Personal Financial Analysis
September 18, 2012
Prepared for: Roger Abbott and Joanne Abbott
Prepared by:
Retirement Analys...
Table of Contents
Introduction...............................................................................................
Introduction
Dear Roger & Joanne,
This report is intended to provide you with a better understanding of your current finan...
Retirement Overview – Current
Re t i r e me n t
Objectives
Your retirement goals are for Roger to retire in the year 2030 ...
Key Assumptions
Roger Joanne
Retirement Age/Year 65/2030 65/2032
Life Expectancy 90/2055 90/2057
Desired Fixed Expenses Co...
Retirement Overview – Recommended
Objectives
Your retirement goals are for Roger to retire in the year 2028 at age 63 and ...
Retirement Income Summary Graph – Current
The following graph illustrates a projection of major income categories during y...
Retirement Income Summary Graph – Recommended
The following graph illustrates a projection of major income categories duri...
Net Worth Overview (Future Dollars) – Current
Ne t Wo r t h
Objectives
Net worth is one benchmark from which you can measu...
Net Worth – Comparison (Future Dollars)
The following graph compares your projected net worth between two plan scenarios f...
Net Worth Statement
Cu r r e n t F i n a n c i a l P o s i t i o n
This net worth statement provides a detailed breakdown ...
Cash Flow Overview – Current
Ca s h F l o w
Objectives
The purpose of cash management is to ensure that you have enough ca...
Itemized Cash Flow Projection – Current
The following report shows your projected sources of income and expenses over 5 ye...
Action Plan
Ac t i o n P l a n
Personalized Action Items
Net Worth
Calculate the adjusted cost base for your cottage by ad...
Policy Payer Premium Coverage
Group LTD (Joanne) Joanne $1,500 Disability Insurance $7,500
Total $3,360
Debt Reductions
Li...
Conclusion
Now that you have reviewed the Personal Financial Analysis report, where do you go from here? Our
recommendatio...
Disclaimer
Financial Information, Assumptions, and Limitations of Projections
The information you have provided has been u...
MP1787 (09/2012)
Insurance Disclaimer
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Holelistic financial plan

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This an example of the Holelistic financial planning process that I use with my clients.

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Transcript of "Holelistic financial plan"

  1. 1. Personal Financial Analysis September 18, 2012 Prepared for: Roger Abbott and Joanne Abbott Prepared by: Retirement AnalysisReportr Nt ame: Retire ent Analysis Team Member 1 Discipline 4 Consultant Full Name with Designation Consultant Title Consultant email Consultant Discipline 1 Consultant Discipline 2 Consultant Discipline 3 Consultant Discipline 4 Team member 1 Full Name With Designation Team Member 1 Title Team member 1 Email Team member 1 Telephone - Primary Team Member 1 Discipline 1 Team Member 1 Discipline 2 Team Member 1 Discipline 3 Consultant telephone - Primary Team Member 2 Telephone - Primary Team member 2 Full Name With Designation Team Member 2 Title Team Member 2 Email Address line 1 Address line 2 Address line 3 Address line 4 Address line 5 Address line 6 Consultant Telephone - Toll Free SAMPLE
  2. 2. Table of Contents Introduction..................................................................................................................................................................4 Retirement....................................................................................................................................................................5 Net Worth...................................................................................................................................................................10 Current Financial Position.........................................................................................................................................12 Cash Flow.................................................................................................. ................................................................ 13 Action Plan................................................................................................................................................................ 15 Conclusion................................................................................................................................................................. 17 Disclaimer..................................................................................................................................................................18
  3. 3. Introduction Dear Roger & Joanne, This report is intended to provide you with a better understanding of your current financial position and whether you are on track to meet your financial life goals. Many people find that managing their finances to achieve their goals is a challenge. Many families are too busy dealing with day-to-day issues to think about next year, let alone retirement or other financial goals, which may be many years into the future. Together, we can face these challenges and put you on the path to reaching your goals. Every goal requires planning and adjustments along the way – just think of the planning that goes into a simple short-term goal like taking a vacation. Planning for your financial future is no different. By setting financial goals, developing strategies and monitoring progress on a regular basis, the likelihood of achieving your desired results is greatly increased. Thank you for giving me the opportunity to provide this report. Please review the information within and contact me at any time if you have any questions. Regards, Page 4 of 18 Consultant Full Name with Designation
  4. 4. Retirement Overview – Current Re t i r e me n t Objectives Your retirement goals are for Roger to retire in the year 2030 at age 65 and for Joanne to retire in the year 2032 at age 65. Your desired base retirement income is $102,000* starting in the year 2030. You have both described your dream of touring the United States and Canada on new motorcycles, and that you would prefer to do this while you are younger and better able to handle life on the road. Again and again, you have stressed that it is more important to you to retire early than to have extra income during your later years. One reason you are not too concerned about your retirement is that you feel you could easily sell your home and invest the proceeds, while living in your cottage year round. Winterizing your cottage would only require a small portion of the proceeds from the sale of your home. You want to be able to afford a comfortable retirement. You would like to travel and make purchases without worrying about a budget. You are prepared to sacrifice retirement income in order to retire earlier. Leaving your job sooner is more important to you than accumulating retirement assets. You would like to learn how to protect your purchasing power from inflation throughout your retirement. You would like to avoid having your Old Age Security payments 'clawed back' because your retirement income is too high. *In today’s dollars – after tax. Retirement income reflects the first year of retirement and may change. Needs vs. Abilities Retirement Needs includes most expenses that occur during retirement. Other Needs may include liability payments, insurance premiums and savings. 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 2052 2054 2056 $0K $50K $100K $150K $200K $250K $300K $350K $400K Retirement Needs Other Needs Ability to Cover Needs Shortfall Surplus After-Tax Cash Inflow Analysis Our analysis indicates that your savings strategies and retirement resources could provide you with the ability to cover approximately 91% of your expenses in retirement or $92,820* in the year 2030. Another alternative to reach your retirement income goal of $102,000* is to delay Roger's retirement until 2033 when Roger is 68 and to 2035 when Joanne is 68. You can also phase into retirement more gradually. Note that these projections indicate your debts are expected to be paid off prior to Roger's retirement in 2030. If this is not the case, your retirement income will need to support these payments until these liabilities are paid off. *In today’s dollars – after tax. Retirement income reflects the first year of retirement and may change. Page 5 of 18
  5. 5. Key Assumptions Roger Joanne Retirement Age/Year 65/2030 65/2032 Life Expectancy 90/2055 90/2057 Desired Fixed Expenses Covered 100% Desired Discretionary Expenses Covered 100% Annual Inflation Rate 3.00% Investment Objective (ROR) Pre-Retirement Current - Not Rebalanced (6.22%) Investment Objective (ROR) Retirement Current - Not Rebalanced (6.22%) Total Monthly Savings Non-Registered $0 RRSP $250 $250 RRSP Spousal $0 $0 TFSA $0 $0 RPP** $0 $0 DPSP** $0 $0 **Includes employer contributions, if applicable. Recommendations You can retire earlier by saving more to your RRSPs and TFSAs. We have looked at retirement at age 63, which would require additional montly savings of $739 for Roger and $1,020 for Joanne. Changes to the Current plan are highlighted in bold text on the Key Assumptions table found in the following Retirement Overview - Recommended. The Net Worth - Comparison graph and Total Income - Comparison graph on subsequent pages show the improvements to your net worth and cash flow based on these recommendations. I have also attached Retirement Income Summary - Current and Retirement Income Summary - Recommended graphs which show your major sources of retirement income based on your current plan and based on our recommendations. I can also provide you with this information in the form of reports showing dollar amounts if you prefer. The budgeting exercise we undertook shows that you can afford the recommended savings to your RRSPs and TFSAs, which in turn will allow you to retire when you want to. However, if you feel the amount of your required savings is unmanageable, we should review your various goals to find an appropriate solution. You may wish to consider looking at an alternative asset allocation or reducing your income need in retirement. Page 6 of 18
  6. 6. Retirement Overview – Recommended Objectives Your retirement goals are for Roger to retire in the year 2028 at age 63 and for Joanne to retire in the year 2030 at age 63. Your desired base retirement income is $102,000* starting in the year 2028. *In today’s dollars – after tax. Retirement income reflects the first year of retirement and may change. Needs vs. Abilities Retirement Needs includes most expenses that occur during retirement. Other Needs may include liability payments, insurance premiums and savings. 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 2052 2054 2056 $0K $50K $100K $150K $200K $250K $300K $350K $400K Retirement Needs Other Needs Ability to Cover Needs Shortfall Surplus After-Tax Cash Inflow Analysis Our analysis indicates that your savings strategies and retirement resources could provide you with the ability to cover approximately 100% of your expenses in retirement or $102,000* in the year 2028. Review this goal on an annual basis to ensure you stay on track. Note that these projections indicate your debts are expected to be paid off prior to Roger's retirement in 2028. If this is not the case, your retirement income will need to support these payments until these liabilities are paid off. *In today’s dollars – after tax. Retirement income reflects the first year of retirement and may change. Key Assumptions Roger Joanne Retirement Age/Year 63/2028 63/2030 Life Expectancy 90/2055 90/2057 Desired Fixed Expenses Covered 100% Desired Discretionary Expenses Covered 100% Annual Inflation Rate 3.00% Additional Lump-Sum Savings $0 Investment Objective (ROR) Pre-Retirement Current - Not Rebalanced (6.22%) Investment Objective (ROR) Retirement Current - Not Rebalanced (6.22%) Total Monthly Savings Non-Registered $0 RRSP $689 $970 RRSP Spousal $0 $0 TFSA $300 $300 RPP** $0 $0 DPSP** $0 $0 Note: Numbers in bold indicate a change from the current plan. Note: Information in the table above is for the October 18, 2012 period. Any strategies occurring in the future are not displayed in this table. **Includes employer contributions, if applicable. Page 7 of 18
  7. 7. Retirement Income Summary Graph – Current The following graph illustrates a projection of major income categories during your retirement. RPP (DC) refers to Defined Contribution pension income, if applicable. 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 2052 2054 2056 $0K $50K $100K $150K $200K $250K $300K $350K $400K $450K CPP/QPP & OAS Defined Benefit Pension TFSA Non-Registered Income & Capital RRSP/RRIF/DPSP LIF/LRIF/RPP (DC) Other Page 8 of 18
  8. 8. Retirement Income Summary Graph – Recommended The following graph illustrates a projection of major income categories during your retirement. RPP (DC) refers to Defined Contribution pension income, if applicable. 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 2052 2054 2056 $0K $50K $100K $150K $200K $250K $300K $350K $400K $450K $500K $550K CPP/QPP & OAS Defined Benefit Pension TFSA Non-Registered Income & Capital RRSP/RRIF/DPSP LIF/LRIF/RPP (DC) Other Page 9 of 18
  9. 9. Net Worth Overview (Future Dollars) – Current Ne t Wo r t h Objectives Net worth is one benchmark from which you can measure progress toward your financial goals. By carefully managing your financial resources, you can allocate additional funds towards your investment savings accounts and build your net worth to be in a better position to achieve your financial life goals. Analysis The graph below illustrates a projection of your net worth and lifestyle assets throughout your planning horizon. The amounts are expressed in future (inflated) dollars. Total Net Worth is determined by taking the total of all assets less any liabilities. Lifestyle Assets include personal real estate and other personal property. 2012 2015 2018 2021 2024 2027 2030 2033 2036 2039 2042 2045 2048 2051 2054 $0.0M $0.5M $1.0M $1.5M $2.0M $2.5M $3.0M $3.5M $4.0M Total Net Worth Lifestyle Assets An analysis of your net worth as of September 18, 2012 indicates that: You currently have a net worth of $1,118,554. Your current liabilities total $193,579. Recommendations A net worth statement is important because it helps check progress towards financial goals, plan for changes in assets or liabilities, estimate how well dependant survivors would be able to live on their current inheritance, give an estimate of retirement income potential, and provide a way to chart financial progress over the years. The main item currently missing from your net worth statement is the 'adjusted cost base' of your cottage, which we need in order to better estimate future tax liabilities. Please forward this information to my team at your first opportunity. The Net Worth - Comparison chart on the following page shows the positive effect which your additional recommended savings could have on your net worth. Page 10 of 18
  10. 10. Net Worth – Comparison (Future Dollars) The following graph compares your projected net worth between two plan scenarios for each year in the analysis. The amounts are expressed in future (inflated) dollars as of the end of the year. 2012 2015 2018 2021 2024 2027 2030 2033 2036 2039 2042 2045 2048 2051 2054 $0.0M $0.5M $1.0M $1.5M $2.0M $2.5M $3.0M $3.5M $4.0M $4.5M Current: Total Net Worth Recommended: Total Net Worth Page 11 of 18
  11. 11. Net Worth Statement Cu r r e n t F i n a n c i a l P o s i t i o n This net worth statement provides a detailed breakdown of your financial situation as of September 18, 2012. Net Worth Statement As of September 18, 2012 Roger Joanne Joint Total Non-Registered Assets Non-Registered Account 152,760 152,760 Total Non-Registered Assets 152,760 152,760 Registered Assets RRSP Account 236,426 236,426 RRSP Account 311,931 311,931 Total Registered Assets 236,426 311,931 548,357 Lifestyle Assets Residence 360,600 360,600 Cottage 250,417 250,417 Total Lifestyle Assets 611,017 611,017 Total Assets 236,426 311,931 763,777 1,312,133 Liabilities Mortgage (183,536) (183,536) Car Loans (10,044) (10,044) Total Liabilities (193,579) (193,579) Total Net Worth 236,426 311,931 570,197 1,118,554 Page 12 of 18
  12. 12. Cash Flow Overview – Current Ca s h F l o w Objectives The purpose of cash management is to ensure that you have enough cash and other liquid assets to cover your expected expenses, to establish an adequate emergency reserve to meet unforeseen expenses, to minimize unproductive assets and to plan the repayment of your debt. During our budgeting exercise, you were concerned about the income which you could not account for with your regular expenses. These might be expenses you don't track such as miscellaneous expenses, gifts or infrequent repairs. In your current plan, we have shown the gap between your incomes and your known expenses as 'Surplus Lifestyle Expenses' on the following Itemized Cash Flow Projection - Current. You want to create an emergency fund which is specifically set aside for large, unexpected expenses. You would like advice in determining the size of this fund and strategies for its investment. Analysis The graph below illustrates a projection of your annual and accumulated cash flow surplus (and/or deficits) throughout your planning horizon. A surplus exists when cash inflows exceed cash outflows and a deficit exists when cash outflows exceed cash inflows. Cash inflows include all sources of income including employment and investment income and return of capital. Cash outflows include lifestyle expenses, debt payments, income taxes, savings, insurance premiums and all other cash outflows. We have assumed that any accumulated surpluses or deficit at retirement is eliminated and will not carry forward into retirement. 2012 2015 2018 2021 2024 2027 2030 2033 2036 2039 2042 2045 2048 2051 2054 -$900K -$700K -$500K -$300K -$100K $100K Accumulated Surplus/Deficit Current Surplus/Deficit An analysis of your cash flow for the year 2012 indicates that: You are expected to have no annual cash flow surplus or deficit . $123,535 or 60% of your total income* will be spent on your total expenses**. $30,000 or 14% of your total income* will be spent on loan and mortgage payments. $53,965 or 26% of your total income* is an estimate of your income taxes***. *Total income includes all cash inflows including return of investment capital. **Total expenses include lifestyle expenses (less liabilities), savings and life insurance premiums. ***Income tax amounts are estimates. Please consult with a professional tax advisor. Recommendations Since your income closely matches your expenses, we should review your discretionary expenses and identify opportunities to improve your cash flow position. These opportunities could include reducing non-essential expenditures and developing a plan to pay off any high interest debt that you may carry. Analysis of your cash flow indicates that you could afford the extra savings we are recommending. The phrase "Pay Yourself First" applies here, in that a portion of the money you direct towards Surplus Lifestyle Expenses can be used for these additional savings. Page 13 of 18
  13. 13. Itemized Cash Flow Projection – Current The following report shows your projected sources of income and expenses over 5 years. 2012 2013 2014 2015 2016 Cash Inflows Employment Inflows Annual Income (Roger) 82,500 84,975 87,524 90,150 92,854 Annual Income (Joanne) 125,000 128,750 132,613 136,591 140,689 Total Employment Inflows 207,500 213,725 220,137 226,741 233,543 Total Cash Inflows 207,500 213,725 220,137 226,741 233,543 Cash Outflows Lifestyle Expenses Entertainment (e.g. restaurants, movies) (Joint) 6,000 6,180 6,365 6,556 6,753 Food (Joint) 9,000 9,270 9,548 9,835 10,130 Housing (e.g. utilities, repairs) (Joint) 12,000 12,360 12,731 13,113 13,506 Other (e.g. child care, travel) (Joint) 24,000 24,720 25,462 26,225 27,012 Personal (e.g. clothing, hobbies) (Joint) 9,000 9,270 9,548 9,835 10,130 Transportation (e.g. gas, insurance) (Joint) 12,000 12,360 12,731 13,113 13,506 European Vacation (Joint) 0 0 0 0 22,510 Surplus Lifestyle Expenses (Roger) 3,372 3,888 6,163 7,938 0 Surplus Lifestyle Expenses (Joanne) 32,510 34,063 37,407 40,310 27,969 Car Loans (Joint) 6,000 6,000 2,511 0 0 Mortgage (Joint) 24,000 24,000 24,000 24,000 24,000 Total Lifestyle Expenses 137,882 142,111 146,466 150,924 155,516 Employment/Business Expenses CPP/QPP contrib. - employment (Roger) 2,307 2,381 2,458 2,537 2,618 Employment Insurance premiums (Roger) 840 865 891 918 945 CPP/QPP contrib. - employment (Joanne) 2,307 2,381 2,458 2,537 2,618 Employment Insurance premiums (Joanne) 840 865 891 918 945 Total Employment/Business Expenses 6,293 6,493 6,698 6,909 7,127 Registered Contributions RRSP Account (Roger) 3,000 3,000 3,000 3,000 3,000 RRSP Account (Joanne) 3,000 3,000 3,000 3,000 3,000 Total Registered Contributions 6,000 6,000 6,000 6,000 6,000 Miscellaneous Expenses Life Insurance (Roger/Term 10 Life) 900 900 900 900 900 Group LTD (Joanne) 1,500 1,500 1,500 1,500 1,500 Life Insurance (Joanne/Term 10 Life) 960 960 960 960 960 Total Miscellaneous Expenses 3,360 3,360 3,360 3,360 3,360 Taxes Net Federal Tax (Roger) 12,241 12,627 13,025 13,435 13,857 Net Provincial Tax (Roger) 8,841 9,234 9,639 10,085 10,543 Net Federal Tax (Joanne) 22,726 23,430 24,156 24,903 25,673 Net Provincial Tax (Joanne) 10,157 10,470 10,793 11,125 11,467 Total Taxes 53,965 55,761 57,613 59,547 61,540 Total Cash Outflows 207,500 213,725 220,137 226,741 233,543 Current Surplus/(Deficit) 0 0 0 0 0 Previous Surplus/(Deficit) 0 0 0 0 0 Ending Surplus/(Deficit) 0 0 0 0 0 Page 14 of 18
  14. 14. Action Plan Ac t i o n P l a n Personalized Action Items Net Worth Calculate the adjusted cost base for your cottage by adding the cost of all capital improvements to the purchase price, and check with your accountant regarding your use of the $100,000 capital gains exemption in 1994. Cash Flow Focus on reducing the high interest rate debt that you are carrying. You indicated you would be willing to apply the proceeds of the sale of your '78 T-Bird against the car loan for the Jetta. We will incorporate the result of that strategy into this financial plan after you determine the sale price of the T-Bird. Retirement Based on your preference for retiring earlier than age 65, consider reducing your projected spending needs during retirement, and how you can accomplish that. This, combined with the additional RRSP savings shown in the Activity report below, will provide a margin of comfort in meeting your early retirement goals. Activities The following section illustrates action items for 2012 and the following two years. Activity for 2012 Savings Asset Contributor Amount Comment RRSP Account (Roger) Roger $3,000 Regular Savings Plan ($250/month) RRSP Account (Joanne) Joanne $3,000 Regular Savings Plan ($250/month) Retirement Fund (Roger/RRSP) Roger $1,756 Regular Savings Plan ($439/month) Retirement Fund (Roger/TFSA) Roger $1,200 Regular Savings Plan ($300/month) Retirement Fund (Joanne/RRSP) Joanne $2,880 Regular Savings Plan ($720/month) Retirement Fund (Joanne/TFSA) Joanne $1,200 Regular Savings Plan ($300/month) Total $13,036 Insurance Policy Payer Premium Coverage Life Insurance (Roger/Term 10 Life) Roger $900 Life Insurance $350,000 Life Insurance (Joanne/Term 10 Life) Joanne $960 Life Insurance $500,000 Group LTD (Joanne) Joanne $1,500 Disability Insurance $7,500 Total $3,360 Debt Reductions Liability Contributor Amount Comment Mortgage Joint $24,000 Regular Payments, Principal & Interest ($2,000/month) Car Loans Joint $6,000 Regular Payments, Principal & Interest ($500/month) Activity for 2013 Savings Asset Contributor Amount Comment RRSP Account (Roger) Roger $3,000 Regular Savings Plan ($250/month) RRSP Account (Joanne) Joanne $3,000 Regular Savings Plan ($250/month) Retirement Fund (Roger/RRSP) Roger $5,426 Regular Savings Plan ($452/month) Retirement Fund (Roger/TFSA) Roger $3,708 Regular Savings Plan ($309/month) Retirement Fund (Joanne/RRSP) Joanne $8,899 Regular Savings Plan ($742/month) Retirement Fund (Joanne/TFSA) Joanne $3,708 Regular Savings Plan ($309/month) Total $27,741 Insurance Policy Payer Premium Coverage Life Insurance (Roger/Term 10 Life) Roger $900 Life Insurance $350,000 Life Insurance (Joanne/Term 10 Life) Joanne $960 Life Insurance $500,000 Page 15 of 18
  15. 15. Policy Payer Premium Coverage Group LTD (Joanne) Joanne $1,500 Disability Insurance $7,500 Total $3,360 Debt Reductions Liability Contributor Amount Comment Mortgage Joint $24,000 Regular Payments, Principal & Interest ($2,000/month) Car Loans Joint $6,000 Regular Payments, Principal & Interest ($500/month) Activity for 2014 Savings Asset Contributor Amount Comment RRSP Account (Roger) Roger $3,000 Regular Savings Plan ($250/month) RRSP Account (Joanne) Joanne $3,000 Regular Savings Plan ($250/month) Retirement Fund (Roger/RRSP) Roger $5,589 Regular Savings Plan ($466/month) Retirement Fund (Roger/TFSA) Roger $3,819 Regular Savings Plan ($318/month) Retirement Fund (Joanne/RRSP) Joanne $9,166 Regular Savings Plan ($764/month) Retirement Fund (Joanne/TFSA) Joanne $3,819 Regular Savings Plan ($318/month) Total $28,393 Insurance Policy Payer Premium Coverage Life Insurance (Roger/Term 10 Life) Roger $900 Life Insurance $350,000 Life Insurance (Joanne/Term 10 Life) Joanne $960 Life Insurance $500,000 Group LTD (Joanne) Joanne $1,500 Disability Insurance $7,500 Total $3,360 Debt Reductions Liability Contributor Amount Comment Mortgage Joint $24,000 Regular Payments, Principal & Interest ($2,000/month) Car Loans Joint $2,511 Regular Payments, Principal & Interest ($500/month) Other Transactions 1) End of liability (Car Loans) on Jul 27 2014 Page 16 of 18
  16. 16. Conclusion Now that you have reviewed the Personal Financial Analysis report, where do you go from here? Our recommendations are as follows: 1. Ask Questions – Please be sure to ask questions about areas that need clarification. It is important that the information contained in this report is clear enough to help you make decisions to achieve your financial goals. 2. Validate your Objectives – After reviewing this report, are you still comfortable with your goals? Are you able to implement all of your strategies to meet your objectives? Do you need to make any changes to goal amounts, dates, investment options, etc.? We will work together to help you. 3. Analyze Alternatives – Where appropriate, we will help you analyze alternatives and help you decide what option is best for you. 4. Implement the Plan – Together, we will implement the alternative that is consistent with your objectives and your financial ability. We will work with you to help find suitable product options to implement the strategies that we have agreed upon. This may also involve engaging other individuals. 5. Monitor the Plan – We will assist you in reviewing your plan periodically to make sure you stay on track to meet your financial goals. We recommend you review your financial plan at least once a year, or when a major change occurs in your life (e.g. job changes, retirement, new incomes or new expenses). A final thought. Remember to maintain a long-term focus with your plan. We cannot anticipate every change to your personal or financial situation but we can help you to adjust your plan when necessary. Roger Abbott Joanne Abbott Date Date Page 17 of 18
  17. 17. Disclaimer Financial Information, Assumptions, and Limitations of Projections The information you have provided has been used to prepare this report. Accordingly, the usefulness of this report depends on the accuracy and completeness of this information. Please review this information and all assumptions to ensure they are accurate and reasonable. Financial projections should be reviewed on a regular basis, at least annually or on the occurrence of any major life event such as a change of relationship status or change in family members. It is also important to note that small changes in assumptions, such as inflation or return rates, can have a significant impact on the outcome of this plan. The projections contained in this report are hypothetical in nature. Actual investment outcomes are the result of numerous variables and external factors which cannot be predicted; therefore, assumptions may not reflect actual investment return results, and are not guarantees of future results. The projections utilize return data that does not include commissions, trailing commissions, management fees or expenses. If included, these charges could materially reduce these projections. The federal and provincial income tax laws are complex and subject to continuous change. Financial planning projections have limited capability to model any individual’s tax liability, particularly future tax liability, as future tax laws may be significantly different from current tax laws. This report should not be construed as providing legal, accounting or tax advice. Confidentiality Investors Group is committed to keeping your personal information confidential. The information collected when creating this report may be used by Investors Group and shared with its affiliates in order to be able to inform you of investment opportunities, or to provide additional financial information to you from time to time and for other internal purposes. Other Important Information Investment products and services are offered through Investors Group Financial Services Inc. (in Québec, a Financial Services firm) and Investors Group Securities Inc. (in Québec, a firm in Financial Planning). Investors Group Securities Inc. is a member of the Canadian Investor Protection Fund. Insurance products and services distributed through I.G. Insurance Services Inc. (in Québec, a Financial Services Firm). Insurance license sponsored by The Great-West Life Assurance Company (outside of Québec). Page 18 of 18
  18. 18. MP1787 (09/2012) Insurance Disclaimer

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