Government Pensions

Question:

If I take my CPP at the age of 61 and OAS at 65 does the software automatically do the calculation or do I enter it in as other income?

Answer:

The software will estimate the CPP based on your annual earnings (provided in the Financial Information page), and apply the early retirement reduction if you select the option to get an estimate.

The OAS amount will be based on the age of commencement and year of Canadian residency.

By: RetireWare / Equisoft On 4:32 PM

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Differences Between Professional and Collaborative Versions

Question:

My understanding of the RetireWare software is that the Professional Version is used by the financial professional to prepare a retirement plan for the client.  The client is then not able to access the plan to update its progress. Is that correct?

My understanding of the RetireWare software is that the Collaborative Professional Version is used by the financial professional to prepare a retirement plan for the client. The client is then able to access the plan via the web to update its progress. Is that correct?

Answer:

Your understanding of the difference between the Professional and Collaborative versions is correct.

With RetireWare, you will get a financial plan for retirement that includes a cash flow forecast, odds of success, assessment of the exposure to each of the main post-retirement risks. The output is the same regardless of the product between the Pro and Collaborative version. Note that with the Collaborative version your users get a simplified version and reports in order not to overwhelm them with too much complexity and details.

The Pro version is more suitable if you want only to create reports and transmit a PDF to your clients. If you want to build a user base via referrals, then the Collaborative version is the way to go.

By: RetireWare / Equisoft On 4:31 PM

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RetireWare Versions and Calculations

Questions:

1. What is the difference in the level of detail and complexity of analysis in the retirement plans between an individual user and an advisor user besides the number of different plans that can be created?

2. What do you do for tax rates?

3. Can I see reports that separate my registered investment accounts from the margin accounts? Does the margin acct report show the adjusted cost base as well as the projected market value?

4. Can I update the plan annually by entering say December 31st market values?

Answers:

1. There are three version: individual (DIY), Professional and Collaborative. The retirement plans are identical, only the number of files vary. In addition, you can provide online access to files to clients and prospects.

2. The retirement forecast uses accurate income tax in the calculations.

3. The cash flow for each type of assets is shown separately in detailed tables in the results. The margin account does not show the evolving adjusted cost base (ACB) over the years, but the calculations do take into account the ACB.

4. Yes, you can update the plan using the Update Wizard or accessing the detailed or quick planner at any time. If you don't use the Update Wizard, just ensure you revise the date of calculation to a recent date in the General Information page.

By: RetireWare / Equisoft On 4:31 PM

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Sources of Retirement Income

Question:

Under the “Sources of Retirement Income” it has “yes” next to Personal Residence even though I indicated for both my wife and me “Never” under “Financial Information – Principal Residence – Sell Principal Residence.”  Are the income projections using the value of our personal residence or not?

Answer:

Since you selected 'Never', there will be no sales taking place. If you had selected a year for the sale but left the personal residence unselected in 'Sources of Retirement Income', then the funds would not be used for retirement.

By: RetireWare / Equisoft On 4:30 PM

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Asset Allocation

Question:

Under Asset Allocation it states “The Investor Profile Questionnaire established that the following portfolio: Security might be the most appropriate etc…”

Do I assume that the RetireWare used a “Security” mix for my investments listed under Finances or will it use the “Selection of Rates in Economic Outlook?”

Answer:

The calculations use the asset allocation basis selected on the 'Asset Mix for Projections' tab on the 'Options' page. You can select an asset allocation based on one of the profiles, the current asset mix, or your own custom allocation.

By: RetireWare / Equisoft On 4:29 PM

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Copy Functionality

A new feature has been added today!

Now you can copy an existing file to do what if scenarios or try different retirement strategies and evaluate their financial impact. For example, you can copy an existing file and try a different retirement age, life expectancy or income goal with the new file.

The file copy feature is on the first tab of the File Manager (landing page after logging in).

Enter the file ID of the file you want to copy and click the Copy button. A message will confirm the successful completion of the copy operation, an your file will appear in the file list. You can then select it and work on the file copy. The word 'COPY' is appended to the last name in order to differentiate it from the original.

By: RetireWare / Equisoft On 12:56 PM

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Common Settings

Features Update

Data entry is made to be as uniform as possible for each spouse to make it easier to find all settings.

We have a new release in which we apply changes to both spouses to avoid the need to enter the same information twice in the following areas:

• CPP marital status
• CPP sharing and CPP sharing common years
• Pension income splitting
• Economic basis
• Monte Carlo settings
• Risk analysis settings

With this change you no longer have to change these common values for each spouse when you prepare a retirement plan that combines the financial information of both spouses.

If you make any change to these settings to one spouse, they will be applied to the other spouse.

By: RetireWare / Equisoft On 12:55 PM

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