Hints and Warnings

Hints are suggestions that may improve your projection. 

Warnings indicate a problem with your projection. 

Hints and Warnings are shown on three worksheets:

1. Dashboard: the first hint and/or warning that occurs in the projection is displayed along with the year that it occurs

2. Snapshot: any hints and/or warnings for the Snapshot year are displayed

3. H and W (an advanced worksheet): all hints and warnings for the entire projection are shown

Hint Descriptions

• <name> converts LIRA to LIF (and unlocks) at start of year: since the LIRA and then LIF are the most restrictive accounts, the Spreadsheet converts the LIRA to LIF and unlocks (if allowed) at the earliest age possible unless a different age is specified in the Data Entry worksheet.

• <name> moves funds from RRSP to RRIF to claim pension tax credit in future years: if there are no other sources of pension income available either directly or shared with a spouse, the Spreadsheet moves sufficient funds from the RRSP to RRIF account allowing $2,000 to be withdrawn each year from ages 65 to 71. This money is withdrawn tax free due to the pension income tax credit

• <name> makes RRIF withdrawal to use pension tax credit: see above. Displayed for each year the withdrawal occurs.

• <name> converts RRSP to RRIF by end of year: the Spreadsheet moves any remaining funds from an RRSP to RRIF at age 71 unless a different age is specified in the Data Entry worksheet.

• TFSA room available: the TFSA is the most tax efficient account and any available funds should be deposited into the TFSA up to the contribution limit. Indicates that there were not sufficient available funds to top up the TFSA.

• Donations carried forward: indicates that there was insufficient income to claim the available charitable donations.

• Donations expired: unclaimed charitable donations expire after six years and can no longer be used.

• <name>'s non-registered deposit limited due to possible income attribution: income from money deposited into a spouse's account can be attributed back to the contributor for tax purposes. The Spreadsheet attempts to distributed funds to equalize the net worth of both spouses. In this case the Spreadsheet has limited the deposit to one spouse's non-registered account because that spouse did not have sufficient funds through income or withdrawals to justify the deposit.

Warning Descriptions

• Insufficient funds: there were insufficient funds to cover expenses and other commitments during a given year and the Spreadsheet has had to draw from the Overdraft account.

• Emergency fund is low: as a last resort before drawing from the Overdraft account, the Spreadsheet will draw from the emergency fund (savings accounts). This warning indicates that the emergency fund has dropped below the level set in the Dashboard.

• <name> stops spousal RRSP contributions to avoid income attribution: any amount deposited to a spousal RRSP and then withdrawn within three years is attributable as income back to the contributor. The Spreadsheet stops all spousal contributions three years prior to retirement when withdrawals occur to avoid income attribution.

• Check for income attribution due to withdrawals from spousal RRSP and/or RRIF accounts: Any withdrawal from a spousal RRSP or any withdrawal beyond the minimum amount from a spousal RRSP can be attributed back to the contributor if the contribution was made during the previous three years. The spreadsheet is unable to detect this in the first three years of the projection.

• Home equity is negative: the Spreadsheet has detected that the principal residence has a mortgage that exceeds its value. See the Real Estate worksheet for details.

• Other real estate equity is negative: the Spreadsheet has detected that one or more of the other real estate properties has a mortgage that exceeds its value. See the Real Estate worksheet for details.