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Hi! Good question. In the platform the charts all display Today’s Dollars by default (but they can display Future Dollars as well). That’s the best way to visually see the impact on the plan.

Thank you! You might enjoy some of the case study webinars we’ve done… ua-cam.com/play/PLLn-uwBCReL3FRxe0_nOGedcgt3lUHsc4.html&si=r-Smpo1KuKpgEtGs

The tax credit applies to all income and is non-refundable, so in many cases there are more tax credits than income, this can allow other income to be triggered and the tax credit applied.

@@adviice_casorry, this is not correct. The Canadian dividend tax credit is applied as dividend tax credits against tax liabilities on dividends received from Canadian corporations. It’s not against all income.

If you take a look at the Federal T1 line 40425 you’ll see the dividend tax credit gets applied against all income, not just dividend income. From TaxTips.ca… … someone in the lowest tax bracket (after combining Federal + provincial tax brackets and rates) can reduce their other taxes payable by receiving dividends eligible for the enhanced dividend tax credit. www.taxtips.ca/dtc/eligible-dividends/negative-tax-rate-eligible-dividends.htm

No that’s not accurate. Even a 30, 40, 50 year old survivor will receive CPP survivor benefits from their spouse based on their spouse’s contributions, it doesn’t matter if they started CPP or not.

You’re absolutely right!

Glad to hear you’re enjoying the platform! Just to clarify, the non-reg account will have a different rate of return and risk variability depending on the asset allocation you set for the account. So a non-reg portfolio with $50,000 GIC and $150,000 investments would have a 75/25 asset allocation and have a different return/risk than a portfolio with $100,000 GIC and $100,000 investments which has a 50/50 asset allocation. To get very specific with rate of return, asset allocation, type of return you can go to Planning > Projections > Advanced Options.

Great plan!

Thanks! If your husband passes away, and you are the successor holder, then his TFSA rolls over to you.

@ thx so much for yr very quick reply. sorry i meant to ask : if i die before my husband, what will happen to his TFSA ? . Will he have to name somebody else as successor? or just leave it like that and after he die, everything will go to whoever named in his will? Thank u so much. Appreciate it

Usually there will be additional designations but we recommend discussing your goals/intentions with an estate lawyer.

@ thank you so much. 👍

Thanks for being a member! Retirement planning can be complex, but we’re always looking for ways to make it easier and more accessible.

So important but many don’t know or realize, thanks for the comment!

So glad to hear that! We want everyone in Canada to have their own retirement plan, but it’s a big problem to tackle, thanks for sharing!

so total 72$ has gone?

Not sure I understand?

@@adviice_ca your software is 9 per month he used 8 months so total 8*9=72$.

Ah yes, $9/month, that’s correct.

Great comment!

Yep, thats the idea of my spouse and I. If we don't need it, kids get a nice nest egg about the time they'll be retiring.

Agreed! TFIA would be much better!

Hi! If you’re registered you can go to Planning > Projections > Table and see the marginal tax rates. We’ll be adding avg tax rate soon but you can already see total tax / taxable income.

That’s definitely one option to tap into home equity.

Best time to plan for retirement is 5-10 years before you retire, that gives you room to make strategic decisions to help reduce taxes, qualify for benefits, decide on timing of CPP/OAS, ensure the portfolio has the right asset allocation/fees etc etc. If you wait until you retire to start planning you have less options.

@@adviice_ca I’m planing now but I’m sure I can benefit at final stage to efficiently plan for taxation purposes. When it comes to assets allocation I’m pretty happy with where I’m now.

Wouldn’t be exactly the same in Alberta because the dividend tax credit doesn’t result in negative tax rates, but you could get close!

@@adviice_ca Thanks

Yes, bank/retail level fees are a huge drag in retirement, it’s not uncommon for it to be the top “expense” in a retirement plan. A 2% fee on a $1M portfolio is $20,000 per year. For most people fees are a hidden cost, but the fact is their retirement spending is $10,000+ lower than it could be due to fees.

Yes it does, we have QC tax and benefits, but it’s missing some of the nuance around QPP like the new age 72 deferral option.

@@adviice_ca Great. I will give it a try and see if I can figure things out. Age 72 deferral...that's crazy, but hey it is Quebec :)

Thanks for the comment, glad to hear there weren’t any audio issues for you.

@@adviice_ca Does the app have the ability to do a corp drawdown scenario, i.e., some retained earnings drawn each year (non-elig divs), plus a portion of income from corp investing account (elig divs)?

Good question! We’re releasing a corporate module in a few weeks!

@@adviice_ca Thank you! It would be very helpful to show some corp meltdown scenarios, rather than the typical RRSP/RRIF. We have both been self-employed for majority of our careers, and opted to pay ourselves via divs than salary, thus we have nominal CPP in our 'foundational income.' (There's a bit, from earlier in career, but the situation becomes very diff't than someone who has CPP as one of their main income streams.) Thanks again, look forward to the corp module being released.

Why not? Everyone has the right

Company that pays the dividend pays the tax on that dividend on the recipient's behalf. So taxes are paid.

Never too early to start planning for retirement. You can always build a plan for a few months and then cancel. Don’t wait until retirement or you may miss pre-retirement planning opportunities.

@@adviice_ca John you are the best. Thank you for creating adviice. i wish your company the best going forward. Conquest is backwards thinking and short sighted decided to go in bed (so to speak) with the so called AUM base fees financial planners.

Hi! Yes the platform will automatically calculate the RRIF minimum for you, but in this case we were above the RRIF minimum with the planned withdrawals so it wasn’t an issue. Yes, if the non-reg account has a different asset mix the tax would be different/higher, but this just further highlights the benefit of good planning.

Salution,dont have a large RRIF.

There isn’t a specific RRSP account for this purpose, but this previous Community comment highlights how to add a cash wedge… www.reddit.com/r/adviice/comments/1eqkx4e/wedge_strategy_in_decumulation_phase/ You could accomplish this by activating a Group-RRSP and using that as the RRSP cash wedge account.

Welcome to the platform! You can also post questions to the Reddit Community, look for a link to the community in the left nav in the platform.

@@adviice_ca I wasn't aware of that (as evident from my second post). I'll check it out, thank you!

Oh wow! Thank you for the great feedback, that means a lot to us!

Thanks for the comment! It’s important to highlight that the Success Rate analysis feature will do this stress testing for you, it will automatically evaluate the retirement plan over 100+ historical periods of stock returns, bond returns AND inflation rates. This includes sustained periods of higher inflation like the 1970’s. We find this to be a much more robust way to test the success rate of the plan as it reflects all of the inflation periods from the last 100+ years. That being said we have had this request come up a few times and it is on our roadmap. We’ll let you know when it’s available.

@@adviice_ca agree with comment above.. 2.1% is too low of an assumption, the 100 year average is 3.1%, and the 1960 to 2023 average is 3.8%... One of the scenario's i would want to run is to simply change 2.1 to 3.1... will be subscribing shortly!

You mean Net Present Value? The platform plans year by year, it doesn’t discount future cash flow into one present value, it plans income, expenses, contributions, withdrawals, taxes, tax credits, CPP, OAS etc on a year by year basis. This is important because things will shift and change over the course of retirement. Spending will change. Income sources will phase in/out. Tax credits will phase in (Pension Income Tax Credit, Age Amount Tax Credit). The results are displayed in Today’s Dollars and in Future Dollars. Let us know if you meant something different by your question.

@@adviice_ca Yes. DCF = Discounted cash flow and NPV = Net Present Value.

@@adviice_ca Understood. But here’s the problem, if only in the case of an RRSP meltdown strategy… You either pay a lot of money 20-25 years from now or you increase your revenue on a yearly basis over that 20-25 year period and pay more taxes every year. How to determine which scenario is better? Any amount paid in tax at the end of one’s life, once discounted 20-25 years to today is not worth a whole lot… Doug Chandler, an actuary, alluded to that in his 2022 study entitled: “Retirement drawdown choices”. Soooo, any tool not using DCF/NPV concepts would come to a different conclusion than that of Chandler.

So the way the platform works it will be reflected in the final estate value, which is the metric that the AI Strategies will rank on by default. In the RRSP Meltdown strategy there may be extra tax triggered early, but it may result in less tax paid later, the model reflects this in the final estate value. Everyone's result will be different because one person might have extra TFSA contribution room to absorb the extra RRSP/RRIF income, while another person might need to invest the extra RRSP/RRIF income in a non-registered account with additional tax drag. The model performs calculations year-by-year to end at the final estate value. This year-by-year calculation takes into account all the different parameters specific to the individual's circumstances. The platform always shows the results in Today's Dollars by default (so it discounts the future value of the RRSP/RRIF by the inflation factor).

Hello, the Adviice platform is available to advisors & planners (just like Conquest or Snap Projections) but we also make it available directly to individuals users. Unlike those other platforms we’re focused on making financial planning easy but still very powerful. Once you enter your information in the Discovery phase the platform will automatically explore 100’s of AI Strategies for you and how they impact your plan. Things like when to start CPP, when to start OAS, how to melt down your RRSP/RRIF, how much you can spend in retirement etc etc. Here’s an intro video with an overview… ua-cam.com/video/8NPBl5ub3GA/v-deo.html

Yes it’s available to anyone for just $9/month. Go to adviice.ca for details. We also have a community of users and to provide support www.reddit.com/r/adviice/

Thanks for the comment! Doing away with minimum withdrawals would certainly make things more flexible. But most of the time melting down the RRSP is about managing tax over time rather than having a large tax bill in the estate.

@@adviice_ca You can take out all you want from your rrsp but when it comes to a rif thé amont left is a pittance when the minimum withdrawals kick in and you get up in years. I’d rather have some flexibility if i get really old and what happens after i die who cares.At least the way i’m describing will potentially leave something behind as compared to the mandated withdrawal route which will leave you virtually broke if you reach 95. Imagine being broke at 95. What kind of a sociopath dreamed up the rif strategy?

Hi! Good question! Although the platform does include Quebec and Federal tax brackets it does not include specific QPP functionality like the new age 72 deferral. It also does not include a French language version yet. We do hope to add these features soon.

Ah! Good question! We’ll certainly clarify that statement in future videos. While there are three sections that can include scenario specific changes, our expectation is that most users will only make changes in Planning > Projections. This section allows both changes to Income and Expenses assumptions year by year (in the Planning > Projections > Table) and this section allows changes to CPP and OAS start age (in the AI Strategies table).

​@@adviice_ca Okay, thanks. I empirically confirmed that changes in foundation > income for example does carry through to the other scenarios. I'll tell you why it is not intuitively obvious, at least for me. From a UX perspective, I instinctively assumed that I should use it same as with using Excel "save as," wherein the new scenario copies all the values from the "original" but that then you can make subsequent edits to the new scenario does not flow back and overwrite to the original "baseline." I think some more cautionary notes to end users might be warranted, imho. I can see how to just add/edit the gross income for the two years in the Planning > Projections > Table, as you suggest, but it is less obvious how/if I need to edit anything/anywhere else to capture the other data elements from the Foundation> Income page (like tax, cpp, ei and other deductions). Or does the software just estimate those other data elements to match the gross income changes?

Thanks for the suggestion!

Yes you can do that using Planning > Projections > Advanced Options. In Planning > Projections you can make multiple scenarios and adjust year-by-year assumptions for Income, Expenses, Contributions and Withdrawals, Debt Payments etc. You can also adjust additional assumptions coming from Discovery and Foundation using the Advanced Options button at the top right of the Projection Table. In Advanced Options you could adjust the home purchase assumptions like amount, timing, mortgage size etc etc.

Thank you! Lots more on the roadmap!

Each line in the Success Rate chart is one period of historical returns (both equity returns, fixed income returns, cash returns, and inflation rates). It’s like you went back in time and started retirement in 1920, or 1929, or 1945, or 1972 etc etc etc. The 10% and 90% are meant to help avoid focusing on the very extreme results, the 10th percentile is the result closest to the 10th percentile for that given year. So if there were 100 lines in the chart then the 10th percentile would be the 10th line from the bottom.

@@adviice_ca Got it, thanks. Out of curiosity, how far back do the historical data ranges that you use go back (e.g., is 1920 the first year of the first historical "band" of years")?

@@markchuchra8399 Its over 100-years of historical data at the moment.

The platform attributes the Spousal-RRSP to the annuitant (the owner of the account and the person who will eventually withdraw from the Spousal-RRSP). So the balance entered should be for the person withdrawing.

@@adviice_cagreat. That makes sense, thank you

@@adviice_ca Great, that's what I guessed but good to confirm

Diversification is only use for the Success Rate chart to determine the weighted average variability of investment returns from year to year. Yes the diversification will adjust for Cash if it’s part of your portfolio allocation.

@@adviice_ca Thanks. Ahh, okay. I see that the portfolio's geographic (and bond) split is driven by in risk profile questionnaire results. What if my actual geographic target preference split strategy is different (e.g., 40% US, 10% Canada, 25% Global) from the generic diversification splits (i.e., 25% US, 25% Canada, 25% Global) from the risk profile section. Is there a way to adjust to my geo plan targets?

That’s a unique situation (most people who are planning to purchase a home aren’t also thinking about selling the same home). If you haven’t already, post these questions to the community forum for more specific guidance… www.reddit.com/r/adviice/

Actually that shortfall in cash flow is important because it’s that amount that must be made up through investment withdrawals.

Typically the DCPP will transition into a LIRA account in that situation, but you can simply enter 0% for the employer and employee contributions.

@@adviice_ca I have a "Registered Pension Plan (RPP)" and assumed this is the same thing as DCPP, but not sure that is right. Is an RPP the same thing as DCPP, in your parlance? If not, should I add my "RPP" to my other LIRA account total and leave DCPP empty instead?

Good question! We do have the FHSA (First Home Savings Account) as an option for first time home buyers. This previous post might help with the difference between TFSA and TFSA Savings… www.reddit.com/r/adviice/comments/1fdyafi/expenses_monthly_savingsdebt_payments/