducted any amount of debt payable such as unpaid income or property taxes car loan credit card balances personal lines of credit unpaid bills or other loans debt or obligations Canada Pension Plan The Canada Pension Plan or CPP is a contributory earnings related social insurance program It provides benefits to contributors on
35. the View button and then click the Budget and Net Worth Statement button 3 View the information as required 39 40 15 Asset Allocation Wizard Purpose Use to determine the most appropriate asset allocation for your investments based on your time horizon and risk tolerance and select the asset allocation basis to use for the long term projection of assets Background Answer each of the eight questions and RetireWare will suggest one of the following five profiles Security Income Balance Growth or Aggressive You can then compare your existing portfolio to your preferred asset allocation With the information on your risk profile you can decide whether to use the profiles the existing allocation or custom allocations as a basis for comparison against your existing portfolio The selected asset allocation basis is also applied to determine the rates of return on your portfolio for the long term projection of assets If you selected the Profile asset allocation basis for the long term projection of assets you can use different profiles for registered and non registered assets and for the period before or after retirement The information displayed in the existing asset allocation will only be accurate if you have completed the Net Worth wizard or entered registered and non registered investments by type of asset in Financial Information Registered Investments and Company Pensions as applicable Steps Selecting the Asse
36. the cost of benefits A defined contribution pension plan sometimes called money purchase is an a pension plan in which each employee holds an account where employee contributions employer contribution made on behalf of the employee and investment income accumulate without tax until retirement Employer and employee contributions are usually a percentage of the employee s earnings At retirement the balance of the account is used to purchase an annuity or transferred to a life income fund or locked in retirement income fund The level of income provided during retirement depends on the performance of the investments held in the account 84 30 Defined Benefit Pension Purpose Use to enter information related to the defined benefit pension plan of a current employer Current Defined Benefit Pension Plan Obtain a copy of the termination option statement and if available the last annual pension statement and booklet or summary of pension plan provisions Based on the pension accrued to date and years of service in the Plan RetireWare will calculate future pension accruals until the age you expect to leave the company and will apply early retirement reductions and cost of living increases Pension Cost of Living Early Retirement Death Benefits Other Accrued Pension Payable at Retirement From Pension Statement as at NER Annual Amounts Payable for Credited Service as at Statement Date Bridge Pension Payable Until 4ge
37. the reference to the source of related information Asset or Income Corresponding Reference Non Registered Investments Financial Information RRSPs and Defined Contribution Plans Registered Investments Company Pensions Group RRSP and DPSP DC Pensions Company Defined Benefit Pension s Company Pensions Defined Benefit Pensions Sale of Principal Residence Financial Information Sources of Income Sale of Business Ownership Other Assets Sale of Other Property Other Assets Canada or Quebec Pension Plan from Age Government Pensions Old Age Security Government Pensions Other Future Assets Other Assets Tax Free Savings Account Financial Information Additional Income You can take into account earnings during retirement for example from a part time job Enter the annual amount starting and ending year Enter additional income on a before tax basis Non Registered Withdrawals If you choose non registered investments as a source of retirement income you can use investment earnings only and preserve capital or use both investment earnings and capital Under the first approach the amount of capital available at retirement will remain level during retirement even if these funds are required to meet the retirement income objective RetireWare recommends use of the latter approach to allow for maximum compounding of registered funds until non registered funds are exhauste
38. to preserve non registered capital or use investment earnings only as income Sources Other Non Registered l J Residence Start Withdrawals of Registered Investments As Late as Possible to Maximize Tax Deferral C Atthe Selected Retirement Age RRIF Minimum Withdrawals Based on Spouse s Age Spouse s Age on January 1 of Current Year a lt Back Next gt Cancel Help 102 Sale of Principal Residence 1 Click the Residence tab and in Sell Principal Residence if you plan to sell your residence at retirement select At Retirement 2 If you plan to sell it in a future year select In Year and enter the year or click the arrows to select the year 3 Enter the Percentage of Proceeds Used for Retirement Income Sources of Income Select the assets you intend to use as a source of income during retirement Any item not selected will not be used in the calculations Include temporary income such as part time employment or future expected payments after retirement You can select to preserve non registered capital or use investment earnings only as income Sources Other Non Registered Registered Sell Principal Residence At Retirement C In Year 2013 Percentage of Proceeds Used for Retirement Income 100 00 lt Back Next gt i E Help 103 Notes Sources of Income Select the assets or programs you want to use as income during retirement The table below shows for each selection
39. would like to have automatically deducted from your Canada Pension Plan benefit or Old Age Security CPP Death and Survivor Benefits Canada Pension Plan Death Benefit Complete the application in form ISP1200 to apply for a lump sum death benefit following the death of a Canada Pension Plan contributor Canada Pension Plan Survivor s Pension and Child ren s Benefit s Complete the application in form ISP1300 to apply for survivor s pension and or children s benefits following the death of a Canada Pension Plan contributor 156 Canada Pension Plan Forms Most Common Forms Application for Canada Pension Plan Retirement Number ISP1000 Application for Pension Sharing of Retirement Pension s Canada Pension Plan Number ISP1002 Cancellation of Pension Sharing for Canada Pension Plan Retirement Pension s Number ISP1014 Canada Pension Plan Death Benefit Application Kit Number ISP1200 Canada Pension Plan Survivor s Pension and Child ren s Benefit s Application Kit Number ISP 1300 Child Rearing Dropout Provision Canada Pension Plan Number ISP1640 Canada Pension Plan Credit Split Kit Number ISP1901 Application for Disability Benefits Canada Pension Plan Number ISP1150 Links to All Forms Canada Pension Plan Publication Index Canada Pension Plan Forms List by Number Income Security Programs Forms Listed by Title Application for Old Age Security Pension
40. 1 On the Finances menu click Registered Investments or on the Toolbar click the Registered Investments button 2 Enter information and select options as required 3 Click Next click OK or press ENTER Entering RRSP 1 Click the RRSP tab 2 In Registered Retirement Savings Plan by Type of Assets enter the market value of funds held in the account 65 Selecting RRSP Options _ Click the RRSP Options tab 2 In Future Withdrawals select Registered Retirement Income Fund RRIF or If you want to purchase an annuity with the RRSP balance select Annuity Purchased from a Life Insurance Company 3 In Spousal RRSP Contributions select Contribute to Own RRSP or 4 If your RRSP contributions go to your spouse select Contribute to Spouse s RRSP Entering Tax Assisted Savings Information 1 Click the RRSP Deductions tab and in Information Related to Tax Assisted Savings enter any RRSP Contributions Made This Year 2 Enter the Unused RRSP Deduction Limit 3 Enter the Pension Adjustment for Previous Year if applicable Entering LIRA or Locked In RRSP 1 Click the LIRA tab 2 In Locked In Retirement Account or Locked In RRSP by Type of Assets enter the market value of funds held in the account Selecting Options 1 Click the LIRA Options tab 2 In Future Withdrawals select Life Income Fund or Locked in Retirement Income Fund or 3 If you want to purchase an annuity with the locked in funds select Annuity Purchased fro
41. 34 12 Quick Calculation Wizard Purpose Use to build your retirement plan by entering the main information such as your date of birth earnings and assets and formulating your retirement income objective The Quick Calculation wizard will determine how much money will be required during retirement Background In addition to the Step by Step Retirement wizard RetireWare has a Quick Calculation wizard that prompts you only for the most essential information required for a calculation Once the wizard is completed you can access any of the other features from the menus or other wizards to explore other solutions and enhance your retirement plan Step by Step Retirement Wizard Build your retirement plan by entering detailed information on all your income assets and retirement income objective The Wizard will determine how much money will be required during retirement Introduction 8 Government Pensions Welcome to ti There are two main public pension schemes in Canada the Canada or Quebec Pension Plan CPP and Old Age Security The Step by 045 The amount payable from the CPP depends on contributions during active working years DAS depends on years of situation Ond residence in Canada with 40 years resulting in the maximum entitlement and enhance CPP or GPP DAS E Canada or Quebec AO Estimate Can Select the assets you intend to use as a source of income during retirement Any item not selec
42. 40 and send it in with your CPP application 155 Pension Sharing You may share your retirement pension for possible tax savings However your spouse or common law partner must be at least age 60 to be eligible for pension sharing Complete form ISP1002 to start a pension sharing arrangement with your spouse or common law partner Benefits from Other Countries If you worked in another country that has a social security agreement with Canada enter the name of the country in question 11 ofthe CPP Retirement Pension Application the insurance number and the period of employment in the other country Get a Free Estimate of Your CPP Statement of Contributions to Canada Pension Plan Complete and send form ISP2000 to request a personal statement of the contributions you have made to the Canada Pension Plan Estimate Request for Canada Pension Plan Retirement Pension Complete and send form ISP1003 to request an estimate of how much your retirement pension will be when you retire Direct Deposit and Tax Withholding Request for Direct Deposit Canada Pension Plan and Old Age Security Complete form ISP1011 if you want the payment of your Canada Pension Plan and or Old Age Security benefit s deposited directly to your financial institution account You can also use this form to advise of any changes to your direct deposit information Request for Income Tax Deductions Complete form ISP3520 to indicate the amount of income tax you
43. 42 38 57 39 27 258 1 200 13 142 40 400 40 28 212 1 200 13 391 42 20 41 29 199 1 300 14 897 44 0 2 30 221 1 300 15 863 46 082 43 31 279 1 200 16 888 48 167 Beni 44 32 374 1 400 17 982 Beginning Eamings Input Summary of Year Wizards 2003 2004 1 34 PM Background The Income Forecast table and graphs shows for each type of income its expected value each year in the future until the end of the projection period The Income Forecast is useful to see where the money will come from by showing expected income each year in the future and whether there will be excess or a shortfall with respect to the Retirement Income Objective There are two graphs related to the Income Forecast The income forecast graph which plots total income each year in the future and the cash flow forecast which shows the difference between the Retirement Income Objective and the expected income each year in the future 127 Steps Viewing the Income Forecast 1 After you do a calculation to view the Income Forecast on the Results menu click Income Forecast or 2 On the Toolbar click the Income Forecast button or 3 On the Listbar click the Results button and then click the Income Forecast button 4 View the information as required Notes Partial Years The table displays for the first year retirement income and withdrawals for the remaining months left in the year from the month of retirement rounded to the first of the follo
44. 43 6159 095 255 Je HA 7 MSZABABQ eo irement Primer Resources Flash Tutorials Worksheets 20 03 2004 1 38 PM A After you do a calculation results such as tables graphs or text are available for viewing If you do a calculation that combines the financial information of both spouses you can view the combined results by clicking Both Spouses on the Listbar or view individual results by clicking Spouse 1 or Spouse 2 Menus Toolbars and Listbar You can access all inputs and selections from the menus The most commonly used selections are also on the Toolbar The Listbar controls items displayed in the workspace launches the various wizards and provides access to the PDF worksheets and retirement information 11 Steps Hiding or Viewing the Toolbar and Listbar 1 To view or hide the Toolbar on the Window menu click Toolbar 2 To view or hide the Listbar on the Window menu click Listbar 3 A checkmark indicates it is visible no checkmark indicates that it is hidden Notes Updating Your Information at a Later Date You should update your file every few months to monitor your financial health You can achieve this by opening the file and using the wizards again Ensure that you update all assets and income amounts Also change the Date of Financial Information in General Information to the current date Reference Information List of the Main Sections You can access all of the main settings from the
45. Account TFSA or non registered investments and to select options for the savings plan Y Savings Plan If you are not retired enter the amount you want to save each year in addition to any existing employer sponsored plan and the allocation of these contributions between registered and non registered assets If you are already retired there is no savings plan and income in excess of the retirement income objective will be saved automatically in non registered assets Savings Plan Allocation Advanced Savings in Addition to Employer Plans Annual Amount Saved in Registered and Non Registered Assets Annual Increase to Savings Amount in Future Years 2 50 lt Back Next gt Cancel Help Background If you are not retired enter the amount you want to save each year in addition to any existing employer sponsored plan and the allocation of these contributions between registered TFSA and non registered assets In the Savings Options tab the maximum total savings as a percentage of earnings is used to establish the additional annual contributions required to achieve the retirement income objective If you are already retired there is no savings plan and income in excess of the retirement income objective will be saved automatically in non registered assets 49 Steps Selecting Savings Plan 1 On the Forecast menu point to Retirement Objectives and then click Savings Plan or on the Toolbar click the Sav
46. Age 65 3 Enter the Years of Credited Service Entering Cost of Living Adjustments 1 Click the Cost of Living tab and in Annual Cost of Living Adjustments select Before Retirement and or After Retirement 2 Enterthe annual cost of living adjustment expressed in terms of a percentage of the Consumer Price Index Entering Early Retirement Reduction 1 Click the Early Retirement tab select the Early Retirement Reduction and enter the percentage and the age or click the arrows to select the age or 2 Select Actuarial Reduction and enter the age or click the arrows to select the age 3 Enter Unreduced Pension Paid from Age or click the arrows to select the age Entering Survivor Pension Information 1 Click the Survivor Pension tab and in Terms of Payment of Pension on Death enter the Period Pension Guaranteed to Be Paid in years or click the arrows to select the years 2 Enter the Percentage of Pension Paid to Spouse on Death Entering Other Information 1 Click the Other tab and in Other Information enter age in Expect to Work for Company Until Age or click the arrows to select the age 2 Enter Will Start Collecting Pension from Age or click the arrows to select the age 3 If applicable select Pension Based on Final Average Earnings 4 Enter Required Employee Contributions Last Year if any 86 Notes Annual Pension Statement The annual pension statement is a document that summarizes benefits earned to date and
47. Back Next gt Cancel Help Background If you are married and your spouse has little or no income tax calculations will recognize a non refundable tax credit for the spouse If you are retired tax calculations will exclude Employment Insurance El premiums and CPP or QPP contributions If you are self employed deselect El premiums and select CPP or QPP employer contributions Otherwise you should select CPP employee contributions and El premiums Capital losses carried forward will be used to reduce capital gains in future years If you have an ownership in a business enter the remaining small business capital gains exemption 113 Steps Selecting Tax Return 1 On the Options menu click Tax Return 2 Enter the information and selections as required 3 Click OK or press ENTER Selecting Marital Status 1 Click the General tab and in Marital Status select Single or Spouse Income is Above Threshold or 2 Select Married and Spouse has no Income Entering Pension Income Splitting Percentage Click the General Tab and in Pension Income Splitting select Split Pension Income with Spouse when it Reduces Tax Capital Gains 1 Click the Capital Gains tab 2 If applicable in Capital Gains and Losses enter a Capital Loss Carried Forward 3 If applicable modify the Small Business Capital Gains Exemption Deductions _ Click the Deductions tab 2 In Payroll Deductions Select Deduct Canada or Quebec Pension Pla
48. CPP disability CPP survivor Non residents on Canadian pensions International Social Security benefits 158 Old Age Security Information on Old Age Security OAS including eligibility benefits and how to apply Old Age Security Guaranteed Income Supplement Information on the Guaranteed Income Supplement GIS including eligibility benefits and how to apply Guaranteed Income Supplement Senior s Allowance The Senior s Allowance is a Federal program that provides money for low income seniors between age 60 and 64 before eligibility to Old Age Security Senior s Allowance Information for Qu bec Residents R gie des Rentes du Qu bec The R gie s Retirement Portal has all the information on how to apply for the Qu bec Pension Plan retirement pension Retirement Portal Download Free Adobe Acrobat Reader You require the free Adobe Acrobat Reader to view or print these documents If you don t have Acrobat Reader you can download it from the Adobe Website 159 160 Installation and Registration Installation Follow these instructions to install and register RetireWare Internet Download 1 Download setup exe from www retireware com to the directory of your choice 2 After the download is complete click the Start button on the task bar and select Run 3 Click the Browse button to select the setup file in the directory where you saved it 4 Follow the on screen instructions
49. Investments tab and in Non Registered Investments by Type of Asset enter the market value of non registered investments 2 Enter the Adjusted Cost Base for each type of asset other than Cash amp Equivalents Entering Information on the Personal Residence 1 Click the Residence tab and in Principal Residence enter the Current Market Value of the principal residence 2 Enter the balance of any mortgage in Mortgage 3 Enter the Years Remaining on Mortgage or click the arrows to select the years Entering Information on Life Insurance 1 Click the Life Insurance tab and in Life Insurance Proceeds enter the Amount of Insurance Payable After Retirement on Spouse s Death 2 Select whether Proceeds Payable to Spouse or Beneficiary Entering Information on Tax Free Savings Account Click the TFSA tab and in Tax Free Savings Account by Type of Asset enter the market value of funds held in the TFSA Entering Tax Free Savings Account Information 1 Click the TFSA Information tab and in Information Related to Tax Free Savings Account enter any TFSA Contributions Made This Year 2 Enterthe Unused TFSA Deduction Limit 62 Notes Already Retired If you are already retired select that option and RetireWare will ignore employment earnings and will not calculate a savings plan for future years Ensure that your Retirement Income Objective in Retirement Income Target is not based on a percentage of pre retirement earnings If you are emp
50. Net Worth Budget Asset Allocation Questionnaire Step by Step Retirement Viewing Worksheets with Adobe Acrobat Reader A PDF file or Portable Document Format is a universal format for viewing and printing documents It is not possible to edit or modify PDF files PDF files can only be viewed with Acrobat Reader free software developed by Adobe If your computer does not already have the Acrobat Reader or if you want a newer version go to the following page on Adobe s Web Site http www adobe com reader htm 139 140 49 RetireWare Resources Background The RetireWare resources are updated periodically on the Website Please note that the information below link to the RetireWare Website Accordingly you require a connection to Internet to access the information Retirement and Financial Planning Resources RetireWare offers extensive documentation on all aspects of retirement in Canada These resources are constantly updated as new content becomes available Planning The retirement primer provides general information on retirement planning How to Apply for Canada Pension Plan and Old Age Security Benefits Steps and required documents to apply for Canada Pension Plan and Old Age Security benefits Glossary Glossary of Investment Tax and Retirement Planning Terms Links to Other Websites Information on the Web Lifestyles Resources Government Benefits Tax Assistance Retirement and Investing
51. PAA os Do Calculations for Both Spouses Spouse File Name Re lt Back Next gt Cancel Help Background The Date of Financial Information should be reasonably close to the date of your latest financial information If you do a calculation for both you and your spouse you must select Do Calculation for Both Spouses in each spouse s file Steps Selecting General Information 1 On the Forecast menu click General Information or on the Toolbar click the General Information button 2 Enter information and select options as required 3 Click Next click OK or press ENTER Entering the Date of Financial Information Click the General Information tab Enter the Date of Financial Information or click the calendar to select the date If you use the calendar button click the arrows to select the month and the year Click on the day to select the date POND 47 Spouse Calculation 1 Click the General Information tab and select Do Calculations for Both Spouses if you want to perform a calculation that takes into account the financial information of your spouse 2 Ifa spouse file exists enter the spouse s file name and path in Spouse File Name or click the button to find the file Entering the Name Date of Birth and Sex Click the Personal Information tab and enter the name in the Name box In Date of Birth enter the date of click the Calendar button Click the arrows to select the month and the year of the da
52. PSP You can allocate these savings amounts between the registered TFSA and non registered accounts RetireWare will allocate annual savings in accordance with the specified amount or percentage subject to the year s applicable RRSP and TFSA deduction limits and the total savings percentage Maximum Savings Percentage The maximum savings percentage is an overall cap on the annual before income tax percentage of earnings saved in registered TFSA and non registered assets The cap is the maximum amount that can be realistically set aside each year for savings 50 20 Retirement Income Target Purpose Use to enter information on the desired level and duration of retirement income There are default settings for all options im Retirement Income Target The retirement Income Objective is the amount of income that will be required during retirement the age or date of retirement the life expectancy annual increases to protect against inflation and special expenses or changes to future income Objective Retirement Expectancy Special Expenses Advanced Annual Retirement Income Objective e 70 00 of Gross Earnings During Year Prior to Retirement 2 perYear M C Based on Estimated Expenses lt Back Next gt Cancel Help Background The Retirement Income Objective is the amount of income that will be required during retirement to pay living expenses Select one of the following three types of objectives
53. Pensions button 2 Enter or modify the information as required 3 Click Next click OK or press ENTER Selecting the Canada or Quebec Pension Plan Option 1 Click the CPP or QPP tab and in Canada or Quebec Pension Plan select Estimate Canada or Quebec Pension Plan Based on Current Earnings and enter the Expected Years of Employment Between 18 and 70 or 2 Select Currently in Receipt of a Monthly Pension of and enter the current monthly amount paid by the Canada Pension Plan or Quebec Pension Plan Selecting Marital Status 1 Click the CPP or QPP tab 2 In Marital Status select Single or Married Selecting Old Age Security 1 Click the OAS tab and select Will Have At Least 40 Years of Residence in Canada Between Ages 18 and 65 or 2 Select Will Have About and enter your estimate of the years of residence in Canada between age 18 and 65 or click the arrows to select the years Entering CPP QPP Pension Sharing 1 On the CPP QPP tab in CPP QPP Pension Sharing select Share CPP or QPP Retirement Pension with Spouse and 2 Enter the Years of Common CPP Coverage while Married or Common Law Notes Canada Pension Plan and Quebec Pension Plan You can choose calculate the pension payable from the Canada or Quebec Pension Plan based on current earnings and expected years of contributions or enter directly the monthly amount if currently payable The Canada Pension Plan or CPP is a contributory earnings related social insuranc
54. Questionnaire You can fine tune this selection by selecting different profiles before and after retirement and for registered and non registered assets Existing is the asset allocation of your current portfolio Custom is an asset allocation that you can select in the Custom tab You can compare each basis side by side In the Compare tab 109 Steps Selecting Asset Mix for Projections 1 On the Options menu click Asset Mix for Projections 2 Enter the information and selections as required 3 Click Next click OK or press ENTER Selecting Basis for Projection 1 Click the Basis tab and in Select Asset Allocation Model for Retirement Projections select Profile Existing or Custom 2 Based on your selection click the Profile Existing or Custom tab 3 Complete the information as required Selecting Profile Asset Allocation 1 Click the Profile tab 2 In Select the Appropriate Profile for Each Period and Type of Asset for Registered Investments and Non Registered Investments Before Retirement and After Retirement select a profile in accordance with your time horizon and risk tolerance ES Asset Mix for Projections Select the asset allocation basis to use for the long term projection of assets Profile is the allocation based on your answers to the Risk Profile Questionnaire You can fine tune this by selecting different profiles before and after retirement and for registered and non registered assets Existing is th
55. The results of the calculation are tables graphs recommendations and a summary Background After you enter all relevant data and options you do a calculation to obtain results such as income and asset projections cash flow forecast and recommendations RetireWare also determines whether your savings and other assets and income will meet your retirement income objective Steps Doing a Calculation 1 Enter information and selections for one person or each spouse using the wizards or your own approach When complete on the Results menu click Calculate or press the F5 key or On the Toolbar click the Calculate button or on the Listbar click the Results button and click the Calculate button The RetireWare Calculation window appears If you want to do a Monte Carlo simulation click Run Monte Carlo Simulation After Standard Calculation Monte Carlo Edition only If your work is complete click the Calculate button to launch the calculation When complete a Summary appears If you did a calculation for both spouses a combined summary appears to view the Summary for each spouse click the Spouse 1 or Spouse 2 button on the Listbar You can view all the results by accessing the different tables and graphs on the Results menu or by clicking the View Results button on the Toolbar Doing a Calculation that Combines Information of Both Spouses On the Forecast menu click General Information or on the Toolbar click the General I
56. a Current Employer Pension Plan for Employees of ABC Inc Pension Plan of a Former Employer None or Cashed Out v lt Back Next gt Cancel Help Background One of the benefits that a company often provides is a pension plan There are two types of pension plans The first type is a defined benefit pension plan in which the pension is a formula using years of service and earnings The second type is a defined contribution pension plan in which both the employee and the company contribute to an account that grows tax free until retirement 83 Steps Selecting Company Pensions 1 Onthe Pensions menu click Company or on the Toolbar click the Company Pensions button 2 On the Future Pensions tab select the type of Pension Plan of a Current Employer that applies if any 3 If you select Defined Contribution or Defined Benefit and Defind Contribution on the Other tab options that appeared dimmed will become available 4 Select the type of types of arrangements that apply 5 On the Future Pensions tab select the Pension Plan of a Former Employer that applies if any 6 On the Other tab enter the age Expect to Work for Company Until Age or use the arrows to select the age 7 In Type s of Defined Contribution Pension from Current Employer select Defined Contribution Pension Plan Group RRSP or Deferred Profit Sharing Plan as applicable 8 Click Next 9 Based on your selection the appropriate information
57. a reduced level of costly activities such as travel or leisure or an increased level of expenses with health care or assisted living RetireWare has an option of increasing or decreasing retirement income during later years You can specify a higher or lower income level in percentage terms at up to three progressively higher ages after retirement For example you may receive a retirement income at its full level at age 60 which reduces by 10 at age 65 by a further 10 at age 70 and by another 10 at age 75 Note that any cost of living adjustments to pension income continue to apply even though the pension is subject to the specified percentage reductions This is useful in circumstances where the retirement income objective at its full level for the duration of the retirement period cannot be achieved with the available assets Note that you should use the decreasing percentage carefully by considering the likelihood of significant old age expenses such as health care and long term care 55 56 21 Economic Outlook Purpose Use to choose your forecast of future rates of return and other economic forecasts Economic Outlook Formulate pour forecast of average expected rates of retum and other financial information that will be used to project assets and income in the future using a standard forecast historical returns or your own forecast Forecast C Advanced Economic Basis for Projections Annual Expected Return Cash i
58. an Enter the amount of any RRSP Loan Enter the amount of unpaid Credit Card balances Enter the amount of unpaid Line of Credit Enter the amount of any other Personal Debt IRUN Entering Income Tax for Budget Statement 1 Click the Income Tax tab and in Estimated Income Tax and Deductions for Budget enter the amount of income tax and select that option or 2 Select Calculate Based on Current Income if you want a calculated estimate of income taxes 75 Entering Non Retirement Asset Information 1 Click the Non Retirement Assets tab and in Current Value of Non Retirement Assets enter the market value of Short Term assets 2 Enter the market value of Medium Term assets 3 Enter the market value of assets held for the children s education in Registered Education Savings Plan 4 Enterthe value of Personal Belongings Notes Non Retirement Assets Non Retirement Assets are funds held for a purpose other than retirement These amounts are used to build the net worth statement They are split in four categories Short Term Funds for immediate use such as bank account balances and invested in term deposits or money market Medium Term Funds for use in a few years for specific purposes such as an emergency fund the purchase of a significant item car cottage boat trip etc Registered Education Savings Plan Funds accumulated in an RESP to fund your children s education Personal Belongings Value of persona
59. another technique used to preserve the value of the estate Other related considerations Upon marriage an existing will become invalid and must be rewritten Legislation restricts investments by executors of money held in an estate unless the will specifically provides for it Some Important Terms Adjusted cost base The adjusted cost base is the cost of acquiring an asset and is used to calculate a capital gain or loss on the purchase of a stock mutual fund or other type of property It is equal to the sum of the Original purchase price of an investment PLUS the amount of reinvested distributions PLUS the amount of any additional purchases Capital losses can only reduce or offset capital gains When losses exceed gains in a year you can carry back losses to apply them against gains in any of the previous three years or carry them forward indefinitely Capital gain calculation This example shows the calculation of a capital gain which takes into account reinvested distributions and the adjusted cost base Transaction Units Price Unit Amount Purchase 1000 10 10 000 Reinvested distribution 50 15 750 New purchase 500 16 8 000 Adjusted cost base 18 750 If you sell the 1550 units for 23 000 the capital gain is Proceeds from Sale 23 000 LESS Adjusted Cost Base 18 750 EQUALS Capital Gain 4 250 150 Capital gain or loss The sale of a stock or a mutual fund triggers a capital gain or a cap
60. appears 10 After completing the information click Finish Notes If the pension plan is a combination of a defined benefit and a defined contribution pension plan select Both under Pension Plan of a Current Employer or Pension Plan of a Former Employer as applicable A pension plan is an arrangement sponsored by an employer for providing income to their employees after retirement Registered pension plans are registered with Canada Revenue Agency to obtain tax deductibility of employee and employer contributions and accrued investment income Funds are held in a trust that is separate from the company s assets Registered pension plans are also subject to provincial pension legislation that sets out minimum standards to ensure equitable treatment prudence and due diligence Pension plans for highly paid employees or executives are usually not registered and do not enjoy preferred tax status There are two main types of pension plans defined benefit pension plans and defined contribution pension plans A defined benefit pension plan is a pension plan that guarantees the employee a certain income at retirement based on a formula that usually takes into account earnings and years of service with the employer The employer pays the amount required to provide the promised benefits as recommended by an actuary who assesses the pension fund s assets and liabilities Some plans require that employees contribute a percentage of their earnings toward
61. at year but not beyond Advantages of a spousal RRSP A spousal RRSP is an RRSP to which a spouse makes contributions on behalf of the other spouse Spousal RRSP contributions are useful for couples that want to save taxes during retirement It allows drawing smaller amounts from the spouses respective plans instead of one spouse drawing a larger amount and paying more income tax This strategy is called income splitting All or part of an RRSP contribution can be directed to the RRSP of a spouse while maintaining the deductibility of the full amount in the hands of the contributor The spouse s maximum RRSP deduction is unaffected by such contributions However Revenue Canada requires that withdrawals from the spousal RRSP during the current taxation year or preceding two years be added to the contributing spouse s income in the year of withdrawal Contributions to the spouse s RRSP may be deposited until December 31 of the year in which the spouse becomes age 71 without regard to the age of the contributing spouse A spouse is defined as a person of the opposite sex who lives with and is engaged in a conjugal relationship for 12 or more months or is the parent of natural or jointly adopted children Locked In RRSP and LIRA A locked in RRSP is an RRSP with funds that have been transferred from a registered pension plan Provincial legislation requires that these funds be locked in which means that no withdrawal is allowed other than
62. bject to personal income tax select Special Capital Gains Exemption Applies 4 Enter the Expected Annual Growth Rate 5 Enter the Percentage of Proceeds Used for Retirement Income Entering Information on Other Future Assets 1 Click the Other tab and in Other Future Assets enter the Description of each future assets 2 Enter the expected Amount and Year Anticipated of payment of the future asset Entering Information on Special Types of Future Assets 1 Click the Advanced tab 2 In Other Future Assets if you plan to surrender a life insurance policy enter the Cash Value of Life Insurance Policy expected Amount and Year Anticipated of payment 3 If you expect an inheritance in Inheritance enter the expected Amount and Year Anticipated of payment 4 Ifyou expect a retiring allowance in Retiring Allowance enter the expected Amount and Year Anticipated of payment 5 If you can transfer tax free a portion of the retiring allowance enter the Portion of Retiring Allowance Transferred to RRSP Notes Other Property Other Property is real estate investments other than the principal residence RetireWare projects the current market value of other properties at the rate of return chosen for real estate investments in the Economic Outlook If you select other property as a source of retirement income it will be sold at the beginning of the selected year and the after tax amount will be used to provide retirement income Equity in oth
63. can view them in sequence by using the View Results button Steps View Results in Sequence 1 On the Toolbar click the View Results button 2 The Summary is displayed in the workspace and the Previous and Next button previously grayed become available 3 To view the next set of results click the Next button 4 To view the previous set of results click the Previous button 5 To close click the View Results button again Notes Summary The Summary provides an overview of the retirement plan assessment indicating whether expected assets will be sufficient to provide for the Retirement Income Objective the asset allocation and the deviation from the desired asset allocation Annual Savings Graph and Table The Annual Savings table and graph show the amount and type of amounts saved each year in the future until retirement including RRSP pension and savings for a purpose other than retirement Accumulation of Assets Graph and Table The Accumulations table and graph show an accumulation each year in the future until the end of the projection period of total assets including registered non registered and other assets such as property or business ownership The table shows for each type of asset its expected value and cash flow each year in the future Income and Cash Flow Forecast Table and Graphs The Income Forecast table shows for each type of income its expected value each year in the future until the end of the projec
64. ccess even though there may be a small shortfall By Shortfall we mean present value of shortfall where a shortfall in a particular year is the difference between actual income and retirement income objective For example if one simulation shows a 10 000 shortfall in each the last three years of life but no shortfall in any other year this may amount to a total shortfall of say 8 000 where this amount represents the present value today of these three amounts in the future If we set our success criteria as no shortfall whatsoever it will fail to capture near successes such as in the example above For added flexibility and reasonableness you can select a success criteria for each simulation expressed in terms of a present value of shortfall If the total shortfall is less than the selected amount it will count as a success in the probability calculation otherwise it will count as a failure The criterion for the present value of the shortfall is an amount between 0 and 300 000 Selecting a large amount would require very significant assets to be meaningful typically in the millions lf assets are less than 1 million a criterion of 50 000 or less might be appropriate Volatility and Standard Deviation Each type of investment comes with its own volatility profile GICs have next to no volatility while speculative stocks are extremely volatile You can see the volatility by looking at a stock chart If the price movemen
65. ces allowable contributions to an RRSP for the next calendar year The PA is the amount contributed by an employee and or employer to an employee account in a defined contribution pension plan or deferred profit sharing plan or the deemed value of pension benefits accrued during the year in a defined benefit pension plan If a person is a member of a defined benefit pension plan the PA is equal to nine times the benefit accrued during the year less 600 For example a person who earned 40 000 would be able to contribute 7 200 or18 of earnings to the RRSP in the following year if there were no company pension However if the person earned a pension of say 500 last year in a company pension plan then there would be a PA of 3 900 9 times 500 less 600 The PA reduces the maximum allowable RRSP contribution to 3 300 7 200 less 3 900 Pension adjustment reversal A pension adjustment reversal or PAR is an amount that cancels a portion or all previous pension adjustments and increases the RRSP deduction limit This applies to a member of a registered pension plan or deferred profit sharing plan that terminates employment after 1996 and transfers benefits out of the plan The PAR is equal to the sum of the pension adjustments for each year of participation since 1990 in the registered pension plan less lump sum payments in respect of pension benefits earned since 1990 transferred to a locked in RRSP 152 RRSP deduction limit Th
66. ch is a short description of the function of each button that becomes visible when your mouse pointer is over the button 15 16 5 Toolbar Purpose Use the toolbar to select quickly the main commands on the menus Background You can access all inputs selections wizards and results from the menus toolbars and listbar The most commonly used selections are also on the toolbar The listbar controls items displayed in the window launches the various Wizards and provides access to the PDF worksheets and retirement information See below for a quick reference to toolbar and listbar icons File Toolbar D Start Working on a new file using the Step by Step Retirement Wizard or your own approach gt Open a RetireWare file El save a RetireWare file amp Print the active pane containing a report table or graph Retirement Toolbar Es General Information required for calculation y Sa vings Plan SS Retirement Income Target xa Economic Outlook EM Financial Information Other Assets Other Income Registered Investments BUG Post Retirement Expenses Government Pensions Company Pensions p Sources of Income 17 Es Asset Mix for Projections Results Toolbar 4 Calculate ful Summary amp Annual Savings Accumulations Income Forecast View report Pu e Monte Carlo Summary Monte Carlo Edition only F View results on an inflation adjusted basis p View results in sequence View
67. child starts post secondary education the RESP provides income to pay for tuition and related expenses taxable at the rate applicable to the child s income not the contributor If the child does not pursue a post secondary education accumulated earnings can be transferred to the contributor s RRSP if there is sufficient contribution room available The maximum amount that can be transferred is 50 000 If RRSP contribution room is not available income tax must be paid plus an additional 20 penalty tax The RESP may only be tax sheltered for 26 years Estate Planning Estate planning is the process of developing and maintaining a plan to preserve wealth and provide an orderly transfer of assets upon death to beneficiaries There are several objectives to estate planning such as minimizing or deferring taxes providing liquidity to cover taxes and other liabilities providing income to dependents dividing the after tax value of the estate and minimizing probate fees and other costs related to settling the estate An important issue is to implement various strategies while alive with a person s assets in order to minimize taxes at death These various objectives are accomplished by maintaining a valid up to date will which sets out the disposition of assets in accordance with the intentions of the deceased Without a will a person is said to die intestate and assets are distributed in accordance with the laws of the province of residence withou
68. ck Company On the Future Pensions tab in Pension Plan of a Current Employer select Defined Contribution or Defined Benefit and Defined Contribution On the Other tab select Deferred Profit Sharing Plan Click Next Based on your selections the appropriate information appears Enter the information and select options as required Click Next and click Finish N NOUR W Entering Contribution Rate 1 Click the Contributions tab and in Contribution Rate enter the Employer Contributions as a percentage of earnings Entering Account Information 1 Click the Investments tab and in Deferred Profit Sharing Plan by Type of Asset enter the market value of funds held in the account 2 Click Next 95 Notes Contribution Rates In a deferred profit sharing plan the employer makes periodic contributions to an account and the employee usually decides how the money will be invested Contributions are usually a percentage of the employee s earnings The plan specifies the employer s contribution rate or a range thereof based on profits For example the employer may contribute a minimum of 1 and up to 5 of earnings based on Company profits in the previous year Investments The asset values should be the market value of investments held in the account as of the Date of Financial Information 96 34 Prior Pension Plans Purpose Use to enter information related to the defined benefit or defined contribution pension plan of a
69. ck Monte Carlo or 3 On the Toolbar click the Monte Carlo button or on the Listbar click the Results button and click the Monte Carlo button 4 View the information as required 135 Notes The Risk Return Dilemma If you invest conservatively you are taking less risk which means there is a lower variability of outcomes but also lower returns and less money to spend for the long run With all cash and fixed income comparatively lower returns will greatly affect your spending level This is the dilemma you have to deal with deciding how to invest and how much to spend each year With a higher allocation to equities higher expected returns have higher payout possibilities but also have higher risk which brings more uncertainty and includes the possibility of low or negative returns A lower allocation to equities will result in lower expected returns and have lower payout possibilities but the lower risk will bring greater certainty What Do the Results Mean One of the ideas used to do capital market simulations is to take a normal distribution technically a lognormal distribution with the average and standard deviation of each asset class to generate random rates of return and develop a large number of potential future outcomes in the capital markets assuming that past averages and standard deviations will hold Probability of Success This is the most important result The Probability of Success is the number of tim
70. ck the Results button and then click the Annual Savings button or 3 Onthe Toolbar click the Annual Savings button 4 View the information as required Notes Partial Years The table displays for the first year earnings and savings only for the remaining months left in the year from the date of calculation rounded to the first of the following month Similarly for the year of retirement the table displays earnings and savings only up to the month of retirement Integrating Additional Savings to Your Savings Plan After you do a calculation RetireWare may recommend additional savings required to meet your and or your spouse s Retirement Income Objective You need to include these amounts in the Saving Plan in order for them to take effect Otherwise RetireWare will calculate only the amounts included in Savings Plan Already Retired If you are retiring in the current year or are already retired there is no savings plan RetireWare will calculate whether your available assets are sufficient There is no savings plan if there are no full time employment earnings or if you are already retired Resizing of Graphs You can maximize or resize the graphs by resizing the window or rearrange the sizing of the graphs inside the window by dragging the edges 123 124 43 Accumulations Purpose Use to view a table and a graph showing for each year between the current year and the end of the projection period the expected value of
71. combined information for both spouses Asset Allocation View asset allocation graphs 3 Budget and Net Worth Summary Statement View statement N Data Summary View summary of all information and selections Wizards Quick Calculation Launch Wizard for quick retirement calculation Ta Net Worth Launch wizard to create net worth statement Budget Launch wizard to create budget statement Asset Allocation Launch wizard to determine risk profile L Step by Step Retirement Launch wizard for detailed retirement calculation 19 Results p Calculate Calculate a retirement plan based on data and selections dE 7 Summary Show summary of results and recommendations Annual Savings Show annual savings plan Accumulations Show accumulations table and graph Income Forecast Show income forecast table and graphs Recommendations Show Recommendations Report Show report preview PMO MO Monte Carlo Show Monte Carlo simulation results Monte Carlo Edition Only Help Contents Display help contents Knowledge Base Display help index Retirement Primer View basic retirement information Resources View web resources Tutorials View RetireWare tutorials Web Site Launch RetireWare web site Web Tools View web based tools ar a nn PDF Manual Open PDF version of RetireWare manual for Adobe Acrobat Reader 20 Worksheets PDF Quick Calculation pa dots Net Worth pa adore Budget POF A
72. come DCanadian Equity DU S Equity E International Equity Ze Growth Aggressive 5 5 40 0 a es Asset Allocation Percentages of Five Investment Profiles CEI Notes With the information on your risk profile you can complete Asset Mix for Projections to decide whether to use the profiles the existing allocation or custom allocations as a basis for comparison against your existing portfolio The selected asset allocation basis is also applied to determine the rates of return on your portfolio for the long term projection of assets 108 37 Asset Mix for Projections Purpose Use to select the asset allocation basis to use for the long term projection of assets amp Asset Mix for Projections Select the asset allocation basis to use for the long term projection of assets Profile is the allocation based on your answers to the Risk Profile Questionnaire You can fine tune this by selecting different profiles before and after retirement and for registered and non registered assets Existing is the asset allocation of your current portfolio and Custom is an asset allocation basis that you can select in the Custom tab Profile Existing Custom Compare Select Asset Allocation Model for Retirement Projections Profile Existing Custom lt Back Next gt Cancel Help Background Profile is the asset allocation that is most appropriate based on your answers to the Risk Profile
73. d Registered Withdrawals If you choose registered investments as a source of retirement income you can start withdrawals as late as possible to maximize tax deferral and take advantage of extra years of tax free compounding 104 of capital or you can start drawing income at the selected retirement age You should only use the age of your spouse to determine RRIF minimum withdrawals if your spouse is younger than you Principal Residence When you choose the principal residence as a source of retirement income you can sell the residence and use the capital and future investment earnings If sold you may use the full amount as a source of income or use a portion for income and use the remainder for other purposes such as the purchase of a smaller home Procedure for Use of Funds The procedure for the use of funds followed by RetireWare is to determine whether existing pensions such as company pensions Canada or Quebec Pensions and Old Age Security are sufficient to meet the retirement income objective If not RetireWare uses non registered investment income and capital until exhausted if you select that option then Tax Free Savings Accounts TFSA locked in RRSPs including funds from a defined contribution pension plan and RRSPs last This has the advantage of achieving tax free compounding of registered investments for as long as possible RetireWare uses locked in RRSPs before non locked in RRSPs to minimize the negative
74. do not install this software on the computer of an unregistered user We appreciate your cooperation and respect of intellectual property Pricing and Offers Registration Key You need to purchase a registration key to operate this software The registration is sent when you purchase a user license online from our Website www retireware com You can purchase a license only from the Website using MiraPay Internet Secure Payment Service our mail in or fax the order form Special Offers You will find all the latest pricing information and special offers at the following page Pricing Information on the RetireWare Website 163 164 End User License Agreement END USER LICENSE AGREEMENT FOR RETIREWARE CUSTOMER LICENSE AGREEMENT Apeiron Software Limited Apeiron thanks you for selecting one of our products for your computer This is the RetireWare Customer License Agreement which describes RetireWare s license terms PLEASE READ THIS NOTICE CAREFULLY DO NOT DOWNLOAD OR USE THE SOFTWARE UNTIL YOU HAVE READ THE LICENSE AGREEMENT BY ACCEPTING TO DOWNLOAD OR TO USE THIS SOFTWARE APEIRON WILL ASSUME THAT YOU HAVE AGREED TO BE BOUND BY THIS STANDARD AGREEMENT IF YOU DO NOT ACCEPT THE TERMS OF THIS LICENSE YOU MUST REMOVE ALL OF THE SOFTWARE FROM YOUR COMPUTER AND DESTROY ANY COPIES OF THE SOFTWARE OR RETURN THE PACKAGE UNUSED TO THE PARTY FROM WHOM YOU RECEIVED IT GRANT OF LICENSE Apeiron grants to you and you accept a
75. e RRSP deduction limit is the maximum amount that a taxpayer can deduct in the tax return of a given year for contributions made to an RRSP after 1990 and before the first 60 days of the following year This deduction limit applies to RRSP contributions to the taxpayer s RRSP or to a spousal RRSP for which the taxpayer did not previously obtain a deduction The RRSP deduction limit for the current year is equal to The unused RRSP deduction limit at the end of the previous year Plus 18 of previous year s earned income up to the annual RRSP dollar maximum Minus previous year s pension adjustment if any Plus pension adjustment reversal if any Minus net past service pension adjustment if any Each year Revenue Canada provides a statement of this amount in the Notice of Assessment This information is also available from Revenue Canada s Tax Information Phone System TIPS listed in the blue pages of the phone book RRSP carry forward Revenue Canada allows an indefinite carry forward of the unused RRSP deduction limit This means that contributors can make up in the future for years during which they were unable to make maximum RRSP contributions Unclaimed RRSP contribution An RRSP over contribution is the amount of RRSP contributions above the RRSP deduction limit Such amounts are not tax deductible and could be of up to 8 000 in the past This intent of this buffer is to provide leeway for taxpayers that contributed unintentiona
76. e asset allocation of your current portfolio and Custom is an asset allocation basis that you can select in the Custom tab Existing Custom Compare Select the Appropriate Profile for Each Period and Type of Asset Registered Investments Non Registered Investments Before Retirement Balanced Before Retirement Balanced After Retirement Balanced After Retirement Balanced lt Back Next gt Cancel Help 110 Selecting Existing Asset Allocation 1 Click the Existing tab 2 View the information as required Selecting Custom Asset Allocation 1 Click the Custom tab 2 In Selection of Custom Asset Allocation Percentages for Projections for Registered Investments and Non Registered Investments Before Retirement and After Retirement select an asset allocation percentage for each type of asset in accordance with your time horizon and risk tolerance Comparing Asset Allocation Bases 1 Click the Compare tab 2 Select Registered Investments or Non Registered Investments 3 Review the available information 4 To close click Next click OK or press ENTER Notes If you selected the Profile asset allocation basis for the long term projection of assets you can use different profiles for registered and non registered assets and for the period before or after retirement For example you could select for registered assets a Balanced profile before retirement and a Security profile after retirement And for non regis
77. e program It provides benefits to contributors on retirement disability and death The CPP applies throughout Canada except in Qu bec where a similar program the Qu bec Pension Plan or QPP is in force The two programs are coordinated under agreements between the two governments The program covers virtually all employed and self employed persons in Canada except in Qu bec where the QPP applies who are between the ages of 18 and 70 and earn more than a minimum level of earnings in a calendar year The CPP is financed through contributions from employees employers and self employed persons as well as investment earnings from the Canada Pension Plan Fund Starting in 1998 a new CPP Investment Board will invest all new contributions in capital markets to achieve a better return 80 Human Resources Development Canada administers the Canada Pension Plan through a network of Human Resource Centers of Canada located in principal cities and towns across the country CPP or QPP Earnings The earnings taken into account are those used to determine contributions to the Canada or Quebec Pension Plan and cannot be greater than the year s maximum pensionable earnings or YMPE Child Rearing or Disability Years The Canada and Quebec Pension Plan will ignore up to seven years with low or no earnings between age 18 and 65 if the contributor is away from the workforce on disability or at home rearing a child Earnings for these years will not e
78. each registered non registered or other assets RetireWare File View Wizards Forecast Finances Pensions Options Results Tools Window Help 0441436563597 Haba Je Fe SMUeITABAHQe View ke Accumulation of Assets Spouse 1 DER Spouse 1 2 Spouse 2 Spouses Combined Asset Allocation EN Registered Registered Registered Registered Non Registered Non Registered Non Registered Non Registered Non Registerec Balance Contributions Eamings Withdrawals Balance Contributions Eamings T Withdrawals Budget and Net of Year Worth 30 0 0 100 000 1 000 7 439 31 1 000 39 107 508 7 957 32 1 000 114 469 8 471 33 1 000 121 880 3 019 Input Summary 34 1 100 129 770 9 604 35 1 100 138 172 10 225 A 36 1 100 147 118 10 887 i 37 1 100 156 643 11 591 View Rowe 38 1 200 166 783 12 342 39 1 200 177 580 13 142 40 1 200 189 077 13 991 41 1 300 201 317 14 897 42 1 300 214 350 15 863 43 1 300 228 228 16 888 44 1 400 243 003 17 982 45 1 400 258 735 19 146 46 1 400 275 484 20 385 47 1 500 293 318 21 705 48 1 500 312 307 23 111 49 1 500 332 526 24 607 Results Worksheets 20 03 2004 1 34PM Background The Accumulations window shows a table and a graph of the accumulation each year in the future until the end of the projection period of total assets including registered non registered and other assets such as property or business ownership The table shows for each type of asset its expected value and cash flow each yea
79. eductible capital element is an annuity contract under which the capital element of each annuity payment is deductible When an annuity is purchased with after tax savings a portion of each payment is deemed to be a return of capital and the remainder is interest income The capital portion is deductible and the interest portion is taxable and added to income Specify whether or not there is an annual cost of living adjustment to this annuity also called indexation This type of annuity is purchased with non registered funds from a life insurance company This means that the premium is paid with after tax savings not with funds transferred directly from a RRSP LIRA LIF or registered pension plan The portion of each annuity payment that is a return of capital is the adjusted purchase price divided by the total payments to be made or expected to be made where the continuation of payment depend in whole or in part on the survival of the individual Percentage of Each Annuity Payment Representing Capital Element Purchase Price Annual Payments x Life Expectancy For example if the premium for an annuity of 10 000 per year payable for life is 100 0000 and the life expectancy is 15 years the percentage representing a return of capital would be 67 100 000 10 000 x 15 years Therefore 6 667 of the 10 000 annual annuity payments would be a deductible return of capital and 3 333 would be taxable as interest income 13 74
80. employee a certain income at retirement based on a formula that usually takes into account earnings and years of service with the employer The employer pays the amount required to provide the promised benefits as recommended by an actuary who assesses the pension fund s assets and liabilities Some plans require that employees contribute a percentage of their earnings toward the cost of benefits Defined Contribution Pension Plan A defined contribution or money purchase pension plan is an a registered pension plan in which each employee holds an account where employee contributions employer contribution made on behalf of the employee and investment income accumulate without tax until retirement Employer and employee contributions are usually based on a percentage of the employee s earnings At retirement the balance of the account is used to purchase an annuity or transferred to a life income fund The level of income provided during retirement depends on the performance of the investments held in the account Annuity An annuity is a contract entered upon with a life insurance company to provide periodic income for life The purchase price of the annuity contract depends on the age of the annuitant the benefit or survivor pension payable upon death to a beneficiary or spouse and market rates of interest The purchase price is lower when interest rates are high because the amount of money paid to the insurer earns more interest which is u
81. ent 1 Click the Sources tab and in Sources of Retirement Income select each type of asset or income that you want to use as a source of income 2 If you select Canada or Quebec Pension Plan enter the Age at which the payments will start or click the arrows to select the age Entering Additional Income During Retirement 1 Click the Other tab and in Additional Income enter a Description for each applicable additional temporary income Enter a Start Year an End Year or click the arrows to select the year Enter the annual additional income in Amount Repeat steps 1 to 3 if you want to add other additional income as required PWN lt Sources of Income Select the assets you intend to use as 4 source of income during retirement Any item not selected will not be used in the calculations Include temporary income such as part time employment or future expected payments after retirement You can select to preserve non registered capital or use investment earnings only as income Sources er Non Registered Registered Residence Additional Income Description Start Year End Year fmm ma sare mome o pos 4 fas lt mome ma fas lt mome es fame lt lt Back Next gt Cancel Help 100 Non Registered Withdrawal Options Click the Non Registered tab and in Use of Non Registered Assets After Retirement select Use Investment Earnings Only and Preserve Capital If you want to use your non registered capital
82. ent Date 01 01 2010 Retirement Income Objective Annual Cost of Living Increases No Retirement Income Objective Use Statistical Life Expectancy No Retirement Income Objective Life Expectancy 85 Retirement Income Objective Variation to Objective No Retirement Income Objective Age at Which Variation Aplies 65 Retirement Income Objective Percentage Increase or Decrease 0 00 Retirement Income Objective Type of Variation Increase Retirement Income Objective Variation to Objective No Retirement Income Objective Age at Which Variation Aplies 65 Retirement Income Objective Percentage Increase or Decrease 0 00 Retirement Income Objective Type of Variation Increase Retirement Income Obiective Variation to Obiective Nol Y Steps Viewing the Data Summary To view the data summary on the View menu click Data Summary or On the Listbar click the View button and click the Data Summary button View the information as required To make changes click on the link next to the data item and the corresponding window will be displayed Pon Printing the Data Summary 1 Make sure that the Data Summary is the active window 2 Onthe File menu click Print or on the Toolbar click the Print button 3 RetireWare will send the information to the printer Notes If you want an easy way to organize your data away from the computer print one the PDF worksheets You can access the worksheets from the Listbar by clicking the Worksheets button 33
83. enter the date or click on the calendar button and use the arrows to select the date Selecting Adjustments to Retirement Income 1 Click the Retirement tab and in Adjustments to Retirement Income if you want the retirement income objective to increase each year in line with the rate of inflation select Annual Cost of Living or 2 If you want the retirement income objective to be a flat amount that does not change over time select None Fixed for Life Selecting Life Expectancy 1 Click the Expectancy tab and in Life Expectancy select From Statistics or 2 Select Age and enter your choice of life expectancy or click the arrows to select the age 52 Entering Special Expenses 1 Click the Special Expenses tab and in Special Periodic Retirement Expenses enter a Description for the special expense 2 Enter the Amount and the year the one time or periodic special expense will occur in Start Year and 3 In Frequency enter the frequency of the special expense in years or click the arrows to select the frequency 4 Repeat steps 1 to 3 if you want to enter another special expense as required i Retirement Income Target The retirement Income Objective is the amount of income that will be required during retirement the age or date of retirement the life expectancy annual increases to protect against inflation and special expenses or changes to future income Objective Retirement Expectancy Special Expenses Advanced Specia
84. er property is the excess of the market value over the outstanding balance of mortgages on the properties The capital gain on the sale of other properties is equal to the market value at the time of sale less the initial purchase price The amount that will enter into savings is the market value at the time of sale less the remaining balance of any outstanding mortgage and is subject to the capital gains tax Average Years on Mortgages is the average of the remaining terms of any mortgages on properties other than the principal residence If there is more than one property it will be more accurate if you use a weighted average which puts more emphasis on larger mortgages 68 For example say there are two mortgages one of 10 000 amortized over 5 years and the other of 100 000 for 15 years Instead of averaging the amortization over 10 years use an average term of 14 years i e the rounded value of the following calculation 5 x 10 000 15 x 100 000 10 000 100 000 Business Ownership Business Ownership is an investment in part or all the shares of a privately owned corporation RetireWare projects the current market value of the business ownership in accordance with the expected annual growth rate If you use business ownership as a source of retirement income the projected equity at the selected retirement age will be sold and the after tax amount will be used to provide retirement income The capital gain on the sale
85. es that your plan is successful i e the number of projections you have enough money to sustain your lifestyle to the end over the total number of projections If the projection holds well in most market conditions say a Probability of Success of over 75 then your plan is on a solid footing and you can enjoy the lifestyle you planned for despite the ups and downs of the market If the Probability of Success is between 60 and 75 you have a fair chance of success and it would be better to try achieving a higher probability by reviewing the retirement age retirement income objective or asset allocation If the Probability of Success is below 60 and especially if it is between 0 and 50 it is less than likely that you will achieve your retirement income objective and you need to adjust your expectations and review your asset allocation Frequency Distribution The frequency distribution is a bar graph that shows the number of times each retirement shortfall fell within a range showed on the horizontal axis This graphs gives you an idea of the range and frequency of results The Probability of Success is the number of times there was a zero shortfall showed on the graph divided by the total number of iterations for the simulation Percentile Lines This graph shows smoothed projections at various percentile levels based on your percentile lines selection in Monte Carlo Settings Percentiles are rankings of all observed results The 5th
86. ext and click Finish N DARIA Entering Account Information In Defined Contribution Investments by Type of Asset enter the market value of funds held in the account Notes Termination Option Statement Termination of employment triggers termination of membership in a company sponsored defined benefit pension plan The administrator of the pension plan must issue an option statement to the terminating plan member The statement provides the amount of pension payable at retirement and options for early retirement lt may also show the selected option a deferred pension which is a pension payable from the pension fund starting usually between age 55 and 65 The other common termination option is to transfer the value of the pension to a locked in RRSP If the latter applies then there is no further entitlement from the defined benefit pension plan of the former employer Account Value The account value of a defined contribution pension plan is the market value of investments held by the account as of the date of financial information This includes both the employee and employer portion of the account 98 35 Sources of Income Purpose Use to specify which assets to draw from as a source of income during retirement RetireWare will only take into account the selected sources and will ignore unselected sources even if there are funds available or income payable from that unselected source Pe Sources of Income Spouse 1
87. flation or remain at its initial level for all subsequent years after retirement In the latter case the income will lose its purchasing power over time Did You Know One dollar in two years will not purchase the same goods as one dollar today This is because of price changes to goods and services known as inflation in the economy If the purchase of a good costs 1 today and the rate of inflation is 3 the same good in two years will be 1 06 i e 1 x 1 03 x 1 03 Inflation adjusted dollars is a way of expressing future dollar values in terms of today s value This is accomplished by removing the inflation component from dollar values in the future For example an amount of 100 000 payable in 20 years is the same as 55 368 today if we assume an annual rate of inflation of 3 In other words 100 000 in 20 years will have the same buying power as 55 368 today You can view amounts calculated by RetireWare in inflation adjusted dollars for all results 54 Life Expectancy RetireWare calculates income requirements for the duration of the life expectancy that is until the last year of life expectancy You can see default life expectancies based on age and sex on the Expectancy tab Special Expenses Special expenses are one time or reoccurring large expenses such as a car property or gift If it is a one time expense enter 0 for the frequency Increases or Decreases to Retirement Income In some cases getting older means
88. form at the nearest Social Development Canada Office shown at the end of the form Notes It is suggested that you apply approximately 6 months before you want your pension to start f You want your pension to start before age 65 it cannot start before the month the application is received If you apply after age 65 back payments are limited to 11 months from the date of receipt of the application Proof of Birth You must provide a certified copy of your birth or baptismal certificate Photocopies are accepted if someone such as an accountant doctor government official or other professionals mentioned in the application certifies that it is a true copy of the original When do you want pension to start If you are not age 65 you must confirm that you have stopped working or are a self employed person earning less than the current monthly CPP pension At age 65 you are automatically eligible to receive your CPP retirement pension If you are above age 65 your must indicate the date you want to commence receiving your pension Child Rearing Dropout Provision If you stopped working or reduced your hours of work to care for your children while they were under the age of 7 or you were a Family Allowance recipient or eligible for the Child Tax Benefit or would have been eligible had you applied the months of low or zero earnings while caring for them may be excluded from the pension calculation You should complete form ISP16
89. he calculation can proceed You should be careful to have consistent information with your information and selections between each spouse In particular the following data items should be the same Date of Financial Information in General Information The basis for Annual Expected Future Rates of Return in Economic Outlook If Custom Rates are selected Cash and Short Term Fixed Income Canadian Equity US Equity International Equity Real Estate Appreciation Inflation Rate In Retirement Income Target the Annual Retirement Income Objective has to be set on a gross before tax or net after tax basis for each spouse The option for the disposition of the personal residence and the year of disposition should be the same for both spouses The option for Spousal RRSP Contributions in Registered Investments must be consistent between each spouse Only one spouse may make spousal RRSP contributions to the other spouse s RRSP or each spouse should contribute to his or her own RRSP In Government Pensions the selection of marital status must be set to Married for both spouses 28 9 Asset Allocation Graphs Purpose Use to view the asset allocation of your existing investments and the deviation from the target asset allocation 40000 of 0 10000 40000 20000 Background If you select one of the risk profiles the existing allocation or a custom allocation the asset allocation graphs display
90. he current price of the stock Rate of inflation The rate of inflation is the annual rate of increase in the general price level of goods and services Year after year each dollar buys less as the prices of goods and services sold in the market increase This is how inflation erodes the purchasing power of a person on a fixed income Inflation is measures as the increase over time in the Consumer Price Index Real return The real return is the rate of return on an investment after adjusting for inflation For example ifthe rate of return is 8 and the rate of inflation is 3 the real rate of return is 4 85 1 08 1 03 1 Annual RRSP Dollar Maximum A taxpayer may contribute an amount up to the RRSP deduction limit Each year the RRSP deduction limit increases by 18 of the previous year s earned income up to a dollar limit This dollar limit called the 151 annual RRSP dollar maximum is 19 000 in 2007 20 000 in 2008 21 000 in 2009 and 22 000 in 2010 After 2010 annual increases will be in line with annual changes in the Average Wage a measure compiled by Statistics Canada Earned Income Earned Income is income eligible for consideration when calculating the RRSP deduction limit It includes employment T4 earnings i e salary or wages rental income alimony received net business income and disability benefits paid by the Canada Pension Plan or Qu bec Pension Plan Earned income excludes investment income ret
91. hould enter these amounts on an after tax basis Using Life Insurance Value as Retirement Income Certain type of life insurance policies can be surrendered for cash after a few years After a few years significant wealth can be accessed and cashed out The life insurance coverage is then terminated Inheritance If you expect an inheritance in the future enter the expected amount and anticipated year of payment This is difficult to evaluate and using a far away date is more conservative 69 Retiring Allowance Under certain circumstances upon termination of employment with long service a retiring allowance is sometimes payable instead of a lump sum severance payment or salary continuation The Income Tax Act allows a direct transfer to an RRSP of 2 000 for each year before 1996 during which the employee received remuneration and an additional 1 500 per year before 1989 during which the employer made non vested contributions to a registered pension plan or deferred profit sharing plan 70 25 Other Income Purpose Use to enter net rental income dividend income from a business ownership pension or annuity income currently in payment Other Income Other income include rental dividend and pension income Rental income is associated with Other Property and Dividend Income is associated with Business Ownership both in Other Assets RetireWare assumes these payment will continue until the property or busines
92. ill be sufficient to provide for the Retirement Income Objective Recommended Contributions If you are not retired RetireWare will recommend annual contributions required to have sufficient assets to meet the Retirement Income Objective and your spouse s Retirement Income Objective if you do a spousal calculation If you follow these recommendations you can update the annual savings amount in Savings Plan Level of Risk RetireWare calculates the percentage of all assets invested in equities and assesses the level of risk of the portfolio from very low to moderate to very high Recommendations The Recommendations are intended to give general guidelines to help achieve your retirement objectives Resizing of Graphs You can maximize or resize the graphs by resizing the window or rearrange the sizing of the graphs inside the window by dragging the edges Viewing Results in Inflation Adjusted Dollars Purpose Use to view results in inflation adjusted dollars such as the Summary the Annual Savings Accumulations and Income Forecast tables Background One dollar in two years will not purchase the same goods as one dollar today This is because of price changes to goods and services known as inflation in the economy If the purchase of a good costs 1 today and the rate of inflation is 3 the same good in two years will be 1 06 i e 1 x 1 03 x 1 03 Inflation adjusted dollars is a way of expressing future dollar value
93. information from the menu or toolbar 120 41 Summary Purpose Use to view an assessment of the retirement plan information on the level of risk of the portfolio and recommended strategies to maximize the likelihood of success RetireWare File View Wizards Forecast Finances Pensions Options Results Tools Window Help Q amp Z ABAE e E NT y le 942 707 224 169 400000 600000 800000 1000000 1200000 Input Summary y View Results 100004 Worksheets 20 03 2004 1 35 PM Background The Summary provides an overview of the retirement plan assessment indicating whether expected assets will be sufficient and shows recommended annual contributions to achieve retirement goals Steps Viewing the Summary 1 After you do a calculation by default the Summary is displayed in the main window 2 To view the Summary on the Results menu click Summary or 3 On the Toolbar click the Summary button or on the Listbar click the Results button and click the Summary button 4 View the information as required Notes Date of Financial Information When you recalculate your retirement plan at a later date ensure that in addition to updating your financial data you update the Date of Financial Information in General Information 121 Projected Assets at Retirement After completing a calculation RetireWare determines whether retirement assets w
94. ings Plan button 2 Enter information and select options as required 3 Click Next click OK or press ENTER Entering Information on Annual Savings 1 Click the Savings Plan tab 2 In Savings in Addition to Employer Plans enter the Annual Amount Saved in Registered and Non Registered Assets 3 If you want this amount to increase each year in the future enter the annual percentage in Increase to Savings Amount in Future Years Selecting Savings Allocation between Registered and Non Registered Investments 1 Click the Allocation tab and in Savings Allocation Between Registered TFSA and Non Registered select Maximum Allowable Amount to Registered Remainder to TFSA Non Registered or 2 Select Fixed Amount to Registered Remainder to TFSA Non Registered and enter the amount or 3 Select Fixed Percentage to Registered Remainder to TFSA Non Registered and enter the percentage or 4 Select Maximum Allowable Amount to TFSA Remainder to Registered then Non Registered Entering Maximum Savings Percentage Click the Advanced tab and in Savings Options enter the percentage of earnings in Registered and Non Registered Savings Should not Exceed Notes Annual Savings Annual savings are amounts you save in addition to employee or employer contributions to employer retirement plans such as a defined benefit or defined contribution pension plan a group registered retirement plan Group RRSP or a deferred profit sharing plan D
95. ion for both spouses If unchecked the calculation will only recognize the financial information in the current workspace even if a spouse file name is provided Steps Spouse Calculation 1 2 On the Forecast menu click General Information Click the General Information tab and select Do Calculations for Both Spouses if you want to perform a calculation that takes into account the financial information of both spouses Enter the spouse s file name and path in Spouse File Name or click the button to find the file Enter information and selections for each spouse using the Wizards or your own approach When complete on the Results menu click Calculate or on the Toolbar click the Calculate button Combined results will appear for both spouses combined and individual results will be available in each spouse s workspace Viewing the Information for Each Spouse _ To navigate from one spouse to another on the Listbar click the View button Click the Spouse 1 Spouse 2 or Both Spouses button to access the workspace or On the View menu point to Workspace and click Spouse 1 Spouse 2 or Both Spouses or On the Window menu click Spouse 1 Spouse 2 or Both Spouses 27 Notes You can only access the workspace for both spouses combined after doing a calculation To ensure consistency in the results before doing a calculation RetireWare will review certain selections and inform you of any changes required before t
96. iring allowances severance pay and taxable capital gains and pension income Past service pension adjustment A past service pension adjustment or PSPA is an adjustment to previously reported pension adjustments in respect of pensionable service after 1989 to reflect an improvement in the pension benefits provided under a registered pension plan For each year of participation since 1990 there has been a pension adjustment reported for the pension benefits earned under the plan If there is an improvement to the pension for some or all years of service the employee should have had higher pension adjustments The PSPA is the difference between the pension adjustments after the improvement and the pension adjustments before the improvement Pension adjustment A pension adjustment or PA is an amount that reduces the RRSP deduction limit of persons who are in a company sponsored registered pension plans This is an attempt to equalize the various tax deferred savings programs in Canada and ensure that persons who participate in a company pension plan do not have the same level of RRSP contributions as those who do not Thus persons who are not in a pension plan do not have a pension adjustment Those who participate in a registered pension plan or a deferred profit sharing plan have a pension adjustment reported for each year of participation on their T4 slip Statement of Remuneration Paid The pension adjustment reported in a calendar year redu
97. ital loss A capital gain is the difference between the selling price of a stock and its adjusted cost base If the sale of a stock is below the adjusted cost base the difference is a capital loss Amounts previously reported are added to increase or adjust the price paid for the investment See example of a capital gain calculation The definition of a capital gain is the Proceeds from sale LESS investment charges LESS Adjusted Cost Base Capital Gain tax Only 50 of net capital gains are taxable In other words only 50 of the net capital gain is included in income on the tax return The net capital gain is the difference between capital gains and capital losses in a particular year Consumer Price Index The Consumer Price Index or CPI is an index published by Statistics Canada each month measuring changes in the cost of living The change in this index is the rate of inflation The CPI is based on the average cost of a typical basket of goods and services Dividend tax The tax on dividends received from stocks of Canadian corporations or from mutual funds that invest in Canadian corporations is lower than the tax on income or interest The amount of dividends grossed up by 25 enter into income on the tax return but an offsetting dividend tax credit of 13 33 directly reduces the amount of provincial and federal taxes Dividend yield The dividend yield is the total amount of dividends paid over the past year per share divided by t
98. ity 055 The amount payable from the CPP depends on contributions during active working years DAS depends on years of residence in Canada with 40 years resulting in the maximum entitlement CPP orQPP OAS Canada or Quebec Pension Plan Expected Years of Employment Between Age 18 and 70 40 H C Currently in Receipt of a Monthly Pension of Marital Status CPP QPP Pension Sharing C Single Share CPP or QPP Retirement Pension with Spouse Married Years of Common CPP Coverage while Married or Common Law lo a Cancel Help Background There are two main public pension schemes in Canada Old Age Security and the Canada or Quebec Pension Plan In addition the Government of Canada provides Old Age Security and the Guaranteed Income Supplement There are other provincial schemes for lower income earners The Qu bec Pension Plan is an arrangement parallel to the Canada Pension Plan for residents of Quebec If you are already retired enter the monthly amount you are currently receiving from the CPP or QPP The amount payable from Old Age Security depends on years of residence in Canada If there is less than 10 years of residence there is no Old Age Security With 40 or more years of residence the maximum amount is payable subject to the recovery provisions of the Income Tax Act of Canada 79 Steps Selecting Government Pensions 1 On the Pensions menu click Government or on the Toolbar click the Government
99. k the Recommendations button or On the Toolbar click the Recommendations button View the information as required POoON Selecting Report Settings 1 On the Options menu select Report Settings 2 Onthe General tab select or deselect the sections to include in the report 3 To preview the report on the Results menu click Report or click the Report button on the Toolbar Previewing the Report _ After you do a calculation on the Results menu click Report or click the Report button on the Toolbar or 2 On the Listbar click the Results button and click the Report button 3 View the information as required 4 To print on the File menu click Print or click the Print button on the Toolbar 5 Tosave as a PDF file on the File menu click Save Report as PDF Notes Report Preview The report will only be available after you do a calculation To launch the calculation on the Results menu select Calculate or click the Calculate button on the Toolbar or Listbar 129 130 46 Monte Carlo Settings Monte Carlo Edition Only Purpose Use to select the options for the simulation including number of iterations returns and volatilities RetireWare Calculation John Smith Click the Calculate button below to do your retirement projection If you want to enter the information for your spouse now click Continue to start work on your spouse s file The Continue button will be disabled if you did not select Do Calculati
100. l Periodic Retirement Expenses Description Start Year Frequency CN e E vas A e Cf EI fas fo ems lt Back Next gt Cancel Help Selecting Increases or Decreases to Retirement Income 1 Click the Advanced tab and in Increase or Decrease to Retirement Income select Age 2 Enter the age at which you want a reduction or increase to retirement income or click the arrows to select the age 3 Enter the percentage and select whether the percentage will be an Increase or Decrease retirement income 4 Repeat steps 1 to 3 if you want to modify the retirement income pattern at a later age as required 53 Notes Retirement Income Objective The retirement income objective is the amount of income that will be required from the retirement age and throughout the retirement years to pay living expenses RetireWare determines how much money is required to provide this income and recommends a savings plan that will achieve the selected retirement income objective There are three types of retirement income objectives A retirement income objective based on the amount of specific expenses that you expect to incur during retirement If you select this option you must enter expected expenses A retirement income objective based on a percentage of the earnings in the year immediately before retirement Many retirement planning experts recommend using a percentage of 70 since you can expect lower expenses during retirement with
101. l possessions such as cars furniture art jewelry etc Non Retirement Savings Non Retirement Savings are annual amounts saved for a purpose other than retirement These amounts are used to build the budget statement They are split in the same categories as Non Retirement Assets Debt Enter the current unpaid balance of any debt in one of the available categories These amounts are used to build the net worth statement Income Tax The estimated income tax and deductions are used solely to estimate after tax income in the budget statement Using your own estimate may reflect more accurately your current credits and deductions RetireWare does not use this information to calculate future income and investment taxes Rather it calculates tax specifically for each future year based on tax rates brackets deductions and type of investment income applicable at the time 76 27 Expenses Purpose Use Pre Retirement Expenses to enter periodic expenses that you are currently incurring in your budget Use Post Retirement Expenses to enter expense information if the retirement income objective is based on expected expenses during retirement Background Pre Retirement Expenses will be used to build your budget and see how your income after income tax and deductions compares to your expenses debts and savings Steps Entering Pre Retirement Expenses 1 On the Finances menu click Pre Retirement Expenses 2 Click each tab and en
102. lecting Program Options 1 2 3 gt On the Options menu select Program Options On the Customization tab select or deselect each item based on your preference If you want to save files in each workspace at the same time select When Clicking Save on the File Menu or Clicking the Save Button Save Files in Both Workspaces If you want to apply a change in the Economic Outlook or Monte Carlo Settings of one spouse to the other spouse select Apply Changes to the Economic Outlook and Monte Carlo Settings of One Spouse to the Other Spouse If you want to apply a change in the Date of Financial Information of one spouse to the other spouse select Apply Changes to the Date of Financial Information in General Information of One Spouse to the Other Spouse 10 3 Getting started with RetireWare The RetireWare Workspace The RetireWare workspace consists of the menus Toolbar and Listbar When you start working on a new file you enter information using one of the wizards or accessing the information from the menus Toolbar or Listbar There are data entry windows and results windows Data windows are available at all times Results windows are only available after doing a calculation The Data Summary provides a quick reference to all the amounts and selections and an easy way to review your work displayed in tabular format RetireWare iit IR File View Wizards Forecast Finances Pensions Options Results Tools Window Help 0
103. license to use the programs and related materials Software delivered with this License Agreement This Software is licensed for use on one computer only Once the Software is installed on one computer it may not be uninstalled from that computer and then installed on a different computer except to make one 1 backup copy The Software should never be installed on the hard drive of more than one computer If the Software is installed on a network hard drive access must be restricted to a singularly identified user You agree that you will not transfer or sublicense these rights If you use the Software on more than one computer at a time you must license additional copies or request a multi user license from Apeiron or obtain written consent TERM This License Agreement is effective from the day you receive the Software and continues until you return the original magnetic media and all copies of the Software to Apeiron Apeiron shall have the right to terminate this license if you violate any of its provisions Apeiron or its licensors own all right title and interest including all worldwide copyrights in the Software and all copies of the Software YOUR AGREEMENT You agree not to transfer the Software in any form to any party without the prior written consent of Apeiron You further agree not to copy the Software in whole or in part except for backup copies unless Apeiron consents in writing Each of these copies must have a label placed o
104. lick the View button and then click the Budget and Net Worth Statement button 3 View the information as required Printing the Budget and Net Worth Statement 1 Make sure that the Budget and Net Worth Statement window is active 2 Onthe File menu click Print or on the Toolbar click the Print button 3 The Budget and Net Worth Statement will start printing Notes The information displayed in the budget and net worth statement will only be accurate if you have completed the Budget and Net Worth Wizards or entered registered and non registered investments by type of asset in Financial Information Registered Investments and Company Pensions as applicable You should update periodically your budget and net worth statement to reflect changing circumstances by using the Budget and Net Worth Wizard If you are already retired and want to use your budget as a retirement income objective complete the Post Retirement Expenses information on the Finances menu You indicate that you are already retired by selecting Retired No Full Time Employment Earnings in Financial Information 31 32 11 Data Summary Background You enter data options and selections by using the Wizards or accessing the various menus from the menus or toolbar The Data Summary provides a quick reference to all the amounts and selections and an easy way to review your work It is displayed in tabular format The Data Summary is for viewing only it is not possible
105. lly above their limit Revenue Canada reduced this buffer to 2 000 in 1996 Taxpayers who over contributed by more than 2 000 must claim the difference between their over contributions and 2 000 before claiming any tax deduction for RRSP contributions This difference is the unclaimed RRSP contribution Schedule 7 of the Income Tax Return contains the amount of unclaimed RRSP contributions if any Unused RRSP deduction limit The unused RRSP deduction limit is the maximum amount that a taxpayer may contribute to an RRSP at the beginning of the year The unused RRSP deduction limit is equal to RRSP deduction limit for the previous year Minus allowable RRSP contributions deducted in previous year Revenue Canada shows this amount in the Notice of Assessment A taxpayer may choose to make RRSP contributions in a given year up to the maximum allowable amount or carry forward indefinitely in the future any amount below the RRSP deduction limit 153 154 52 Applying for CPP and OAS Background You will find here information on the steps and required documents to apply for Canada Pension Plan and Old Age Security benefits Application for Canada Pension Plan Retirement Pension If you want to apply for your Canada Pension Plan retirement complete the application provided in the kit 1 Open Form ISP1000 2 Complete the form online and print it 3 Sign and date the form 4 Include your birth evidence 5 Mail the completed
106. loyed on a part time basis you can enter temporary income in Sources of Income Non Registered Investments Non registered investments are savings and investments that are held outside registered plans Do not include amounts held in a personal or Group RRSP a DPSP a defined contribution pension plan or locked in RRSP The account value is the market value of investments as of the date of financial information split by type of asset You can split funds held in non registered investments into five asset classes that will earn their own rates of return chosen in the Economic Outlook The assets will attract tax in accordance with the nature of the investment income i e interest dividend or capital gain Principal Residence You can sell the principal residence in a future year and use it partially or fully as a source of retirement income RetireWare projects the current market value of the principal residence in accordance with the future return on real estate investments specified in the Economic Outlook If you select the principal residence as a source of retirement income the equity at the selected retirement age will be sold and the after tax amount will be used to provide retirement income Equity in the personal residence is the excess of the market value over the outstanding balance of mortgages The amount that will go into savings is the market value at the time of sale less the outstanding balance of any mortgages on the pri
107. m a Life Insurance Company Entering Pension Legislation for Locked in Funds 1 Click the LIRA Options tab 2 In Applicable Pension Legislation for Locked in Funds select the Pension Jurisdiction Notes RRSPs and LIRAs Do not enter amounts held in a group RRSP deferred profit sharing plan or defined contribution pension plan These amounts should be entered in Company Pensions If You Are Retired If you are retired enter amounts held in a RRIF under the RRSP tab and amounts held in a LIF or LRIF under the LIRA tab RRSP Contributions This Year Unclaimed RRSP Contributions and Unused RRSP Deduction Limit Enter contributions already made to a registered retirement savings plan in respect of the year of financial information You can find the unused RRSP deduction limit in the most recent Notice of Assessment 66 24 Other Assets Purpose Use to enter information for the following types of assets as a source of retirement income other property business ownership cash surrender value of life insurance retiring allowance or other types of future expected payments m Other Assets Other Assets include investments in property other than the personal residence and an ownership in a business lt also includes amounts payable in the future such as an inheritance life insurance cash value and retiring allowance To use any of these assets as a source of income you must select them in Sources of Income Property Business
108. n Employee Contributions 3 Select Deduct CPP or QPP Employer Contributions if Self Employed 4 Select Deduct Employment Insurance Contributions if not Self Employed Notes Non Refundable Tax Credits When calculating annual income taxes RetireWare recognizes two non refundable tax credits the basic personal amount and the spousal amount Any Canadian resident may claim the personal amount The spousal amount depends on whether a person is single or has a spouse whose income is above the threshold income or is married and whose spouse has income below the threshold or no income Capital Loss Carried Forward RetireWare offsets any capital loss incurred in prior years against realized capital gains until used up Small Business Capital Gains Exemption You can modify the small business capital gains exemption currently set at 500 000 to another amount When a business is sold the first 500 000 of any capital gain on the sale is exempt of taxation 114 Pension Income Splitting Pension income splitting only applies when you do a calculation that combines the financial information for both spouses Select the option and the program will split up to a percentage of 50 of pension income in order to minimize income tax RetireWare takes the net tax savings for both spouses and reduces the income tax of the spouse with higher earnings Generally if you are age 65 or older you can split payments from a RRIF or LIF with a spou
109. n rates of return forecast select Custom Forecast Selecting Rates for Custom Forecast _ On the Forecast tab select Custom Forecast in Annual Expected Rates of Return Click the Custom Rates tab and in Economic Basis for Projections enter the percentage for the annual Expected Return for each asset class Enter an expected annual return for Real Estate Dividend Yield Rate of Inflation and Increase in Earnings Selecting Advanced Modeling Options Click the Advanced tab and in Fixed Income enter the percentage between Interest and Coupon Payments and Capital Appreciation Enter the Percentage of Capital Gains Realized Annually In Equities enter the Percentage of Capital Gains Realized Annually 58 Notes Basis of Forecast Expected returns on the Rates tab will only apply if you select Custom Forecast as the basis for projection RetireWare Standard Forecast The RetireWare Standard Forecast uses conservative rates that reflects historical relationships between asset classes moderate rates for inflation and real return and increasingly higher return for higher risk Asset Class Annual Expected Annual Volatility Rate of Return Cash amp Equivalents 2 0 2 Fixed Income 5 0 7 Canadian Equity 7 5 15 U S Equity 8 0 16 International Equity 8 5 21 Real Estate 2 5 N A Dividend Yield 0 0 N A Rate of Inflation 2 5 N A Increase in Earnings 3 0 N A Volatility of Rate
110. n the magnetic media showing the program name copyright and trademark designation in the same form as the original Software You will use your best efforts and take all reasonable steps to protect the Software from unauthorized reproduction publication disclosure or distribution and you agree not to disassemble decompile reverse engineer or transmit the Software in any form or by any means You understand that the unauthorized reproduction of the Software and or transfer of any copy may be a serious crime as well as subjecting you to damages and attorney fees DISCLAIMER Apeiron makes no warranties either express or implied including the implied warranties of fitness for a particular purpose or merchantability and Apeiron shall not be liable for tort indirect special or consequential damages such as loss of profits or loss of goodwill from the use or inability to use the Software for any purpose This software is intended for the sole use of the purchaser Although every effort has been made to ensure its accuracy Apeiron will not be liable for any damages arising from its use or misuse Moreover using RetireWare or any related materials does not in any way result in Apeiron providing investment or financial advice You should obtain advice from professional investment or legal advisors before taking any decisions resulting from the use of the software 165 UPDATES Apeiron will do its best to notify you of subsequent updates released
111. nadian residency after reaching age 18 is required to receive an Old Age Security pension in Canada To receive OAS outside the country a person must have lived in Canada for a minimum of 20 years The amount of a person s pension depends on how long he or she has lived in Canada A person who has lived in Canada after reaching age 18 for periods that total at least 40 years will qualify for a full OAS pension A person who cannot meet the requirements for the full OAS pension may qualify for a partial pension A partial pension is earned at the rate of 1 40th of the full monthly pension for each complete year of residence in Canada after reaching age 18 The amount of Old Age Security pension paid to persons with high incomes is reduced through a recovery provision of the Income Tax Act For every dollar of income above this limit the amount of basic Old Age Security pension reduces by 15 82 29 Company Pensions Purpose Use to select the applicable types of company pension plans or to indicate that there are no pension plans Company Pensions There are two types of pension plans defined benefit where the pension is based on a formula using years of service and earnings and defined contribution where you and the company make contributions in an account that grows tax free until retirement If you want to add a pension plan select Add Company Pension on the Pensions menu Future Pensions Other Pension Plan of
112. ncipal residence Equity in a real estate property is the difference between the market value of the property and the balance of any outstanding mortgages Principal Residence Current Market Value The current market value is the market value of the principal residence based on a recent appraisal Principal Residence Mortgage The balance of mortgages is the sum of all mortgages on the principal residence Principal Residence Years Remaining on Mortgage The average years remaining on the mortgage is the average of the remaining terms of any mortgages on the principal residence If there is more than one mortgage it will be more accurate if you use a weighted average which puts more emphasis on the larger mortgages Life Insurance If you do a calculation that combines the financial information of two spouses proceeds at death from a life insurance policy will be paid to the last surviving spouse based on each spouse s 63 selection of Life Expectancy in Retirement Income Target If proceeds from life insurance are payable to the spouse and is alive at time of death of the other spouse this amount will be available as a source of retirement income If proceeds are payable to beneficiary the amount will not be available to the surviving spouse TFSA Include amounts from a Tax Free Savings Account that you plan to use as a source of retirement income You can use part or all of your TFSA for a purpose other than retirement by en
113. nd graphs when the window is active in the workspace 1 Ensure that the window containing the report table or graph is the active window 2 On the File menu click Print or on the Toolbar click the Print button 3 The information will be sent to the printer Print Setup 1 To specify settings for a printer on the File menu click Print Setup 2 Select the printer you want to use 3 Click OK or press ENTER Notes If you save your work in a file you can include a password to protect your privacy If you have a file for you and one for your spouse you must enter a separate password for each file Passwords cannot exceed 10 characters and may include any combination of alphanumeric characters The next time you open this file you will require the password to open it Do not change the print orientation or use a paper size other than 8 1 2 X 11 Print layouts cannot be altered 25 26 8 Combining Spousal Information Background With RetireWare you can integrate all of your and your spouse s assets and future income in planning retirement education costs for your children and other financial goals If you do a calculation for both you and your spouse their information must be in the Spouse 1 and Spouse 2 workspaces You can either enter new information by clicking the New button or opening a file stored in memory You must check Do Calculations for Both Spouses in General Information if you want to do a calculat
114. ner and Each of you keeps the rest of your pension earned outside the time you lived together The combined total amount of the two pensions stays the same Old Age Security Entitlement to the full amount payable from Old Age Security depends on years of residence in Canada between the ages of 18 and 65 The full Old Age Security pension is payable after 40 years of residence No pension is payable if there is less than 10 years of residency and a proportionate amount is payable with 10 to 40 years of residence A Guaranteed Income Supplement is payable to persons with little or no income other than Old Age Security Old Age Security or OAS is a social insurance program that provides a basic level of pension income on application to anyone age 65 or over that meets residence requirements The Federal Government finances OAS from its general tax revenues All benefits under OAS are adjusted quarterly each year in line with rises in the cost of living as measured by the Consumer Price Index 81 Persons who are Canadian residents must include the basic Old Age Security pension in their taxable income Persons who reside outside Canada are subject to tax withholding on their basic Old Age Security pension The usual rate of withholding tax is 25 However persons who live in countries with which Canada has concluded a tax treaty that specifies a rate of withholding lower than 25 are only subject to that lower rate A minimum of 10 years of Ca
115. nformation button Click the General Information tab and select Do Calculations for Both Spouses if you want to perform a calculation that takes into account the financial information of your spouse If a spouse file exists enter the spouse s file name and path in Spouse File Name or click the button to find the file Click Next click OK or press ENTER Viewing the Information for Both Spouses On the Listbar click the View button and then click the Spouse 1 Spouse 2 or Both Spouses View the tables and graphs as required To close click the Close button 117 Notes Reviewing Your Data Before you calculate ensure that all your financial information options and settings are accurate You can do a quick review of all data by viewing the Data Summary Combining Spousal Information With RetireWare you can integrate all of your and your spouse s assets and future income in planning retirement education costs for your children and other financial goals You must check Do Calculations for Both Spouses if you want to do a calculation for both spouses If unchecked the calculation will only recognize the financial information of the current file even if a spouse file name is provided 118 40 Making Sense of Results Tables Graphs and Summary When you do a calculation results are displayed in the main window Results consist of tables graphs and text After the calculation is complete and results are available you
116. ng adjustment formula will be equal to a percentage of CPI with sometimes an offset or a cap For example a simple formula may provide an annual increase to the pension equal to 60 of the CPI in the previous year Adjustments before retirement often depend on increases in the Average Wage a measure compiled by Statistics Canada which is usually higher than the CPI A more complex formula may provide 75 of CPI less 1 up to a maximum of 6 In such a case you must convert this formula to a form that RetireWare can accept If your forecast for inflation in the economic outlook is 4 75 of 4 minus 1 is equal to 2 Thus the cap of 6 will never come into play You can use a formula of 50 of CPI i e 2 divided by 4 and you will get the same result Early Retirement Reduction The pension determined in accordance with the plan formula commences to be paid at the normal retirement age which is usually 65 However if a pension plan member retires at an earlier age the pension usually reduces to reflect the longer expected payout period There are two types of reductions The first type of reduction is in accordance with percentage factors the normal retirement pension reduces by a pre determined percentage for each month between the early retirement date and the normal retirement date For example a normal retirement pension of 600 00 per month starting at age 65 has an early retirement reduction percentage of percent per month For
117. nsion or Annuity Income from Registered Pension Plan enter the amount of annual pension income in Currently in Payment 3 In Indexation select Annual Cost of Living or None Fixed for Life Entering Annuity Income _ Click the Prescribed Annuity tab 2 In Annuity with Deductible Capital Element enter the amount of annual annuity income in Currently in Payment 3 Enter the Percentage of Annuity Representing Capital Element Notes Rental Income Net rental income is gross rental income collected on the lease of a real property other than the principal residence less carrying costs which may include such items as property taxes utilities maintenance repairs and mortgage interest However carrying costs do not include a capital cost allowance CCA since RetireWare does not account for a recapture of CCA at the time of sale of the other property If you select the sale of other real property in a future year net rental income will cease and the after tax proceeds of the sale will be used for retirement income There is no other relationship between net rental income from a property and the value of other real property in other assets In other words you can enter an amount of rental income and no value for the other property or you can have no rental income but have a market value for the other property Net rental income increases each year in the future in line with the rate of return on real estate investments specified in Econ
118. nter in the earnings average used to calculate the pension You should input the actual number of past years during which such absences from the workforce occurred plus the expected number of years in the future that this may happen YMPE The Year s Maximum Pensionable Earnings or YMPE are eligible earnings used in determining maximum benefits and contributions under the Canada or Qu bec Pension Plan The contribution rate applies to earnings between the YBE and the YMPE The Government sets the contribution rate and scheduled annual increases to meet future funding requirements The YBE or Year s Basic Exemption is 3 500 The Canada Pension Plan does not cover earnings below the YBE The YMPE increases with the average Canadian wage CPP QPP Pension Sharing Years of common CPP or QPP coverage years must be the same for each spouse If they are different RetireWare will assume that the years entered in Spouse 1 apply How does pension sharing work You or your spouse or common law partner can apply to receive an equal share of the retirement pensions you both earned during the years you were together The amounts depend on how long you lived together and your contributions to the Plan during that time For example if you lived together for 20 years during both your contributory periods You add together the pension earned by each of you during the 20 year period and Divide it equally between you and your spouse or common law part
119. nvestment or annuity income or a combination thereof Initial funds received through the program are tax free and annuity income does not impact any senior income supplements currently available The amount of home equity that can be unlocked ranges between 10 and 45 and depends on the age gender and marital status of the applicant An older person can access a higher percentage TD Bank and Royal Bank currently sponsor the Canada Home Income Plan reverse mortgage program Eligible persons must be 62 or over for couples both spouses must be age 62 or over and be a resident of British Columbia or Ontario in a geographic location that meets underwriting requirements Certain types of properties such as leasehold co ops and properties with larger acreage are not eligible For more information call the Canadian Home Income Plan at 1 888 641 5256 Registered Education Savings Plan A Registered Education Savings Plan or RESP is a government sponsored plan that allows parents to contribute each year in an account that appreciates tax free for up to 21 years Contributions are not tax deductible but investment income is not subject to income tax There is no limit on the amount of contribution per year for each beneficiary as long as the cumulative amount does not exceed a lifetime maximum of 50 000 per beneficiary The government provides a grant of 20 of contributions up to a maximum of 500 per year for each beneficiary When the
120. of return to establish your saving and spending level and stress test your plan with a Monte Carlo simulation With a Monte Carlo simulation you can test how future savings and withdrawals will perform in a real world capital market environment where rates of return fluctuate from year to year The program tries a large number of random scenarios generated from the expected return volatility as measured by the standard deviation and correlation of each asset class A line graph showing percentile lines and a probability of success summarizes the results of the simulation 137 Doing a Calculation Depending on the speed of your processor and the number of simulations you select the program may take between one and five minutes to complete the projections and compile results It takes a fair amount of time because each projection is a full RetireWare calculation with accurate taxes and account withdrawals You can do a Monte Carlo simulation when you do a standard deterministic calculation To launch the calculation on the Results menu select Calculate or click the Calculate button on the Toolbar or Listbar Then select Run Monte Carlo Simulation After Standard Calculation RetireWare Calculation Spouse 1 Click the Calculate button below to do your retirement projection If you want to enter the information for your spouse now click Continue to start work on your spouse s file The Continue button will be disabled if you did n
121. of the bridge as of the statement date based on the available information Retirement Pension The annual pension statement provides the amount of retirement pension accrued under the plan for credited service as of the date of the statement and for total expected service at the date of retirement Since RetireWare projects pension benefits accrued between now and retirement ensure you input the amount stating the pension accrued to date not the total pension at retirement In addition you should not input any pension amounts that include pensions paid from the Canada or Quebec Pension Plan or Old Age Security because RetireWare calculates these entitlements separately Years of Credited Service The annual pension statement will show the years of credited service RetireWare uses this information to estimate the annual accrual rate of pension and uses this to estimate future pension accruals and the ultimate retirement pension payable from the plan Cost of Living Adjustments A few pension plans provide cost of living adjustments sometimes called indexing to protect the pension against inflation Most of the time adjustments take place only after retirement but sometimes they also apply before retirement The latter is true in the case of certain pension plans covering Government employees teachers and hospital workers 87 Adjustments follow a preset formula linked to the Consumer Price Index or CPI Usually the cost of livi
122. omic Outlook 12 Dividend Income Dividend income is an amount payable because of owning shares in a business The dividend tax credit apply to this income which may be coming from a private ownership and exploitation of an incorporated business or from shares in a public company In the latter case be careful not to include the value of these investments in non registered investments to avoid double counting Also ensure that the rate of return on dividends in the economic outlook reflects the fact that you recognize separately at least a portion of dividend income If you select the sale of business ownership in a future year dividend income will cease and the after tax proceeds of the sale will be used for retirement income There is no other relationship between dividend income from a business ownership and the value of the business ownership in Other Assets In other words you can enter an amount of dividend income and no value for the business ownership or you can have no dividend income but have a market value for the business ownership Dividend income increases each year in the future in line with the rate of growth of the business ownership specified in Other Assets Pension Income Pension Income is a pension currently payable from a registered pension plan Specify whether or not there is an annual cost of living adjustment feature applied to this pension also called indexation Annuity Income Annuity income with a d
123. on License Copyrights and Trademarks End User License Agreement Copyright 1999 2007 by Apeiron Software Limited All rights reserved RetireWare and RetraiteWeb are registered trademarks of Apeiron Software Limited and RifWare RespWare and the RetireWare logo are trademarks of Apeiron Software Limited Welcome to RetireWare Version 2 0 Thank You Thank you for using RetireWare We hope you will enjoy using it and that it will help you plan your financial future RetireWare will provide you with a plan to achieve financial security and the peace of mind of knowing you are taking steps to achieve your goals What Is RetireWare RetireWare is a financial and retirement planning software that determines whether your savings and other assets and income will be adequate to enjoy your desired standard of living during retirement and avoid the risk of outliving your money How Does it Work Basically you enter information by using the wizards or accessing the various menus and click the Calculate button After completing the calculations a summary will show you graphically the main results You can also view the detailed results by selecting the various items on the Results menu To get started review the next few sections below Introduction What Is RetireWare Getting Started With RetireWare Using the RetireWare Wizards Menus Toolbar Listbar Combining Spousal Information Once again thank you for using RetireWare
124. on that you are already retired Enter the market value of non registered investments personal residence and insurance Eamings Investments Residence Life Insurance TFSA Information Tax Free Savings Account by Type of Asset MEENE Fixed Income Canadian Equity U S Equity International Equity Background Enter your expected employment earnings for the current year Select the option to indicate that you are already retired if applicable Enter the market value of your investments in non registered assets split by asset class Also enter information on the personal residence and insurance To use the personal residence as a source of retirement income you must select Personal Residence in Sources of Income 61 Steps Selecting Financial Information 1 On the Finances menu click Financial Information or on the Toolbar click the Financial Information button 2 Enter information and select options as required 3 Click Next click OK or press ENTER Entering Earnings Click the Earnings tab and in Annual Employment Earnings enter the expected employment or self employment earnings for the current year in This Year s Gross Earnings Entering Retired Status If you are already retired and not earning full time employment earnings click the Earnings tab and in Annual Employment Earnings select Retired no Full Time Employment Earnings Entering Information on Non Registered Investments 1 Click the
125. on the RRSP and the mortgage rate that will apply over time Similarly borrowing from an RRSP for a down payment may or may not be preferable depending on the investment rates of return and mortgage rates over time The federal government s Home Buyers Plan allows first time buyers to borrow up to 20 000 from their RRSP on an interest and tax free basis The amount withdrawn must be repaid within 15 years One must look at the impact of the following two scenarios to determine whether one option is better than the other Keep Money in RRSP Amount accumulated in the RRSP plus investment earnings less taxes on withdrawal less extra capital and interest payments Borrow from RRSP the after tax accumulation of amounts repaid to the RRSP plus investment earnings but none of the extra mortgage costs Reverse Mortgage A reverse mortgage is a loan taken by a homeowner using as collateral a real estate property It is called a reverse mortgage because rather than making payments on the property the homeowner receives income from the property based on the amount of the loan The person who takes a reverse mortgage continues to own and occupy the home and benefits from any increase in the equity of the property The principal and interest are repaid by the estate or upon sale of the property 148 A reverse mortgage allows persons with significant equity in their homes to use it as a source of income It provides immediate access to cash i
126. ons for Both Spouses in General Information Calculate Simulated Projection of Assets in Progress Running Monte Carlo Simulation 318 1000 lt Back Cancel Help Background You can do between 1 000 and 10 000 simulations Select rates of returns and volatilities for each asset class that are consistent with historical statistics If in doubt use RetireWare s preset defaults Steps Selecting Monte Carlo Settings 1 On the Options menu select Monte Carlo Settings 2 Onthe General tab select the Number of Iterations and Percentile Lines Display for Graph 3 Select the success criteria for each simulation expressed in terms of the present value of shortfall in Count Simulation as Success if Total Shortfall is Less Than or Equal to 4 If you want to use the same rates in all the calculations check Use Rates of Returns Selected in Economic Outlook 5 If you want to restore default values click the Restore Defaults button 6 On the Returns tab enter the annual expected rate of return for each asset class 131 7 On the Volatilities tab enter the annual volatility for each asset class as measured by the standard deviation Notes Probability of Success and Success Criteria The Probability of Success is the number of times that your plan is successful e g you have enough money to sustain your lifestyle to the end over the total number of simulations It is possible to count a simulation as a su
127. ontributions are usually a percentage of the employee s earnings The plan specifies the employee s contribution rate or a range thereof and the employer contribution or matching contribution For example the employee may contribute 5 of earnings and the employer may match 50 of the employee s contributions or 2 5 of earnings Investments The asset values should be the market value of investments held in the account as of the Date of Financial Information This includes both the employee and employer portion of the account 94 33 Deferred Profit Sharing Plan Purpose Use to enter the contribution rates market value of your assets in a deferred profit sharing plan split by asset class Do not include account values or contributions to a defined contribution pension plan a Group RRSP a defined benefit pension plan personal RRSP LIRA or locked in RRSP Background Enter the expected employer contributions to the deferred profit sharing plan of your current employer If contributions vary with service determine the contribution rate that most closely reflects the average contributions over your future years of service Your selection of the age you expect to leave the company determines the future years of contributions in the plan The summary of the terms of the deferred profit sharing plan will provide information on the employer contribution rates Steps Selecting Deferred Profit Sharing Plan On the Pensions menu cli
128. ot select Do Calculations for Both Spouses in General Information Retireware Is Ready to Calculate Results When the calculations are complete this window will close and the results summary will show To view detailed results click the View Results button on the toolbar or select individual items on the Results menu Y Run Monte Carlo Simulation After Standard Calculation lt Back Calculate Cancel Help Resizing of Graphs You can maximize or resize the graphs by resizing the window or rearrange the sizing of the graphs inside the window by dragging the edges 138 48 Worksheets Purpose Use to collect information away from the computer and facilitate data entry Background RetireWare is organized around wizards for all components of the software including Quick Calculation Budget Net Worth Asset Allocation and Step by Step Retirement wizards To make it even easier it also has printable cheat sheets in PDF format that can be used to collect all required information away from your PC Steps Opening Worksheets 1 On the Listbar click the Worksheets button 2 Click on the worksheet you want to view 3 This will open the worksheet which can be viewed with the free Adobe Acrobat Reader 4 Print the worksheet and fill in the information 5 Enter your data by using the corresponding wizard Notes Available Worksheets There is a worksheet for each of the wizard as follows Quick Calculation
129. oyer contributions to the group RRSP of your current employer If contributions vary with service determine the contribution rate that most closely reflects the average contributions over your future years of service Your selection of the age you expect to leave the company determines the future years of contributions in the plan The summary of the terms of the group RRSP will provide information on the employee and employer contribution rates Steps Selecting Group Registered Retirement Savings Plan On the Pensions menu click Company On the Future Pensions tab in Pension Plan of a Current Employer select Defined Contribution or Defined Benefit and Defined Contribution On the Other tab select Group RRSP Click Next Based on your selections the appropriate information appears Enter the information and select options as required Click Next and click Finish N NOUR Ww Entering Contribution Rate 1 Click the Contributions tab and in Contribution Rates enter the Employee Contributions as a percentage of earnings 2 Enter the Employer Contributions as a percentage of earnings Entering Account Information 1 Click the Investments tab and in Group RRSP by Type of Asset enter the market value of funds held in the account 2 Click Next 93 Notes Contribution Rates In a group RRSP the employer and employee make periodic contributions to an account and the employee usually decides how the money will be invested C
130. quired When complete click the Finish button The RetireWare Calculation window appears If you want to enter information for the other spouse click the Continue button Repeat steps 3 and 4 for the other spouse If your work is complete click the Calculate button to launch the calculation When complete a Summary appears If you did a calculation for both spouses a combined summary appears to view the Summary for each spouse click the Spouse 1 or Spouse 2 button on the Listbar 36 13 Net Worth Wizard Purpose Use build your net worth statement which is a balance sheet that shows the current value of your assets your liabilities and the difference which is your net worth Background Follow the instructions to complete the Net Worth wizard When complete click the Finish button and the wizard will build the Net Worth Statement Use the Net Worth wizard again to update your net worth statement and recalculate your retirement projections Steps Selecting the Net Worth Wizard On the Wizards menu click Net Worth or On the Listbar click the Wizards button and then click the Net Worth button The Net Worth wizard will start Enter information and select options as required When complete click the Finish button The results will show in the Budget and Net Worth Statement and will form the basis of the projections for the retirement calculations DARON Viewing the Budget and Net Worth Statement 1 To vie
131. r in the future Steps Viewing the Accumulations Table 1 After you do a calculation to view the accumulations on the Results menu click Accumulations or On the Toolbar click the Accumulations button or On the Listbar click the Results button and then click the Accumulations button View the information as required PWN 125 Notes Asset Values The table displays for each year the expected value of each asset as at the beginning of the year except for the first year where it displays the asset values as of the Date of Financial Information Partial Years The table displays for the first year investment earnings for the remaining months left in the year from the date of calculation rounded to the first of the following month Other Assets and Accumulations Table If you dispose of an asset such as a personal residence other property or business ownership the after tax proceeds will be deposited in the non registered account and available as a source of income to meet the Retirement Income Objective In the year of disposition the asset will no longer show in its usual column but a corresponding amount will appear in the non registered account Any difference in value between the current value and the amount going in the non registered asset is the tax on disposition If you receive an asset in a particular year entered in Other Assets the amount will appear in the non registered account Excess Assets In cer
132. rately For assets invested in fixed income the expected annual rate of return is the annual appreciation and interest paid on these investments The expected return on real estate is the annual increase in the market value of real estate property It should bear a reasonable relation to the rate of inflation The dividend yield is the expected annual return for dividends Since only certain stocks or mutual funds pay dividends you should base this yield on the ratio of total annual dividends over the current market value of all stocks and equity mutual funds 59 The rate of inflation is the annual expected increase in the Consumer Price Index a measure compiled by Statistics Canada The annual increase in earnings the expected annual increase in employment earnings It should bear a reasonable relation to the rate of inflation If You Select Your Own Custom Forecast Consider the following guidelines to ensure that your results are meaningful and consistent Riskier investments have higher expected rates of return and higher volatility Risk free investments have returns that are close to the rate of inflation Earnings usually increase on average at least as much as the rate of inflation and often by 1 or more than the rate of inflation Do not assume recent trends will prevail over the long term Historical data for a long period of time is most appropriate to establish relationships between returns of different types of assets
133. rd to a RetireWare file Save Report As PDF save the RetireWare report as a PDF file Print Print an active window containing a report table or graph Print Setup Select printer options Exit Exit RetireWare View Spouse 1 View information of spouse Spouse 2 View information of other spouse Spouses Combined View combined information for both spouses Asset Allocation Graphs View asset allocation graphs Budget and Net Worth Statement View budget and net worth statement Data Summary View summary of all inputs and selections Wizards Quick Calculation Launch Wizard for quick retirement calculation Net Worth Launch wizard to create net worth statement Budget Launch wizard to create budget statement Asset Allocation Launch wizard to determine risk profile Step by Step Retirement Launch wizard for detailed retirement calculation Forecast Required Information Show a summary of information required for a RetireWare calculation General Information Enter general information required for calculation Savings Plan Retirement Objective Enter amounts and select options for savings plan Retirement Income Target Retirement Objective Enter amounts and selections for retirement income objective Economic Outlook Select forecast of future rates of return and other economic values Investment Statistics View investment statistics by asset class 13 Finances
134. reduced housing costs lower tax rates no work related expenses and no savings program to set aside funds for retirement Experts use this type of retirement income objective because it is reliable for long term projections A retirement income objective based on a flat dollar amount either before or after income tax This type of objective is most appropriate when retirement is in the near future If retirement is more than 5 years away you should give special attention to the effect of future inflation and time value of money on the flat dollar amount Retirement Age The retirement age is the first of the month coincident with or following the age at which regular full time employment earnings cease to be paid Retirement income from the various sources of retirement income commences at that time in accordance with the retirement income objective If the retirement age falls on a date that is before the date of financial information the retirement age is adjusted to the age on the date of financial information For example if you are age 63 years 7 months and entered 63 in Retirement Age RetireWare will adjust the retirement age to 63 years 7 months Adjustments to Retirement Income Adjustments to Retirement Income are annual increases to total retirement income that protects you against the eroding effect of inflation The retirement income objective which is an annual income can be increased each year in line with the rate of in
135. res how strongly asset classes are related or change with each other If two asset classes for example Canadian equities and U S equities tend to move up and down together they would have a high correlation of say 7 Cash and International equities may have a correlation of nearly 0 that is there is no recognizable pattern of these two assets moving together You can use preset defaults or select your own values for the average returns and standard deviations Use the defaults if you re not yet comfortable with making your own selections 132 If the projection holds well in most market conditions say it shows you will have enough money in 80 of all cases then your plan is on a solid footing and you can enjoy the lifestyle you planned for despite the ups and downs of the market In this example 80 is the Probability of Success 133 134 47 Monte Carlo Summary Monte Carlo Edition Only Purpose Use to view the results of the Monte Carlo Simulation 7 Monte Carlo Summary 00 01 02 03 04 05 06 OF 08 09 10 Pazqzazara eA ALAA 440000 600000 760000 E53 a 0 2010 2020 2040 Yes Background Results consist of three graphs the Probability of Success Frequency Distribution and Percentile Lines graphs Steps Viewing the Monte Carlo Summary 1 After you do a calculation by default the Monte Carlo Summary is displayed in the main window 2 To view the Monte Carlo Summary on the Results menu cli
136. retirement disability and death The CPP applies throughout Canada except in Qu bec where a similar program the Qu bec Pension Plan or QPP is in force The two programs are coordinated under agreements between the two governments The program covers virtually all employed and self employed persons in Canada except in Qu bec where the QPP applies who are between the ages of 18 and 70 and who earn more than a minimum level of earnings in a calendar year The CPP is financed through contributions from employees employers and self employed persons as well as investment earnings from the Canada Pension Plan Fund Starting in 1998 a new CPP Investment Board will invest all new contributions in capital markets to achieve a better return Human Resources Development Canada administers the Canada Pension Plan through a network of Human Resource Centers of Canada located in principal cities and towns across the country Old Age Security Old Age Security or OAS is a social insurance program that provides a basic level of pension income on application to anyone age 65 or over that meets residence requirements OAS is financed from the general tax revenues of the Federal Government All benefits under OAS are adjusted quarterly each year in line with rises in the cost of living as measured by the Consumer Price Index Persons who are Canadian residents must include the basic Old Age Security pension in their taxable income Persons who reside out
137. s in terms of today s value This is accomplished by removing the inflation component from dollar values in the future For example an amount of 100 000 payable in 20 years is the same as 55 368 today if we assume an annual rate of inflation of 3 In other words 100 000 in 20 years will have the same buying power as 55 368 today You can view amounts calculated by RetireWare in inflation adjusted dollars for all results Steps Viewing Tables in Inflation Adjusted Dollars 1 On the Toolbar click the Inflation Adjusted Dollars button 2 On the Results menu click on the item you want to view 3 To revert to Results shown in nominal dollars Click the Inflation Adjusted Dollars button again 122 42 Annual Savings Purpose Use to view a table and graph showing earnings and annual savings to registered and non registered accounts for each year between the current year and retirement Background In Savings Plan you can enter amounts you plan to save inside and outside your RRSP In Company Pensions you can enter employer and employee contributions to a Defined Contribution Pension Plan a Group RRSP and a DPSP After the calculation is complete you can view a table of amounts saved in each of these plans until retirement If you are already retired there is no table Steps Viewing the Annual Savings Table 1 After you do a calculation to view the table on the Results menu click Annual Savings or 2 On the Listbar cli
138. s is sold Enter pension or annuity income from a Registered Plan or income from a prescribed annuity Income Pension Prescribed Annuity Net Rental Income from Other Property Currently in Payment EN per year Dividend Income from Business Ownership Currently in Payment 0 per year lt Back Next gt Cancel Help Background Other Income includes rental dividend and pension income Rental Income is associated with Other Property in Other Assets Dividend Income is associated with Business Ownership in Other Assets RetireWare assumes that these will continue until the property or business is sold You can enter two types of pension income pension income from a Registered Pension Plan or annuity income purchased with registered funds or a prescribed annuity purchased with non registered funds 71 Steps Selecting Other Income 1 On the Finances menu click Other Income or on the Toolbar click the Other Income button 2 Enter the information and select the options as required 3 Click Next click OK or press ENTER Entering Net Rental Income 1 Click the Income tab 2 In Net Rental Income from Other Property enter the amount of net annual rental income in Currently in Payment Entering Dividend Income 1 Click the Income tab 2 In Dividend Income from Business Ownership enter the amount of annual dividend income in Currently in Payment Entering Pension Income 1 Click the Pension tab 2 In Pe
139. s of Return Monte Carlo Edition Only Volatility is a measure of market risk and is equal to the standard deviation of annual returns If we assume that rates of returns are distributed as a bell shape curve then 67 of all possible outcomes will fall within one standard deviation from the average A Monte Carlo simulation consists in a large number of projections using randomly generated rates of returns from historical averages volatilities for each asset class and correlations between them Results are categorized from best to worse and this provides a good indication of whether the level of withdrawals from your assets is sustainable for the duration of your retirement with your chosen asset allocation strategy This feature is only available for the Monte Carlo Edition of RetireWare Custom Rates of Return You can make your own selection of future rates of return by selecting the Custom Forecast option on the Forecast tab and selecting each individual rate on the Rates tab A rate of return is the percentage change in the value of an investment over a period of time RetireWare bases its forecast of future income and accumulations on five different types of rates of return You can customize these rates or use the RetireWare Standard Forecast For assets invested in equities the annual rate of return is the expected annual appreciation in the market value It excludes the return that is attributable to dividends which is entered sepa
140. s two pie charts showing the asset allocation of your existing registered and non registered assets and two bar graphs showing the deviation between the current asset allocation and your chosen asset allocation There is also a table showing corresponding percentages and amounts Steps Viewing the Asset Allocation Graphs 1 To view the graphs on the View menu click Asset Allocation Graphs or 2 On the Listbar click the View button and then click the Asset Allocation Graphs button 3 View the information as required Notes The information displayed in the existing asset allocation will only be accurate if you have completed the Asset Allocation Wizard or selected your risk profile in Asset Mix for Projections and entered the Net Worth Wizard or entered all registered and non registered investments by type of asset in Financial Information Registered Investments and Company Pensions as applicable 29 30 10 Budget and Net Worth Statement Purpose Use to view a financial snapshot of your assets and liabilities and compare your revenues to your expenses debt and savings Background With this information you can take corrective action to reduce your expense so that you have enough money left over to build your retirement and other savings Steps Viewing the Budget and Net Worth Statement 1 To view the Budget and Net Worth Statement on the View menu click Budget and Net Worth Statement or 2 On the Listbar c
141. se who is under 65 If you are under age 65 you can split annuity payments from a superannuation or pension fund or plan The objective of splitting income with a spouse is to reduce net income and taxable income of the higher income spouse The benefits of this strategy include reducing the higher income spouse s marginal tax rate reducing or eliminating OAS clawback or creating a pension tax credit for the spouse with pension splitting So it is more advantageous for spouses who have different income levels and are in different marginal tax rates Up to 50 of eligible pension income may be allocated to the taxpayer s spouse when filing the tax returns No funds are transferred using pension splitting it is only a method for reducing the taxable income of one spouse by allocating income on the tax return to the other spouse Eligible pension income is generally the total of the following amounts received by the pensioner in the year these amounts also qualify for the pension income amount The taxable part of life annuity payments from a superannuation or pension fund or plan and annuity and registered retirement income fund including life income fund payments and Registered Retirement Savings Plan annuity payments if they are received as a result of the death of a spouse or common law partner or if the pensioner is age 65 or older at the end of the year 115 116 39 Doing a Calculation Purpose Use to do a RetireWare calculation
142. sed to pay the monthly income There are several types of annuities Life annuities provide income for life and cease on death A joint and last survivor annuity provides income for the lifetime of the primary annuitant and upon death a percentage of the pension such as 50 60 or 100 continues to be paid to the spouse for the remainder of his or her lifetime Sometimes annuities are payable for a guaranteed period such as 5 10 or 15 years In such cases the pension is paid for the first 5 10 or 15 years whether or not the annuitant is alive After the expiry of the guarantee period the pension is paid as long as the annuitant is alive and ceases upon his or her death An indexed annuity is an annuity under which payments increase gradually every year to keep up with inflation 146 Registered Retirement Savings Plan A registered retirement savings plan or RRSP is a personal savings plan registered with Revenue Canada in which contributions and investment earnings accumulate on a tax deferred basis Withdrawals from an RRSP account are taxed as income By the end of the year in which the RRSP holder reaches age 71 the RRSP must be closed converted to a registered retirement income fund or used to purchase an annuity from a life insurance company An RRSP holder may make contributions during the taxation year or 60 days after the end of that year Contributors who become age 71 during the year may contribute until December 31 of th
143. side Canada are subject to tax withholding on their basic Old Age Security pension The usual rate of withholding tax is 25 However persons who live in 145 countries with which Canada has concluded a tax treaty that specifies a rate of withholding lower than 25 are only subject to that lower rate A minimum of 10 years of Canadian residency after reaching age 18 is required to receive an Old Age Security pension in Canada To receive OAS outside the country a person must have lived in Canada for a minimum of 20 years The amount of a person s pension is determined by how long he or she has lived in Canada A person who has lived in Canada after reaching age 18 for periods that total at least 40 years will qualify for a full OAS pension A person who cannot meet the requirements for the full OAS pension may qualify for a partial pension A partial pension is earned at the rate of 1 40th of the full monthly pension for each complete year of residence in Canada after reaching age 18 The amount of Old Age Security pension paid to persons with high incomes is reduced through a recovery provision of the Income Tax Act The tax recovery applies to persons whose total income exceeds a threshold adjusted annually by the Government For every dollar of income above this limit the amount of basic Old Age Security pension reduces by 15 Defined Benefit Pension Plan A defined benefit pension plan is a registered pension plan that guarantees the
144. sset Allocation Questionnaire POF Step by Step Retirement Steps Using the Listbar 1 Click the button representing the menu command you want to access 2 Enter information and select options as required 3 If you do not want to register new information or options click the cancel button or close the window Hiding or Viewing the Listbar 1 To view or hide the listbar on the Options menu click Listbar 2 A checkmark indicates it is visible no checkmark indicates that it is hidden Notes If you want to register information or options you must always click Next click OK or press ENTER All toolbar buttons have bubble help which is a short description of the function of each button that becomes visible when your mouse pointer is over the button If you want the listbar in the RetireWare window ensure that the Listbar command is checked on the Window menu If you do not want the listbar cancel the selection of the Listbar command on the Window menu 21 22 7 New Open Save and Print Starting a New File Start work on a new file using the Step by Step Retirement Wizard your own approach or resume work on an existing file 2 Work on a New File RetireWare Use Step by Step Retirement Wizard Follow Your Own Approach Open an Existing File Background gt Step by Step Retirement Wizard 3 Work on a New File Using Your Own Approach Resume Work on an Existing File 23 Steps Selec
145. t Allocation Wizard On the Wizards menu click Asset Allocation or On the Listbar click the Wizards button and the click the Asset Allocation button The Asset Allocation wizard will start Enter information and select options as required When complete click the Finish button The results will be displayed in the Asset Allocation Graphs and will be used in the projections for the retirement calculation DIRON 41 42 16 Step by Step Retirement Wizard Purpose Use to build your retirement plan by formulating your retirement income objective and determining how much money will be required during retirement Step by Step Retirement Wizard Build your retirement plan by entering detailed information on all your income assets and retirement income objective The Wizard will determine how much money will be required during retirement Introduction Welcome to the Step byStep Retirement Wizard The Step by Step Retirement Wizard will prompt you for detailed information on all financial aspects of your situation Once complete you can access any other feature from the menus or Wizards to explore other solutions and enhance your retirement plan Next gt Cancel Help Background RetireWare provides an easy to use a Step by Step Retirement wizard that prompts you in a logical and sequential order for all data entries and selections required for a RetireWare calculation You also have the option of starting work on a new
146. t rates The LIF holder subject to the Newfoundland and Labrador pension legislation continues to maintain control on the investments until the end of the year of the 80th birthday at which time the balance held in the fund must be used to purchase an annuity from a life insurance company A LIF subject to other pension legislation does not have to be converted to an annuity The minimum age at which a LIF may be set up depends on the provincial legislation that applies to the member of the pension plan who is transferring funds to a LIF The person holding a LIF has control over all investment decisions As with an RRSP funds in a LIF are tax sheltered until withdrawn Locked in Retirement Income Fund A locked in retirement income fund or LRIF is similar to a life income fund except that it does not require the purchase of an annuity when the holder of the LRIF reaches age 80 Persons whose locked in RRSP is subject to Ontario or Alberta legislation have a choice to select either a life income fund or an LRIF at the time of retirement Mortgage or RRSP Making RRSP contributions before paying down a mortgage is usually the best strategy according to many financial experts This is because the tax sheltered investment growth of RRSP contributions plus the tax refund applied to reduce a mortgage may exceed slightly principal and interest charges saved from applying the same amount to the mortgage However this depends on the investment return
147. t regard to tax effectiveness The estate is responsible for covering liabilities including taxes in the year of death If cash is not available property may have to be sold The value of a RRSP or RRIF will generally be fully taxable in the final tax return unless the spouse is named as beneficiary On the date of death any property is deemed sold at its market value Thus 50 of the deemed capital gain must be included in the deceased final tax return To minimize such adverse consequences one strategy is to ensure that the principal residence bank accounts and other 149 assets are jointly owned with the spouse When one spouse dies those assets pass to the surviving spouse without triggering a capital gains tax When other capital assets such as life insurance policies or an RRSP have a named beneficiary this result in a direct transfer of these assets to the beneficiary bypassing the estate and avoiding probate fees on these assets There are several common tax effective strategies One is leaving the proceeds of the RRSP to the spouse to allow a tax free rollover of the proceeds into the spouse s RRSP and continue deferring taxes Another consists in leaving capital assets such as stocks or mutual funds to the spouse so there is no deemed disposition Giving money during the lifetime will reduce probate fees payable at death which are based on the size of the estate Purchasing life insurance to cover taxes payable at death is
148. tain years all combined income such as Government or Company pensions or withdrawals from registered accounts may exceed the amount required to meet the Retirement Income Objective When this occurs RetireWare will save the after tax excess in non registered assets These funds are available for use in later years if required Resizing of Graphs You can maximize or resize the graphs by resizing the window or rearrange the sizing of the graphs inside the window by dragging the edges 126 44 Income Forecast Purpose Use to view a table and graphs showing for each year between the retirement year and the end of the projection period the expected income from each source and whether there will be an excess or shortfall with respect to the Retirement Income Objective RetireWare File View Wizards Forecast Finances Pensions Options Results Tools Window Help OSES 5150 HDaxpa Je HU S MarasA OQ 43 6 EIER y Spouse 1 Spouse 2 Spouses Combined Asset Allocation Budget and Net Worth Age Registered Non Registered RRIF Canada Old Age Investment A Quebec Gross Income Contributions Savings Withdrawals Posa Pisa Security Income Withdrawals _ 30 20 000 0 1 000 7429 AR p 31 20 700 1 000 7 357 28 65 j 32 21 424 1 000 8471 29 89 View Results 3 22 174 1 000 9 019 31 19 34 22 950 1100 3 604 32 552 35 23 754 1 100 10 225 32 97 36 24 585 1 100 10 887 3 47 37 25 446 1 100 11 591 37 03 38 26 336 1 200 12 3
149. te of birth Click on the day of the date of birth In Sex select Male or Female NP OND Selecting Province 1 Click the Province tab and in Applicable Province for Income Tax select the province Before Retirement and After Retirement Notes The Date of Financial Information is the date as of which all calculations are done This is why that all investment information should be based on the latest available market value information If you do a calculation for both you and your spouse you must select Do Calculation for Both Spouses in each spouse s file and enter information or open a file in the other spouse s workspace You access the other spouse s workspace by clicking the Spouse 1 or Spouse 2 button on the Listbar If you specify a file path in Spouse File Name the file will open automatically in the other spouse workspace unless there is already an open file or data has been entered in the workspace If you do not check Do Calculations for Both Spouses the calculation will only recognize the financial information of the current spouse even if a spouse file name is provided This makes it possible to try single or spousal calculations with the same file The province of residence before and after retirement determines the provincial income tax rates and amounts used to calculate provincial income tax 48 19 Savings Plan Purpose Use to formulate your savings plan as an annual amount in an RRSP Tax Free Savings
150. ted will not be used in the calculations Include temporary income such as part time employment or future expected payments after retirement You can Expl select to preserve non registered capital or use investment eamings only as income C Currently in A Sources Other NonAegistered Re ES Sources of Retirement Income Enter average annual contributions you expect to make to the Plan in the future The corresponding employer matching IV Non Registered Investments contributions will be added by RetireWare Enter the market value of assets in each of the funds you currently have ReireWare will determine your asset allocation based on the value in each fund Marital Status Single IV RRSPs and Defined Contribution Plans Maried de Ro ca a aa di Defined Contribution Investments by Type of Asset Cash 2 430 7 Personal Residence Sale of Other Real Property IV Canada or Quebec Pension Plan from 4 Fined Income 23 170 M Old Age Security Equities Canada 25 420 Other Future Assets Equities U S 8 995 Equities Intemationa 7 520 Refresh lt Back Next gt Finish Cancel Help 35 Steps Selecting Quick Calculation Wizard 1 zo NDA On the Wizards menu click Quick Calculation or on the Listbar click the Wizards button and click the Quick Calculation button The Quick Calculation wizard will start Enter information and select options as re
151. ter any applicable expense items and select whether they are stated on a monthly or annual basis 3 If you want to view total annual expenses click the Total tab 4 Click Next click OK or press ENTER You can complete this information using the Budget wizard Entering Post Retirement Expenses 1 On the Finances menu click Post Retirement Expenses or on the Toolbar click the Post Retirement Expenses button 2 Click each tab and enter any applicable expense items and select whether they are stated on a monthly or annual basis 3 If you want to view total annual expenses click the Total tab 4 Click Next click OK or press ENTER You can complete this information using the Budget wizard only if you have selected Retired no Full Time Employment Earnings in Financial Information Notes You should input estimated expenses during retirement in terms of today s cost levels RetireWare will determine the cost of these expenses in the future based on the rate of inflation selected in the economic outlook The available categories of expenses are Housing Transportation Services Food Insurance Personal Leisure Debt and Other Payments 71 78 28 Government Pensions Purpose Use to select options for estimating Old Age Security and the Canada or Quebec Pension Plan 8 Government Pensions Spouse 1 There are two main public pension schemes in Canada the Canada or Quebec Pension Plan CPP and Old ge Secur
152. tered assets you could select a Growth profile before retirement and a Balanced profile after retirement This way more tax effective types of investments are held outside RRSPs and other registered arrangements The information displayed in the existing asset allocation will only be accurate if you have completed the Net Worth wizard or entered registered and non registered investments by type of asset in Financial Information Registered Investments and Company Pensions as applicable 111 112 38 Tax Return Purpose Use to modify certain tax parameters used in calculating income taxes and deductions if it applies to your situation By default all values are set assuming you are receiving earnings as an employee of a Canadian corporation ft Tax Return If you are married and your spouse has little or no income tax calculations will include a non refundable tax credit for the spouse If you are self employed deselect Employment Insurance premiums and select CPP or QPP employer contributions Capital losses carried forward will be used to reduce capital gains in future years and the small business capital gains exemption will reduce capital gains on the disposition of a business General Capital Gains Payroll Deductions IV Deduct Canada or Quebec Pension Plan Employee Contributions Deduct CPP or GPP Employer Contributions if Self Employed IV Deduct Employment Insurance Contributions if Not Self Employed lt
153. tering amounts not for retirement purposes in Budget Information and selecting Funds in Tax Free Savings Account up to maximum allowed The asset allocation of the TFSA is not subject to the risk profiles selected in Asset Mix for Projections and remains the same for all years This allows you to put cash or fixed income in the TFSA the least tax efficient investments and minimize the amount of income tax 64 23 Registered Investments Purpose Use to enter the market value of your assets in an RRSP LIRA or Locked In RRSP split by asset class Also enter information related to tax assisted savings RRSP contributions unused RRSP deduction limit and pension adjustments Registered Investments Enter the market value of pour assets in a personal RRSP or LIRA or Locked In RRSP Also enter information related to tax assisted savings if you are not retired If you are retired enter amounts held in a ARIF under the RASP tab and amounts held in a LIF or LRIF under the LIRA tab RRSP Options RRSP Deductions LIRA LIRA Options Registered Retirement Savings Plan by Type of Asset Cash Fixed Income Equities Canada Equities U S Equities International lt Back Next gt Cancel Help Background If you are retired enter amounts held in a RRIF under the RRSP tab and amounts held in a Life Income Fund or Locked in Retirement Income Fund under the LIRA tab Steps Selecting Registered Investments
154. th on an ongoing basis RetireWare provides detailed results in graphical and table formats including future accumulation of assets income forecast summary analysis and recommendations and printable reports About RetireWare RetireWare is independent and unbiased we are a software company Apeiron Software Limited is not involved directly or indirectly in selling any investment funds or commission based services Our company creates software and web based financial and retirement planning tools and provides retirement information content for individuals and businesses Apeiron Software Limited has been around since 1996 and has developed several software and web based financial planning applications Apeiron Software provides three versions of RetireWare Millennium Edition for employees of companies sponsoring any type of pension arrangements and clients of financial advisors Standard Edition for consumers Monte Carlo Edition for sophisticated users and financial advisors All editions allow for the integration of the financial plans of two spouses The Standard Edition has more features than the Millennium Edition and the Monte Carlo Edition has the capability of performing capital market simulations 2 What Is RetireWare RetireWare is a financial and retirement planning software that determines whether your savings and other assets and income will be adequate to enjoy your desired standard of living during retirement and
155. ting New 1 Onthe File menu click New or on the Toolbar click the New button 2 Enter information and select options as required 3 Click Next until all information is complete 4 Click Finish to calculate Selecting Your Own Approach 1 Fora retirement calculation using the wizard click the Step by Step Retirement Wizard button 2 For any type of calculation click the Follow Your Own Approach button 3 To work on an existing file click the Open an Existing File button Notes If you want to use one of the other wizards click the Follow Your Own Approach button and on the Wizard menu select the wizard you want to complete Opening Closing and Saving Files Background You can manage RetireWare files including opening closing and saving an existing RetireWare file you have previously saved on a hard disk When you want to edit a file that is saved on disk you need to open a copy of the file The file then becomes active in your computer s memory allowing you to edit it The changes you make are not recorded on disk until you save the file again Files are saved in the RetireWare file format You can save files on a hard disk which works like a filing cabinet with directories subdirectories as file drawers and folders that group files of the same type You can save files with new names save them in different directories If you do not specify a directory RetireWare save files in the current directory and in its default
156. tion period There are two graphs related to the income forecast The income forecast graph which plots total income each year in the future and the cash flow forecast which shows the difference between the Retirement Income Objective and the expected income each year in the future Recommendations The Recommendations provide a summary of the main findings recommended annual contributions to achieve retirement goals suggestions on how to improve your plan for retirement and potential inconsistent settings 119 Asset Allocation Graphs The Asset Allocation Graphs display two pie charts and two bar graphs The pie chart provide in graphical format the allocation non registered and registered assets among the following asset classes cash and equivalents fixed income Canadian equity US equity and international equity The bar graphs display in graphical format the deviation between the desired and existing asset allocations of non registered and registered assets Budget and Net Worth Statement The Budget and Net Worth Statement provides a summary of all income and expenses and assets and liabilities Data Summary The Data Summary is not part of the results and is available to review at all time It is a convenient list of all inputs and selections for easy reference and review It is not possible to edit directly the data summary You must access the relevant information by clicking the link next to a data item or accessing the
157. tions Show accumulations table and graph Income Forecast Show income forecast table and graphs Recommendations Show RetireWare recommendations Report Show report preview for viewing or printing Monte Carlo Display Monte Carlo simulation results Monte Carlo Edition only Tools Calculator Open Windows Calculator RRIF Planner Open the RRIF Planner stand alone tool Life Insurance Planner Open the Life Insurance Planner stand alone tool RESP Planner Open the RESP Planner stand alone tool Window Close Active Close active window in current workspace Close All Close all open windows in current workspace Toolbar Hide Display Toolbar Listbar Hide Display Listbar Status Bar Hide Display Status Bar Spouse 1 Hide Display Spouse 1 workspace Spouse 2 Hide Display Spouse 2 workspace Spouses Combined Hide Display workspace for combined spouses 14 Help Contents Display help contents Index Display help index PDF Manual Open PDF version of RetireWare manual Retire Ware Web Support Launch RetireWare support Web page Retire Ware Web Site Launch RetireWare Website Upgrade Upgrade Version of RetireWare About RetireWare Display RetireWare version and copyright information Send Email Send an email from within RetireWare Notes If you want to register information or options you must always click Next click OK or press ENTER All toolbar buttons have bubble help whi
158. to enter values directly in the summary However you can click on the link corresponding to each particular entry to open the window where you can then modify it Reference Description Input Value A Version of Retiteware 2 0 0 Year of Update 2004 Spousal Calculations Integrate Financial Plan of Spouse No Spousal Calculations RRSP Contributions to spousal RASP No Spousal Calculations File Name Where Spouse s Plan is Stored General Information Date of Financial Information 0170172004 General Information Name Spouse 1 Genetal Information Date of Birth 01 01 1950 General Information Sex Male General Information Province Before Retirement Ontario General Information Province After Retirement Ontario Savings Plan Annual Savings Amount Savings Plan Annual Savings Increase 0 00 Savings Plan Maximum to RRSP Yes Savings Plan Fixed Amount to RRSP 2 50 Savings Plan Fixed Percentage to RRSP 0 Savings Plan Maximum Annual Savings of Eamings 30 00 Savings Plan Maximize RRSP Contributions Until Objective Met Retirement Income Objective Objective in Terms of Gross or Net income Gross Retirement Income Objective Type of Objective Based on Pre tetirement Eamings Retirement Income Objective Percentage of E amings During Year Prior to Retirement 70 00 Retirement Income Objective Amount 40 000 Retirement Income Objective Retirement Age or Date Age Retirement Income Objective Retirement Age 60 Retirement Income Objective Retirem
159. to the public or major corrections and the price for which they may be obtained PROVIDED YOU HAVE AGREED TO THE LICENSE AGREEMENT REGISTRATION CARD OR REGISTERED ON LINE All updates and corrections that are provided to you shall become part of the Software and be governed by the terms of this license agreement MISCELLANEOUS This is the only agreement between you and Apeiron and it cannot and shall not be modified by purchase orders advertising or other representations of anyone unless a written amendment has been signed by one of our company officers This License Agreement shall be governed by the laws of Canada and its provinces and is deemed entered into at Toronto Ontario by both parties RETURN POLICY Returns must be received within 30 days of the date of purchase 166
160. ts form a fairly smooth curve then the stock has a low volatility However if price movements formed a jagged line with dramatic price increases and reversals it has a high level of volatility Changes to stock prices over a period of time will often exhibit the statistical properties of a bell curve with the most frequent price movements at the center of the curve and less common and more extreme price movements at the edges of the curve The same goes for rates of returns Assume that a stock has an average return of 8 and follows a bell curve distribution with a volatility of 18 per year The correct term is standard deviation A standard deviation of 18 per year means that you can expect two thirds of the time an annual return between 10 8 18 and 26 8 18 This is a property of the bell curve also called a Normal Distribution One of the ideas used to do capital market simulations is to take a normal distribution technically a lognormal distribution with the average and standard deviation of each asset class to generate random rates of return and develop a large number of potential future outcomes in the capital markets assuming that past averages and standard deviations will hold The other component of the model is to ensure the correlation between each asset class is consistent when generating random returns Correlation is a measure of association between two variables and is a number between 1 and 1 It measu
161. utions as a percentage of earnings 2 Enter the Employer Contributions as a percentage of earnings Entering Account Information 1 Click the Investments tab and in Defined Contribution Investments by Type of Asset enter the market value of funds held in the account 2 Click Next 91 Notes Contribution Rate In a defined contribution pension plan the employer and employee make periodic contributions to an account and the employee usually decides how the money will be invested Contributions are usually a percentage of the employee s earnings The plan specifies the employee s contribution rate or a range thereof and the employer contribution or matching contribution For example the employee may contribute 5 of earnings and the employer may match 50 of the employee s contributions or 2 5 of earnings Investments The asset values should be the market value of investments held in the account as of the Date of Financial Information This includes both the employee and employer portion of the account 92 32 Group RRSP Purpose Use to enter the contribution rates market value of your assets in a group registered retirement savings plan group RRSP of a current employer split by asset class Do not include account values or contributions to a defined contribution pension plan a deferred profit sharing plan a defined benefit pension plan personal RRSP LIRA or locked in RRSP Background Enter the employee and empl
162. w the Budget and Net Worth Statement on the View menu click Budget and Net Worth Statement or 2 On the Listbar click the View button and then click the Budget and Net Worth Statement button 3 View the information as required 3 38 14 Budget Wizard Purpose Use to see how your income after tax and deductions compares to your expenses debts and savings With this information you can take corrective action to reduce your expenses so that you have enough money left over to build your retirement and other savings Background If you are already retired and want to use your budget as a retirement income objective complete Post Retirement Expenses on the Finances menu Follow the instructions to complete the Budget wizard When complete click the Finish button and the wizard will build the Budget Statement You should update periodically your budget statement to reflect changing circumstances by using again this wizard Steps Selecting the Budget Wizard On the Wizards menu click Budget or On the Listbar click the Wizards button and click the Budget button The Budget wizard will start Enter information and select options as required When complete click the Finish button The results will show in the Budget and Net Worth Statement DIRON Viewing the Budget and Net Worth Statement 1 To view the Budget and Net Worth Statement on the View menu click Budget and Net Worth Statement or 2 OntheListbar click
163. wing month Similarly for last year of the projection period year of death the table displays retirement income and withdrawals only up to the month of death Excess Income In certain years all combined income such as Government or Company pensions or withdrawals from registered accounts may exceed the amount required to meet the Retirement Income Objective When this occurs RetireWare will save the after tax excess in non registered assets These funds are available for use in later years if required Resizing of Graphs You can maximize or resize the graphs by resizing the window or rearrange the sizing of the graphs inside the window by dragging the edges 128 45 Recommendations and Report Purpose The Recommendations is an action plan and suggestions for improving your retirement plan RetireWare also has a report that you can preview print and save as a PDF file Background This provides printable recommendations an action plan and suggestions on how to improve your plan for retirement It is a section of the RetireWare report RetireWare has a comprehensive report that summarizes all the results You can customize this report and only include the sections you want You can preview the report and then print it or save it as a PDF file Steps Steps Viewing the Recommendations After you do a calculation on the Results menu click Recommendations or On the Listbar click the Results button and then clic

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