Assumptions

You can alter any of your default assumptions on the Assumptions tab. The data entered here is applied when you start a new client file. All of these assumptions can be adjusted in each client file, if necessary. Enter the new default assumptions to be used and click .

!Updated Assumptions will not apply to any existing client files.

Default Province: Select the default province that will be set in Province field on the Address tab of Step 1 for new client files.

Inflation Rate: Enter the default percentage that is entered into the Inflation field on the Indexing tab in the Settings area of the data entry wizard.

Real Estate Index: Enter the default percentage that is entered into the Real Estate field on the Indexing tab in the Settings area of the data entry wizard.

Business Value Index: Enter the default percentage that is entered into the Business field on the Indexing tab in the Settings area of the data entry wizard.

Lifestyle Debt Index: Enter the default percentage that is entered into the Lifestyle Debt field on the Indexing tab in the Settings area of the data entry wizard.

CPP/QPP Start At: Select the default setting for the Start At field on the CPP/QPP tab on Step 2 of the data entry wizard. Select Retirement to start CPP at the planned retirement age. To default CPP to start at a certain age, select Age and then enter an age.

Pension Withholding Tax %: Enter the default percentage that is entered into the Pension Withholding Tax field on the Pensions tab on Step 2 of the data entry area. This percentage is removed from any pension income prior to the incomes being received from a cash flow perspective.

Apply Budget 2024: Select the default setting for the Apply Budget 2024 field on the Tax Setting tab in the assumptions area of the data entry wizard.

Life Insurance: Select the default setting for the Life Insurance field on the Human Capital tab in the Settings area of the data entry wizard.

Critical Illness: Select the default setting for the Critical Illness field on the Human Capital tab in the Settings area of the data entry wizard.

Disability: Select the default setting for the Disability field on the Human Capital tab in the Settings area of the data entry wizard.

DI % Income: Select the default setting for the DI % Income field on the Human Capital tab in the Settings area of the data entry wizard.

LTC % Income: Select the default setting for the LTC % Income field on the Human Capital tab in the Settings area of the data entry wizard.

Auto Allocate TFSA: Select the default setting for the Auto Allocate field on the TFSA tab on Step 3 of the data entry wizard.

Assumed Life Expectancy: Select the default age for the Assumed Life Expectancy fields on the Life Expectancy tab in the Settings area of the data entry wizard.

Pre-Retirement Cash Flow: Indicate if the program is tracking pre-retirement cash flow. Selecting On makes the program track pre-retirement cash flow and allows for the entry of Pre-Retirement Lifestyle Needs which are used to determine allocated and unallocated income. Selecting Off results in the program not tracking pre-retirement cash flow. (Note: RazorPlan Advanced subscribers need to turn Pre-Retirement Cash Flow on to enable the Cash Flow Excess Management Tool.) When Pre-Retirement Cash Flow is turned Off the following additional options need to be set:

1. Add Debt Payments: When Pre-Retirement Cash Flow is turned Off the program needs to be told if debt payments are going to be added to lifestyle needs or not. Select Yes to default the program to add debt payments to the lifestyle needs amounts entered, including in retirement years. Select No to set the default for the Add Debt Payment field to No, indicating that debt payments are not added to the lifestyle needs. This field sets the default for new plans but can be changed on a client by client basis.
2. Add Investment Savings: When Pre-Retirement Cash Flow is turned Off, the program needs to know if investment savings should be added to lifestyle needs. This field allows for setting a default value on new plans, Yes indicates that when cash flow planning is turned off the investment savings should still be added to lifestyle amounts. Select No to set the default on new plans to not include investment savings in Lifestyle Needs when pre-retirement cash flow is turned Off.
3. Add Ins. Premiums: If Pre-Retirement Cash Flow is turned Off, RazorPlan needs to understand how the program should handle any insurance premiums entered. This field allows for setting a default on how to handle insurance premiums. Select Yes to set the default to add insurance premiums to the Lifestyle Needs amounts entered. Select No to set the default to not include insurance premium amounts with the lifestyle needs.