Use Excel to make projections of your income, expenses, assets and liabilities at key future dates (see example below). write explanations.

	ANNUAL CASH FLOW AT YOUR KEY MILESTONES							SIMPLE TAX TABLE
	ANNUAL INCOME		Current (age 22 ?)	Career (Age 25-30?)	Home purchase (age?)	Retire Age 65 (example)		Begining of range		End of each marginal range	tax up to start of the range	Marginal rate on this level
		Earned Income	10,000	70,000	93,000	-
		OAS estimate	-	-	-	7,200		-	to	12,000	-	0%
		CPP estimate	-	-	-	13,200		12,000	to	20,000	-	15%
		RRSP/Pension	-	-	-	32,000		20,000	to	46,000	1,200	20%
		Other Income	-	-	-	-		46,000	to	93,000	6,400	30%
		Annual Gross Income	10,000	70,000	93,000	52,400		93,000	to	150,000	20,500	40%
		Tax/EI/CPP (est using table)	-	13,600	20,500	8,500		150,000	to	210,000	43,300	46%
	Disposable Annual income		10,000	56,400	72,500	43,900		210,000	and above		70,900	50%
	ANNUAL EXPENSES
		Rent/ mortgage, ins, ptax	4,800	12,000	38,000	12,000
		Car expenses (incl ins)	3,000	5,000	5,000	5,000
		Groceries/living estimate		7,200	7,200	7,200
		Charity/ gifts		2,000	2,000	4,000
		Recreation/entertainment/ travel	2,000	2,000	4,000	12,000
		Life + DI insurance		2,000	2,000	1,000
		Cell, Internet, Utilities		2,000	2,000	2,000
		Emergency fund
		House/goals savings		12,000
		TFSA contributions			-
		RRSP contributions		12,000	12,000
	After tax expenses		9,800	56,200	72,200	43,200
	NET ANNUAL CASH FLOW		200	200	300	700
	BALANCE SHEET AT KEY MILESTONES
	Assets
		Bank accounts	6,000	8,000	10,000	6,000
		RRSPs		60,000	160,000	800,000
		TFSAs	6,000	60,000	5,000	120,000
		House			600,000
		Car(s)		20,000
	Total Assets		12,000	148,000	775,000	926,000
	LIABILITIES
		Student loan	10,000	-	-	-
		Car loan		10,000	-	10,000
		Mortgage		-	450,000	-
		LOC		-	-
	Total Liabilities		10,000	10,000	450,000	10,000
	Net Worth		2,000	138,000	325,000	916,000

0. Retirement Projections must use Real Rate of Return Assumptions Note that for your investment and retirement real rate of return assumptions you need to use the standard projection numbers of:

   • Conservative investment portfolio: 1.25%

   • Balanced investment portfolio: 2%

   • Aggressive investment portfolio: 3%