1. You have decided to take control of your financial situation and do some long term planning. Using your age at the first day of next month, calculate how much you will have to save monthly to achieve your goal of a comfortable retirement. Include all possible income including Government social security, etc.

Assumptions & Constants:

• Age as of first day of next month: 29
• Age to retire at: 65
• Amount I can live comfortably on every year: $55,000
  • Assume a 36% tax bracket
• Life expectancy: 85 years old
• Inflation: 2%
• Current Savings: $10,000
• Amount I can save per month: $1,000
• Current Old Age Security: $7,200 per year
• Current CPP: $11,900 per year

2. What different would starting to save 5 years earlier have made?

3. What difference would earning 200 basis points (2%) more on your investments in question 1 make?