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How do I simulate the TPSP?

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The "reset base data" window (under options) now allows you to set the amount of the capital gains rate. It currently is set (naturally) at 50%.

-first, set the Cap gains rate to 0%. (at the bottom of the 'reset base data' window)

-next, make sure the 'cap gains%' in the non-reg section of the Capital frame is also set to 0%.

-now, we can use the DCG entity (just one, mind you) as the surrogate for the new TPSP as proposed by Stephen Harper.

-for the period of salary, make a contribution of $5000 in the 'annual cg investment' amount in the DCG entity.

-if the salary extends out to say age 60, then make the 'stops' value 60 and the 'capitalize start/stop' values 61/95.

This will generate a savings vehicle (saving 5000 annually) and have it drawn down over the period of retirement.

It will be tax free since the cap gains rate has been set to zero.

Remember, the new version of the program (post-may 15/2004) has the GIS in place, so the TPSP model should be pretty accurate.

Don't forget to reinstate the CG rate to 50% when you are done.

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