In this video, we will walk you through how to review the scheduled contributions and withdrawals in your client's plan.
Transcript
In this video, I will be walking you through how to review the contributions and withdrawals scheduled in your plan. I have a very simple plan for demonstration purposes. We have a client who has a non-registered account, a TFSA, and an RRSP that she’s contributing to in her pre-retirement years. We also have a retirement spending goal of $50,000, which will be used as the expense threshold that we are trying to meet in these years.
The first thing I would do to review contributions and withdrawals in the plan is go to Year View. Here, you have access to each year in the plan and can scroll through using the scroll bar.
Let’s first look at the first year in pre-retirement:
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Go to the Investments tab and review the contributions going into the non-registered account and TFSA.
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If you want more detail, click on the account to see what was planned versus what was actually contributed. Discrepancies may occur if there isn’t enough cash in the plan to fulfill the requested contributions.
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You can do the same for the TFSA.
Going over to Pensions, you can click on them to see planned versus actual contributions as well.
Scrolling into the retirement years, we can also see withdrawals from these accounts:
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From the non-registered account, $81,000 is being withdrawn.
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Nothing is being withdrawn from the pension.
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CPP and Old Age Security (OAS) are also coming into the plan.
To see how these funds are used, go to the Expenses tab, click on the retirement goal, and the software will show which accounts are fulfilling this expense: it starts with the non-registered account and then uses CPP/OAS.
For more detailed cash flow, turn on the Cash Flow Details and hover over any year to see how accumulation is occurring.
If you want to change how the software withdraws funds, start with Plan Settings → Liquidation Order:
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The software starts with cash (CPP and OAS count as cash), then looks for non-registered, registered, and tax-free accounts.
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You can move these up or down to adjust the order.
To more tightly control withdrawals:
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Open the account you want to schedule withdrawals for.
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Go to Planned Withdrawals → Add a Withdrawal.
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For example, for the non-registered account, set an amount of $15,000 per year until the account is depleted. Set it as recurring.
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Update the timing: start at retirement, end at mortality or when the account is depleted. Click Done.
You can also set the non-registered account to Withdrawal Limit: Scheduled Only, which tells the software to only withdraw the amounts you’ve scheduled. Click Done.
Going back to Year View, you should now see the scheduled withdrawals starting at retirement and occurring each year until the end of the plan. You can also review the end-of-year balances.
I hope this was helpful. If you have any questions, you can click on your client’s name in the top right, select Request Support, enter your question, and share client access.