RRSP RRIF Planner

1
RRSP RRIF Planner

• The RRSP RRIF Planner can be used with all of
  your clients and prospects, regardless of their
  age or how much they have to invest.

2
RRSP RRIF Planner

• Creating powerful investment plans is as
• easy as 1-2-3
• 1. Enter your clients current financial data
• 2. Make your recommendations
• 3. Illustrate the value of your advice

3
Step 1 Enter Client Data
When the RRSP RRIF Planner first opens, click the
New button at the top of the Client Selector
window.
4
Step 1 Enter Client Data
Enter your clients personal information then
click Spouse tab to enter a spouse.
5
Step 1 Enter Client Data
Enter the spouses name and date of birth and
then click the OK button.
6
Step 1 Enter Client Data
Highlight the clients record and then click
Open.
A new client record for both the client and
spouse now appears in the Client Selector
window.
7
Step 1 Enter Client Data
Once opened, the clients name appears in the
title bar of the program.
To begin entering your clients data, click the
Current Data button on the toolbar.
8
Step 1 Enter Client Data
Data Entry is broken down into 6 sections.
On the Contact Information tab begin by entering
your name, planning firm and your investment
sponsor (if required).
Click the Next gt button to continue entering
data.
9
Step 1 Enter Client Data
On the Return Assumptions tab set the inflation
rate and the rates used to calculate the annual
return on the investments.
Make changes where necessary then click Next gt
to continue.
10
Step 1 Enter Client Data
The Taxation Assumptions Tab is where the
current RRSP contribution room is entered
including any carry forward. Also, the annual
maximum RRSP contribution limit for future
deposits can be set and indexed.
11
Step 1 Enter Client Data
The taxation rates for both the contributions and
withdrawals are set on the Taxation Assumptions
tab. An Average Marginal Tax Rate table is
included to provide guidance when setting these
rates.
Set up all of the Taxation Assumptions and then
click Next gt.
12
Step 1 Enter Client Data
The Plan Allocation tab is where the current
holding of the RRSP/RRIF are entered.
13
Step 1 Enter Client Data
The balance is then allocated according to the
current investment allocation settings. This
allocation can be adjusted in the future. Three
sample allocations are provided for guidance.
Once the balance is entered and allocations set,
then click Next gt to continue.
14
Step 1 Enter Client Data
On the Plan Deposits tab the planned retirement
age of the client can be set along with the
planned deposits.
There are three different contribution streams
that can be entered plus there is a Maximum
option that automatically deposits the maximum
allowable.
15
Step 1 Enter Client Data
Enter a deposit stream and set all of the options
for that stream. The age range for the deposits
is entered in the last two fields.
After setting up the deposits area click Next gt
to continue.
16
Step 1 Enter Client Data
The Plan Withdrawals tab also allows for three
different income streams plus RRIF Minimum.
17
Step 1 Enter Client Data
Withdrawal amounts can be entered directly into
the fields provided or calculated by using the
Withdraw buttons. To calculate the maximum
amount that can be withdrawn, click the Withdraw
1 button.
Now all of the data entry screens have been
completed. Click the Close button.
18
Step 1 Enter Client Data
To view the entire plan click on the Print
Preview button located on the toolbar.
With the clients data entered, the program
automatically calculates future plan values and
displays the result on the 4 primary documents.
19
Step 2 Recommendations
To begin entering your recommendations, click the
Recommended Data button on the toolbar.
20
Step 2 Recommendations
The Recommended Data Entry screen then opens.
The Projected Plan Values tab displays a
summary of both the current and recommended
plans. Select the number of years to base the
comparison on.
21
Step 2 Recommendations
Click on the various data sections and make
changes that reflect your recommendations.
For this example, only the plan allocations have
been changed.
22
Step 2 Recommendations
After making one or more recommendations, return
to the Projected Plan Values tab.
23
Step 2 Recommendations
Click on the Refresh button in the Projected
Plan Values window to update the comparison.
24
Step 2 Recommendations
A side by side comparison of account values and
withdrawals is displayed on this tab.
25
Step 2 Recommendations
One of the most effective ways to illustrate the
value of your advice is by calculating how much
more retirement income can be withdrawn from the
plan, click the Plan Withdrawals tab.
26
Step 3 Value of Advice
Click on Withdraw 2 to calculate how much more
over the existing withdrawals can be withdrawn
under your recommendations.
27
Step 3 Value of Advice
As an alternative to illustrating additional
retirement income, try calculating 10 years of
annual withdrawals to provide additional funding
for travel during the most active retirement
years. Change the End at Age to 75 and then
click the Withdraw 3 button.
28
Step 3 Value of Advice
If you cannot decide which one of the previous
alternatives to show to your client, then
illustrate both. Here Withdraw 2 is increasing
retirement income and Withdraw 3 is providing
additional funding for travel.
29
Step 3 Value of Advice
Click the Close button to implement your
recommendations, including the new withdrawals.
30
Step 3 Value of Advice
To illustrate the value of your advice today,
click on Current Data to include the new Plan
Withdrawals that are made possible by your
recommendations.
31
Step 3 Value of Advice
In current data entry screen click on the Plan
Withdrawals tab
32
Step 3 Value of Advice
In Withdraw 2 and Withdraw 3 enter the
additional retirement income and travel funding
that is included in your recommendations.
33
Step 3 Value of Advice
Once the same withdrawals are entered click on
the Plan Deposits tab.
34
Step 3 Value of Advice
In Plan Deposits click on Deposit 2 to
calculate the additional contributions that the
client will need to make if they do not act on
your recommendations. In this example, they
would need to save an additional 410.62 each
month.
35
Step 3 Value of Advice
After entering your recommendations use the print
button provided to print the report.
36
Printing and Exporting the Plan
The print window is then shown, select the
documents to be included and then click Print.
To Export the plan, under the File menu, click
on Export to Excel then select the documents
to be included.
37
Other Planning Strategies

• Asset Allocation Foreign Content.
• Calculate required deposits for an income goal.
• Calculate the income provided by current savings.
• Demonstrate the effects of inflation.
• Compare annual to monthly deposits.
• Show how taxation can impact future income.
• Calculate the cost of waiting to begin saving.
• Illustrate maximum deposits.
• Illustrate minimum withdrawals.

38
RRSP RRIF Planner

• Thank you for choosing the RRSP RRIF Planner from
  FinancialPlanAdvantage.ca.
• For additional information on using this program,
  please refer to the help files or post a question
  to the Discussion Board.