What would be Isaiahs retirement look like?
What else do you see needs attention?
Isaiah, a 63 year old widower, planned to make his annual Registered Retirement Savings Plan (RRSP) contribution during his very first appointment with Collette, a QAFP Certificant in Financial Planning with ABC Bank. At the meeting he mentioned that he was planning to retire in three years. While he expects his pension income to cover half of his retirement income needs, he is not confident that he has enough assets to fund the other half. With three RRSP accounts and two Tax-Free Savings Accounts (TFSAs) spread across two financial institutions, Isaiah also worries about managing withdrawals from so many accounts. Isaiah explained that he holds his investments across multiple financial institutions because he believes in "diversification. He does not like to put all his eggs in one basket. He thinks this is a good idea given the failure of American financial institutions that were once thought too big to fail. Isaiah has $98,000 in guaranteed investment certificates at ABC Bank and $96,000 at another bank. He also plans to open a third account at another financial institution so that he can take advantage of the $100,000 insurance limit provided by the Canada Deposit Insurance Corporation (CDIC). The ABC Bank offers deposit protection under three separate entities-the ABC Bank, the ABC TrustCo. and the ABC Mortgage Corporation. Isaiah owns $180,000 in mutual funds, split between ABC Bank and another financial institution. All funds are held within regulated accounts under the Mutual Fund Dealer Association of Canada (MFDA). The portfolios are similar, with 50 percent invested in North American equities, 10 percent in international equities and the remainder in fixed-income investments. Isaiah brought his only daughter, Mikaela (39) to the appointment. He has encouraged her to start thinking about her future. She has talked to her dad about wanting to buy a house within the next five years and enjoying a vacation once a year. Mikaela anticipates retiring at 65 with her own savings and an inheritance from her father. Isaiah, a 63 year old widower, planned to make his annual Registered Retirement Savings Plan (RRSP) contribution during his very first appointment with Collette, a QAFP Certificant in Financial Planning with ABC Bank. At the meeting he mentioned that he was planning to retire in three years. While he expects his pension income to cover half of his retirement income needs, he is not confident that he has enough assets to fund the other half. With three RRSP accounts and two Tax-Free Savings Accounts (TFSAs) spread across two financial institutions, Isaiah also worries about managing withdrawals from so many accounts. Isaiah explained that he holds his investments across multiple financial institutions because he believes in "diversification. He does not like to put all his eggs in one basket. He thinks this is a good idea given the failure of American financial institutions that were once thought too big to fail. Isaiah has $98,000 in guaranteed investment certificates at ABC Bank and $96,000 at another bank. He also plans to open a third account at another financial institution so that he can take advantage of the $100,000 insurance limit provided by the Canada Deposit Insurance Corporation (CDIC). The ABC Bank offers deposit protection under three separate entities-the ABC Bank, the ABC TrustCo. and the ABC Mortgage Corporation. Isaiah owns $180,000 in mutual funds, split between ABC Bank and another financial institution. All funds are held within regulated accounts under the Mutual Fund Dealer Association of Canada (MFDA). The portfolios are similar, with 50 percent invested in North American equities, 10 percent in international equities and the remainder in fixed-income investments. Isaiah brought his only daughter, Mikaela (39) to the appointment. He has encouraged her to start thinking about her future. She has talked to her dad about wanting to buy a house within the next five years and enjoying a vacation once a year. Mikaela anticipates retiring at 65 with her own savings and an inheritance from her father
