In order to complete this scenario, you will need to make these choices and research the following (no marks can be earned if valid research is not provided where required):

1. pick a retirement annual income amount between $30,000 to $50,000 (use $1,000 increments).
2. incorporate an inheritance amount into the end of their RRSP plan. This amount of money would be made available to a spouse and/or children upon death. Keep this amount in perspective - $100,000 today would be approximately $325,000 60 years from now). Be sure to show any work and justify the choice. Note: $0 is not an acceptable choice.

Age 19 Retirement income amount $30,000 Life expectancy in years 83years Long-term Interest Rate 4% compounded annually Long-term Annual Canadian inflation rate 3.15% per year A. Inheritance Amount (show work)

B. For each student, take their annual retirement amount and project it forward to the age of retirement which will be 65 years old. Break this number down into a monthly earnings. Show your work

C. Assume that monthly income remains constant in retirement. Using your projected monthly income numbers for each student along with other needed information, calculate the amount of money that must be in the RRSP at the age of retirement in order to fund the future monies involved. Show your work.

D. Using your required RRSP amounts at the age of retirement, for each student calculate their approximately monthly contribution required to reach that goal. Assume no starting amount in your calculations. Show your work.

E. A lot of companies advertise something similar to Freedom 55, which means that you can retire at age 55 instead of age 65. For each student, determine the impact of retiring at age 55 on each of the monthly contributions. Discuss the implications of what you see. Show your work.