Wednesday, June 29, 2016

Life Income Funds


Is there a way to specify whether a DC pension in converted to a LRIF or LIF. It looks like it is defaulting to LIF.


You can specify the plan type and jurisdiction on the Finances page under Locked-in Retirement Account on the 'Registered' tab.

Monday, June 27, 2016

Defined Benefit Accruals


I have a defined benefit pension with a reduction of 5% between 57 and 65.

The amounts for the bridge benefit from age 57 to 65 and the lifetime pension amount should be reduced,  but they don't appear to be being reduced much at all.

Why are these amounts above the values that would be received at age 65?


Since the user is going to retire in a few years, the program calculates future pension accruals between the calculation date and the termination date. This explains why the amount is different.

For the amounts to remain constant, enter the information under "Prior Employer Plans".

Friday, June 24, 2016

Software Upgrade

RetireWare has been updated today with several new features that have been requested by users.

1. Excess funds to TFSA

In any year where there is excess income during retirement, i.e. income above the retirement income goal, the after -tax value of the excess funds are deposited in the TFSA account up to the available contribution room. Any excess then goes to the non-registered account.

Before this change, excess funds were deposited entirely in the non-registered account.

2. Showing spouse name on the "Spouse Bar"

When doing a plan combining the financial information of both spouses, a drop-down menu at the top of the page allows you to move from one spouse to the other for data entry and viewing results.

Now, the name entered on the General Information tab is showing for each spouse.

Before this change, the program used the generic identifiers "Spouse (1) " and "Spouse (2)".

3. Option to select age for RRIF and LIF accounts

On the Options page, you can select the age for starting withdrawals from the RRIF or LIF (locked-in) account.

4. Option to select amount payable from RRIF and LIF

Also on the Options page, you can select the type of payments from a RRIF (either the minimum or flat amount), or LIF (either the minimum, maximum or flat payment).

Note that with any of these options, the actual amount withdrawn in any year may be overridden by a higher payment if the selected amount falls below the minimum or more funds are required to meet the retirement income goal.

5. Option to purchase a smaller residence when disposing of principal residence

Finally, a common strategy is to downsize to a smaller residence at one point during retirement. With this new option, you can use part of the proceeds from the sale of the principal residence as a source of retirement income, and the remainder toward the purchase of a smaller residence.

Thursday, June 23, 2016

Plans for Both Spouses


How do I add the financial information for my spouse?


On the Forecast page select the option to do a plan that combines the financial information of both spouses. You will then see a drop-down menu at the top of the page allowing you to enter information for the other spouse.

There is a video showing how it works:

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RetireWare is a Web-based risk management and retirement planning software for individuals and financial advisors that's easy-to-use, full of rich visuals and comprehensive analysis. Try today and take advantage of our unconditional money-back guarantee. Know how much retirement income you can have. Build a plan and know where you stand.

Equisoft Inc.

Founded in 1994, Equisoft offers advanced digital business solutions to its clients in the insurance and wealth management industries to support their growth. The firm develops and markets innovative front-end applications (InsuranceElements and WealthElements) featuring industry-leading user interfaces and state-of-the-art technology.

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