FAQ: How to Model Taking Dividends Only From a Non-Registered Account

Step 1: Configure Advanced Options for Dividend-Only Withdrawals

1. Access Advanced Options:
   • Go to the "Advanced Options" section of the platform, typically found in the top right of your planning table.
2. Set Portfolio Allocation:
   • Choose an asset allocation that reflects 100% equity or dividend-focused investments (such as Canadian dividend stocks). This setup ensures that all withdrawals will come from dividends, not capital gains.
3. Set Dividend/Capital Gain Rate of Return to Meet Inflation (see video for detail):
   • For example if your expected dividend rate is 4%, ensure that the underlying investments are growing at a rate that keeps pace with inflation. This adjustment helps maintain the purchasing power of your dividend income over time.

Step 2: Set Manual Withdrawal Overrides

1. Create manual overrides in the Projection section from your non-registered account.
   • Make sure to adjust withdrawal percentage to account for start of the year withdrawal (see video for detail).
2. Use Charts to Ensure No Capital Drawdown:
   • Using the Today's $ net worth chart, make sure that your non-registered account is holding value. This will confirm that your calculations are correct.