Entering Assets in the Projections

The Assets page is divided into 2 sections, the Capital Assets section and the Real Assets section. We'll begin by covering how to add a Capital Asset (e.g., bank and investment accounts) to your plan and then move on to Real Assets (e.g., home, cottage, rental property) at the bottom of this article.

Capital Assets

The Capital Assets section includes five tabs where you can input details about your client's accounts. The five tabs include  Assets, TFSA, RRSP/RRIF, DCPP/LIRA/LIF, and Employer Matching.

1

Assets Tab

Under the Assets tab, you can enter various assets such as bank and investment accounts. Once you have added assets to the table, a column will be created for each asset on the Planning page where you can enter specific contributions or withdrawals, or view the automatic contributions and withdrawals performed by Snap Projections.

You can create individual or group TFSA, RRSP, and Non-Registered assets. You can also create DCPP accounts in this section. RRSP accounts will convert to RRIF accounts at the designated conversion age under the RRSP/RRIF tab on this page. Similarly for LIRA to LIF accounts the conversion and unlocking can be done under DCPP/LIRA/LIF tab.

To add a new asset, click Add Capital Asset. Enter the asset details such as the Type of account, Value, and asset allocation under the Assets tab, you can also input the Cost in the case of Non-Registered Assets.

You can enter the ACB for an account that consists of all three asset classes. However, the cash and fixed income portions of the non-registered assets generate interest income only in the projections. Equities are the only asset class that can generate capital gains in Snap. The ACB entered here will be taken into consideration for the capital gains calculations, even if there are cash and fixed income portions of the account.

You can access the Portfolio Settings (by selecting Scenario Setup -> Settings -> Portfolio) and further specify the Equity Return Allocation between capital gains, and foreign and Canadian dividend-producing stocks.

Once you have entered information under all of the columns for this asset in the table, it will be automatically Saved.

2

TFSA Tab

Under the TFSA tab, you can enter the unused TFSA contribution room. By default, TFSA Contribution Room for 2022 is set to $6,000 which is the maximum TFSA contribution for 2022. The default settings are a good starting point, but the Contribution room can be updated based on their Notice of Assessment.

Updating the contributions allows Snap to not contribute more than the contribution limit in the Registered Account.

3

RRSP/RRIF Tab

Under the RRSP/RRIF tab, you can set the available contribution room, enter any pension adjustments related to DBPPs, base the minimum RRIF withdrawals on the younger spouse, and set the conversion age for each account by clicking the RRSP/RRIF tab above the Capital Assets table.

The initial settings for this client were based on $90,000 of Employment Income and the start year of 2022. RRSP Contribution Room for 2022 was set to 18% of $90,000. The default settings are a good starting point, but the Contribution room can be updated based on their Notice of Assessment.

You can also set the conversion age of each RRSP account individually here, this allows you to stagger the conversion of assets by setting different values for the Conversion Age.

4

DCPP/LIRA/LIF Tab

Under the DCPP/LIRA/LIF tab, you can base Minimum LIF withdrawals on the age of the younger spouse and indicate any unlocking for each account by clicking the DCPP/LIRA/LIF tab above the Capital Assets table.

Based on the jurisdiction of the LIRA or DCPP account, it may be possible to unlock a percentage of the funds upon conversion to a LIF account and transfer the unlocked portion to an RRSP/RRIF account.

Similar to the RRSP/RRIF Conversion Age above, you can now set the Conversion Age for each account individually.

5

Employer Matching Tab

For group assets and DCPPs, under the Employer Matching tab, you can specify a percentage of the selected employment income or other income that is contributed to this asset annually by employees and employers. On the Planning page, the asset will begin as a group asset and then will be converted to a regular individual asset when the linked employment income ends.

First, select the Employment Income to link to this asset, and then you will be able to enter employee and employer contribution percentages.

On the Planning page, you will see the accounts you have created on the Assets page listed under the Capital Assets section. Note that the Principal value displays the end-of-year value for each account after any contributions or withdrawals have been made and the rate of return has been applied for the year.


Real Assets

The Real Assets section contains a table that allows you to enter real, tangible assets such as primary and secondary residences and rental properties. These assets can be existing assets or those that are planned to be purchased in the future. You can also enter a date to sell the property and specify whether the property would be subject to capital gain tax.

To add a new Real Asset click Add Real Asset. Once you have entered data for each required field, the asset will be automatically saved. You do not need to enter a Future Purchase Age if the client already owns the property.

The Planning page displays the property with the end-of-year value after any appreciation has been applied. For jointly owned assets, the value for the property is split evenly and half of the value is displayed for each spouse.

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