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Fred and Wilma Stone are planning on retiring in 7 years time. They are both currently 5 5 years of age. When the couple retires
Fred and Wilma Stone are planning on retiring in years time. They are both currently years of age. When the couple retires they want to move out of the city and golf. They also want to be able to travel a couple of times a year. The Stones believe that they will need $ per in retirement to cover their living and travel expenses. Fred works at an automotive company as an engineer. He earns $ per year and his company has a defined contribution pension plan. He contributes of his income and his company matches his amount. The current balance in his DCPP is $ and it is invested in a balance portfolio that has been providing an average rate of return of Wilma is a primary school teacher and earns $ per year. She has been a member of her defined benefit pension plan for the past years. She anticipates that her average earnings at retirement will be $ Her pension plan has a factor. The Stones have also been contributing to their RRSPs over the last number of years in anticipation of the retirement. Freds RRSP is valued at $ and has been earning an average rate of return of Fred has been contributing $ per month and plans to continue these contributions until retirement. Wilmas RRSP is substantially smaller because she has minimal RRSP contribution room because she is a member of a DBPP The value of her RRSP is $ and has been earning an average of Wilma has been contributing $ per month and plans to continue these contributions until retirement. The Stones plan on downsizing their home when they retire and move out of the city. They are anticipating that they will have some equity to put towards retirement. Fred and Wilma have lived in Canada all their lives and will qualify for the maximum OAS of $ when they retire. They have also both been contributing to CPP since they started working. Both of them will qualify for the maximum CPP because of the level of their income and year of contributions. They anticipate they will each receive $ when they retire. Assumptions: Life expectancy Rate of Return in retirement Average Tax Rate Inflation What amount of money will the couple need when they retire at marks How much money will they have when they retire? marks Do they have enough money? mark What recommendations would you give to the Stones marks
Fred and Wilma Stone are planning on retiring in years time. They are both currently years of age. When the couple retires they want to move out of the city and golf. They also want to be able to travel a couple of times a year. The Stones believe that they will need $ per in retirement to cover their living and travel expenses.
Fred works at an automotive company as an engineer. He earns $ per year and his company has a defined contribution pension plan. He contributes of his income and his company matches his amount. The current balance in his DCPP is $ and it is invested in a balance portfolio that has been providing an average rate of return of
Wilma is a primary school teacher and earns $ per year. She has been a member of her defined benefit pension plan for the past years. She anticipates that her average earnings at retirement will be $ Her pension plan has a factor.
The Stones have also been contributing to their RRSPs over the last number of years in anticipation of the retirement. Freds RRSP is valued at $ and has been earning an average rate of return of Fred has been contributing $ per month and plans to continue these contributions until retirement.
Wilmas RRSP is substantially smaller because she has minimal RRSP contribution room because she is a member of a DBPP The value of her RRSP is $ and has been earning an average of Wilma has been contributing $ per month and plans to continue these contributions until retirement.
The Stones plan on downsizing their home when they retire and move out of the city. They are anticipating that they will have some equity to put towards retirement.
Fred and Wilma have lived in Canada all their lives and will qualify for the maximum OAS of $ when they retire. They have also both been contributing to CPP since they started working. Both of them will qualify for the maximum CPP because of the level of their income and year of contributions. They anticipate they will each receive $ when they retire.
Assumptions:
Life expectancy
Rate of Return in retirement
Average Tax Rate
Inflation
What amount of money will the couple need when they retire at marks
How much money will they have when they retire? marks
Do they have enough money? mark
What recommendations would you give to the Stones marks
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