Data linking

Question:

Will your product read data from Quicken Home & Business?

I have RRSPs from many sources, stock options from my work, and have to open many different websites to look at all the investments.

Answer:

No, there is no fetching of data from other sites, such as banks, mutual funds, brokerage accounts, etc.

There is no need to enter exact account balances, rather you can enter a close but approximate amount for each type of account (non-registered, registered, TFSA, locked-in), and the program will calculate whether you current funds together with planned savings will be sufficient to fund your retirement.

By: RetireWare / Equisoft On 11:16 AM

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Files

Question:

The description of RetireWare refers to limits on the number of "files" each subscription level is entitled to, but I don't see any explanation of what a file is.

I'm guessing it's a comprehensive report based on a single scenario or set of input data.

Answer:

A file represents a record in the database that holds the information of a financial plan for you and your spouse.

With 10 files you can create a few alternative scenarios (different retirement ages, income goals), and you can build plans for other family members or friends and save their information for future retrieval.

When you delete a plan, your file tally goes back up by one. You can access any of your files at will to modify, run or generate a report and this does not affect your limit of 10.

By: RetireWare / Equisoft On 11:15 AM

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Custom Rates of Return

Question:

Why can't the custom rates of return be set to negative values to match some current YTD performances?

Answer:

You can see the effect of negative returns that will occur in some years with the Monte Carlo simulation.

We don't allow negative rates since making such an assumption over the long-term does not make sense. If it was a possibility, we might as well keep our assets in a 0% interest bank account.

You could put 0% for some or all asset classes and with investment management fees it would essentially be negative returns. For example, with a 0% return assumption for say Canadian equities and 2% fees, your return would be -2%.

By: RetireWare / Equisoft On 11:14 AM

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RRSP withdrawals and withholding tax

Question:

My tax advisor suggested withdrawing income funds from my RRSP account before my non RRSP account now during times of layoffs.

This would be to reduce possible clawbacks in OAS at a later time. Is there a way for the software to pull from RRSP before non RRSP?

Also can it incorporate the withholding taxes that would be applied to withdrawal of the RRSP?

Answer:

In order to do this, check the option 'Already Retired' on the Financial Information page.

Then on the Options page, on the first tab under 'Registered' select 'At the selected retirement age' for the 'Start Withdrawals of Registered Investments' option.

The income taxes showing in the cash flow statements are income taxes and deductions for each year based on your mix of income from all sources.

For withholding information, please visit the CRA website, or see this link:

http://www.taxtips.ca/rrsp/withholdingtax.htm

By: RetireWare / Equisoft On 11:13 AM

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Use of Funds

Question:

Does the application look at the original amount in non-registered and as soon as that amount is used it switches to registered withdrawals?

Does it consider deposits after the original date?

Answer:

If at one point you don't have any other sources of funds, and non-registered and TFSA accounts are used up, your withdrawals will come from registered funds to meet your retirement income goal. if
you select to receive payments from registered funds as late as possible on the Options page.

On the 'View' page, at the bottom of the Accumulations and Income Forecast tabs there are pop-up tables that show the detailed cash flow.

You can open these tables and see the usage of funds to meet the income goal. You can do  for you, your spouse or the combined results.

By: RetireWare / Equisoft On 11:11 AM

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Post retirement budget

Question:

When I create the post retirement budget selecting one budget for both spouses, it doubles the budget requirements. Our expenses are around $47,000 per year. when I finish the plan, its has our budget at over $90,000.

I've played around quite a bit with this and can't find a way to get it to use $47,000 total for both.

Answer:

You must select 'Based on Expenses' for the retirement income objective on the Forecast page.

Otherwise, it's using a percentage or dollar-based income goal, not the separate or common budget.

By: RetireWare / Equisoft On 7:11 AM

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Functionality

Questions:

1. Will the product allow me to prepare retirement income projections for my wife and me combined?

2. Assuming yes, will it allow different start times for her and my CPP and OAS?

3. Will it provide any optimization regarding when we should start drawing from RRSPs relative to
OAS and CPP?

Answer:

1. You can do retirement income projections for a couple for a common plan by entering separately the financial information for each.

2. Yes you can start CPP and OAS, or retire at different times.

3. The software does not optimize the retirement date that will be best for RRSP withdrawals relative to OAS and CPP. But you can run a few different scenarios to find a practical solution.

By: RetireWare / Equisoft On 11:10 AM

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Risk Analysis

Question:

Is there an explanation to what changes in metrics are used for the longevity, market, sequence of events and inflation risk analysis?

Answer:

You will find information in the help files under 'View Menu' | 'Risk Analysis'.

Here's a link that provides more background on the approach used:

http://retireware.blogspot.ca/2013/12/quantifying-risk.html 

By: RetireWare / Equisoft On 11:10 AM

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Demo Account

Question:

Do you have a demo account that I can test drive?

Answer:

No, but you can purchase the version you want to try it and we will refund your payment in full within 30 days if you don't like it or find it not to be a good fit for your needs.

In order to get a refund, simply send an email at support@retireware.com and we will do the refund within one business day.

If you work for a financial services company and are looking for a vendor that does custom development, customization or white label versions of products, we do provide a demo account.

By: RetireWare / Equisoft On 11:10 AM

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Detailed Cash Flow Tables

Question:

When I try to view the detailed table for both income and accumulations, nothing comes up. Any suggestions on how to fix?

Answer:

Please ensure your browser doesn't block "pop-up" windows. Or try another browser, such as Google Chrome.

By: RetireWare / Equisoft On 11:10 AM

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Types of Assets Supported by RetireWare

Question:

My spouse and I have salary income. We are contemplating early retirement (5 years early). We will both earn small pensions from our employers.

We have the following 6 registered plans. TFSA x 2, RRSP x 2, Locked-In registered plan (LIRA) x 2, plus Investment accounts x 2 plus an investment property.

Before I purchase a DIY plan I am writing to inquire if the software will has functionality to input details for all the above accounts individually.

Answer:

You'll be able to enter all these types of accounts and property separately for each spouse by selecting the option of doing a plan that combines the financial information for both spouses on the Forecast page.

By: RetireWare / Equisoft On 11:09 AM

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How to input annual TFSA contributions

Question:

How do I input annual TFSA contributions of $5,500 till I retire?

Answer:

1. On the Forecast page, on the 'Savings Plan' tab, enter $5,500 and under Advanced select the last savings options (TFSA first).

2. Enter you TFSA room and contributions this year on the Financial Information page under 'TFSA'.

Note that you have to select TFSA as a source of retirement income on the Options page.

By: RetireWare / Equisoft On 11:09 AM

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Rates of Return

Question:

In the economic outlook when I enter my own custom rates of return and in advanced you include investment management fees does that reduce the rates of return by the investment fee?

Answer:

Yes it does, whether you select the standard forecast or enter your own custom rates of returns.

By: RetireWare / Equisoft On 11:09 AM

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