Let$$s consider the following situation. You have a couple that come in$,$ Keith and Mable Cartes. Keith is age $50$ and Mable is age $49$ right now. They indicated that their most pressing concern is to get some confidence that they both can retire in $5$ years.

Because you know that retirement is their primary concern, you determine that using Conquest Plan is the right approach to use.

You further learn that they currently are spending about $$85,000$ after tax but feel they could reduce their expenses in retirement to about $$70,000.$ Current Income is $ $60,000$ for Keith and $$85,000$ for Mable.

They have accumulated $$400,000$ in Keith$$s RRSP and $$200,000$ in Mable$$s$.$ In addition, they have $$60,000$ in a joint investment account and $$45,000$ each in their TFSA$$s$.$

They are currently both making RRSP contributions, $$8,000$ for Keith and $$6,000$ for Mable. They are also taking advantage of their TFSA by saving $$5,500$ each.

They have no private pensions, but they are both eligible for full CPP benefits and OAS benefits.

Mable knows that she will receive an inheritance at some point in the future. Her parents are quite elderly and will reach age $95$ in $2036$ and she conservatively estimates the inheritance to be around $$100,000.$

They are still living in their home which they purchased $20$years ago for $ $150,000.$ Value is approx. $ $400,000.$ Their Mortgage is almost paid of current balance is $$50,000(5\%)$ with $ $1000/$mth payments.

Let$$s look at Keith and Mable$$s results given these assumptions.

Plan assumptions can remain at default.

Asset Allocation $$ Balanced

Expenses $$ consolidate to a Lifestyle Expense

Pensions $$ CPP$/$OAS leave at default.

Annual Contributions to TFSA and RSPs Indexed at $2\mathrm{.}50\%$

Strategies $$ The Cartes would be interested in saving an extra $ $1000/$mth and retire a year or two later if need be$.$

Cash reserve $3$mths salary & no legacy plans at this time.

Using this info

Goals & Objectives

Life Goals $($After Tax$)$

Annual

Amount

Starting

Year

Ending

Year

Priority

Ranking

Retirement Income Goal

These objectives should be identified as an after tax spendable value. You may use a single objective or use up to $3$ tiers

Pensions & Other Revenues

Description Owner

Annual

Amount

Starting

Year

Ending

Year

Index

Rate

$\%$

Taxable

$$ Client $$ Spouse $\%\%$

$$ Client $$ Spouse $\%\%$

$$ Client $$ Spouse $\%\%$

$$ Client $$ Spouse $\%\%$

$$ Client $$ Spouse $\%\%$

$$ Client $$ Spouse $\%\%$

This would include any Defined Benefit Pensions, Inheritances, or the sale of personal assets that will occur in the future.

Modeling a Strategy $$ Some Alternatives

Instructions

Commitment to the Achievement of Your Goals: The first step in the development a strategy to achieve your personal goals and

objectives is to determine if your current behavior will allow you to achieve your objectives or not. If this analysis of your current

situation identifies a shortfall, we must identify changes that can be made to result in an achievable strategy.

We call this the modeling process. To allow us to do this process effectively, it$$s important that we get your input on how

committed you are to your goals and to identify the modeling options that are the most acceptable to you. The following questions

will allow us to prioritize what$$s important to you and approach the modeling process recognizing your preferences.

Question Response

If we identify a shortfall, how much more would you be willing save each year, over and above

what you are currently saving, in order to achieve your objectives?

If you have a shortfall that can$$t be eliminated with the new savings identified above, would

you consider postponing your retirement? If so what would be the latest you would want to

retire?

Client Age:

Spouse Age:

If you can$$t achieve your ideal after tax retirement lifestyle, what would the minimum level of

income be that would still give you a lifestyle that would be acceptable?

Now we need to know what$$s more important to you. Retiring at the age you indicated or

retiring with the target income you wanted. Telling us this will help us to determine if we

should first model working longer or first reduce your target income.

$$ Adjust Age First

$$ Reduce Income First