Benny and Joon Bernard are 48 and 45 years old respectively and have arrived at your office unexpectantly. They are not clients, but friends of your clients - Frankie & Jonnie. The two couples were at a dinner party Saturday night, and Frankie & Jonnie (your clients), whom are a few years younger than Benny and Joon, shared that they have been planning for retirement with you for a few years now and are super pleased with the peace of mind they have come to know, now that they have a plan. The Bernard's have never done any planning whatsoever and are now very stressed. They feel that they may not be able to retire because they have not planned. Benny and Joon were hoping that you could help put their minds to rest by telling them what they need to do to be better prepared financially. As such, please complete the following: 1. Prepare a complete retirement needs analysis, outlining recommendations re: optimal income withdrawal strategies (10) 2. Determine the amount of retirement income they might be able to withdraw to last until the end of their lives? (1) 3. Determine what government benefits they could anticipate receiving, when and how much? (3) 4. Determine if they would be able to retire at the typical retirement age for Canadians, and what (if any) would they need to set aside to achieve that goal if necessary? (2) 5. Provide any additional recommendations you feel are critical to optimizing retirement for Benny and Joon (2) Benny and Joon did bring the following information with them: Annual income (Benny - 52 000 and Joon - 58 000 with annual COLA indexation) Pension plans (Benny - DPSP - 98 000 and Joon - MP plan - $102 000) o DPSP average annual contribution is $1 500 o MC plan is a 5% + 5% matching plan Benny and Joon would like to retire when Benny is 65 and Joon would retire at the same time. Benny and Joon have no idea what they might need in the form of a retirement income, but they assume they would be on the low-end of average given they are not extravagant in any way Benny and Joon might be able to save an additional $600/year if they really had too, but they do not have any excessive discretionary expenses. Benny has lived in Canada his entire life, but Joon came to Canada from Switzerland when she was 25 after 1977. Benny and Joon both contribute to CPP as employees NOTE: assume a 3.75% real ROR (net of fees, but not after-tax) for pre-retirement savings.