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Hello moneyready,

I've created the following accounts:

  • RRSP (funded) 
  • RIF (ETF with 0 balance)
  • LIRA (funded)
  • LIF (ETF with 0 balance)

I've set the age to transfer for each as 55 and I've set the PRIORITY as LIF and RIF first. But when I run the TIMEMACHINE, the RIF and LIF are not being used. How can I force the transfer from RRSP to RIF and LIRA to LIF at 55 so that income (min withdrawal) is drawn?

Thanks!

Administrator
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Hi,

You don't need to enter the RIF or LIF, so just delete those accounts with 0 balance. The RRSP will be automatically converted to an RRIF and the LIRA to an LIF in the TIME MACHINE, at the age you set for them to be converted. They will keep any of the investments you entered. They will also keep their original name, but you should see at least the minimum withdrawals come out of the accounts in the years after conversion in the results.

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Thanks very much. It does show income now, but from the RRSP/LIRA. I guess I expected to have the accounts named according to their role. For example, if I only want to convert part of an RRSP to a RIF, as indicated in your wonderful e-book, how would I tell the accounts apart?

As well, I am playing with max LIRA (LIF) withdrawal rates and I'm having a hard time with setting the rate. The app asks for a $ or % but that is variable per the legislation. Should I make a withdrawal for each year separately?

Thanks again for your help. And for making this app!

Administrator
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Yes, I realise it can be confusing, but all we have to indicate the name and type of the account is the header of the table and it's already a pretty long description. There's more opportunity in the detailed yearly reports to change the description of the account. Or we could add a note in the Warnings column.  I'll see what I can do to make it clearer.

The TIME MACHINE calculates the maximum withdrawal for the LIF depending on your age, province, and account balance at the end of the previous year. It won't let you withdraw any more than that, so you don't need to worry about that.  For a LIRA not yet converted, it won't let you withdraw anything unless your are 65 or over. This is to mostly to allow partial conversions to take advantage of the $2000 pension tax credit, and also because it knows that if you really need the money you would have converted the account.  It still won't let you take out more than the maximum calculated as if LIF though.

Your welcome! It's my pleasure.

 

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Thank you, I think I've got it.