Robert is 34 years old and is engaged to be married. He is looking to start saving towards buying a house. He and his fiance Alisha however have not made any plans towards any of their life goals.

Robert

Robert graduated high school in Romania, and got into engineering school at University of Toronto right after. Having graduated among the top students in his country, he was able to obtain a full scholarship and graduated university with no student debt. He started working for a firm DigitalDesign LLC where he worked as a software engineer for 3 years where he started out with a salary of 60,000 CAD annually. Even though he was set up for success, he did take time away from his job, sponsored his brother education at Carleton University, worked for a non-profit in Africa, and travelled for a year. These left him with a bit lower savings than estimated. He currently has around 200,000 CAD saved in financial assets and earns around 130,000 CAD annually. The company he works for has no pension plan.

Alisha

Alisha finished her undergraduate degree in architecture and worked in Romania for a few years. She moved to University of Toronto for her masters degree and currently works for an architecture firm that designs factories. She has around 85000 CAD in financial assets and earns 80,000 CAD a year. She also has no pension plan. Like Robert, she likes to travel but also takes a trip once a year back to Romania to visit her family.

The Wedding

They are planning to have two ceremonies, a very small one with close friends in Toronto, which would cost (8,000 CAD). A big wedding in Romania with around 400 guests, which would cost 40,000 CAD. Their parents would foot half the wedding bill in Romania.

Lifestyle and Life Goals

Both Robert and Alisha live in a spacious 2-bedroom condominium in midtown-Toronto and they do not plan to move out of it anytime soon. None of them drives a car and they take public transit or Taxi/Uber. They plan to have only 1 kid 2 years from now and plan to remain in the apartment and put a down payment (50%) on the condo. They do like eating out once a week and Robert likes to go out for drinks with his pals on the weekend. They plan to take two trips a year. One trip to Romania during Christmas and once during the summer. When the child enters university (20 years from now), they want to be able to fund all the tuition and living expenses (totaling 100,000$). When Robert turns 50, they plan to buy a cottage in Romania near the coast for 300,000 CAD.

For Retirement, Robert and Alisha want to have 5,000,000 dollars together. All prices are based on todays CAD. Robert and Alisha expect their real income to grow by 1% a year. Assume retirement age = 65.

Income Statement

Income	Robert	Alisha	Combined
Salary	130,000	80,000
Less Tax	35,000	21,000
Less CPP	2,500	1,700
Less: EI	950	775
Income after Tax	91,550	56,525
Food			9000
Student Debt			0
Utilities + Phone/internet			2500
Leisure/ Eating Out/ Entertainment			12000
Rent			30000
Car			0
Travel			10000
Misc			8000
Total Expenses			71500

Assume an average tax rate of 40%.

A) Create an detailed Investment policy statement for Robert and Alisha

B) Are their goals reasonable? How much money do they need to save in their first year for each of their goals and the total amount? ( Assume expenses to go up by 10,000$ a year once the kid is born)

C) If they plan to spend 50,000 each year in retirement and plan to leave 500, 000 CAD as inheritance, (to be withdrawn at the beginning of each year) are their retirement goals sufficient?