Background

Below is our understanding of Janice and Kevin Lysol's situation at the time of writing this assessment.

• Janice (44) and Kevin (44) are married and living in Whitby, Ontario.
• They have two sons, Sergio (9) and Yash (11 months), and a daughter, Elaine (5).
• Janice and Kevin currently own their principal residence.
• Based on the information provided by Janice and Kevin, you will find below their net worth statement[1].

• Janice and Kevin has indicated that they have the following life insurance policies:
• $50,000 Universal Life Insurance policy death benefit for Janice and Kevin.
• $500,000 Term Life Insurance policy for Janice and Kevin.
• They have also indicated that they may have group life insurance with their respective employers, but unfortunately, they did not provide any of the details of their respective group life insurance policies.
• At the time of writing this assessment, we have assumed that they do not have any mortgage insurance, known as creditor insurance with First National.
• On the other hand, they do have life insurance on their CIBC Line of credit.
• Janice and Kevin have also indicated that they do not have any individual disability insurance coverages.
• Janice and Kevin do not have wills or powers of attorneys for property and personal care.

Goals and Objectives

• Janice and Kevin would like to retire debt free.
• Janice would like to retire at age 60 and Kevin would like to retire at age 65.
• Janice would like to generate an annual retirement income of about $50,000 in today's dollars.
• Kevin would like to generate an annual retirement income of about $75,000 in today's dollars.
• They would like to create generational wealth for their three children
• They would also like to fund at least 50% of the post-secondary education of Sergio, Elaine and Yash.

Assumptions for Projections

Life Expectancy

• We have assumed that both Janice and Kevin will live until the year in which they each turn 90.

Expenditures

• Assume that they have about $1,000 monthly surplus.

Investment Return

• For projection purposes, we have assumed that all investment portfolios will generate "balanced portfolio" pre-tax returns of 6%.

Income

We have made the following assumptions about Janice and Kevin's incomes prior to retirement.

• Janice will continue to receive net employment income of about $2,600 per month or $31,200 annually indexed to inflation.
• Janice's gross annual income is about $35,290.
• Kevin will continue to receive net employment income of about twice as much as Janice or $5,200 monthly or $62,400 annually indexed to inflation.
• Kevin's gross annual income is about $89,000.

Retirement Income

We have made the following assumptions about Janice and Kevin's retirement incomes.

Company Pension Plan

• Kevin will be entitled to a defined benefit pension as an Ontario government employee and you will find below the details of his future pension[2].
• With no further service in the pension plan, Kevin would be eligible for an annual pension of about $17,206 at age 65.
• If Kevin was to continue to work and contribute to his pension plan, he would be eligible for early retirement at age 60 of about $52,507.08, and to be then reduced at age 65, to about $41,102.64 per year.
• Furthermore, if Kevin were to continue to work and contribute to his pension plan until age 65, he will be eligible to receive an annual pension of about $48,724.44 at age 65.
• Given that we have not received any company pension details from Janice, we have assumed that Janice will not be entitled to a company pension plan.

Net Worth Statement November 24, 2019 Assets Liabilities Fixed Assets Long-term Principal Residence $900, 000.00 First National Mortgage (3.06%) $100,000.00 2011 Honda Odyssey $20,000.00 CI BC Line of Credit (4.5% - Limit $100K) $100,000.00 $1,000.00 Rapport Credit Union Loan (6.7%) $11,036.61 Total Fixed Assets $ 921, 000.00 Total Long-term Liabilities $ 211,036.61 Registered Short-term Manulife URA (Janice) $74, 794.87 RBC Signature Rewards Visa (19.99% - Limit $14K) $8,700.00 CIBC TFSA (Janice) $1, 648.27 CI BC Dividend Visa (19.99% - Limit $5K) $4,723.87 TD Line of Credit (5.95% - Limit $25K) $0.00 Total Registered 76, 443.14 Total Short-term Liabilities $ 13,423.87 Non-Registered CIBC Investor's Edge (6 Disney Shares - Janice) $889.74 TD Savings Account (Janice) $600.00 Total Non-Registered Assets $ 1,489.74 Total Assets $ 998,932.88 Total Liabilities $224,460.48 NET WORTH S 774,472.40