Budget Statement

Question: When I have $0 in expenses for Spouse 1 and 2 in the pre-retirement budget, the report takes the Net Income amount and puts it in the Total Expense amount. Answer: In cases where you  and your spouse are not yet retired, if there is no budget,...

By: RetireWare / Equisoft On 2:40 PM

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CPP Sharing

Question: What does "years of common CPP coverage while married" mean? Answer: CPP can be shared between spouses when the pension is paid. The sharing formula is based on the years of common coverage. For example, suppose you are the same age. If you contribute from age 25...

By: RetireWare / Equisoft On 2:39 PM

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Properties

Question: 1. For the principal residence, I have entered the same amount for each of us for market value and mortgage.  Please confirm this is correct. 2. We both own rental real estate properties.  I entered this value, the purchase value, and the mortgages against them in my...

By: RetireWare / Equisoft On 2:39 PM

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Templates

Question: Are there templates to assist in gathering data? I can't see to locate any templates for this. Answer: The worksheets are inside the help files. Open the Help window, expand the 'Other' menu and click 'Worksheets'. ...

By: RetireWare / Equisoft On 2:39 PM

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Disposition of Property

Question: In the detailed cash flow table, there is one year of high income tax in the year I sell my investment property. Why is that? Answer: It is because the capital gains tax applies in the year of disposition. ...

By: RetireWare / Equisoft On 2:38 PM

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Plan for Both Spouses

Question: I tried creating two files (for my wife and myself) and requested combined calculations in both files.  However when I try and get a report it appears I am doing something wrong.  After a calculation I see the projections are using my numbers but the reports I...

By: RetireWare / Equisoft On 2:38 PM

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Use of TFSA

Question: Why is the TSFA not used as income?  It accumulates a large balance but there aren't any withdrawals ever from the account. Answer: Your TFSA is never required, as the goal is met from RRSPs and LIFs, which require minimum withdrawals during retirement, and non-registered assets, which...

By: RetireWare / Equisoft On 2:37 PM

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Mortgage Debt

Question: We entered a $260k mortgage for our rental property. When is this debt paid? Answer: The balance of the mortgage is paid in the year of disposition of the rental property. ...

By: RetireWare / Equisoft On 2:37 PM

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Retirement Income Objective

Question: I plan to retire in 2018. Why is the retirement income objective set at about $110,000, when I entered only $50,000 for each spouse?  Is this for inflation? Answer: Yes, numbers show in nominal dollars, the $110,000 represents $100,000 in today's dollars. ...

By: RetireWare / Equisoft On 2:37 PM

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Results

Question: I'm struggling to interpret the results.  On one hand it looks like we our plan is in good shape.  But why is our probability of success so low? Answer: It is possible to have a situation in the simulation where bad investment returns cause shortfalls before you...

By: RetireWare / Equisoft On 2:36 PM

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Monte Carlo Settings

Question: In the Monte Carlo settings, I checked the box to "Use Rates of Return as specified in the Economic Outlook". Why are the rates that shown in the Monte Carlo settings different from the economic forecast and the fields disabled? Answer: When you select to use the...

By: RetireWare / Equisoft On 2:35 PM

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When to Sell

Question: If I have a rental property, how can I use RetireWare to determine the right time to sell. Answer: Your circumstances , life events and the real estate market will be the deciding factors on when to sell.  For modeling purposes, use an approximate year. Selling a...

By: RetireWare / Equisoft On 2:35 PM

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Quantifying Risk

Lightning and lotteries According to the National Oceanic and Atmospheric Administration, the odds of becoming a lightning victim in the United States in any one year is 1 in 700,000. Your odds of winning the jackpot at Lotto 6/49 is 1 in 13,983,816. So you are 20 times...

By: RetireWare / Equisoft On 12:06 PM

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Retire Happy!

The pursuit of happiness Researchers at Liverpool Victoria, a UK insurance company, recently assessed the cost of a "happy retirement" at nearly $400,000. Their estimate is for maintaining a fairly ordinary standard of living consisting of essential living costs plus the cost of the "pursuit of happiness". The...

By: RetireWare / Equisoft On 5:39 PM

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