Dear MoneyReady App users,

Updates in the last couple of months:

  1. New features:

      a) Two new graphs in TIME MACHINE.
           i. A summary of all accounts by type (non-registered, tax-free, and tax-deferred) in every year. For those of you with a spouse or many accounts, a summary can be useful.
           ii. Rate of saving or of withdrawal by age. When positive, it shows the savings rate as a percentage of income. When negative, it shows the withdrawal rate as a percentage of account balances.

      b) Employee stock options.
        You can now add employee stock options as INVESTMENTS. For publicly traded North-American companies, you can track their value if you enter a stock ticker. You can also add private company options. The TIME MACHINE will exercise the options on the exercise date and calculate the appropriate taxes, enforcing the new tax rules.

      c) Time Value of Money Calculator.
        In case you don't own a financial calculator, you can use this one to solve TVM problems.

  2. Under the hood:

    a) Pension income splitting in the Withdrawal Optimizer.
      The TIME MACHINE has always considered pension income-splitting. To implement it in the Withdrawal Optimizer algorithm was more difficult as the algorithm itself considers each spouse independently. The algorithm now considers pension income splitting, and the pension deduction, recursively. This converges nicely, and provides better withdrawal suggestions to the TIME MACHINE, making it even more likely to find a more optimal withdrawal strategy.

    b) Tax timing in the TIME MACHINE.
      The TIME MACHINE no longer delays any tax implications of deposits and withdrawals, for zeroing the Wallet account, to the following year. The earlier approximation had made the TIME MACHINE faster with little loss in accuracy, so this change makes it a little slower (it may need to recalculate taxes several times in the same year) but it doesn't change the results much. However, the advantages are that this change provides clearer tax reports, and more accurate calculations of benefits, tax credits, and taxes, that depend on the previous year's taxable income. This applies to all runs from May 9, 2022.

Your comments and feedback are always welcome.

Elisabeth Tillier, Ph.D.
Head of MoneyReady