RRIFmetic Personal

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For those Greenpoint FP Profile users who are scrambling around, wondering what to do, here is some direction....

First of all, the great equalizer when it comes to choosing a financial planning model is income tax. Programs which forecast cash flows over time will generally fall into two categories... those which use an average tax rate and those which preserve the full tax calculation (use marginal tax rates).

Profile FP falls into the first category. Although it was touted to 'have full T1' accuracy, unfortunately it didn't preserve the interaction of tax and its effect on the different forms of capital (reg/nonreg/equity) as they come in and out of play over time. Couple this with the complexity of tax (dividends, clawbacks, surtaxes, etc), and the fact that the tax brackets are now indexed; and the average tax rate method becomes woefully inadequate. It was becoming an E&O issue.

If you are interested in choosing an alternative which preserves the accuracy of tax, then your choices are limited... only 3 or 4 programs fall in this category.

The choice amongst these 'tax-based' financial planning programs is problematic, but here are a few issues to keep in mind....

1. Ease of use/speed. Most of these programs are very slow to source. The data entry process is so onerous that the FA finds that they can afford to run only a very few of their high net worth clients. Several of the large vendors are forced to offer 'dumbed down' versions..... avoiding accuracy by abandoning the tax calculation and substituting average/approximated solutions.

Now.... remember, RRIFmetic comes in a personal use version. It is sold to do-it-yourselfers! (it is the same tax accurate program as the pro version... just limited to the number of files which can be entered) Can you picture such 'bloatware' as CCH/FPS, Planplus or NaviplanEx being offered to a similar user market?

RRIFmetic is fast, extremely easy to use and the results are simple to interpret. Period.

2. Approximated results. If you examine the output from any of these vendors, you will see elements in the results which are designated as "shortfall", "deficit" or "surplus".

Think carefully about this.... what the heck does this represent? Can you eat, touch, or smell a deficit or shortfall? Of course not.

The occurence of these elements simply means their programmers were unable to solve the goal-based math.

These are approximated solutions which shouldn't appear in a truly 'needs-based', tax-accurate cash flow forecast. RRIFmetic solves the problem directly. Take a simple example and try and derive a forecast which....

The resulting plan should have NO cash flow elements which are designated as shortfall, deficit or surplus.

This is a crucial point of comparison. RRIFmetic solves the above model in under three seconds. Using full tax accuracy.... indexed brackets, surtaxes, TONI, charitable donations, OAS/GIS clawback... the full T1 application. (spreadsheet-based vendors such as CCH don't even begin to solve this math!)

3. Inclusiveness. A RRIFmetic retirement/estate plan can include all forms of financial undertaking,.... loans, insurance, RESPs, real estate, future sale of home or business, CPP/OAS, pensions (DB/DC/commuting, etc), reverse mortgaging, LIRAs.... and it integrates all these entities' cash flows in a single 3 second model..... 100% tax accurately and goal-driven.

Summary. Download the free demo, or buy the $99 personal version. You will be able to handle five clients; and after, if you are satisfied that RRIFmetic will do what we claim, upgrade to the full pro version.

If you are a Profile FP user, we will be pleased to extend the 'free demo' time period... just call us. The program can be purchased for $379 and the yearly license fee is just $99, a small fraction of our competitors' licence fee.

Before you think about taking on FPS, Planplus or NaviplanX, explore the RRIFmetic option.

Click here to order your copy of RRIFmetic today!