Thanks.

Fantastic!

Elephant in the Room # 2: Was just skimming through the Constructing Tax Efficient Withdrawal Strategies for Retirees with Traditional 401(k)/IRAs, Roth 401(k)/IRAs, and Taxable Accounts paper. Very interesting (I'm a mathie eh), but it got me thinking: Are the algorithms used by other Canadian Financial Planning Software vendors on the market as 'sophisticated'?

Thank you!

This is great!  Just what I was looking for.  Nicely integerated.  😀

I understand it adds a bit of complexity, but it can just be ignored if you don't need it.

Very much appreciated.

Ok, thanks. I understand and that makes sense. The TFSA numbers I'm dealing with aren't that large, so I can just tweak these manually in the spreasheet. I will probably just add a column to do that, and update that column if anything changes, to keep track.

Thank you again.

Those TFSA withdrawals do make it tricky for me to plan RRSP withdrawal. How do I get around that?

I guess I could simply delete these TFSA ACCOUNTs and just not worry about the investment growth within these, Net Worth, etc.

Or is there another trick/approach I could use?

Thanks.

Thank you, that's what I thought.  I understand the need to keep things simple, but could such an option be considered for a future version? Like:

  Limit % = "0.0" (or a new Checkox field) for each ACCOUNT (and/or perhaps each INVESTMENT) to tell the WITHDRAWAL OPTIMIZER to not touch it.

Could possibly be useful for other purposes?  Thanks again.

Suggestion - small wording change:

This plan has been optimized for withdrawals after retirement and ignores some of your set deposit/withdrawal PRIORITIES (and associated Limit % values) and automatic SAVINGS/WITHDRAWALS.

Hi.

We use our TFSA accounts as an Emergency Fund, so when I run the WITHDRAWAL OPTIMIZER I don't want it to withdraw anything from these accounts, so I set their Withdrawal PRIORITYs as follows: Bottom of list of Withdrawal Accounts with Limits % = 0.0.

But when I run the WITHDRAWAL OPTIMIZER it (still) withdraws a few thousands of dollars from these TFSA accounts in the first 5 years, and then deposits money in the remaining years.

It's not a huge deal in my long-term financial planning, and I suspect it has something to do with the complexities of the WITHDRAWAL OPTIMIZER algorithm explained in the eBook (p.99), but is there a way to set things up so that it never withdraws from a certain account?      Then I won't have to answer that question when my spouce eventually asks. 😉

Thanks for great application.

Paul D.

Very enlightening, thanks.

>> ask for the long-term expected rates before you link Wealthica the first time, save those rates, and use that to set the rates on the first import (and subsequent imports if new investments) -- Very much like that idea! This would be quite useful in how I visualize/plan to using the TM tool.

Elephant in the Room: How do Financial Planners ($) do all this using the exact investments I give them using their (presumably more sophisticated/expensive) applications? I wonder if they get global % per year return fields and/or exact stock/ETF 10-year projections auto-populated?  🤔

Thanks again. This is all very enlightening!

Use their guidelines https://www.moneyreadyapp.ca/forum/topic/128-2023-projection-assumption-guidelines or your own judgement.

I think I get it now.    The versatility of the TM tool was confusing me...        :-)

Long-Term Financial Planning (10+ years): what I'm doing:

• Create holding pots (TFSA-CAN-1, TFSA-CAN-2, RRSP-CAN-1, RRSP-CAN-2, RRSP-USA-1, RRSP-USA-2, LIRA-CAN-2 LIRA-USA-2) 1:me, 2: spouce.
  • My broker (TD Webbroker) breaks down accounts by currency (CAN, USA) AND only provided Asset Allocations by account, thus the extended (from above currency-converged) pot list to allow me to easily enter that info for each TM ACCOUNT
• Click the "Change all investment rates of return at once" button to set the % per year return fields:
  • (Income yield, Dividend yield, Capital appreciation growth rate, Capital distribution yield, Return of Capital distribution yield)
• Set values:
  • CAN Accounts: (Income yield = 3.5% (HISAs & GICs), Dividend yield = 3.20%, Capital appreciation growth rate = 6.20% - 3.20% = 2.80%)
  • USA Accounts: (Income yield = 3.5% (~ same), Dividend yield = 3.20%, Capital appreciation growth rate = 6.50% - 3.20% = 3.30%)

using these inputs from 2023 Projection Assumption Guidelines and Google:

• • • Canada_Equities: 6.20%
    • Canada_Fixed Income: 3.2%
    • US_Equities: 6.50% (Foreign developed market equities - proxy for U.S. equities)
    • US_Fixed Income: 4.5% (Google) - seems high, so using Canada Dividend yield of 3.20% above for USA Accounts.

Short-Term Portfolio Management (<2 years): TBD: later or use Wealthica/Wealthscopr Add-On tools:

• Import detailed holdings via Wealthica 
• Analyse, rebalance, adjust holdings based on generated reports, etc...

Thanks again for great support!

Wealthica does not provide us with rates for dividends or other distributions. We have distribution information for tickers from Funddata.

Yes, and that's great and it's super easy to copy-paste these dividend values in for each holding on each investment screen.
And that's the point: Dividends are easily found/entered. Coming up with individual long term expected returns (Capital appreciation growth rate) for each individual holding is virtually impossible.

So, if the TIME MACHINE can use all my actual holdings, each with with readily available information ($ amount, asset allocation (ETF), dividend, risk), then it would be amazing then to simply enter a single Capital appreciation growth rate value to populate all holdings (the best I can do), leaving eveything else alone. Say 3%. I use 3% because I know from looking at my Brokerage and Wealthica/Wealthscope Add-On stats that my WEIGHTED AVERAGE YIELD (Dividend yield) is 3% and my portfolio was designed to target 6% total return (capital appreciation and dividends). So 3% (6% - 3%) is the value I would use for Capital appreciation growth rate. The beauty is I could quickly/easily change and propogate that value to all investments for different scenarios. This seems to me like a great practical way of maximing readily available information.

If I try to populate Capital appreciation growth rate and Dividend yield values with a single "Change all investment rates of return at once" button click, i will lose at least some accuracy on how each pot of money (ACCOUNT) would grow, the fact that a given stock has a high dividend in a given ACCOUNT, etc.

I may be missing something here for sure...

Thank you.

I'm having issues dealing with RRSP, TFSA, LIRA holding pots as described above, so I want to go back to importing my (35) holdings using Wealthica. It's great that it auto-updates and provides detailed holding info with Dividend values.

What I'd like to do is click the "Change all investment rates of return at once" button so that it only changes the Capital appreciation growth rate (i.e. 3%) values everywhere, and nothing else, so that the pre-populated Dividend values stay unchanged for each holding (investment). But the interface appears to not permit that as it requires a value in each field.

Is there a way to get around this? It would be great if entering 0 would set the corresponding % per year field to 0 everywhere, and leaving a field <blank> would leave the corresponding % per year field untouched everywhere.

This ability in my mind would be quite powerful, easy to tweak, and easy to maintain.

Thank you.

% per year return fields: (Income yield, Dividend yield, Capital appreciation growth rate, Capital distribution yield, Return of Capital distribution yield)

Ah yes, I see.   Perfect, perfect, perfect!  So much flexibility; I love it!    That will work great!

Thank you for the amazing support!

Thanks for that. A follow-up question:

So, I could have kept all my Wealthica imported ACCOUNTS and INVESTMENTS and just clicked the "Change all investment rates of return at once" button for all ACCOUNTS to set the % per year values all INVESTMENTS at once. But how would this work for a GIC - 1-Year - 5% (100% Canadian Fixed Income asset) holding? How is the global expected yield applied to this specific fixed-income holding?  Is the 5% lost, averaged in, or overriden?  Or am I missing or getting something wrong here. :-)

Thanks again.

I imported all my 35 Wealthica Investments over 8 (RRSP, TFSA, LIRA) accounts. The problem with dealing with so many individual investments is entering the detailed info for each. Especially the % per year return fields (Income yield, Dividend yield, Capital appreciation growth rate, Capital distribution yield, Return of Capital distribution yield). Some of these are imported (Dividend) or looked up in FUNData, but the expected rate of return is tricker (Capital appreciation growth rate). The one-year back return (ToolTip) displayed is not that useful; you really have to come up with a realistic return for each stock for the long-term (i.e. retirement planning). I'm not sure eactly how to do that. I think it would be a lot of work to figure that out.

So, for now at least, I've deleted all imported Wealthica accounts and investments and manually created just 5 (keeping people and TDA types seperate) holding pots (TFSA-1, TFSA-2, RRSP-1, RRSP-2, LIRA-2) where 1 is me, 2 is my spouce. And then I enter a single Portfolio investment in each account with a Current Value (total of appropriate Canadian & USA TDA accounts) which I copy-paste directly from Wealthica, as well as the total average Dividend Yield (~ 3%) for all holdings and my expected total return which is ~ 6% (investments were selected to reach this target). So Capital appreciation growth rate ~= 3%.  And that's all I enter (i.e. no asset targets, etc.)

Question: I understand these simplied ACCOUNTS and INVESTMENTS won't be as accurate as having the actual investments with detailed info, and stuff won't get updated, but I thinking it should be pretty darn close, and a good (KISS) way to start...    Thoughs on this approach?

Thanks you.