Software updates that materially impact plan results

Occasionally we'll update calculations or assumptions that can materially impact the results of a plan. This article lists and explains these changes so that you can better understand the default assumptions and calculations in Snap and how changes might impact your plans.

You can keep a copy of an existing plan so that the changes won't be applied and you can keep the original plan as it was before the update. If you want to keep a copy of an existing plan as it currently is in Snap, please do not make any edits or click the Run Scenario button for that scenario. We recommend copying your projection and making edits to the copied version only. Your copied version is immediately re-run so it may start with different results than the original. Your original version will be maintained so you can generate a PDF of the Client Report, export the projections to Excel, or screen share the plan without the new calculations applied.

Annual Financial Data updates

Each year in late December or early January we update Snap Projections with all available and relevant financial figures and tax data so you can create up-to-date, accurate projections for your clients in the new year. Some of the highlights are the following:

  • The RRSP maximum contribution limit.
  • The TFSA maximum contribution limit.
  • The CPP/QPP Maximum Pensionable Earnings.
  • The CPP/QPP Maximum Annual Benefit.
  • The OAS Maximum Annual Benefit.
  • The EI Maximum Insurable Earnings.
  • EI premium rates and maximums.
  • Federal and Provincial Tax data for all provinces including Quebec. This includes tax credits, tax brackets and tax rates, and other relevant figures.

All plans with a Start Year of a previous year will be unaffected by these changes. You will need to click Rebase to create a copy of the plan that starts in the current year.

All plans with a Start Year of the current year will be adjusted for these changes once you click Run Scenario after the update.

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Material Changes, Oct 24, 2022

1. Default cash flow method (CFM) change for projections with multiple Financial Assets of the same type

We released the option for greater control over default deposit and withdrawal settings for plans with multiple accounts of the same type (e.g., a client with two TFSAs). The CFM Method (Cash Flow Management Method) is a new customizable option from this release. From the Planning page, you can select the Financial Assets modal to set the CFM Method for your current scenario and for all new scenarios.

By default, the CFM Method is set to Proportional (based on value). This means that if there are multiple accounts of the same type (e.g., two non-registered accounts), Snap Projections will deposit excess cash flow or withdraw needed funds on a pro-rated basis relative to the account balances. You can change this setting to Sequential (based on order). This will deposit excess cash flow or withdraw needed funds from the first account listed on the Financial Assets table with no override on the Contribution (Withdrawal) column.

Before October 24, 2022, contributions were assumed to be split evenly amongst non-registered and TFSA accounts and split proportionally (based on value) amongst registered accounts. Withdrawals used to be taken sequentially (based on order) from non-registered and TFSA accounts and proportionally (based on value) from registered accounts. These changes will bring greater consistency to cash movements and provide more flexibility and control to our users.

For instance, if you have two non-registered accounts in your plan, excess deposits were previously split evenly between those accounts. Now, deposits will be made proportionally (by default) or sequentially. If your non-registered accounts have different asset allocations or rates of return, this will impact the plan (e.g., increasing or decreasing the After-Tax Estate value).

2. Improvements to Base Expenses allocation between spouses

We have improved the way that Snap splits the household spending goal between spouses. We have adjusted the weighting given to available resources each year (e.g., RRIF minimum, pension income, overridden withdrawals). One impact this will have is to reduce the number of years that contain a withdrawal for one spouse and a deposit for the other spouse. This will result in a more accurate illustration of future cash flow and taxes.

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