Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2. Demi is a Canadian citizen. She has an RRSP account in which she has currently invested $5,000,000 in mutual funds. The real return on

image text in transcribed
2. Demi is a Canadian citizen. She has an RRSP account in which she has currently invested $5,000,000 in mutual funds. The real return on her mutual funds is expected to be 7% over the ten years until her retirement. If she doesn't save any more between now and retirement, how much will her retirement shortfall be if she needs $15,000,000 at retirement? a. $9,835,757 b. $3,000,000 C. $5,164,243 d. She will not have a shortfall. 3. Which of the following statements is not true about retirement savings? a. No tax is paid now on money paid into sheltered savings plans. b. Funds in sheltered savings plans grow before tax. C. No tax is ever paid on money paid into sheltered savings plans. d. Unsheltered savings are bought with after-tax dollars. 4. Marie is deciding if she should retire now at age 61 or wait until age 70. Her health is very good - she expects to live to 90. Which of the following statements is true about her CPP retirement income if she expects to live to age 90 and will be eligible to collect the full retirement benefit at age 65 and is using a discount rate of 3%? a. She should retire now. b. She should wait until age 70. It doesn't make any difference. d. This cannot be assessed without knowing the amount of the full retirement benefit. C

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Financial Planning

Authors: Michael A Dalton, Joseph Gillice

3rd Edition

1936602091, 9781936602094

More Books

Students also viewed these Finance questions

Question

4 Identify and describe the different vertical marketing systems.

Answered: 1 week ago

Question

2. Avoid basing most of a report-card grade on one test.

Answered: 1 week ago