as a 20 year old student, willing to retire at the age of 60. Answer the following questions.

1. How would you classify your familys overall financial situation? No savings and significant debt. No savings and some debt. No savings and little to no debt. Some savings and significant debt. Some savings and some debt. Some savings and little to no debt. Strong savings and significant. Strong savings and some debt. Strong savings and little to no debt.

2. What is your current net worth? Liquid assets (available for emergencies) $ + Invested assets (not earmarked for emergencies) $ + Fixed assets (such as real estate property) $ - Mortgage debt $ - Consumer debt (such as credit cards, loans, lines of credit) $ = Estimated Net Worth $ 3. What is your gross monthly family income? $

4. How much is your cash surplus / deficit at the end of each month? $ 5. What, if any, changes are you expecting to your cash flow during the next one to three years? 6. How would you describe your understanding about investing? Limited: Im confused about how investments work. Average: I understand the difference between the expected risk and return relationship of different investments, including GICs, bonds and stocks. Sophisticated: I understand how domestic and foreign capital markets work, including how different assets respond to changing economic variables.

7. What net rate of return do you expect to earn on your investment portfolio?

8. Do you know how much risk you need to take in your investments to meet your goals? Yes, I need %. No, I do not know.

Willingness to Take on Risk

9. What is the primary purpose for your portfolio? Safety I do not want to risk losing any portion of my money. Inflation protection I want the value of my money to maintain pace with rising costs. Income I want to draw an income from my portfolio. Growth I want to grow my money.

10. What type of portfolio would you like to own? One that mostly contains mostly term deposits, guaranteed investment certificates, principal protected notes and market linked guaranteed investment certificates. One that contains mostly fixed income securities, such as bonds fixed income mutual funds or fixed income exchange-traded funds. One that contains mostly equity mutual funds or exchange- traded funds. One that contains mostly stocks from individual companies.

11. Which of the following portfolios are you most likely to invest in? Portfolio A: Worst return in one year = 0% Best return in one year = +3%

Portfolio B: Worst return in one year = -6% Best return in one year = +8%

Portfolio C: Worst return in one year = -15% Best return in one year = +12%

Portfolio D: Worst return in one year = -25% Best return in one year = +15%

12. Which of the following portfolios would you be likely to invest in over the long-term? Portfolio A Does not fluctuate in value and earns a minimal rate of return on average. Portfolio B - Fluctuates in value by small amounts and has the potential to earn a low rate of return on average. Portfolio C Fluctuates in value by medium amounts and has the potential to earn a medium rate of return on average. Portfolio D Fluctuates in value by significant amounts and has the potential to earn a significant rate of return on average.

13. How long would you be willing to wait for your investments to regain any lost value? Less than three months. Three to six months. Six months to one year. One to two years.

14. For retirement investments only, which would you consider a bigger risk? Failing to retire when you plan. Running out of money during retirement.

Ability to Take on Risk

15. How long will you continue to remain invested before you will begin withdrawing a significant portion of your money from your investment portfolio? Less than three years Between three and five years Between 6 and 10 years Over 10 years

16. After reaching your goal, over how many years do you plan to make withdrawals from your investment portfolio? Less than three years Between three and five years Between 6 and 10 years Over 10 years

17. How long are you willing to postpone meeting your goal, if needed? Less than one year. One to three years. Three to five years. Over five years.

1. Visualize in your mind what your retirement will look like. Use your visualization to construct your financial planning related retirement goal. ( in SMART FORMAT)

2.Use the RISK ASSESSMENT questions above that accompanies this assignment to determine what asset allocation you would use to invest your retirement funds.

3. Complete the calculations required to determine how much money you will need to save each month to meet your retirement goal.

4. Use the FP Canada PROJECTION ASSUMPTION GUIDELINES 2021 for rates of return.

5. Other Assumptions: Management fee of 1% for NRR No tax calculations needed or accounted for (do not distinguish RRSP, TFSA, etc) Your current Assets are zero for the final calculation Use BALANCED GROWTH PROFILE WEIGHTINGS from the RISK ASSESSMENT Questionnaire for NRR and RRR

6. 'Document this information in the space provided on the Time Value of Money Calculations Summary Sheet that accompanies this assignment.

Time Value of Money Calculations Summary Sheet

Name Your Current Age Sex/Gender (Male, Female, Other) Your Desired Age of Retirement Life Expectancy 90 Annual Retirement Income Desired (in Todays Dollars) Number of Years Until Retirement Length of Retirement (in Years)

ASSUMPTIONS:

Zero current savings, no tax implications, 1% Management Fee Use BALANCED GROWTH % allocations mandate from Investor Profile to calculate NRR and RRR

Asset Allocation (%) Canadian Equities U.S. Eq-uities Foreign Developed Equities Emerging Market Equities Fixed In-come Secu-rities

Nominal rate if return after fees(%) Real Rate of Return After Fees (%) Inflation Rate (%)

ANSWER PAGE NRR= RRR=

Calculate future value of the income requirement given the expected inflation rate? MODE P/Y C/Y N I/Y PV PMT FV

Calculate (PV) savings required on first day of retirement to fund annual retirement income with monthly interest compounding of the Real rate of return.?

MODE P/Y C/Y. N I/Y. PMT. FV. PV

Calculate monthly savings required to fund retirement goal where compounding is monthly if the nominal rate of return? MODE P/Y C/Y N. I/Y. PV FV. PMT

I will need to save _________per month to reach my retirement goal.

WRITE THE ANSWERS IN THE SPACE PROVIDED.

Time Value of Money Calculations Summary Sheet ANSWER PAGE Calculate future value of the income requirement given the expected inllation rate? ASSUMPTIONS: Zero current savings, no tax implications, 1% Management Fee Calculate (PV) savings required on first day of retirement to fund annual retirement income with monthly interest Use BALANCRD GROWTH \% allocations mandate from Investor Profile to calculate NRR and RRR compounding of the Real rate of return? Calculate monthly savings required to fund retirement goal where compounding is monthly if the nominal rate of return? Time Value of Money Calculations Summary Sheet ANSWER PAGE Calculate future value of the income requirement given the expected inllation rate? ASSUMPTIONS: Zero current savings, no tax implications, 1% Management Fee Calculate (PV) savings required on first day of retirement to fund annual retirement income with monthly interest Use BALANCRD GROWTH \% allocations mandate from Investor Profile to calculate NRR and RRR compounding of the Real rate of return? Calculate monthly savings required to fund retirement goal where compounding is monthly if the nominal rate of return