Investment Income Calculation

Question: It seems the program may be treating withdrawals from a TFSA as "income" for purposes of the OAS "clawback" test. Answer: No, TFSA investment income is never included in taxable income. The OAS clawback is based on all income plus realized investment income. Investment income for the...

By: RetireWare / Equisoft On 9:50 PM

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CPP and Retired

Question: When I run the simulation with the expected contribution years for the Canada Pension Plan, the results show a blank column for the CPP in the cash flow forecast. Answer: If you are retired and want to use a CPP based on contribution years, you must supply...

By: RetireWare / Equisoft On 9:50 PM

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Odds of success

Question: When I run a Monte Carlo simulation, I get 92% success odds, but the assets at retirement show a shortfall. When I look at the charts, it looks like there is/may be a slight shortfall near 85-90… Why does this happen? Answer: Each capital market simulation looks...

By: RetireWare / Equisoft On 9:50 PM

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Calculation of Dividends

Question: In 'Economic Outlook', what’s the difference between the Annual Expected Return and Dividend Yield in the “Economic Basis for Projections"?  For example if I input 3% for Equities – Canada and an expected Dividend Yield of 3% does that mean a total expected annual return of 6%?...

By: RetireWare / Equisoft On 9:49 PM

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Retirement Budget

Question:  I now signed-up for your new web based application and my first impression is quite positive.  A couple of points though: 1) The software seems to ignore the post retirement budget data I’ve entered for my wife and I.  The budget statement is empty. 2) Can the...

By: RetireWare / Equisoft On 9:48 PM

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Losing a Loved One

Not an appealing title In order to add a little subtlety, I did not name this post "Death of a Spouse", but this is one of our post-retirement risks to plan for and manage: the risk of one spouse dying unexpectedly a few years into retirement. We will...

By: RetireWare / Equisoft On 10:28 AM

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