Using the CFM Order column

The default underlying cash flow management (CFM) logic contributes to RRSPs first, then TFSAs, and then Non-registered assets.  Automatic withdrawals are made in reverse order.  Using the CFM Order columns you can select different cash flow management strategies in any given year.

To show the CFM Order columns and allow editing of the contribution/withdrawal order, select the blue gear icon in the Financial Assets column header on the Planning Page and click the checkbox to Show the CFM Order column for this scenario. To enable this feature for new scenarios that you create, select that checkbox as well.  Click Save.

A new column will appear on the  Planning Page called CFM Order. The default Contribution order is displayed in this column as R, T, N (Registered, TFSA, Non-Registered). The default Withdrawal order is displayed as the reverse, N, T, R (Non-Registered, TFSA, Registered). If the CFM Order section is hidden, the default order is used in your scenario.

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To change the order, click R, T, N under Contributions or N, T, R under Withdrawals. In this example, we will change the contribution order to T, N, R and copy down for all years.

After running the scenario, the TFSA is the first account to be contributed to during the client's working years with the surplus spilling over to the Non-registered account after the TFSA room has been filled.  The Non-registered account is still the first to be withdrawn from in the decumulation years because the CFM Order for Withdrawals has remained as N, T, R. If we would like to use a different Withdrawal order we can change that as well.

For example, if at retirement, we have changed the withdrawal order to Registered, Non-registered, TFSA by specifying R, N, T under CFM Withdrawals from age 65.

The entire registered account will be depleted before non-registered withdrawals are taken. To split withdrawals between different asset types, please see this article: Changing the Default CFM Logic.

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1. If there are multiple registered accounts of the same type, Snap will withdraw from them based on the CFM Method selected for the plan. The default is to deposit to or withdraw from accounts of the same type on a proportional basis (based on value).
2. Minimum RRIF/LIF withdrawal amounts will always be enforced.  (Maximum LIF withdrawals will also be enforced).
3. If the RRIF hasn't started yet or there is no taxable income and withdrawals are required, Snap will withdraw from RRSP/RRIF up to the personal amount, provincial or federal, whichever is least.  This will occur before withdrawals from other asset types.
4. If you adjust the CFM Order for one spouse, this will be replicated for the other spouse. 
5. When you hide the CFM Order columns through the Financial Asset section header gear icon, the CFM Order will revert to the default CFM order. (Contributions = R, T, N and Withdrawals = N, T, R).
6. The Excel Export for the projections contains the CFM Order columns. The CFM order setting is not stated in the Report.

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