By Mike Howe

RazorPlan’s RRIF calculator estimates the future withdrawals from a RRIF based upon the prescribed minimums. Advisors can also use the RRIF calculator to estimate how long a client can withdraw a set amount from a RRIF before running out of money.

Use this calculator to give clients an idea of their RRIF minimum schedule by entering their current RRIF balance, expected rate of return and current age. The calculator automatically calculates the RRIF minimum based on the client’s age and displays a breakdown of the withdrawals and account balance for 30 years.

In addition to showing the RRIF minimum, an advisor can use this calculator to determine how long a planned withdrawal amount can be made from a RRIF account. For example, if a client that is 68 years old and has $500,000 in their RRIF account wanted to know how long they could withdraw $25,000 from their account; this calculator can be used. If the assumption is that the portfolio is earning a 5% rate of return and the withdrawals are going to be indexed at 3% for inflation, the calculator would show that withdrawals can be made until age 92 before the account is depleted.

For the simple and quick RRIF calculations needed to be made on a regular basis this calculator is a very powerful tool for advisors.