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Agents RSP Generation Calculator 2017

  1. Enter "Input" fields
  2. Adjust "Final Instalment Payment Options" if necessary
  3. Click "View Report"

Agents RSP Generation Calculator 2017 Definitions

Province of residence
The province of residence is used to determine your income tax rate and associated refund.
Unused RSP contribution limit
Enter your cumulative unused RSP contribution limit being your 2017 RSP deduction limit and your unused RSP contributions available from 2016. For more information visit: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/cntrbtng/nnsd-eng.html
Estimated Investor's taxable income in current year
Enter your estimated 2017 taxable income. This will be used to determine your effective tax rate.
Investment amount
Investment amount is the dollar value of the investment in RSP Eligible 10-year Harvest Mutual Fund Trust Units which hold Index-Linked Principal Protected Notes issued by a Schedule 1 Bank of equivalent value, guaranteed by the Bank and its investment performance is tied to a market index (the "Participating Bank Notes" or "PBNs").

Enter the amount you wish to invest. Allowable amounts are a minimum of $10,000 up to the lesser of the "Estimated Investor's taxable income" or the "Unused RSP contribution limit". This investment and all corresponding tax consequences are expressed on a stand-alone basis.

Expected rate of return
Enter your estimated rate of return on the investment. Rate is compounded annually. For illustrative purposes only.
Effective tax rate
The rate which will be applied to calculate a potential refund at time of investment. Determined by the Investor's province of residency, current tax rates and estimated taxable income.
Withholding tax rate
Estimate the marginal tax rate of the Investor in year 10. Minimum statutory withholding rate is 30% (31% Quebec) to a maximum of 55%.
First Instalment
50% of the value of the Investment amount due on closing of acquisition. 100% financing may be available to qualified Investors.
Tax refund
Based on the Investor's province of residency, RSP contribution (equivalent to the Investment amount) and estimated taxable income. An assumption is made that the Investor is current in their tax payments and/or instalments.
Net funding requirement
Total up-front cost to Investor in year one assuming the tax refund calculated.
Final Instalment
Equal to 50% of value of the Investment amount plus the Financial services fee. The Final Instalment is due 5 business days before the maturity of the Harvest Mutual Fund Trust Units.
Financial services fee
The Financial services fee is an amount equal to 50% of the Investment amount at 4.2072% compounded annually for the period from the issue date up to and including the maturity date.
Investor's own resources
Enter the amount you wish to pay of the Final Instalment with your own resources. Allowable amounts are a minimum of $0 up to the total amount of the Final Instalment. The more you pay with your own funds the higher the IRR on your investment and the more funds you will have available for reinvestment in your RSP at maturity.
Funds withdrawn from SD RSP
If the Investor does not pay the entire Final Instalment 5 business days prior to maturity of the Harvest Mutual Fund Trust Units, Units in value of the amount outstanding will be withdrawn from the Investor's SD RSP to pay the balance owing. Whenever funds are withdrawn from the Investor's SD RSP, a withholding tax must be applied by the Trust Agent equal to a grossed up 30% (31% in Quebec) of the amount withdrawn from the SD RSP. The distribution from the SD RSP must be added to the Investor's income in year of withdrawal. The withholding tax paid on distribution is applied as an instalment of the income tax payable from the income inclusion. Additional tax may be payable in the year of withdrawal if the tax payable as a result of the income inclusion is greater than the amount withheld.
Net Gain (Loss) on Investment
The sum of all cash flows, both positive and negative.
IRR (Internal Rate of Return)
The investment return is assumed to be constant throughout the investment period and all cash flows are assumed to be reinvested within the SD RSP at the same annualized investment rate.
Break-even investment return
The break-even investment return is the rate of return on the investment that would result in no gain or loss on the overall investment. This rate may not be applicable (e.g. calculated as a negative amount) where the Investor's cash cost is equal to or greater than the Investment amount.