Retirement income objective
Question:
I have inserted a retirement expense objective of $33K. The Client is 63 years old and retired with only an RRSP portfolio to draw from. For some reason, in the first year only (eg.2008), the objective is doubled to $66K and thus there is a large withdrawal from the registered portfolio. How do I fix this issue?
Answer:
The first year of retirement may be only for a few months. So the objective would reflect employment income up to the month of retirement, and a portion of the $33,000 for the remainder of the year. Also, when the retirement year is in the future, the objective of $33,000 in terms of today's dollars will be indexed all the way up to the retirement year.
I have inserted a retirement expense objective of $33K. The Client is 63 years old and retired with only an RRSP portfolio to draw from. For some reason, in the first year only (eg.2008), the objective is doubled to $66K and thus there is a large withdrawal from the registered portfolio. How do I fix this issue?
Answer:
The first year of retirement may be only for a few months. So the objective would reflect employment income up to the month of retirement, and a portion of the $33,000 for the remainder of the year. Also, when the retirement year is in the future, the objective of $33,000 in terms of today's dollars will be indexed all the way up to the retirement year.
posted by Apeiron Software at
9:48 AM
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