Retirement Planning

How much is enough to fund my retirement?

Use this calculator help you determine how long your investment savings might last. Enter your current savings plan in the contributions section of the calculator, and your withdrawal needs in the withdrawal section. This calculator will then plot your investment savings total year-by-year. You can then determine how much your investment savings could be worth, and how long it might last. This calculator can help those in Calgary, Edmonton, and throughout Canada!
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Glossary of Terms

Current age
Your current age.

Starting balance
Total amount that you currently have invested. Include any sources of investment savings
such as 401(k)s, IRAs and Annuities that you wish to include in this analysis.

Amount to contribute
This is the amount that you will add to your investment savings. You can add additional
amounts weekly, monthly, quarterly or annually. All contributions are assumed to be made at
the beginning of each period.

Annual return
This is the annual rate of return you expect from your investments after taxes. When
withdrawing, the return earned is often assumed to be lower due to more conservative
investment choices to help insure a steady flow of income. The actual rate of return is
largely dependent on the type of investments you select. For example, for the last thirty years
the average annual rate of return for the TSX is about 10%. Savings accounts at a bank or credit
union may pay as little as 2% or less. It is important to remember that future rates of return
can’t be predicted with certainty and that investments that pay higher rates of return are subject
to higher risk and volatility. The actual rate of return on investments can vary widely over time,
especially for long-term investments. This includes the potential loss of principal on your investment.

Years to contribute
This this is the number of years you will be adding new money to your investment savings.
If you wish to start withdrawals immediately, enter 0 for the years to contribute.

Inflation rate
What you expect for the average long-term inflation rate.

Inflation adjustments and your contributions
To keep your periodic contributions at the same level choose the option “No adjustment
for inflation”. If you select “Adjust contributions annually for inflation” we will increase
your periodic contribution at the end of each year by the rate of inflation.

Amount to withdraw
This is the amount that you expect to be withdrawing from your investment savings. You can
make withdrawals weekly, monthly, quarterly or annually. All withdrawals are assumed to be taken
at the beginning of each period. If you choose the option to “Calculate maximum withdrawal”
this field will be calculated.

Withdrawals to last
This is the number of years that your withdrawals are to last. If you choose the option
to “Calculate time balance will last” this field will be calculated.

Inflation adjustments and your withdrawals
These selections allow you to adjust your withdrawals for inflation. If you choose “No
adjustment for inflation” your withdrawal will remain at a constant amount for the entire
duration of your withdrawals. “Inflation adjustments begin with withdrawals” will increase
your withdrawal amount at the end of each year by the rate of inflation. This begins at end
of the first year of withdrawals. “Inflation adjustments begin immediately” will increase the
withdrawal amount, that was entered or calculated, by the rate of inflation beginning immediately.
Choosing this option helps illustrate the cost of providing a current amount of purchasing power
throughout your withdrawals.

Net Worth

Your net worth is the value of all of your assets, minus the total of all of your liabilities. Put another way, it is what you own minus what you owe. If you owe more than you own, you have a negative net worth. If you own more than you owe you will have a positive net worth. This calculator helps you determine your net worth. It also estimates how your net worth could grow (or shrink!) over the next ten years. This calculator can help those in Calgary, Edmonton, and Canada!
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Glossary of Terms

Home
Current value of your home. This should be as close as possible to the actual market value
of your home. If you have owned your home for a number of years, the current market value could
be significantly higher than your original purchase price.

Other real-estate
The value of any other real-estate you may own. Include second homes, undeveloped land,
rental property or any commercial buildings you may have an interest in. As with your home,
use the actual market value of this real-estate.

Automobiles
This is the total value of all automobiles that you own. Do not include any leased
vehicles.

Other vehicles
If you own any other vehicles, such as RVs, campers or collectibles, enter them here.

Jewelry
The value of any jewelry, gems or precious metals such as gold. If you have owned these
items for a number of years they may have appreciated in price, remember to use the current
market value.

Household items
The value of your household goods and items. This would include items such as furniture,
home electronics, silverware, etc.

Chequing and savings
The current total balance of your chequing and savings accounts.

Registered retirement accounts
The current total balance of your registered retirement accounts. This would include
RRSPs (term deposits, mutual funds), RRIFs, Employer Pension Plans, annuities and any other
registered retirement savings you may have.

Savings bonds
If you own any Savings Bonds enter the total here.

Bonds
If you own any Treasury, municipal, or commercial bonds enter the total here.

Mutual funds
If you own any mutual funds, enter the total here. Do not include any mutual funds that
are in your registered retirement accounts, they were already included in the “Registered
retirement accounts” line.

Stocks
If you own any individual stocks, enter the total here. Again, do not include any stocks
that are held in a registered retirement account.

Cash value of life insurance
Some life insurance has a cash value. This is true for Whole Life and Universal Life
policies. Term Life policies, on the other hand, have no cash value. If you have life
insurance with a cash value, enter the total here. Remember, this should be the cash value
of the policy, not the amount paid out if you were to collect on the policy.

Cash
If you have any other cash, enter the total here.

Other
If you have any other assets of value, you can enter the total here.

Home mortgage principal
This is the current principal balance remaining on your mortgage. This is the amount
that you would have to pay to own your home free and clear.

Other mortgage principal
This is the current principal balance for any other real-estate mortgages you may have.
This includes mortgages on rental property, undeveloped land, commercial property or any
other real-estate.

Auto loans
Total amount you currently have outstanding on your auto loans.

Student loans
Total amount, if any, that you currently owe in student loans. You should enter the
total outstanding even if these loans are currently in deferment.

Other loans
Total amount, if any, of any other loans you may have.

Credit card debt
Your total credit card debt.

RRIF Payment Calculator

A Registered Retirement Income Fund (RRIF) is a plan designed to provide Canadians with a constant income flow through retirement. The property under a RRIF is created from a transfer of funds from an RRSP or another RRIF. The funds in a RRIF are tax-deferred. Amounts paid out of a RRIF are taxable on receipt.

It is mandatory that you convert all your RRSPs by December 31st in the year you turn 71. The latest you are allowed to take your first payment is December 31st in the year you turn 72, however, the payment must be at least the full annual minimum* amount.
Canada Revenue Agency stipulates that a minimum payment must be withdrawn from your RRIF each year and reported as income. *This minimum annual payment is taken from a schedule that is based on your age or the age of your spouse.

For more information, including the factors used, please consult the following link to Canada Revenue Agency’s website: http://www.cra-arc.gc.ca/E/pub/tp/ic78-18r6/ic78-18r6-e.txt
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Glossary of Terms

Birth date
Enter your date of birth in Month/Day/Year format. Your age at the beginning of the year
is calculated and displayed on the Report.

Start date
This calculator assumes that your payments will begin on January 1st of the year following
the date you have entered as the start date. If you wish to delay or receive payments sooner,
simply enter the appropriate date. Keep in mind that you must start distributions no later than
the end of the year in which you turn 72 and that this calculator calculates your payments
starting January 1st of the year following the date you have entered as the start date.

Initial investment amount
The initial investment you have placed (or will place) in your RRIF plan.

Interest rate
Please use a realistic rate. Consult with an investment professional for an appropriate
rate of return.

Payment calculations
This calculator allows you to find your RRIF payment in one of three ways:

If you choose “Minimum required payments”, only your minimum required payment will
be calculated. Your required minimum payment will change each year as you grow older. We assume
that you will not elect to take payments in the year you start the RRIF since this would result
in exceeding the minimum amount and would be subject to withholding taxes. If you do elect to
take payments in the year you open the RRIF, please use the Fixed Payment Option.

Note: For individuals turning age 70 or 71 in 2007 and for those turning 71 in 2008,
the minimum withdrawal from a RRIF for those years will be zero. This is based on legislation.
For more information, please refer to the following link to Canada Revenue Agency’s website:
http://www.cra-arc.gc.ca/tax/registered/budget2007-e.html#T4RIF

The “Maximum payment for a fixed number of years” calculates your monthly and annual payment
based on a fixed number of years that you enter.

The “Fixed monthly payment” allows you to select a fixed monthly payment and calculate
how long your RRIF will last. If you have requested a payment in a partial year (i.e. Start Year),
you should use the Fixed Monthly Payment option.

RRSP Loan Calculator

An RRSP loan can be an excellent way to jump start your retirement savings. Use this calculator to see how an RRSP loan could help you in your retirement savings plan. This calculator can help those in Calgary, Edmonton, and Canada!
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Glossary of Terms

Amount to borrow
The amount you wish to borrow for your RRSP Loan. The calculator has assumed the amount
borrowed is the same as the amount you will deduct on your personal income tax return.
Please consult your Tax Advisor to determine the amount you could deduct for your personal
income tax purposes.

Interest rate
The interest rate for your RRSP loan. All interest is compounded monthly.

Repayment period
The number of years to repay the loan. This is the length of time to repay the loan if you
do not use any of your tax refund to pay down the principal balance.

Marginal tax rate
For illustrative purposes, we have assumed the marginal tax rate of 40. If this is not your
marginal tax rate, please change it. Please consult your Tax Advisors if you are unclear as
to what tax rate to use. The calculator has assumed that the Tax refund is equal to the loan
amount multiplied by your marginal tax rate. However, your tax refund may differ depending
on other personal income tax factors.

Estimated annual RRSP return
The annual percentage rate you expect to earn on your RRSP. The average annual rate of
return for the TSX has been 11% for the last 20 years. You may wish to use a more conservative
rate of return if you are within 10 years of retirement. This calculator compounds all
earnings annually.

Years until retirement
Number of years before you expect to retire.

Tax refund to apply to loan balance
This is the percentage of your tax refund that you wish to apply to the principal
balance of your loan. This amount will be used to reduce your balance in month four of your loan.

Dominion Lending Centres Westcor 114 1212 1st ST. SE, Calgary, Alberta. Phone: 403-228-7800. .