Frequently Asked Questions 

Does Cascades apply inflation to CPP & OAS?

Yes, inflation is applied to CPP & OAS and then the results are presented in today’s dollars. This makes your CPP and OAS payments appear level over- time on the report because the report is displaying the purchasing power of these payments in today’s dollars. This is consistent with the fact that CPP and OAS payments are indexed according to the Consumer Price Index (CPI) so that their purchasing power for typical consumer goods remains constant over time.

Does Cascades calculate the reduction or increase that would occur from taking CPP earlier or later than 65?

Yes. Simply enter the appropriate CCP estimate at age 65, then enter the age you would like it to start. If you choose an age before or after 65, Cascades will automatically adjust the amount you estimated to start at age 65.

Is survivorship incorporated into the plan for couples (i.e. CPP)?

At this time survivorship is not calculated in the plan as we assume all spouses live for the entirety of the projection. It is, however, possible to generate what-if scenarios for a single surviving spouse based off an existing couple’s report. Contact us at info@Cascades.com for more details.

Can I adjust my defined benefit pension value at a certain age?

Yes, Cascades allows you to change your long-term pension payment at any age to accommodate a pension bridge or other adjustment. Moreover, you can indicate whether your pension payments will be indexed to inflation.

I have a defined benefit pension, but the annual amount declines as I get older. Why is that amount going down?

It’s showing a decrease because the pension has indexing turned off. Since all dollar figures on the report are displayed in terms of present value purchasing power, a level annual pension payment that is not indexed to inflation loses purchasing power every year as inflationary effects compound.

Specifically, the present value purchasing power of a level annual income stream will decrease by a factor of: [inflation] / (1 + [inflation]) each year where [inflation] is the inflation rate configured for the plan (as a decimal). For example, a 2% inflation rate would mean the payment will decrease in purchasing power by 0.02 / 1.02 =~ 0.0196 = 1.96% per year.

ADDITIONAL ASSETS & NON-REG ACCOUNTS:

The asset allocations for each risk profile are predetermined. Can these be modified?

At this time, the asset allocations listed under each risk profile cannot be modified.

What assumption does the model make with respect to the proportion of withdrawals from Non-Reg of equity investments that will be subject to capital gain taxes?

The amount of return that is assumed to be capital gains (rather than dividends or interest) is determined in each risk profile. Our assumption is that the full capital gain that occurs each year is realized for tax purposes in that year. Furthermore, we assume the non- registered holdings initially have an Adjusted Cost Base (ACB) equal to their market value and then this full realization of capital gains each year causes the ACB to remain equal to the market value for the duration of the plan.

Can additional non-investment assets like real estate be added to the report?

Currently, Cascades does not track the value of non-investment assets like a home or business. You can, however, add a future lump sum deposit that could represent the proceeds from a sale of real estate, a business or any other physical asset. Future lump sum deposits are also often used to add an anticipated inheritance to the plan.

Can additional sources of income be added to a report?

Yes – we have a ‘Custom Income Sources’ section of the questionnaire where you can include additional income sources such as rental income, spousal support, part time work income, registered and non-registered annuities. Any conceivable income stream can be added through this interface by selecting an income of type ‘Other’ and providing a name for the income stream along with all pertinent details regarding its amount, period of receipt, taxable status, and indicating whether it is indexed to inflation.

CORPORATE INVESTMENTS:

Will Cascades show the corporate account during the drawdown?

We do not solve for the optimal drawdown of the holdings in a corporate account, but you can add corporate investment accounts. Three options exist to draw down the corporate account. The first is by report end (i.e. age 100), the second is to solve for a depletion by age, and the third is to select a fixed amount to be drawn out each year. Essentially, the software will solve for optimal drawdown of personal assets, but it is up to the user to determine the drawdown of corporate assets using one of these options based on the streams of dividend income you request, this will affect the optimal drawdown of personal assets the software determines.

Will Cascades distinguish between eligible and non-eligible dividends from the corporation?

Yes. All notional corporate accounts (capital dividend account, LRIP, GRIP, NERDTOH, ERDTOH) are tracked and accounted for with respect to corporate dividend withdrawals.

RATES OF RETURN:

Is sequence of return risk accounted for in the projections?

We assume no year-to-year variation from the rate return of return determined by your selected risk profile. With that said, we strongly suggest that you consider this risk when planning.

What’s the rate of return on investments that are assumed for different levels of risk tolerance?

Our risk profiles and associated asset allocations and returns are as follows:

Conservative: 70% Fixed Income, 30% Equity – 4% annual rate of return

Moderate: 60% Fixed Income, 40% Equity – 5% annual rate of return

Growth: 40% Fixed Income, 60% Equity – 6% annual rate of return

Aggressive: 30% Fixed Income, 70% Equity – 7% annual rate of return 5

Can I specify a different rate of return for each account in my plan?

At this time, all accounts are projected with the rate of return specified by your selected risk profile.

INFLATION:

Can I set a growth factor for the annual retirement income?

Your retirement income grows at the provided inflation rate and periods of additional income needs can be accounted for as well.

Are reports generated in today’s dollars or future dollars?

Cascades reports are generated using real future dollar amounts which are then re-calculated in terms of today’s dollars for display on the reports. We present everything on the report in today’s dollars so that you can compare any two years of the projection and have an apples-to-apples comparison of what that money can purchase (by today’s standards) without having to do any conversions.

Should my future lump sum deposits be designated in future value or today’s dollars?

All lump-sum deposits should be given in future value dollars (i.e. the amount of money that will be received at the future date). The program will then perform the calculations to present this deposit amount in today’s dollars, so this value is comparable to all other dollar figures on the report in terms of today’s purchasing power.

REPORTING:

Can the questionnaire be saved before generating a report?

No, however, reports can be saved once they are generated, and most sections do not need to be completed before generating. If you run into an instance where you have partially completed the questionnaire and run into a question for which the answer is not immediately available, we would suggest leaving the question in its default state (generally a ‘No’ or ‘0’ answer) and generating without those details included. You could then save this partially completed report and return to it later to edit when the relevant information is available.

Can advisors edit the PDF report cover page? 

Once logged in, advisors can click the ‘Profile’ button on their dashboard to enter their practice details and upload a company logo. The practice information will then appear on the cover page of the report under ‘Advisor Information’ and the company logo will replace the Cascades logo in the top-right of each page of the PDF report.

Can you shape the retirement income beyond a level payment year over year?

Yes – you have the option to input up to 10 years or ranges of years with additional income needs above the long-term baseline income you set for your plan. These are often used for things like planned traveling at the start of retirement, future purchase of a vehicle or other big-ticket item in a single year or allowing more income to provide for long-term care towards the end of life.

SECURITY:

How’s the data protected?

Cascades uses an industry standard TLS encryption protocol, and all saved data is stored in Canadian data centers. These data centres are managed by Amazon Web Services (AWS). The key benefit of using AWS is their enterprise level security and compliance to industry standards. The AWS infrastructure puts strong safeguards in place to help protect user privacy, and all data is stored in highly secure AWS data centres. For more information on AWS security and compliance, please follow this link: https://docs.aws.amazon.com/whitepapers/latest/aws- overview/security-and-compliance.html

Who can use the data?

Cascades employees can access the data in order to aid our users. We do not share or sell your provided data to any third party.

Is data kept for the company to use?

We only keep the data for any cases you choose to save so that data can be used to view reports when you access the site. Periodically, this data may be anonymously aggregated by our software systems to monitor the usage of certain features and provide insight for future improvements to the software.

Upon my request, can my data be deleted?

Yes – with your request, we can delete any saved reports associated to your account or delete your account entirely to remove any traces of your data from our system.

Are any portions of the data sold?

We place great importance on our users’ privacy – none of the information collected by Cascades is sold or shared with third parties.

About Cascades and PureFacts:

Cascades, in partnership with fintech leader PureFacts Financial Solutions, provides a software solution that revolutionizes the way advisors can help clients with retirement income planning.

This leading-edge, cloud-based tool integrates into enterprise platforms for easy and intuitive use by advisors. It accounts for all sources of retirement income, is always current with the tax code, and simplifies the complex task of income planning.

Cascades empowers advisors to quickly enter the growing retirement decumulation planning space and creates the potential to protect and grow their AUM.

For more information, please contact: 

Telephone: 1 (888) 297-3506 

Customer Support: info@cascadesfs.com 

Website: www.cascadesfs.com