Thursday, August 25, 2016

Rental Properties


Question:

We have several rental properties.  I have entered this amount in Other Assets - Investment in Other Properties.  Is there a way to enter these properties separately, so that properties could be sold individually when needed?

Answer:

No, there is allowance for only one property other than your personal residence.

Please note that you can enter up to four assets on the 'Other Assets' tab on the 'Financial Information' page, with disposition in four separate years.

So if you can group your sales around five separate years, this may work. However, note that you should include the after-tax proceeds in 'Other Assets' and their value will only be reflected in the year of disposition. It may be best to create an alternative file for this and use it just to see the impact of selling the properties in a staggered way.

Tuesday, August 23, 2016

Eliminating a Retirement Shortfall


Question:

I ran a plan which advised me that assets were not sufficient and that clients needed $19,500 more in savings each year until retirement.

I input $20,000 more into savings and revised plan came back with:

  • Current annual savings: $20,000
  • Total required savings: $32,500
  • Additional required savings: $12,500

 Can you explain this please and how to get rid of shortfall.

Answer:

On the Forecast page on the Savings tab, you have set maximum savings at 50% of earnings.

That's why the program comes up with $32,500 total annual savings.

Nevertheless, your client, who is 1.5 years away from retirement, and with his spouse already retired, need to fund nearly a $1 million gap.

So no reasonable contributions can help, other disposing of existing assets, for example selling the personal residence at a later point in time.

Note that you have based the projections on their current asset mix on all cash investments for the registered funds and locked-in assets.

Investing in a more diversified mix will generate higher returns for the projections, but they will still significantly fall short.

Maybe you can look at adjusting the income goals and retirement dates, in addition to using a better asset mix or finding other funds for retirement.


Thursday, August 18, 2016

If You Are Retired


Question:

What use is RetireWare for those people already retired?

Answer:

As a retired person, you use RetireWare to set and monitor your spending levels such that it will last a lifetime. Also, if you have poor or excellent investment returns can impact future expenses, and when unforeseen expenses or life changes occur, you revisit your plan and adjust your goals.

Tuesday, August 16, 2016

Printing a Report


Question:

Where do we generate a PDF report of the results of the analysis?

Answer:

Click the 'Review' button on the toolbar, and go to the 'Report' tab. You will see an icon that you can click to generate a PDF report.

Thursday, August 11, 2016

Multiple Rental Properties


Question:

I own several rental properties, each with a market value, purchase price, and mortgage. Is it possible to control the timing of sale of each property?

Answer:

There are two things you can do.

Combine the value of the properties into one and enter the average year of disposition. This will work if the disposition of the properties will occur over a few years in the future. For example of you plan to dispose of the properties within a 5 year window, say 2020 to 2024, you can use 2022 as the average year of disposition. This will not make a material difference in your retirement plan.

The other way is to enter the after-tax disposition of each property as 'Other Assets' on the Financial Information page. The disadvantage is that you won't see the full value of these assets in the net worth until the years of disposition.

Tuesday, August 9, 2016

Asset Projections


Question:

Why is the amount shown on the summary for poor returns is less than that shown for normal returns?

Answer:

If you use a custom forecast that's very conservative, it may result in the main projection having lower values than the poor returns.

Thursday, August 4, 2016

Investor Profiles


Question:

Where can I view the asset mixes for the various Profile portfolios?

Answer:

it's in the help files under 'Investor Profile':

https://secure.retireware.com/web/mc_help.aspx?language=en-CA&node=102&id=view_asset.htm 

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