Risk/Return controls the Risk Profile, Rate of Return and Tax Efficiency of all liquid investments. Different settings can be defined for Pre and Post-Retirement investments as well as individually for Registered Investments and Non-Registered Investments/TFSA.
Return Type: Select the setting that RazorPlan will use for the rates of returns. To use the static rates of returns in both pre and post retirement select the ‘Static Rates’ option and enter the rates of return in the fields below, to use the variable rates of return select the ‘Variables Rates’ option. When using the variable rates option the data is entered by clicking the 
button which will open the Variable Returns window.
(Return Type is only available in RazorPlan Advanced. You can upgrade to RazorPlan Advanced using the Billing tab in Your Account. If you have any questions, please contact support).
Registered Investments: Includes all RRSP/RRIF and Locked-In Plans.
Non-Registered/TFSA: Includes all Non-Registered Investments, and TFSA.
Corproate Investments: Includes all Corporate Investments.
Risk Profile: Select the appropriate Risk Profile from the drop-downs and RazorPlan will set a Rate of Return and Tax Efficiency (Non-Registered/Corporate only) that reflects the profile selected.
Rate of Return: Based on the Risk Profile selected, a Rate of Return has been established to ensure that it is reflective of the risk profile.
Tax Efficiency: This value is predetermined based on a common set of investments within each Risk Profile. Tax Efficiency allows the software to replicate the impact asset allocation may have on the growth of taxable investments; as Tax Efficiency is increased, the portion of taxable growth will decrease. This concept is easily illustrated when applied to the 3 main types of investment income.
- Interest income is fully taxable when earned and is therefore 0% Tax Efficient.
- Dividend income earned personally is approximately 35% Tax Efficient, depending upon the province.
- Capital Gains, which are 50% taxable when realized, are a minimum of 50% Tax Efficient.
Click here for more information on the Tax Efficiency Concept.
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Contact Razor Support