FAQ: If I Add a One Time Expense Do I Need to Set Where the Income Comes From?

No, you don't necessarily need to set where the income comes from when you add a one-time expense, as the Adviice platform will automatically determine the best withdrawal strategy based on your existing plan setup. The platform typically follows the default withdrawal order (e.g., non-registered accounts first, then registered accounts like RRSP, followed by TFSA).

However, it can be beneficial to specify where the funds come from, especially if:

• You want to avoid higher taxes: For example, if you know that drawing from registered accounts (like RRSP) will push you into a higher tax bracket, you might want to specify TFSA to avoid triggering more taxes.
• You have specific savings for a particular purpose: If you’ve earmarked funds for the one-time expense, like a gift or large purchase, and you want to keep them separate from other accounts, you can specify where the withdrawal comes from.

How It Works:

• If you don’t specify, the platform will pull from accounts in the default order (non-registered first, then registered, and then TFSA).
• If you do specify, you can control where the funds come from (e.g., non-registered, TFSA, or a specific savings account), allowing you to manage tax implications better.