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Are Travel Plans Possible Working Part-time? At age 39, Barbara and John are mortgage-free with money in the bank, good professional jobs, a young child
Are Travel Plans Possible Working Part-time? At age 39, Barbara and John are mortgage-free with money in the bank, good professional jobs, a young child and a strong desire to see the world. John earns about \\( \\$ 97,000 \\) a year, while Barbara brings in \\( \\$ 39,120 \\), on average, working part-time. They wonder whether she can continue to work part-time until John semi-retires at age 55, and then spend the next 15 years travelling the world together and working part-time. \"We think the world is going to change and travel will become an extreme luxury item,\" Barbara says, adding, \"international travel will not be a valid option after 70.\" The Ontario couple have already given in to their wanderlust, travelling extensively over the past two years, but they realize they have to pare back a bit. They need to do some work on their house and save for their daughter's postsecondary education \\( { }^{i} \\). They want to spend \\( \\$ 18,000 \\) in 2022, \\$6,000 in 2023 and \\( \\$ 6,000 \\) in 2024 on travel, plus \\( \\$ 10,000 \\) for new floors in 2023 and \\( \\$ 10,000 \\) for a new furnace and air conditioning unit in 2024. They show a surplus of \\( \\$ 20,700 \\) a year, more than enough to cover these expenses. When they semi-retire at age 55 , they plan to spend \\( \\$ 60,000 \\) a year after tax in today's dollars (close to what they are spending today after savings are removed) plus an additional \\( \\$ 20,000 \\) a year in today's dollars on travel. John is saving 4 per cent of his income, plus a 4-per-cent matching contribution from his employer, to his definedcontribution pension plan, adding \\( \\$ 2,400 \\) a year to his tax-free savings account and \\( \\$ 7,200 \\) a year to his registered retirement savings plan. Barbara is contributing \\$6,000 to her TFSA and \\$1,200 to her RRSP. John asks \"Are we okay if Barbara works part-time from now until full retirement at age 70?\" Client Situation Required: Individually, prepare a professionally typed financial plan following the CIFP 6-steps. Remember that the financial planning process is meant to provide you with an opportunity to take what they have learned in this Retirement Planning course and demonstrate your financial planning skills. Are Travel Plans Possible Working Part-time? At age 39, Barbara and John are mortgage-free with money in the bank, good professional jobs, a young child and a strong desire to see the world. John earns about \\( \\$ 97,000 \\) a year, while Barbara brings in \\( \\$ 39,120 \\), on average, working part-time. They wonder whether she can continue to work part-time until John semi-retires at age 55, and then spend the next 15 years travelling the world together and working part-time. \"We think the world is going to change and travel will become an extreme luxury item,\" Barbara says, adding, \"international travel will not be a valid option after 70.\" The Ontario couple have already given in to their wanderlust, travelling extensively over the past two years, but they realize they have to pare back a bit. They need to do some work on their house and save for their daughter's postsecondary education \\( { }^{i} \\). They want to spend \\( \\$ 18,000 \\) in 2022, \\$6,000 in 2023 and \\( \\$ 6,000 \\) in 2024 on travel, plus \\( \\$ 10,000 \\) for new floors in 2023 and \\( \\$ 10,000 \\) for a new furnace and air conditioning unit in 2024. They show a surplus of \\( \\$ 20,700 \\) a year, more than enough to cover these expenses. When they semi-retire at age 55 , they plan to spend \\( \\$ 60,000 \\) a year after tax in today's dollars (close to what they are spending today after savings are removed) plus an additional \\( \\$ 20,000 \\) a year in today's dollars on travel. John is saving 4 per cent of his income, plus a 4-per-cent matching contribution from his employer, to his definedcontribution pension plan, adding \\( \\$ 2,400 \\) a year to his tax-free savings account and \\( \\$ 7,200 \\) a year to his registered retirement savings plan. Barbara is contributing \\$6,000 to her TFSA and \\$1,200 to her RRSP. John asks \"Are we okay if Barbara works part-time from now until full retirement at age 70?\" Client Situation Required: Individually, prepare a professionally typed financial plan following the CIFP 6-steps. Remember that the financial planning process is meant to provide you with an opportunity to take what they have learned in this Retirement Planning course and demonstrate your financial planning skills
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