RetireWare Integration for Total Planning

For a complete planning solution

Total Integration

The RetireWare process concentrates on asset allocation, long-term projections, savings, debt within the context of your budget and risk monitoring.

RetireWare is about total planning: you can integrate all of your and your spouse's assets, future income and goals to achieve your long-term objectives.

You need a way to consolidate and integrate the numerous sources of income. With RetireWare, you gain powerful decision-making support to meet your dynamic and complex needs and achieve your financial goals.

RetireWare Puts All the Pieces of the Puzzle Together

Savings, expenses and debt in your budget
Future net worth and your asset allocation strategy
Education costs of your children and other life goals
Risk profile and deviations from your target asset allocation
Canada Pension Plan, Québec Pension Plan, Old Age Security, OAS Clawback, Guaranteed Income Supplement
RRSP, Locked-In Retirement Account, RRIF, LIF and LRIF
Invesment income and capital from non-registered assets
Pension Plan benefits: Defined Benefit, Defined Contribution, Group RRSP, DPSP
Rental and dividend income, pensions and annuities
Sale of residence, other property or business ownership
Life insurance

What Sets RetireWare Apart Is Its Sophistication

RetireWare's sophistication extends to the calculation of future income taxes. The usual approach of taking marginal tax rates or ignoring income taxes altogether is far too simplistic and creates large distortions over time.

The program applies all existing and scheduled federal and provincial tax rates, scheduled indexation of tax brackets, provincial surtaxes and non-refundable tax credits

RetireWare has powerful algorithms that perform thousands of iterations to find the exact amount that will meet the retirement objective each year in the future, considering items such as pensions, repayment provisions of Old Age Security, minimum RRIF withdrawals, minimum and maximum LIF and LRIF withdrawals, and the taxation of various types of income and disposition of property.

RetireWare is so powerful that it can find the exact before-tax amount that will provide for an retirement income formulated in terms of after-tax income.

Powerful Mathematical Model

RetireWare takes into account all RRSP rules, including maximum allowable contributions, unused RRSP deduction limit and adjusts the RRSP contribution room if there is a pension adjustment.

The rates of return for each asset class and the asset allocation determine the nature and amount of investment income each year of the forecast. Cash investments will generate interest income; fixed income investments will generate both interest income and capital appreciation; equity investments will generate both dividend income and capital appreciation.

The program simulates a tax return each year based on the earnings, interest, dividends and capital gains and taxable dispositions received during that year, taking into account current tax rules and future indexation of tax brackets and other credits. RetireWare calculates interest and dividend income and capital appreciation based on the asset allocation specified by the user before and after retirement.

RetireWare takes into account registered investments, locked-in accounts, non-registered investments, ownership and disposition of a portion or all of the equity in a personal residence, other real property or business ownership. In the case of other property or a business, the planner will calculate resulting capital gains in the year of disposition and determine the tax payable. It is also possible to input other assets that may become available in the future, such as an inheritance or retiring allowance, or other income for a limited period of time during retirement.

The procedure for the use of funds is to determine whether existing pensions, such as company pensions, Canada or Quebec Pensions and Old Age Security, or other income, such as rental, dividend, pension or annuity income, are sufficient to meet the retirement income objective. If not, the program uses registered and non-registered investments until exhausted. Where the income exceeds the desired amount in a particular year, the after-tax difference is reinvested in the non-registered account and is available to be withdrawn in a later year.

RetireWare Has Powerful Wizards

RetireWare has powerful wizards for all the major components of the software: a Quick Calculation Wizard, a Budget Wizard, a Net Worth Wizard, an Asset Allocation Wizard and a comprehensive Step-by-Step Retirement Wizard.

To make it even easier, it also has printable 'cheat sheets' in PDF format that can be used to collect all required information away from your PC.

Asset Allocation and Planning

RetireWare will help you determine the amount of risk you should take and whether it is a necessary and viable long-term strategy. You can also easlily monitor your asset allocation and quantify the deviation from your target asset allocation.

Your selected asset allocation is applied forward to calculate future expected rates of return for the projections. There is always a direct relationship between your asset allocation strategy and the risk and return characteristics of your investments.

Pension Plan Support

RetireWare supports all types of company pension plans, including defined benefit, defined contribution, group RRSP, deferred profit sharing plan (DPSP), even a deferred pension or account balance from the pension plan of a prior employer.

Plan sponsors can get their own customized add-in that reflects the provisions of their pension plan, making it possible to integrate the plan with maximum accuracy with other assets, savings and future income streams.

Clear and Compelling Results

Results show graphically the budget and net worth statement, the asset allocation and its deviation from the target asset allocation, the assets and shortfall at retirement. RetireWare provides detailed forecasts for the projection of assets, income and cash flow in both graphical and table format. You can resize the graph and table for optimal viewing.

You can cycle through the results as a slide show with the View Results toggle button. There is also an option to view results in today's dollars.