CLIENT SITUATION
The people: Nick, 47, Naomi, 46, and their children, 10 and 12
The problem: Have they saved enough to retire at 55 or even earlier? Could they retire now?
The plan: Prepare to work a few more years and continue saving toward their goal. Nick should take steps to better diversify his RRSP portfolio.
The payoff: Financial freedom
Monthly net income: $14,345 excluding bonuses Assets: House $1.5-million; bank accounts $50,000; non-registered investments $394,965; her locked-in retirement account $86,520; her TFSA $107,705; his TFSA $66,990; her RRSP $406,880; his RRSP $1,361,035; her defined contribution pension plan $30,315; commuted value of his defined benefit pension plan $255,995; children’s RESP $116,315. Total: $4.38-million
Monthly distributions: Property tax $505; water, sewer, garbage $135; home insurance $100; electricity, heating, $265; maintenance, garden $80; transportation $395; groceries $800; clothing $75; line of credit $115; loan $130; charity $20; vacation, travel $415; dining, drinks, entertainment $350, personal care $15; sports, hobbies $585; subscriptions $20; health insurance $55; communications $150; RRSPs $2,615; RESP $1,300; TFSAs $1,000; non-registered savings $2,500; stock purchase plan $720. Total: $12,345. Surplus goes to savings and to unallocated spending such as home repair.
Liabilities: Line of credit $54,000; investment loan $45,000. Total: $99,000
REPORT ON BUSINESS
en-ca
2021-07-31T07:00:00.0000000Z
2021-07-31T07:00:00.0000000Z
https://globe2go.pressreader.com/article/282071984942544
Globe and Mail