Kevin and Sheryl Yates have been married for five years. They came to Canada from Bermuda on February 20, 2007 so Kevin could complete his doctoral studies in Urban Planning. They have one son, Jordan. The family lives at 6754 Aston Martin Mews in Mississauga, Ontario L5N 7P6.
The family’s birthdates are:
• Kevin, March 17, 1976
• Sheryl: February 14, 1978
• Jordan: December 25, 2016
Kevin and Sheryl have provided their most recent Notice of Assessments to you that show that Kevin has $20,985 in RRSP carry forward room, while Sheryl has $6,598 in RRSP carry forward room. Neither of the couple have a valid will or powers of attorney documents in place.
The couple has two goals:
First, they would like to retire when Sheryl turns 60. They would like to continue living the same lifestyle as they are now. They would also like to have an extra $18,000 (in today’s dollars) each year that they will use to travel.
Second, the couple would like to fund 100% of Jordan’s four-year post-secondary education.
The total cost of education is expected to be $14,000 (in today’s dollars) per year and education costs are expected to continue rising at an annual pace of 5%. Jordan is expected to begin his education when he turns 17.
Kevin earns a gross annual salary of $145,000 as the CIO for the City of Mississauga and generally gets cost of living adjustments each year to keep up with inflation. He gets paid biweekly. Sheryl is a pilot for Air Canada and gets paid $160,000 per year, also indexed to inflation. She receives her pay semi-monthly.
The couple currently has $20,000 in their joint chequing account. This account earns no interest.
They have noticed that their account has been growing in value and every time it reaches $20,000, they transfer any balance that exceeds the $20,000 to their non-registered joint savings account, which currently earns 1.75% interest and has a balance of $48,000 in it.
The couple has one automobile, an SUV that is worth $45,000. When they purchased it in February 2018, they paid $69,000 for it. It is unencumbered (has no debt against it). They expect to purchase a similar vehicle every ten years.
Kevin has a TFSA that the couple uses to save money for Jordan’s education. It currently has $26,170 in cash in it. They contribute $200 per month to it and earn 2.5% interest.
Kevin has a group RRSP which he contributes 6% of his salary to each year, through deductions on his paycheque. His company will match 100% of his contribution to a maximum of 9% of his salary. Kevin’s group RRSP has $157,367 currently invested in it with an asset allocation of 35% large cap Canadian equities, 40% U.S. equities, 20% international equities, and 5% global bonds.
Sheryl joined her company’s pension plan on July 1, 2007. She will be eligible to receive an unreduced, non-indexed pension when the sum of her age and years of service equal 95. Her pension benefit accrues at 1.5% of her income up to the YMPE plus 1.8% above the YMPE to a maximum of 50% of the last five years of her salary. The normal retirement age for the pension is 65, and for every year that the pension is taken early, there is a 5% penalty.

The couple owns their home, which is currently valued at $1,400,000. Their only debt is their mortgage. They bought their house for $792,000 in August of 2012 using a $550,000 mortgage.
Their current five-year mortgage rate of 3.30% is fixed until August 2024, at which time they will choose a new term and rate when they renew their mortgage contract. They currently owe $330,723 on their mortgage and pay monthly payments of $2,500.
The couple has the following expenses each month:
• Housing costs, including utilities of $1,700.
• Food and housing supplies of $1,500.
• Transportation expenses of $1,600.
• Cable TV, Internet, and cell phones of $400.
• Daycare expenses of $1,800 (payable to Dec 31 2029).
• Extra-curricular activities for Jordan of $500 (payable to Dec 31 2034).
• Social and Entertainment expenses of $1,000
The couple also has the following expenses each year:
• Property taxes of $8,200
• Travel expenses of $10,000

The couple’s answers to their investment questionnaire are shown below. They expect to pay a 2% non-tax deductible annual fee for money management.