Billy would like to retire when he turns 65 years old. He is 45 years old now, and earning an annual salary of $110,000 per year. In retirement, Billy would like to travel and play golf. To achieve his objective, he will need $55,000 before tax to feel comfortable. Billy was born and raised in Canada, but moved to the US to study history at age 17. Unfortunately for Billy, history did not work out and mid-way through he had to change programs. However, when Billy turned 26 years old, he landed a job at Toronto Pearson International Airport and returned to Canada. Between the ages of 26 to 45, Billy worked for a number of different employers. In 2018, Billy was able to secure a job as a sales representative for a large pharmaceutical company. He loves his job and does not plan on leaving his current employer (unless he gets a better offer). Based on his family genetics, and lifestyle, Billy believes that he will live until hes 90 years of age.

Assume the following:

His investment returns have averaged 5% a year.

Billy will receive an inflation adjusted pension of $1,050.00 a month from a defined benefit plan from a former employer.

Inflation will average 2% a year.

Billys has surplus cash flow each month of about $1,500.

Ignore taxes.

Billys income has exceeded the YMPE maximum for 19 years.

Answer the following questions as of January 1, 2023:

1. Can Billy achieve his retirement objective if he uses his cash surplus to save for retirement? Support your answer by analyzing the above data, and by calculating and factoring in government benefits. Is there a monthly cash surplus or monthly cash shortfall?

2. Assume Billy deposited $16,500 into a TFSA on December 31, 2019. What is the maximum contribution he can make in 2023?

3. Based on the information in number 3, Billy has $16,500 in a TFSA account, does this change your answer for question number 1?

4. Is there anything you can recommend? Early retirement, delayed retirement, etc.?