![]() But to meet his objectives, he needs $1,976,000! To achieve that, he would need to increase his monthly contribution to $693. The results show that by age 65, he will have accumulated $285,000 in his RRSP. That’s highly unlikely in real life, however. The average annual compound rate of return is 6 per cent and the calculator assumes the tax refund generated by the RRSP contribution is always reinvested. He has just opened an RRSP and is investing $100 a month. He wants enough money to sustain him in retirement for 25 years. He has no employer pension plan but expects to receive $11,000 a year from CPP. The first was for a 25-year-old Alberta man who wants to retire at 65 with 80 per cent of his current $50,000 annual income. I ran a few scenarios to see what results were generated. But offsetting that is the fact you only need to fill in a few fields to get an idea of whether your current savings plan will achieve your retirement goals. ![]() This is not an overly sophisticated calculator - it makes no provision for inflation, for example. Don’t use it unless you are prepared for a wake-up call. High-income Canadians should avoid Nova Scotia (50 per cent marginal tax rate) and flee to Alberta (39 per cent). You’ll also find that British Columbia, Alberta and Newfoundland and Labrador are the best places, tax-wise, for a low-income person to live. To visit the site, go to The website can be found at Want to know your marginal tax rate? Interested in finding out whether dividends or capital gains are more tax effective? Use the tax calculator offered by the accounting firm of Ernst & Young Canada - in my experience, it’s the best of its kind.īy playing around with the numbers, you’ll discover that many Canadians can receive $35,000 a year in dividend income and pay no tax at all if they have no other income. Some of the calculators are also available in French. Other calculators on this site will tell you whether it is better to pay off debt or to invest, how long it will take to retire a credit card balance, how to save money in an RESP, and how quickly an RRSP will grow. The same calculator allows you to figure out how to finance a college education and how much it will cost to pay off the loans after graduation. If cost is an issue, you have to pick your school carefully. The same degree at McGill will cost about $15,100 a year while at the University of Toronto it will set you back more than $22,000 annually. I learned that a four-year engineering degree at the University of Alberta will cost approximately $17,000 a year including tuition, books, room and board, entertainment and transportation. (Although the site is funded by the OSC, it does not restrict itself to Ontario.) ![]() Among other features, it tells you approximately how much it will cost to earn a degree in various disciplines at almost every university in Canada. Young people and their parents will find the university cost and debt calculator especially valuable. ![]() The website is a gold mine of useful information and offers 11 helpful calculators, half a dozen worksheets, and numerous articles and tips. This is a non-profit organization established by the Ontario Securities Commission (OSC) to provide unbiased, independent financial information. Recently, I did some extensive research for a new book looking for online financial calculators that are suitable for Canadians. Wikipedia – Time Value of Money & Rate of Return – Wikipedia’s entries on the time value of money and rate of return.You don’t have to buy expensive software to find out how much money you need to retire or what a college education will cost.It is only an annualized rate if the compounding period is an annual one. The rate of return is listed as the rate for each compounding period. The test upper-bounds of the calculator are 11% and the lower bounds are -1%. It then tries a different rate of return until it finds a match to the present value.Īll rates of return in this calculator should be tested against a present value, future value, or payment calculator to double-check the results. This calculator computes rate of return by guessing a rate of return and calculating a present value using the rest of the data to check if the result is accurate. We do not not have a specific formula for rate of return. Formula – How is Rate of Return is calculated In terms of time value of money, rate of return is always calculated over the compounding period. It is listed as a percentage and usually calculated as a decimal. Rate of return (RoR) is the rate that a financial stream gains or loses over time.
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