CLIENT SITUATION

The people: Barry and Beth, both age 52, and their children, 19 and 21

The problem: Are they saving enough to retire at age 62 with $12,000 a month?

The plan: Pay off the line of credit, then the mortgages and redirect the cash flow plus any surplus to their long-term retirement savings. If they’re a bit short, saving any bonuses Beth might get would float them onside.

The payoff: A clear path to the retirement goals they seek.

Monthly net income: $24,715

Assets: Stocks $32,000; residence $2-million; her TFSA $53,000; his TFSA $43,000; her RRSP $457,000; his RRSP $112,000; her locked-in retirement account from previous employer $202,000; her DC pension plan $134,000; estimated present value of his DB pension plan $375,000; registered education savings plan

$70,000. Total: $3.48-million

Monthly outlays: Mortgage $1,300; property tax $675; water, sewer, garbage $150; home insurance $175; electricity, heat $350; security $35; maintenance $300; garden $100; transportation $875; groceries $1,000; university tuition $1,500; clothing $500; line of credit $5,000; gifts, charity $850; vacation, travel $250; dining, drinks, entertainment $1,100; personal care $100; pets $200; sports, hobbies $200; doctors, dentists, drugstore $125; health, dental insurance $505; life insurance $785; communications $500; RRSPs $500; TFSAs $1,000; pension plan contributions $1,980. Total: $20,055. Surplus $4,660

Liabilities: Mortgage $72,995 at 1.62 per cent; mortgage $78,185 at 1.67 per cent; line of credit $115,000 at 4.2 per cent. Total: $266,180