Question:
I have inserted a retirement expense objective of $33K. The client is 63 years old and retired with only an RRSP portfolio to draw from.
For some reason, in the first year only, the objective is doubled to $66K and thus there is a large withdrawal from the registered portfolio.
How do I fix this issue?
Answer:
The first year of retirement may be only for a few months. So the objective would reflect employment income up to the month of retirement, and a portion of the $33,000 for the month remaining in the year. Also, when the retirement year is in the future, the objective of $33,000 is in terms of "today's dollars", which means it will be indexed between the current and retirement year.
0 comments:
Post a Comment
Note: Only a member of this blog may post a comment.