Series T cash flow calculator

The ScotiaFunds cash flow calculator is an easy-to-use, interactive tool designed to help you plan your cash flow strategy from your investments. The calculator can help you: 

• Estimate monthly cash flow—Enter an investment amount, investing preferences and payout rate to see how much you could receive each month
• Compare different options—Adjust payout rates, investment amounts and different investment options to see how these changes will affect cash flow
• Visualize your income plan—See what your monthly cash flow and distributions would be, helping you feel more confident about your choices

Tip: Use the calculator as a starting point, then talk to a Scotiabank advisor to build a cash flow plan that can achieve your financial goals and needs. 

ScotiaFunds Series T are designed to provide investors with regular monthly distributions based on a target annual payout rate, ranging from 3% to 5% depending on the fund’s target payout. Each Series T fund has a predetermined payout rate, and the distribution amount is calculated based on the fund’s net asset value (NAV) at the time it is set. While the payout is established at the start of the year, it may be adjusted periodically by Scotia Global Asset Management. Distributions can include income, dividends, capital gains, and/or return of capital (ROC), which is a portion of your original investment being paid back to you.

Series T funds are ideal for investors seeking tax-efficient income from non-registered accounts to help meet ongoing cash flow needs. By combining predictable distributions with potential for long-term growth, ScotiaFunds Series T options offer flexibility and a potentially tax-efficient way to manage retirement or income goals.

Series T versions of Scotia Portfolio Solutions can be used to generate tax-efficient income from non-registered investments to meet your cash flow needs. They may be best suited for investors who:

• Need predictable cash flow—Series T mutual funds provide consistent monthly distributions that can help cover your income needs.
• Are seeking tax-efficient cash flow—Series T distributions often include return of capital, which is generally more tax efficient than other forms of income.
• Are looking to stay invested—With Series T, you remain invested in the fund, so your portfolio can potentially keep growing tax-deferred until you sell.
  
  Tip: A Scotiabank advisor can help you decide if Series T is the right solution for your income needs. Book an appointment today.  

Series T versions of Scotia Portfolio Solutions are available with 3%, 4% or 5% target annual payout rates. The right choice depends on your financial goals, income needs and your personal financial circumstances. Use the ScotiaFunds cash flow calculator to:

• Estimate monthly cash flow—Enter an investment amount, investing preferences, and payout rate to see how much you could receive each month.
• Compare different options—Adjust payout rates, investment amounts and different investment options to see how these changes will affect cash flow.
• Visualize your income plan—See what your monthly cash flow and distributions would be, helping you feel more confident about your choices.

A Scotiabank advisor can help you find the right solution and payout rate to meet your goals and needs. Book an appointment today.

Tip: Generally, a higher payout rate can provide more cash flow now but may reduce your investment balance more quickly.  

You can withdraw additional amounts from your investment at any time. However, redeeming from your investments will have income tax implications. It is important to plan carefully with your Scotiabank advisor and tax professional. 

Series T mutual funds pay regular distributions that consists of return of capital (ROC) and other income sources generated by the fund without requiring you to sell your investments. ROC is a portion of your principal amount that you originally invested being paid back to you. This way, you remain invested in the fund, so your portfolio can potentially keep growing tax-deferred until you sell. ROC is generally not taxable when received. Instead, it reduces the cost base and defers taxes until the mutual fund is sold, or the cost base drops to zero. 

Return of capital (ROC) means you’re getting part of your original investment back. It’s generally not taxable as income when received but lowers your cost base, deferring taxes until you sell the investment or the cost base reaches zero. ROC can help provide steady, tax-efficient cash flow.

If you own mutual funds in a non-registered* investment account, it's important to understand the different types of mutual fund distributions and how they are generally taxed as you receive them. These distributions can include:

• Interest and other income – Fully taxed at your marginal tax rate, the tax rate you will pay on the dollars earned in the highest range of income, or tax bracket, that you reach.
• Foreign income – Fully taxed at your marginal tax rate. Investors may be entitled to foreign tax credits.
• Canadian dividends – Taxed at a preferential rate, thanks to federal and provincial tax credits.
• Capital gains – Currently 50% taxable at your marginal tax rate.
• Return of capital (ROC) – Generally not taxable when received, but reduces the cost base or the initial investment, affecting future gains or losses when the investment is sold. 

* Mutual fund distributions are typically reinvested in registered accounts, like Registered Retirement Savings Plans (RRSPs), Registered Education Savings Plans (RESPs), Tax-Free Savings Accounts (TFSAs) or First Home Savings Accounts (FHSAs), and are generally not taxed, allowing for tax-deferred growth.

Think of a suite of different mutual funds with their own set of investment objectives, being grouped together. These mutual funds are called corporate class mutual funds, and the group is called the corporation. This allows all the mutual funds in the corporation to pool income, expenses, gains and losses. Because of this, corporate class mutual funds within a corporation can: 

• Offset the gains from one corporate class mutual fund with the losses from another corporate class mutual fund.
• Offset the income from one corporate class mutual fund with the expenses from another corporate class mutual fund.
• Make distributions typically made up of Canadian dividends and capital gains, which are generally regarded as more tax-efficient relative to interest and foreign dividends.

Scotia Corporate Class Funds and Portfolios are also available in Series T, designed to provide stable, tax-efficient cash flow from your non-registered investments.

Tip: A Scotiabank advisor can help you decide if a corporate class solution is right for your goals and needs. Book an appointment today.

Whether you’re looking for cash flow to fund retirement or some other need, explore your income options using the ScotiaFunds cash flow calculator, then book an appointment with a Scotiabank advisor. 

We can help look at all your potential sources of income and recommend a cash flow strategy that makes sense for you. Book an appointment today.