Edit Income

Use this page to review and edit all the information for an existing income. The fields shown depend on the income type and the owner’s circumstances.

The income source is shown only when the income can safely be changed to another type. Some income types have calculations, links or additional information that prevent their type from being changed here.

If you change the income source to a type that requires additional information, click Save. The page will reopen with the fields needed for the new income type.

Enter a name that will make the income easy to recognize. Each income must have a unique name.

Select the person who receives and reports the income. The available choices depend on your PROFILE, the income type and whether you have a spouse, dependants or a CCPC.

Joint ownership is available only for income types that can be treated as Joint income in the MoneyReady App. If the Owner field is not shown, the income has only one permitted owner.

The option for income paid to “Other” people applies only to appropriate dividends paid by a CCPC to shareholders other than you, your spouse or your dependants.

Some income types have additional fields immediately below the Owner field. These fields describe information specific to that income, such as pension benefits, annuity terms, tax treatment or a linked rental property.

This field is shown only when it may apply to Quebec employment or self-employment income. Select it if the income provides benefits that exempt the owner from paying Québec prescription drug insurance plan premiums.

The start and end of the income can be entered as a date, an age or a LIFE EVENT. The resolved date that will be used is shown below each selection.

If an income began before the current year, you can generally use the last day of the previous year as its start date. The TIME MACHINE will then include it from the beginning of its simulation period.

If the income continues for life, leave the end at its default or select the appropriate death-related LIFE EVENT. For a one-time amount, use the same start and end date.

Some income dates are adjusted automatically:

• An inheritance is treated as a one-time amount, so its end date is set to its start date.
• CPP/QPP disability income cannot continue beyond age 65.
• A defined-benefit bridge pension ends in the month before age 65.
• Rental income cannot begin before the linked property is purchased or continue after it is sold.

If employment income is linked to employer-provided life insurance, changing the income dates will also update the dates of that insurance.

Select the currency in which the income amount is entered. The MoneyReady App will convert the income to Canadian dollars when required using its currency assumptions.

Enter the annual amount of the income in the selected currency. Use the annualized amount even when the income is received for only part of a year; the TIME MACHINE will prorate it according to its start and end dates.

For a one-time income, such as an inheritance, enter the complete amount and use the same start and end date.

For an income that starts in the future, you can enter its annual amount in today’s dollars. The MoneyReady App will increase it to the start date using the applicable inflation assumptions.

If you already know the amount that will be received in future dollars, use the OR Amount/year in FUTURE currency field instead. Use one amount field or the other, not both.

Select Index to inflation once started if the income should continue to grow with inflation after it begins.

The inflation adjustment multiplier controls how much of the inflation rate is applied:

• 1 applies the full inflation rate.
• 0.5 applies half of the inflation rate.
• 2 applies twice the inflation rate.

The additional yearly adjustment is added to the inflation-based increase. If the income is not indexed, this adjustment becomes its entire annual rate of change. Enter a negative percentage if the income is expected to decrease each year.

This field is shown for salary and self-employment income. Select it to add or edit parental-leave periods after saving the income.

IMPORTANT: If parental leaves have already been entered, clearing this selection will remove those parental-leave entries when the income is saved.

You can enter an optional note of up to 280 characters. The note is for your reference and does not affect the TIME MACHINE calculations.

Your changes will be validated and saved. If you changed the income source, the editor will reopen with any fields required for the new income type. If you selected parental leaves, you will continue to the parental-leave entries.