The purpose of these calculators is to answer the “trigger questions” clients have about the financial decisions they need to make, with tax efficiency. They are ordered to follow the four elements of Real Wealth Management™: Accumulation, Growth, Preservation, and Transition, but can be used to fill knowledge gaps on a random basis as well. Used in order, they support a consistent client interview process for firms who work with wealth advisors throughout the year to provide comprehensive tax planning services.
This is a straight-forward calculator that helps to determine total taxes paid for individuals and/or couples based on different combinations of income sources. It is also a critical tool for every advisor who wants to show clients the benefits of an RRSP contribution, the effect of dividends on net income, how to pension income split, and how to structure income to avoid a clawback of Old Age Security or other income-tested government benefits like the Child Tax Benefit for families.
This powerful calculator links your client’s trigger questions: about life events, financial events and economic events with changes needed to get the financial results needed now and in the future. Begin by analyzing the use of money in four stages: basic spending needs for food, clothing, shelter (non-discretionary spending), “emergency savings for now and in retirement” (discretionary spending), foundational savings (capital used as a tool to build financial resources) and finally, transition of savings (building of sustainable family legacies). The process then moves from thinking in the present to a future orientation: how to use their “redundant income” as a tool to build income-producing capital (often called “don’t see it, don’t need it” money). Now you can make decisions about spending and saving to meet goals: what is personal net worth today and what can be done to increase and sustain it, after tax?
One of the key issues for employees considering a new job is the take home pay for the position, especially if the job is in a different province. This calculator provides an estimate of the take home pay based on salary, exemptions, deductions and province of residence.
The first section of this calculator will give you a quick answer to how much tax saving are available by making an RRSP contribution. Use the second section to determine the costs of a proposed RRSP loan and compare the loan costs to the earnings within the RRSP during the loan repayment period.
Check it out—investing on a pre-tax, tax deferred basis is powerful. This calculator will show you how making the right choice—registered or non-registered account—can make all the difference in building wealth on time for your retirement schedule.
This calculator will help you project investment income into the future, based on a four year forecast. Use this calculator to put in detailed figures of all the different types of investment income the client may have in the future, based on their current savings pattern. This planner will quickly determine the tax impact on investment income, and help you reconfigure solutions when alternative saving strategies are required. Then match new product selects to the outcomes required.
The average retirement is 20 years. Take a look at what that looks like, financially speaking, after tax, for both you and your spouse, retiring at different times. When will income sources start and stop for each of you? This calculator helps layer income over a period of years to determine what tax brackets you and your spouse will be in, how income sources affect net and taxable income and what is left, after tax, if anything.
It also identifies return of capital required over the period to meet needs and wants, or, if there is plenty of money, the redundant amounts that can be reinvested on a safe, tax efficient basis.
You will use this tool to quickly determine: i) the average tax rate, ii) the marginal tax rate and iii) the tax bracket the client is in today, based on their income levels. This will help to determine the client's current tax picture so that you can structure future income sources with tax efficiency.
Planning for a consistent, reliable income is the best way to protect capital in retirement, but this is more difficult when the retirement period coincides with a period of low or negative returns in the marketplace. Retirement income planning seeks to optimize fixed and variable income sources, but when the client relies on sources that fluctuate in value or in producing income, retirement income is unpredictable, causing the client stress.
Zeroing in on the retirement "withdrawal" equation and how to supplement cash flow gaps without eroding capital away in the process, this calculator will help advisors and clients make decisions about return of capital options.
Should you draw from the CPP early? This calculator will help you answer that question by determining break-even points along the way, while explaining the rule and criteria changes that took place in 2012 and subsequent years.
This calculator assists with determining the amount of income available to service debt and then provides opportunities to calculate maximum mortgage payments, fixed term mortgages and all-in-one solutions.
Cash flow and income are two different things; but it may be all the same to your clients - how much do I have to spend each month. The difference is the real money they get to keep after taxes. Calculate all the income sources - taxable, non-taxable, return of capital, and windfall - to better understand where money comes from for different purposes: non-discretionary needs (food, clothing, shelter, etc.). Then you can begin to do some discretionary spending - and saving money more purposefully in the right accounts: for emergencies, and future wants like security in retirement or the best education for the kids.
By understanding Adjusted Cost Base on disposition of assets, you’ll be in a better position to determine when—at lifetime or death—to do so, and to whom. You’ll also understand how to better utilize capital losses along the way.
Canadians are becoming more philanthropic - giving more every year to causes that are important to them. This calculator helps in determining the tax savings (and therefore the after-tax cost) of charitable donations.
The taxation of testamentary trust changed significantly on January 1, 2016. In order to plan for succession using testamentary trusts, you need to know how much tax will be payable by the trust. Use this calculator to estimate the taxes on income earned in a trust either as a graduated rate estate or a regular trust.