The pension doesn’t affect CPP, she won’t lose any CPP benefit.

No don’t enter the loan expenses, they’ll be taken care of automatically.

What happens in the TM is when you take out a loan in the future, is that the amount of the loan is put in your Wallet, and the Loan gets a balance that starts accumulating interest and payments are made (from your Wallet). For an amortizing loan the amortization schedule is used and recalculated anytime there is a pre-payment (which can happen with Deposit Priorities kicking in). Normally for a car loan, you would enter an EXPENSE for the car as a one time (same start and end date) expense on the same day the loan is taken out. That expense will be taken out of your Wallet, so should be mostly covered by the loan taken out, unless your cost is higher due to a downpayment. The loan is not actually linked to the car, it’s just a personal loan, but you do need to enter the car expense. This is the way it works for all LOANS in the TM started in the future. You go to the bank/dealer, get a cheque for the loan, then spend the cheque. 

Ok,

I looked up the rules on US retirement plans to conversions to Canadian registered annuities. It looks to me like you have to convert the plan to RRSP/RRIF first.  What does your insurance salesman say? 

The TIME MACHINE rebalances your accounts to their set asset allocations first thing every year. The account holding the shares has a target allocation set to 100% Cash, so it sells all the shares and the money is put into the Cash investment of that account. This generates a large taxable capital gain as the book value of the shares is so low compared to the market value, in a taxable account. The tax bill is not paid from that account because although you need the cash to pay it, the TIME MACHINE uses your Withdrawal PRIORITIES to determine where to get the money, and you set the other accounts to have higher priority for withdrawals.

Just set the shares ACCOUNT target asset allocation to 100% Equities. 

So it’s not a bug, it's a feature :) Accounts with current asset allocations far off from their target should show up with a red or orange "Edit Allocation" link in the ACCOUNTS  list. But I’ll see if I can’t change the default asset allocations for accounts holding individual equities, as I realize it’s an easy mistake to make to just leave them to the current default of 100% Cash. 

When you edit a GIC investment, you can set the term of the GIC to what you want it to renew to (say 5 years), not necessarily what it was originally, so that the “Renew” button in RATES/YIELDS/CURRENCIES will renew the GIC for that length of term, from its current maturity date that you set.

Then you can renew for additional terms.

When renewed in the future the TIME MACHINE will set the new maturity date to the end of the rate, so the funds should be blocked as long as the GIC is renewed. So you don’t have to renew rates forever and to make the funds available eventually, I think it sets the last rate end date of None so that the funds continue to grow at that last rate forever, but then they’ll be no maturity, so not blocked and available for spending. What you are doing is quite reasonable, and will get you very close.

You can now add LOANS specifying that you are the lender and "Other” is the borrower. This feature was added recently so you might want to get the latest eBook version and read the "Loans payable to you, your spouse, or your CCPC” section. The interest, and any principal repayments, will go to your Wallet account in the TIME MACHINE.  My understanding is that interest income does not count as earned income so would not add to the RRSP room and we haven’t set up any way to directly contribute interest income to RRSPs. But I suppose you have RRSP room from other sources of income and there are 2 ways the TIME MACHINE can move the money from the Wallet into an RRSP:

1. Put the RRSP at or near the top of your deposit PRIORITIES, so any funds left in the Wallet will go there, up to your RRSP room.

2. You can also set up an AUTOMATIC deposit to the RRSP.  You’ll have to estimate the interest amount you will be receiving when entering that, so that’s a little trickier. The TIME MACHINE results will show you the net amount of payments from the loan, so you can use that to guide you.

The TIME MACHINE will make the deposit as you asked for in AUTOMATIC deposits, but it can make additional deposits to accounts if you still have funds not saved or spent in the year. Those could go to your TFSA if you have TFSA room, and your TFSA is high enough in you deposit PRIORITIES. Set a limit on the deposit PRIORITY for the TFSA to 0, and/or bring it lower in your list of deposit priorities so that extra funds are deposited in one of your other accounts if that is what you want.

You need to add an ACCOUNT, select the type as CCPC  Investment account, the owner will automatically be set to your CCPC once you click submit.  You can have it grow as Cash at 5%  and leave it that, or you can add specific investments to that account as you can for your own. This is advisable to do as the tax treatment and will be different if your CCPC is collecting dividends itself trough stock investments.

It's a Web app. It works on all modern browsers under all Operating Systems.

No there’s nothing like that. It’s easy enough to create free accounts though,

and you can direct them to get the sample plan https://www.moneyreadyapp.ca/sampleplan

Make sure you enter your current contribution room in the screens that show up from the TIME MACHINE, right before you actually run the TIME MACHINE. You will see the contributions as deposits to the RRSP accounts in the results.

You can enter planned contributions as AUTOMATIC SAVINGS to those accounts and they will be made (up to your contribution room) but you don’t have to. If you have the room and money  at the end of the year in the TIME MACHINE, deposits will be made to according to your PRIORITIES for deposits, so you can put the RRSPs high up in priorities. Again. you will see the contributions as deposits to the RRSP accounts in the results.

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You are entering them correctly. However you have to realize what the TM is doing. At maturity, if not renewed,  it sells the GIC, but it does not delete it, it’s value is set to 0, and maturity set to null. The money goes into the Cash investment of the account. At the end of the year, it rebalances the account that held the GIC. Your GICs are each in their own account, which are set to 100% fixed-income allocation, since the GIC is fixed-income, it puts the money there, essentially reinvesting it.

Now that may seem odd way to do it, but that is the difficulty with my model that lets you track investments. It realizes that these are your investments today, and knows it may not be your investments in the future, but that when you replace them you will do so with similar ones in terms of rates and asset allocations for the accounts they are in. I’ve been thinking about writing a blog about that.

To remove the expired GICs, you need to take the money out of the accounts they are in. You can move the accounts higher on the Withdrawal priorities so they are emptied first if you need money. Or to guarantee the withdrawal, you can set an Automatic withdrawal for -100% of  the account balance with start and end date on the maturity date. You would also set Deposit Priority limits to 0 to make sure no money gets deposited there if you ever have a surplus at the end of the year.

I call all fixed-income investments Bonds because they all act the same way, sorry of that confusion.

You’re right, there was an issue with AB. I had missed that the restoring of indexation had been made retroactive for 2022.

I’ve checked the new tax calculation of the MRA and for 2022 with 30K interest and 40K of dividends it gets Prov: (AB) $1,568.60.

This includes the Climate incentive of $490, so without it, it’s $2058.60. Taxtips.ca says $2056 but they tend to round before each calculation.

I can see the rules not allowing some dividends depending on the notional accounts, but if you have the revenues, then it should be able to pay out a Salary. To pay the salary, the program checks that there are enough retained earnings or corporate account balances it can draw from. To prevent a circular calculation, it uses the previous year’s retained earnings, because the current year retained earning are not yet calculated (and depend on the salary paid out).

In your scenario, the revenues don’t start until 2023, the same as salary, so it limits the payout in 2023 to what’s in the corporate account. After that it’s fine because 2023 earnings can pay the 2024 salary etc…

We can't easily fix this problem because of the circularity of the retained earnings calculation as mentioned, and the additional complication that any salary paid will add to personal taxes.

In the meantime, now you know how it works, can you start the revenues earlier?