Setup Instructions:
1. The RRSP balance is setup 2M (can be shared by both spouses), and the amount can be adjusted.
2. There are three options for the annual investment return assumption:
- FixValue: Enter your expected future annual return (fixed value).
- HistoryAve: Uses the average annual return of the S&P 500 over the past 50 years (fixed value).
- History20: You can choose any year from 1928-2005 as the starting point, and it will simulate 20 years of real historical data. For example, if you choose 1995, it will use the historical return data of the S&P 500 from 1995 to 2014.
3. For simplicity, the tax rate for RRSP account withdrawals is 30%.
4. The annual income tax rate for non-registered accounts is 17% (average rate, not margin rate).
5. The initial default annual inflation rate is 2.5%, which can be adjusted.
6. The initial default annual withdrawal percentage for the RRSP account is 5%, which can be adjusted.
7. The initial default annual return rate for non-registered accounts is 98% of the RRSP account return rate, which can be adjusted.
The yellow fields represent adjustable values.
For example, changing the annual withdrawal rate from 5% to 0% allows you to compare the growth of not withdrawing from the RRSP at all.
Or changing it to 8% enables rapid withdrawals (requiring a corresponding tax rate adjustment).
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