RETIREMENT PLANNING

Individual Budgeting for Retirement Assignment

DUE: October 22, 2020

Please make an investment retirement plan for the client below.

Case Information:

Billy would like to retire when he is 65 years old and he is 45 years old now.

Billy currently makes $100,000 per year and would like to fund 70% of his pre-retirement income.

Billy's life expectancy is age 90.

Billy's has surplus cash flow each month of about $2,500 per month. He currently has NO RRSPs, and NO TFSAs and no savings of any kind. He has earned in excess to the YMPE for the past 20 years.

Case Questions to Answer:

1.What retirement income sources will Billy receive at retirement and what will be the amount of those retirement income sources. (Please justify your reasoning for the dollar amounts you feel that you will receive).

2.How much money per month or per year will Billy need to invest to meet his retirement goals?

3.What type of investment vehicle will you choose to invest (Non-Registered, RRSP or TFSA) to meet Billy's goal and why did you choose it?

4.What will be the rate of return that you expect to generate from the investments for Billy and why?

5.Will there be any surplus cash flow available to potentially meet Billy's other goals (such as child education, travel expenses, and so on)? If there is NOT sufficient money to meet his goals, how much can he fund with his current savings and should he consider to do?