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Accounts will be withdrawn from in the TIME MACHINE according to:
1: Any AUTOMATIC Withdrawals entered
2: To satisfy required minimum withdrawals of RRIFs/LIFs
3: Your Withdrawal PRIORITIES if you have a deficit at the end of the year after taking into account all entered and calculated incomes, expenses and taxes.
The Optimizer will ignore 1 & 3 in years after retirement and make withdrawals in the optimal way to leave the highest liquid legacy.
If you do not see withdrawals from the TFSA, then you probably don’t need the money from that account to satisfy your consumption. 
Make sure you have entered your living EXPENSEs.
If you want to determine what your expenses should be to leave a legacy of your choosing, you can use the CHOOSE YOUR LEGACY feature and the tool will calculate those expenses for you.
Enter the dividend income you want as an INCOME, make sure to enter the amount that you want.
Select from the  Income source the type of dividend you want your from CCPC.
Non-eligible dividends are your best bet from a CCPC, the others require a balance in the notional accounts. See the Help page on the TIME MACHINE pre-flight screen for the CCPC or the eBook about the CCPC notional accounts for more explanation.
Depending on the dividend type you entered, and the balance of the notional accounts, the balance of the investment account,  any entered REVENUES, the TIME MACHINE  will pay what it can.
You’ll see a Warning in the results if it can’t pay it out what was asked for.

In most cases, if your province was set in your PROFILE to Québec, the default is you will be eligible for QPP. If set to another province, the default is you will be taking CPP. However there can be exceptions to that. For example if you lived and worked in another province, but choose to retire in Québec, then you will be eligible for CPP and not for QPP. For this reason, we allow you to select the other plan by checking the box in the input form. The province in your PROFILE will still determine where provincial taxes are payable.

We have implemented the changes for QPP that were announced in the March 21 2023 Québec budget to apply from Jan 1, 2024. Although these changes will require legislative and regulatory amendments and as of this writing on April 1 2023,  we have not yet seen the details of their implementation. We'll be monitoring closely and will make changes as necessary. 

Nous avons mis en œuvre les changements pour le RRQ qui ont été annoncés dans le budget du Québec du 21 mars 2023 et qui s'appliqueront à partir du 1er janvier 2024. Bien que ces changements nécessitent des modifications législatives et réglementaires et qu'à ce jour, le 1er avril 2023, nous n'ayons pas encore vu les détails de leur mise en œuvre, nous les surveillerons de près et apporterons les changements nécessaires.

 

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.

 

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.

Hi,

For 1) and 2).  Our GIS calculation is now entirely based on our implementation of the Old Age Security Act. The act describes how to compute the amounts for OAS, GIS , Alllowance, and Allowance for survivor, and that's how we do it.  We do need to also use the updated maximum amounts that are indexed every quarter (from https://open.canada.ca/data/en/dataset/ff1e4882-685c-4518-b741-c3cf9bb74c3e). We don't use the government pre-computed GIS tables (which apply only with full OAS pension, and we can reproduce in that case), and we don't make approximations for the clawback. I've clarified the eBook section on OAS/GIS.

With our calculations, indeed the GIS amount and the income threshold is increased for pensioners with partial OAS pensions, the retirehappy blog is entirely correct. The second blogger is also correct in their analysis of the tables, but if they want to derive the calculation, they should read the OAS Act :)

The OAS and GIS/Allowance calculations are made in each year of the TIME MACHINE so they adapt to circumstances and income levels in each year.

3) Yes we implement the QPP supplement, we refer to it as the PRB (Post-Retirement Benefit) for both QPP and CPP (although they are calculated slightly differently).

BTW If your parents are 65 or over and the TIME MACHINE calculates a GIS amount in all years, these runs will not count towards their MoneyReady App free trial.

Yes that should be done automatically for you. Make sure to select Rental income from the dropdown menu for Select an income source when you add or edit the INCOME. Leave the End date blank. When you click submit, it’ll then ask you for the property to link the income to (it should have been previously entered in REAL ESTATE). Also make sure the property and the income have the same Owner (ie if you have a spouse and the income is joint, the property should also be joint owner). Click Submit again once you selected the property from the drop-down.
The INCOME Type should now be listed as RENTAL. The income will stop when the property is sold in the TIME MACHINE.

There's a new calculator for OAS and GIS at https://www.canada.ca/en/services/benefits/publicpensions/cpp/old-age-security/payments.html#estimate-benefits.

It's not complete as it wimps out if you don't have a full OAS pension (less than 40 year residency in Canada), but it works well if you do.

I'm excited about it because it's the first time I see any source code (the javascript is right there in the html source of the page) for calculations available for any calculations from the Canadian government. The US social security system has provided full source code for their calculations for many years.

 

 

 

The way you did it should work. Make sure the Contributor selected is “Other”.  You'll only see the total net deposits to the account for that year in the results, so that might not be 80K if you had other withdrawals or deposits to it.
 
You can alternatively add it as an INCOME, type “OTHER”, owner Joint (?), same start and end dates, not taxable. It will get dumped to your Wallet(s) to be sorted out via your AUTOMATIC SAVINGS/WITHDRAWALS and PRIORITIES.
 
Thanks for your kind words, they are much appreciated.

I'm happy to announce the MoneyReady Forum!

As a registered user of the MoneyReady App, you are automatically registered for the Forum.

Logging in to the App will also log you into the Forum so you can post there. A forum username has been created for you that is separate from the app's username. You can change it in your forum profile.

I have pre-populated the forum with loads of information:

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Please read the Forum rules for all the details.

Looking forward to reading your posts!

 

Your comments and feedback are always appreciated.

I should have specified taxable income. Here’s the gory details:

1.If we have previous year’s taxable incomes for the spouses (sum of the two is not 0), we use those to determine the proportion, so that deals will all the income splitting/sharing.

2.If that doesn't work we use the current total incomes of each spouse. That’s before the CPP/taxes calculations, so no pension splitting/sharing is considered in that case.

3.If that doesn’t work we use the net worths of each spouse (previous year, sum of the two is not 0).

4.If that doesn’t work we use 50%.

This is re-calculated for every year in the TIME MACHINE.

#1 usually works although #2 is often applied in the current year if a user doesn’t bother to enter last year’s taxable incomes in the TM preflight input screens. 

#3 and #4 rarely happen.

Yes,

That’s mostly correct. Joint expenses are attributed proportionally to income so not necessarily 50%. But you got the important point that each spouse pays them from their own accounts (and joint accounts when available).

The MoneyReady App was launched in the summer of 2019. Almost 4 years later, after answering many questions, getting great feedback, and having many discussions with users by email, I decided to start this community forum in March 2023 so that everyone can benefit from these discussions.

Because nobody likes an empty forum, meet user anonymous:
This is a fake user created to populate the forum with real questions that were sent by email to the MoneyReady App. Those emails and our responses have been curated to select the most common, interesting, and still relevant today. They have been edited for clarity and to remove any identifying information for privacy and security. Typos are all mine.

If you recognise your words because you are the original writer of a topic and want proper attribution, let me know so we can fix the attribution.

Welcome to the Money Ready Forum. Looking forward to reading your posts!

Now please go read the Rules before proceeding.

 

A new graph for the marginal tax rate has been added to the TIME MACHINE results.

Well that should tell you there are already too many graphs :)

I nevertheless added the MTR graph if it can be helpful.

Hi,

There is a graph of the average tax rate, and it is calculated exactly as you say.
I do have an MTR on income already calculated. Would you like me to add that graph? 
 

For REVENUES, INCOMES, EXPENSES, and AUTOMATIC SAVINGS/WITHDRAWALS, you can now specify a currency (previously assumed to be CAD). LOANS, ACCOUNTS, and INVESTMENTS already had that feature.

A model for the USD/CAD exchange rate was added to the Market model for Monte Carlo simulations.

The first interpretation is correct. If you already have 6 runs saved, it’ll ask which of those you want to delete before allowing you to save your last run.

Interpretation 2 would be cruel! 

I’ll try to clarify for the next edition of the eBook.
Thanks