Walter is 30 years old and plans to start making savings for his retirement a priority this year. He currently has $10,000 in his RRSP and will contribute $6,000 per year to his RRSP, taking his tax refund and contributing it to the TFSA. Within the RRSP he plans to invest in a global equity fund, with an expected return of 9% per year and standard deviation of 11%. In the TFSA he will invest in Canadian balanced fund, which is expected to earn a 6%, return per year, with a historical standard deviation of 8%. His current marginal tax rate is 42%, which is expected to remain the same until retirement. In the year he retires he plans to withdraw the money in one lump sum, even though that will result in a 52% marginal tax rate.

If he retires at age 64;

A)What will be the balance of the RRSP

B)What will be the balance of the TFSA

C)If he withdraws the full amount from both accounts, how much money will he be left with?

D)What other options does Walter have with regards to using the money in the RRSP to fund his retirement?