Definitions

We will refer to the following terms within Snap Projections or in the rest of this online documentation.  Note that in the application, you can hover your mouse over the "?" icon for more information.

  • Age - shows how old your client is by the end of the year.
  • After-Tax Spending or ATS (real dollars) - the annual after-tax dollars required to cover lifestyle expenses (not including taxes paid, debt payments, asset contributions). Real dollars show the true value of the dollar. To see more, please click here for Real vs. Nominal Dollars.
  • After-Tax Spending or ATS (nominal dollars) - the annual after-tax dollars required to cover lifestyle expenses (not including taxes paid, debt payments, asset contributions). Nominal dollars are adjusted for inflation and show the actual face value of the dollar reflecting the present value of goods and services.
  • Capital Dividends - the total capital dividend income provided by the corporation.
  • Cash Balance - the Cash account that accumulates Surplus or Shortfall, and either generates growth at a specified rate of return or incurs interest at a specified rate of interest.
  • CFM Start Age (Cash Flow Management Start Age)- Select the year to start the automatic cash flow management (automatic contributions and withdrawals based on the desired After-Tax Spending).  Please click here for more on Contributions and Withdrawals.
  • Corporations - the portion of the Corporate Net Worth at the end of the year attributed to the client (or spouse) and calculated based on their ownership of the Corporation(s). The total Net Worth for each Corporation is displayed in the Corporate module.
  • CPP - Canada Pension Plan government benefit that was either estimated as the national average or entered directly by the user.
  • CPP / EI - CPP and EI payroll deductions (only if non-zero, this column won’t be displayed if both CPP and EI are zero).
  • Eligible Dividend - the total gross amount of eligible dividend income.
  • Effective Tax Rate - the sum of Federal Tax and Provincial Tax divided by Taxable Income.
  • Estate Before Tax - the total value of the estate, including the Corporation(s), before taxes are deducted, in nominal dollars at the end of the year, calculated by assuming all assets are sold on December 31st at 11:59 pm.
  • Federal Tax - the amount of the federal tax to be paid after application of selected tax credits and tax deductions specified in the Tax & Inflation tab.
  • Marginal Tax Rate - the tax paid on the last dollar of income.
  • Net Cash Flow - A positive amount (cash flow surplus) indicates the cash remaining after meeting the After-Tax Spending target. A negative amount (cash flow shortfall) indicates the amount by which the After-Tax Spending target was unable to be reached.
  • Nominal Dollars - the actual face value of the dollar now and in the future.
  • Non-Eligible Dividend - the total gross amount of dividends issued by a public or private Canadian corporation, which are not eligible for the enhanced dividend tax credit - typically applies to small businesses and holding companies.
  • OAS - Old Age Security government benefit that was either estimated as 100% of the maximum benefit at age 65 or entered directly by the user.
  • OAS Clawback - the amount of the OAS Clawback (only if non-zero, this column won’t be displayed if OAS Clawback is zero.)
  • Provincial Tax - the amount of the provincial tax to be paid after application of selected Tax Credits and Tax Deductions specified in the Tax & Inflation tab.
  • Real Dollars - the real value that has been inflation-adjusted from the nominal value to account for decreasing purchasing power over time (for example $50,000 in nominal value in 2015 is only $37,205 in real value in 2025 assuming a 3% inflation rate). Click here for more on Real vs Nominal Dollars.
  • Tax on Estate - the total amount of tax payable, including taxes paid on corporate capital gains based on the final year's corporate net worth, if all assets in the estate were sold on December 31 at 11:59 pm.  If there is a spouse in the projections, the Tax on Estate is displayed as if all assets for both spouses were sold on December 31 at 11:59 pm.
  • Taxable Income - the total of all taxable income including employment income, other taxable income, eligible and non-eligible dividend income, and investment income (interest, eligible dividend, and capital gain). Here is the detailed formula behind the Taxable Income column.
  • Total Tax - the sum of the federal tax and the provincial tax.

Is there another term that you wish was defined? Please let us know.

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