How is mygoals software made available?

It is available, hosted in the cloud, in a software as a service or saas model.

What does mygoals mean when it talks about “multi-goals”?

Goals based investing is the discipline of savers investing toward the achievement of their financial life goals, such as building a retirement nest egg or saving toward the education of their children. It is not focused on outperforming a benchmark or maximizing portfolio returns. Multigoal based investing refers to prioritizing and monitoring the achievement of numerous financial life goals simultaneously.

Who can benefit from mygoals analysis?

• All people approaching retirement can benefit from mygoals. If they have not yet opted into CPP or OAS, we help in doing so. We help them by withdrawing funds tax-optimally above and beyond basic minimum RRIF withdrawals. It is mathematically very difficult how to advise regarding withdrawal prioritizations, thus the common utilization of “rules of thumb”. Even individuals who have already opted to begin receipt of CPP and OAS can benefit from mygoals versus relying on a rule of thumb approach that ignores the specifics of the individual case and could lead to clawbacks of OAS benefits or tax-inefficient withdrawals (at higher marginal tax rates)
• Advisors benefit from our software. We automate many otherwise complex calculations and improve efficiency and the quality of advice given to clients.  We improve both accuracy and speed versus other applications
• Young savers can use our optimizations to allocate savings most effectively between RRSP’s, defined benefit plans, defined contribution plans, TFSA’s, non-registered accounts to maximize future retirement income. Mygoals helps younger savers even more than older savers over the long run.

Why does mygoals utilize “optimization”?

Let’s face it, trying to understand and navigate the complex system of savings accounts, tax implications and government benefits is a daunting task at best. RRSP’s, TFSA’s, LIRA, LIFF, GIS, OAS, CPP, RESPs, Income Splitting, non-registered savings, defined benefit plans, defined contribution plans etc…. understanding the most effective way to reach your financial goals and efficiently is far from straight forward. What makes mygoals unique is that it is the only financial planning tool that truly optimizes the most effective approach to accumulate or withdraw your savings taking full consideration of all of the various account types, government benefits and tax implications. This differs from most other financial plans that demonstrate various scenarios of assets accumulating over time leaving it up to the investor or the advisor to iterate and review multiple options before narrowing in on what makes the most sense. Mygoals’ patent-pending technology will recommend how to allocate your savings toward accounts with differing tax treatments, in order to maximize your after-tax financial goals. Think of us as “account allocation” experts.

Does mygoals consider tax implications for all provinces and territories?

Yes, we do. Geography can have a significant effect on how Canadians should accumulate and decumulate their assets. For example, B.C. and Ontario have generous dividend tax credits, and as such it may be beneficial in those jurisdictions to focus some savings to non-registered accounts that are focused on eligible dividends.

Can mygoals specify when I should elect to receive both CPP and OAS? Can mygoals determine if I am eligible for GIS?

Yes, we do. We aim to maximize your after-tax retirement income, of which CPP and OAS (and possibly GIS) are two / three components. OAS is a challenge to optimize because it is both taxable and clawed back. Mygoals’ engines can solve for these and much more in a matter of seconds.

What does it mean to optimize contributions and withdrawals?

Mygoals has designed patent-pending software that considers everything we know and assume about a client’s specific financial situation. Inputs include client age, expected retirement age, expected lifespan, client earnings, spending, returns assumptions, home province or territory, etc. And future potential events like potential tax changes. We also can include lifestyle purchases such as a purchase of a cottage or selling a business. We then use our proprietary optimization algorithms to generate a unique strategy designed specifically every client. Rules of thumb such as “maxing out your RRSP” rarely apply, so we never utilize them.

What account types does mygoals consider in retirement?

We consider RRSP’s, Defined Benefit Plans, Defined Contribution Plans, TFSA’s, non-registered accounts and as mentioned CPP and OAS. Within non-registered we consider interest income, eligible dividends, non-eligible dividends, and capital gains.

How does mygoals treat mortgage and mortgage pre-payment?

Mygoals allows for clients to allocate a customized percentage of their savings toward principal mortgage pre-payment. We display how early a mortgage could be pre-paid, and as stated above reallocate these cashflows toward other goals, as defined by advisors and clients. Mygoals also allows users to input different mortgage rates over time, to stress test how future cashflows behave.

Does mygoals optimize CCPC withdrawals including capital dividends, salary, eligible dividends and non-non-eligible dividends?

Yes.  Mygoals optimizes CCPC withdrawals during the working career and retirement of CCPC   owners.  We connect salary to CPP contributions personally and corporately, and we generate RRSP   room.  We connect all sources of income during accumulation and decumulation phases.  During   working years we employ tax minimization from the four sources of payments of a CCPC to personal   expenses.  During retirement we treat the retained earnings within the CCPC as another account   toward retirement income and legacy to be left, and optimize withdrawals as part of maximizing   after-tax retirement income. 

Does mygoals track balances of CDA, GRIP, nRDTOH and eRDTOH balances over time?

Yes

Does mygoals connect the optimization of CCPC withdrawals back to other existing savings vehicles during accumulation and decumulation periods? (RRSP, TFSA and non- registered accounts)

Yes.  All accounts in pursuit of maximum retirement income in combination with legacy left to heirs are connected with CCPC withdrawals. 

Does mygoals account for multiple shareholders and income splitting within the CCPC model?

Yes. We account for two shareholders currently.  But we do suggest accountants agree to suitability!