Janet, single, 37 years old, currently lives just outside Antigonish. She has a full time job as a technical assistant at StFX, which earns her $45,000 a year (pre-tax). On average she needs to pay 20% tax on her total income. Her living expenses per month is $2,500 including $815 for mortgage: Seeing her Mom and Dad struggle financially after retirement, Janet is determined to save for her retirement early. She currently has $6,000 on emergency fund and have paid off her car loan. She pays off her credit card balance every month. She is currently contributing 5% of her annual income to StFX's pension plan (a defined contribution plan), and the university matches 50% of her contribution. As a very conservative person, she chooses two low-risk conservative fund:

Balance A and Low Risk B. She saves 5% of her after-tax income per month in TSA, which she only buys GICs, currently paying 0.5% per annum. She still has a $10,000 school loan that charges 4% interest per annum. Her sister advises her to put more money into her RRSP and to consider investing her money in stock markets to earn higher return. She does not know much about stock markets and thinks that they are very risky investments. She asks you for some financial advice.

1. Calculate the maximum additional contribution to RRSP that she can make this year. (2 marks)
2. What is her risk tolerance level? If she decides to invest, what types of investment instruments you advise her to consider? (4 marks)
3. After carefully considering her current situation, give some advice you have for (1) her saving for retirement; (2) other personal financial advice that are beneficial for her (5 marks).