Yes, you can add investments to any account (so you may want to create a non-registered account to hold these).
Add a CAD or USD investment as appropriate.
The type of the investment would be "Other", and you would enter a name for it, say "art".
Enter 1 share, its value (current appraised value), its book value (what you paid for it after the costs of buying it), and the Asset Type as "Alternative or other investment".
Enter an expected Capital appreciation growth rate (% per year).
The other rates probably don't apply.
Update:
sparklingProkaryotepudding6 wrote:
do I need to change the age to convert to RRIF and do various runs to see by trial and error which results in the best for me in terms of minimum lifetime taxes or maximum estate at end of life? Thanks in advance!
You can now run SCANS on the age of conversion, with or without the Withdrawal Optimizer, to explore its impact on your plan automatically.
The feature is now implemented. We ask for the MER as that is simplest for users, but you can fudge it as you like if you want to make it higher to consider additional fees.
In my last Announcement, I mentioned users wanted more and more detailed reporting.
Please let me know if you have any questions or suggestions.
PRIORITIES determine the order of accounts to deposit money in years you have a surplus, or to withdraw from accounts in years you have a deficit. It is a great strength of the MoneyReady App that you can control that, but I've noticed that sometimes users get stuck on this.
PRIORITIES tables no longer intermingle your accounts with your spouse’s accounts and your CCPC accounts.
Each of those now require separate tables. This sounds like it would be more complicated, but it actually makes things a lot clearer.
The entire PRIORITIES section of the eBook has been rewritten, and for visual learners, we have created a new video explaining how PRIORITIES work in detail.
It was a good time to make this change as you will be required to review your PRIORITIES with the New Year (see below).
I'm a bit sad to see 2024 go, as it was an amazing standout year for the MoneyReady App. We celebrated it turning 5 years old, and though you'd think we'd run out of features to add, far from it! Here's a brief summary of the upgrades we made and announced in 2024:
Reporting.
SCANS.
Taxes.
Permanent life insurance.
CCPCs.
All this hard work paid off as we got attention from the Press this year. Both Bruce Sellery and Rob Carrick told me it was MoneyReady App users who recommended the app to them and urged them to make it widely known. And they did, big time. Many of you now are new users, so welcome!
You know where to find me if you have questions, comments, or suggestions.
Thank you for spreading the word.
Happy New Year everyone!
Elisabeth
New Year Checklist:
Here is a list of things that need to be updated at the start of the year, and sometimes throughout the year to keep the TIME MACHINE calculation as accurate as possible.
Hi everyone,
The response to the press attention mentioned in my last two announcements has been phenomenal and has kept me very busy answering questions from new users. But I've also made improvements to the MoneyReadyApp over the last couple of months that I'd like to share with you today.
As always, the details are in the MoneyReady App eBook and appropriate Help pages. Let me know if you have any questions or suggestions.
And I want to extend a warm welcome to all our new users!
Very well said @Runner4Life
Maybe we do make it a little too easy to overthink these things :)
Remember the TIME MACHINE makes deposits and withdrawals from your accounts as you order them, but it will also make sure that at the end of the year, after all that you told it to do with your INCOMEs, EXPENSEs, SAVINGs, etc., and after taxes, that it will deposit any excess or withdraw any deficit to/from your accounts. See the video on how the TIME MACHINE works
I said it has a one-year resolution because it checks that the cash flow works only once a year, not every month or day.
In some years where you have an excess, you may need money before your windfall and possibly you could have invested in your accounts earlier. In other years when you have a deficit, you would need to withdraw earlier. So it's a little off in the amount of growth in your accounts for those months compared to if you were actually investing every penny you could every day.
Yes, it will if you force the withdrawal.
The TIME MACHINE mostly has a resolution of one year. A monthly resolution would be more accurate, but would also slow it down quite a bit.
Crypto and Preferred shares have now been added as asset classes. Announcement tomorrow.
Did you set up your drawdown the way your logic tells you for the TIME MACHINE? You can do that with an AUTOMATIC withdrawal.
If you did, did the Withdrawal Optimizer beat that scenario?
If it does, then look at what it does, and learn from it.
If it doesn't, then your logic beats it, and you're good to go.
Well yes, you can add as many individual expenses as you like, starting and ending at any date, that's always there.
Having an increase/decrease% starting linked to a date/event, would be a convenience feature I would add, if I can make it easy.
I appreciate what you're going through running these scenarios. It is unsettling, and unfortunately, a necessary part of financial planning.
My advice: don't tell your spouse you are doing this unless you are working with them on it. At least for my spouse, the "I killed myself off early in the TIME MACHINE today, and you'll be fine!" didn't go over as well as I thought it would 😀
Joint expenses are inherited in full by the surviving spouse, whereas they disappear at the death of their owner when not Joint.
So it's kind of all or nothing right now.
I do like your suggestion. It's just more questions to ask the user.
I explained in an earlier post on this thread how Joint expenses are attributed to each spouse, Most cases it's actually #1: last year's taxable income. I think it's CRA friendliest way to split the Joint expenses as usually you want the higher income spouse to pay for expenses so that the lower income spouse can invest or stay invested. The ratio is often 50% after retirement, because of pension income splitting in later years which equalizes the taxable incomes, then there is no lower-income spouse.
If you want to specify how the Joint expenses are attributed to each spouse, then enter individual expenses for each, as you did.
The only thing I would add is that expenses, Joint or not, are reassigned from one spouse to the other to solve a cash-flow problem in the TIME MACHINE, that is spouses can help each other out.
Yes, CPP and OAS do not qualify for pension. I was focused on answering your question of why the LIRA was being converted.
This is a case of you want the money, for the pension split and tax credit. You can set up an AUTOMATIC withdrawal of $4,000, it'll be split with your wife and both of you will get the pension tax credit in the TIME MACHINE. The year reports will show you the taxable income pre- and post-pension income splitting for both you and your wife.
I also explained that it also makes conversions after 65 if you need the money. But there's no optimization done by the TIME MACHINE, that's where the Withdrawal Optimizer comes in.
As you saw, the TIME MACHINE allows partial conversions of LIRAs and DCPPs. It does this by automatically allowing withdrawals from LIRAs after 65, regardless of when you set to convert it, if you want or need the money. We assume you will arrange it with your LIRA provider to make the required partial conversion to an LIF or RRSP/RRIF as allowed by your province's legislation so that the money can be withdrawn. That flexibility is usually what users want.
If you want the money, you would enter an AUTOMATIC withdrawal. People often do that to make a partial conversion to get the pension sharing and the pension tax-credit if they have no other sources of pension income. Not your case, but I need to mention it.
If you need money, the TIME MACHINE makes withdrawals from your accounts following your withdrawal PRIORITIES. You can set a limit of 0 for the LIRA account for the years before age 72 so that it will skip it and get money from accounts further down in the list instead. You will need the create a new PRIORITIES entry for the years 72 and up to allow withdrawals again.
Crypto is included in Alternative Investments (shows up as OTHER).
Let me think about adding it as a separate asset class in funds and portfolios. I was already thinking of adding Preferred Shares as a separate asset class, as that has also been often requested. We get all kinds of investors.
Why does it even matter? For rebalancing accounts to their target asset allocations, to allow you to set rates automatically according to asset allocation, and for the app to set the default rates when new investments are imported from Wealthica.
Stay tuned.
Yes, for ETFs and Mutual funds, you can select more than one asset Type and Location.
When you first entered the funds, or they came in from Wealthica, we assigned default values based on the information we have from Fundata for what category of fund it is. You can change that default by editing the investment. You'll see two multi-select boxes: one for asset types, and the other for asset locations.
For Asset Types(s) you can choose one or more from Cash, Fixed income (ie bonds), Equities, Alternative investments. There are also Balanced and Target-date types you can choose from, but if you choose either of these, it will ignore any of the other choices. VBAL and VGRO are Balanced funds by default.
You can then combine that with a mix of Asset Location(s). You can pick one or more from Canada, the US, North America, Great Britain, Europe, Japan, China, Asia Pacific, Emerging Markets, International, and Global.
So for VBAL, you would choose Equities and Fixed-income for the Asset Types, and US, Canada, Emerging, and Global for Asset Locations.
That's 2 types and 4 locations so 8 asset classes. When you click Save, a table appears for you to enter the target for each asset class:
It will look like this:
Asset class | Target % |
---|---|
Target % should sum to 100 | 100.00 |
I filled out the table for you with the numbers you gave, but on the forum post, the changes don't stick for some reason.
Just fill it out as you want in the app, and always remember to click Save and Continue.