Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Personal Financial Analysis
November 26, 2014
Prepared for: Leslie (Sample Plan)
Prepared by: John Doe, CFP®, M.Sc (Econ)
...
Table of Contents
Introduction...............................................................................................
Introduction
Dear Leslie,
This report is intended to provide you with a better understanding of your current financial pos...
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 Overview (Future Dollars) – Wealth Plan
Analysis
The graph below illustrates a projection of your net worth and ...
Net Worth – Comparison (Future Dollars)
The following graph compares your projected net worth between two plan scenarios f...
Itemized Cash Flow Projection – Current
Ca s h F l o w
The following report shows your projected sources of income and exp...
Itemized Cash Flow Projection – Wealth Plan
The following report shows your projected sources of income and expenses over ...
2013 2014 2015 2016 2017
Taxes
Net Federal Tax (Leslie) 9,424 10,842 11,340 11,719 12,119
Net Provincial Tax (Leslie) 4,47...
Emergency Fund Analysis – Current
Eme r g e n c y F u n d
Objectives
An emergency fund is a reserve of liquid assets, whic...
Emergency Fund Analysis – Wealth Plan
Objectives
An emergency fund is a reserve of liquid assets, which can be easily conv...
Income Tax Overview – Current
I n c o me Ta x
Objectives
The purpose of tax planning is to minimize your income tax liabil...
Income Tax Overview – Wealth Plan
Analysis
The graph below illustrates a projection of your Total Income, Total Cash Outfl...
Total Income & Total Tax – Comparison
Total Income
The following graph compares total incomes between two plan scenarios. ...
Average & Marginal Tax – Comparison
Average Tax Rate
The following graph compares average tax rates between two plan scena...
Retirement Overview – Current
Re t i r e me n t
Objectives
Your retirement goal is to retire in the year 2023 at age 69. Y...
Total Monthly Savings
RPP** $0
DPSP** $0
**Includes employer contributions, if applicable.
Prepared: November 26, 2014 Pag...
Retirement Overview – Wealth Plan
Objectives
Your retirement goal is to retire in the year 2023 at age 69. Your desired ba...
Retirement – Details – Comparison
This section illustrates the difference between two alternative retirement scenarios whe...
Financial Objectives Current Wealth Plan
Monthly Savings
Non-Registered $0 $0
Leslie
RRSP $833 $1,800*
TFSA $292 $750
RPP*...
Net Worth Accumulation – Retirement – Current
The following report illustrates a projection of the accumulation and/or dep...
Net Worth Accumulation – Retirement – Wealth Plan
The following report illustrates a projection of the accumulation and/or...
Retirement Income and Expense Details Report – Current
The following report illustrates a projection of the annual sources...
Retirement Income and Expense Details Report – Wealth Plan
The following report illustrates a projection of the annual sou...
Holding Company Overview
Ho l d i n g Co mp a n y
What Are Holding Companies?
A holding company is a corporation that is a...
· Enhance the value of a shareholder’s estate for the benefit of heirs.
· Fund a tax deductible gift by the corporation up...
Disability Insurance Overview – Leslie – Current
Di s a b i l i t y I n s u r a n c e
Overview
Disability insurance is des...
Recommendations
· We should review your coverage periodically and adjust it according to changes in your income and
expens...
Disability Insurance Overview – Leslie – Wealth Plan
The analysis is based on your Wealth Plan financial situation and ref...
Disability Insurance – Comparison – Leslie
This section illustrates the difference between two disability insurance scenar...
Critical Illness Insurance Overview
Cr i t i c a l I l l n e s s I n s u r a n c e
Objectives
The purpose of critical illn...
Long-Term Care Overview
Lo n g - Te r m Ca r e
The purpose of long-term care insurance is to help minimize the financial i...
Net Estate – Comparison (Future Dollars)
Es t a t e P l a n n i n g
The following graph compares your projected net estate...
Estate Analysis Report – Current
The report below illustrates a projection of select years if you were to die in a given y...
Estate Analysis Report – Wealth Plan
The report below illustrates a projection of select years if you were to die in a giv...
Action Plan
Ac t i o n P l a n
Activities
The following section illustrates action items for 2013 and the following two ye...
Activity for 2015
Savings
Asset Contributor Amount Comment
IG Corp Class (Leslie/Non-Reg.) Leslie $19,620 Surplus Savings ...
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...
Verification/Synopsis – Wealth Plan
Ap p e n d i x : Ve r i f i c a t i o n / S y n o p s i s
This report summarizes the d...
Expense Member Applicable Amount Indexed
Fixed
Expense
Retirement Expense Leslie Aug 1 2023 to Dec 31 2045 $72,000/yr Infl...
Life Insurance Policies
Description: Canada Life - Term 10 Life
Policy Type: Term 10 Life Owner: Leslie
Insured: Leslie
De...
The maximum allowable RRSP contribution for a particular taxpayer in a particular year depends on factors such
as earned i...
Assets Allocated to Emergency Expenses
Asset Name
Market Value
Date Market Value Growth Rate
50% of Non Reg - Pembrooke & ...
Upcoming SlideShare
Loading in …5
×

Financial Plan - (Sample)

19,583 views

Published on

  • I pasted a website that might be helpful to you: ⇒ www.WritePaper.info ⇐ Good luck!
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Did you try ⇒ www.HelpWriting.net ⇐?. They know how to do an amazing essay, research papers or dissertations.
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Ted's collection of plans are some of the best I've seen. If you're a woodworker, you really don't want miss out on this great deal. ●●● https://url.cn/xFeBN0O4
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Hi there! I just wanted to share a list of sites that helped me a lot during my studies: .................................................................................................................................... www.EssayWrite.best - Write an essay .................................................................................................................................... www.LitReview.xyz - Summary of books .................................................................................................................................... www.Coursework.best - Online coursework .................................................................................................................................... www.Dissertations.me - proquest dissertations .................................................................................................................................... www.ReMovie.club - Movies reviews .................................................................................................................................... www.WebSlides.vip - Best powerpoint presentations .................................................................................................................................... www.WritePaper.info - Write a research paper .................................................................................................................................... www.EddyHelp.com - Homework help online .................................................................................................................................... www.MyResumeHelp.net - Professional resume writing service .................................................................................................................................. www.HelpWriting.net - Help with writing any papers ......................................................................................................................................... Save so as not to lose
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • I can advise you this service - HelpWriting.net Bought essay here. No problem.
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

Financial Plan - (Sample)

  1. 1. Personal Financial Analysis November 26, 2014 Prepared for: Leslie (Sample Plan) Prepared by: John Doe, CFP®, M.Sc (Econ) Financial Planner, Investors Group Financial Services Inc. Suite 601 - 2345 Yonge St Toronto, Ontario M4P 2E5 Office Phone: (416) 483-7667 Report Name: Copy of Initial Analysis D R AFT
  2. 2. Table of Contents Introduction..................................................................................................................................................................3 Net Worth.....................................................................................................................................................................4 Cash Flow.................................................................................................................................................................... 7 Emergency Fund........................................................................................................................................................10 Income Tax................................................................................................................................................................ 12 Retirement..................................................................................................................................................................16 Holding Company......................................................................................................................................................25 Disability Insurance...................................................................................................................................................27 Critical Illness Insurance........................................................................................................................................... 31 Long-Term Care........................................................................................................................................................ 32 Estate Planning.......................................................................................................................................................... 33 Action Plan................................................................................................................................................................ 36 Conclusion................................................................................................................................................................. 38 Disclaimer..................................................................................................................................................................39 Appendix: Verification/Synopsis.............................................................................................................................. 40 D R AFT
  3. 3. Introduction Dear Leslie, 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, John Doe, CFP®, M.Sc (Econ) Investors Group Financial Services Inc. Prepared: November 26, 2014 Page 3 of 44 D R AFT
  4. 4. 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. · You would like to learn strategies for increasing your net worth to reach your financial life goals. · You have worked hard to build your net worth and want to protect it from unnecessary setbacks. · Reaching a specific net worth goal is less important to you than ensuring your cash flow needs are met throughout your lifetime. 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. 2013 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 -$0.2M $0.0M $0.2M $0.4M $0.6M $0.8M $1.0M $1.2M $1.4M $1.6M $1.8M $2.0M $2.2M Total Net Worth Lifestyle Assets An analysis of your net worth as of May 30, 2013 indicates that: · You currently have a net worth of $936,204. · Your current liabilities total $248,663. Prepared: November 26, 2014 Page 4 of 44 D R AFT
  5. 5. Net Worth Overview (Future Dollars) – Wealth Plan 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. 2013 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 $0.00M $0.25M $0.50M $0.75M $1.00M $1.25M $1.50M $1.75M $2.00M $2.25M $2.50M Total Net Worth Lifestyle Assets An analysis of your net worth as of May 30, 2013 indicates that: · You currently have a net worth of $688,204. · Your current liabilities total $496,663. Prepared: November 26, 2014 Page 5 of 44 D R AFT
  6. 6. 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. 2013 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 -$0.25M $0.00M $0.25M $0.50M $0.75M $1.00M $1.25M $1.50M $1.75M $2.00M $2.25M $2.50M Current: Total Net Worth Wealth Plan: Total Net Worth Prepared: November 26, 2014 Page 6 of 44 D R AFT
  7. 7. Itemized Cash Flow Projection – Current Ca s h F l o w The following report shows your projected sources of income and expenses over 5 years. 2013 2014 2015 2016 2017 Cash Inflows Employment Inflows Salary (Leslie) 90,000 92,250 94,556 96,920 99,343 Total Employment Inflows 90,000 92,250 94,556 96,920 99,343 Self-Employment Inflows Self-Employment Income (Leslie) 27,000 27,675 28,367 29,076 29,803 Total Self-Employment Inflows 27,000 27,675 28,367 29,076 29,803 Investment Inflows Non Reg - Macquarie (Leslie/Non-Reg.) 14 21 21 22 22 *Accrued Income - Interest (Leslie) 7 0 0 0 0 Total Investment Inflows 21 21 21 22 22 Miscellaneous Inflows Salary to Family Member(s) (Leslie) 13,000 13,325 13,658 14,000 14,350 Total Miscellaneous Inflows 13,000 13,325 13,658 14,000 14,350 Total Cash Inflows 130,021 133,271 136,603 140,018 143,518 Cash Outflows Lifestyle Expenses Total household expense (Leslie) 44,016 45,116 46,244 47,400 48,585 First Line - Home Equity Line (Leslie) 6,022 6,022 6,022 6,022 6,022 First Line - Mortgage (Leslie) 18,980 18,980 16,875 0 0 Total Lifestyle Expenses 69,018 70,119 69,142 53,423 54,608 Employment/Business Expenses CPP/QPP contrib. - employment (Leslie) 2,356 2,419 2,484 2,551 2,619 Employment Insurance premiums (Leslie) 891 913 936 960 983 Total Employment/Business Expenses 3,247 3,333 3,420 3,510 3,602 Non-Registered Contributions and Reinvestments Non Reg - Macquarie (Leslie/Non-Reg.) 8 12 12 12 13 Total Non-Registered Contributions and Reinvestments 8 12 12 12 13 Registered Contributions RRSP - Macquarie (Leslie) 10,000 10,000 10,000 10,000 10,000 TFSA - Macquarie (Leslie) 3,500 3,500 3,500 3,500 3,500 Total Registered Contributions 13,500 13,500 13,500 13,500 13,500 Miscellaneous Expenses *Income already represented in valuation date market values (Leslie) 7 0 0 0 0 Canada Life - Term 10 Life (Leslie) 645 645 645 645 645 Total Miscellaneous Expenses 652 645 645 645 645 Taxes Net Federal Tax (Leslie) 18,981 19,520 20,072 20,638 21,218 Net Provincial Tax (Leslie) 10,506 10,793 11,087 11,389 11,698 Total Taxes 29,487 30,313 31,159 32,027 32,916 Total Cash Outflows 115,912 117,921 117,879 103,117 105,284 Current Surplus/(Deficit) 14,108 15,350 18,724 36,900 38,234 Previous Surplus/(Deficit) 0 14,108 29,458 48,182 85,082 Ending Surplus/(Deficit) 14,108 29,458 48,182 85,082 123,315 Prepared: November 26, 2014 Page 7 of 44 D R AFT
  8. 8. Itemized Cash Flow Projection – Wealth Plan The following report shows your projected sources of income and expenses over 5 years. 2013 2014 2015 2016 2017 Cash Inflows Employment Inflows Salary (Leslie) 90,000 92,250 94,556 96,920 99,343 Total Employment Inflows 90,000 92,250 94,556 96,920 99,343 Investment Inflows IG Corp Class (Leslie/Non-Reg.) 273 622 978 1,450 2,002 IG Leverage Plan (Leslie/Non-Reg.) 1,207 2,156 2,298 2,449 2,610 Non Reg - Macquarie (Leslie/Non-Reg.) 14 21 21 22 22 Non Reg - Pembrooke & Caitlyn (Leslie/Non-Reg.) 23,156 800 819 839 858 TD Cheq (Leslie/Non-Reg.) 157 238 243 247 251 *Accrued Income - Interest (Leslie) 7 0 0 0 0 Total Investment Inflows 24,813 3,837 4,359 5,006 5,744 Liability Inflows: IG Mortgage (Leslie) 248,000 0 0 0 0 Investment Loan (Leslie) 100,000 0 0 0 0 Total Liability Inflows: 348,000 0 0 0 0 Miscellaneous Inflows Dividend - Diana (Leslie) 17,000 17,000 17,000 17,000 17,000 Dividend - Pamela (Leslie) 17,000 17,000 17,000 17,000 17,000 Total Miscellaneous Inflows 34,000 34,000 34,000 34,000 34,000 Total Cash Inflows 496,813 130,087 132,916 135,926 139,087 Cash Outflows Lifestyle Expenses Total household expense (Leslie) 44,016 45,116 46,244 47,400 48,585 First Line - Home Equity Line (Leslie) 204,509 0 0 0 0 First Line - Mortgage (Leslie) 52,688 0 0 0 0 IG Mortgage (Leslie) 7,657 13,127 13,127 13,127 13,127 Investment Loan (Leslie) 2,333 4,000 4,000 4,000 4,000 Total Lifestyle Expenses 311,205 62,244 63,371 64,528 65,713 Employment/Business Expenses CPP/QPP contrib. - employment (Leslie) 2,356 2,419 2,484 2,551 2,619 Employment Insurance premiums (Leslie) 891 913 936 960 983 Total Employment/Business Expenses 3,247 3,333 3,420 3,510 3,602 Non-Registered Contributions and Reinvestments IG Corp Class (Leslie/Non-Reg.) 29,308 15,662 20,393 23,183 25,019 IG Leverage Plan (Leslie/Non-Reg.) 100,968 1,730 1,817 1,936 2,064 Non Reg - Macquarie (Leslie/Non-Reg.) 9 14 14 15 15 Non Reg - Pembrooke & Caitlyn (Leslie/Non-Reg.) 361 551 549 562 575 TD Cheq (Leslie/Non-Reg.) 108 164 163 165 168 Total Non-Registered Contributions and Reinvestments 130,755 18,122 22,936 25,861 27,841 Registered Contributions IG RRSP (Leslie) 11,600 16,200 16,605 17,020 17,446 IG TFSA (Leslie) 5,500 5,418 5,336 5,256 5,177 RRSP - Macquarie (Leslie) 10,000 0 0 0 0 TFSA - Macquarie (Leslie) 3,500 0 0 0 0 Total Registered Contributions 30,600 21,618 21,941 22,276 22,623 Miscellaneous Expenses *Income already represented in valuation date market values (Leslie) 7 0 0 0 0 Canada Life - Term 10 Life (Leslie) 645 0 0 0 0 Total Miscellaneous Expenses 652 0 0 0 0 Prepared: November 26, 2014 Page 8 of 44 D R AFT
  9. 9. 2013 2014 2015 2016 2017 Taxes Net Federal Tax (Leslie) 9,424 10,842 11,340 11,719 12,119 Net Provincial Tax (Leslie) 4,472 5,224 5,449 5,615 5,790 Total Taxes 13,896 16,067 16,789 17,334 17,908 Total Cash Outflows 490,355 121,382 128,459 133,509 137,687 Current Surplus/(Deficit) 6,458 8,705 4,457 2,416 1,399 Previous Surplus/(Deficit) 0 6,458 15,163 19,620 22,036 Ending Surplus/(Deficit) 6,458 15,163 19,620 22,036 23,436 Prepared: November 26, 2014 Page 9 of 44 D R AFT
  10. 10. Emergency Fund Analysis – Current Eme r g e n c y F u n d Objectives An emergency fund is a reserve of liquid assets, which can be easily converted into cash, to cover unexpected expenses. Your emergency fund target is $23,221. Analysis Based on our analysis, you currently have $9,430 of capital allocated to your emergency fund goal and you are under funded by $13,791. *40% This scenario covers 40% of the desired emergency fund goal objectives. *This value indicates the percentage of your total emergency fund needs that can be covered by your total emergency fund resources. 2013 $0K $5K $10K $15K $20K $25K Desired Needs Ability to Cover Needs Shortfall Assumptions The following table details the key assumptions used in the generation of this scenario: Goal Amount (today's $) $23,221 Savings Period Immediately Index Rate for Goal Amount 0.00% Total Monthly Savings $0 Asset Class (ROR) Current - Rebalanced (0.00%) Prepared: November 26, 2014 Page 10 of 44 D R AFT
  11. 11. Emergency Fund Analysis – Wealth Plan Objectives An emergency fund is a reserve of liquid assets, which can be easily converted into cash, to cover unexpected expenses. Your emergency fund target is $23,221. Analysis Based on our analysis, you currently have $31,930 of capital allocated to your emergency fund goal and you are over funded by $8,709. *153% This scenario covers 153% of the desired emergency fund goal objectives. *This value indicates the percentage of your total emergency fund needs that can be covered by your total emergency fund resources. 2013 2014 2015 2016 2017 2018 $0K $5K $10K $15K $20K $25K $30K $35K $40K Desired Needs Ability to Cover Needs Shortfall Assumptions The following table details the key assumptions used in the generation of this scenario: Goal Amount (today's $) $23,221 Savings Period 60 months Index Rate for Goal Amount 0.00% Additional Lump-Sum Savings $0 Total Monthly Savings $0 Asset Class (ROR) Cash - Unit Trust (2.50%) Note: Information in the table above is for the June 30, 2013 period. Any strategies occurring in the future are not displayed in this table. Prepared: November 26, 2014 Page 11 of 44 D R AFT
  12. 12. Income Tax Overview – Current I n c o me Ta x Objectives The purpose of tax planning is to minimize your income tax liability throughout your lifetime. This is accomplished by using the principles of defer, deduct and divide. Deferring taxation is accomplished when the tax liability on income earned in the current year is not payable until the future. The deduct principle is based on taking advantage of all deductions, exemptions and tax credits that are available. Divide generally refers to splitting income amongst family members, if they are in different tax brackets, in order to reduce the taxes paid by the whole family unit. Further tax reduction strategies include use of tax-efficient investments and shifting taxable income to years where you pay tax at a lower rate. We should discuss the strategies available in your unique circumstances. · You have indicated that reducing your personal income taxes is a high priority. · You are interested in the potential for making interest payments on your debt tax-deductible. Analysis The graph below illustrates a projection of your Total Income, Total Cash Outflows (Excluding Taxes) and Taxes. Total Income may include (but is not limited to) employment income, investment income, return of capital, CPP/QPP & OAS, RRIF and Defined Benefit pension income. Total Cash Outflows (Excluding Taxes) includes lifestyle expenses, debt payments, savings, insurance premiums and all other cash outflows except income taxes. Taxes represent personal income taxes. 2013 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 $0K $40K $80K $120K $160K $200K Total Cash Outflows (Excluding Taxes) Taxes Total Income An analysis of Leslie's projected income tax for 2013 indicates that: · Leslie's total taxes are expected to be $29,487. · Leslie's effective marginal tax rate* is 43.41%. · Leslie's average tax rate** is 27.55%. *Marginal tax rate is the tax rate that you will pay on the next dollar of income earned. **Average tax rate is the total tax payable divided by your total taxable income. Prepared: November 26, 2014 Page 12 of 44 D R AFT
  13. 13. Income Tax Overview – Wealth Plan Analysis The graph below illustrates a projection of your Total Income, Total Cash Outflows (Excluding Taxes) and Taxes. Total Income may include (but is not limited to) employment income, investment income, return of capital, CPP/QPP & OAS, RRIF and Defined Benefit pension income. Total Cash Outflows (Excluding Taxes) includes lifestyle expenses, debt payments, savings, insurance premiums and all other cash outflows except income taxes. Taxes represent personal income taxes. 2013 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 $0K $100K $200K $300K $400K $500K Total Cash Outflows (Excluding Taxes) Taxes Total Income An analysis of Leslie's projected income tax for 2013 indicates that: · Leslie's total taxes are expected to be $13,896. · Leslie's effective marginal tax rate* is 31.15%. · Leslie's average tax rate** is 20.68%. *Marginal tax rate is the tax rate that you will pay on the next dollar of income earned. **Average tax rate is the total tax payable divided by your total taxable income. Prepared: November 26, 2014 Page 13 of 44 D R AFT
  14. 14. Total Income & Total Tax – Comparison Total Income The following graph compares total incomes between two plan scenarios. Total Income may include (but is not limited to) employment income, investment income, return of capital, CPP/QPP & OAS, RRIF and Defined Benefit pension income. 2013 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 $0K $50K $100K $150K $200K $400K $450K $500K Current: Total Income Wealth Plan: Total Income Total Tax The following graph compares total personal income tax between two plan scenarios. 2013 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 $0K $10K $20K $30K $40K $50K $60K Current: Total Tax Wealth Plan: Total Tax Prepared: November 26, 2014 Page 14 of 44 D R AFT
  15. 15. Average & Marginal Tax – Comparison Average Tax Rate The following graph compares average tax rates between two plan scenarios. Your average tax rate is your total tax payable divided by your total taxable income. 2013 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 0% 5% 10% 15% 20% 25% 30% 35% Current: Average Tax Rate Wealth Plan: Average Tax Rate Marginal Tax Rate The following graph compares marginal tax rates between two plan scenarios. Your marginal tax rate is the tax rate that you will pay on the next dollar of income you earn. 2013 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 0% 10% 20% 30% 40% 50% Current: Marginal Tax Rate Wealth Plan: Marginal Tax Rate Prepared: November 26, 2014 Page 15 of 44 D R AFT
  16. 16. Retirement Overview – Current Re t i r e me n t Objectives Your retirement goal is to retire in the year 2023 at age 69. Your desired base retirement income is $72,000* starting in the year 2023. · You want to be able to afford a comfortable retirement. You would like to spend winter time in Florida, travel, play Golf and make purchases without worrying about a budget. · You enjoy working, and would like to transition from full-time employment to retirement over a number of years, potentially working for as long as Age 70 *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. 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 $0K $40K $80K $120K $160K 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 70% of your expenses in retirement or $50,400* in the year 2023. Another alternative to reach your retirement income goal of $72,000* is to delay your retirement until 2034 when you are 81. You can also phase into retirement more gradually. Note that these projections indicate your debts are not expected be paid off at your retirement in 2023. You should consider paying off this debt prior to retirement otherwise your retirement income will need to support the associated payments until these liabilities are paid off, which is projected to occur in 2023. *In today’s dollars – after tax. Retirement income reflects the first year of retirement and may change. Key Assumptions Leslie Retirement Age/Year 69/2023 Life Expectancy 92/2045 Desired Fixed Expenses Covered 100% Desired Discretionary Expenses Covered 100% Annual Inflation Rate 2.50% Investment Objective (ROR) Pre-Retirement Current - Rebalanced (7.00%) Investment Objective (ROR) Retirement Current - Rebalanced (5.00%) Total Monthly Savings Non-Registered $0 RRSP $833 TFSA $292 Prepared: November 26, 2014 Page 16 of 44 D R AFT
  17. 17. Total Monthly Savings RPP** $0 DPSP** $0 **Includes employer contributions, if applicable. Prepared: November 26, 2014 Page 17 of 44 D R AFT
  18. 18. Retirement Overview – Wealth Plan Objectives Your retirement goal is to retire in the year 2023 at age 69. Your desired base retirement income is $72,000* starting in the year 2023. *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. 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 $0K $40K $80K $120K $420K 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 158% of your expenses in retirement or $113,760* in the year 2023. Review this goal on an annual basis to ensure you stay on track. Note that these projections indicate your debts are not expected be paid off at your retirement in 2023. You should consider paying off this debt prior to retirement otherwise your retirement income will need to support the associated payments until these liabilities are paid off, which is projected to occur in 2023. *In today’s dollars – after tax. Retirement income reflects the first year of retirement and may change. Key Assumptions Leslie Retirement Age/Year 69/2023 Life Expectancy 92/2045 Desired Fixed Expenses Covered 100% Desired Discretionary Expenses Covered 100% Annual Inflation Rate 2.50% Additional Lump-Sum Savings $0 Investment Objective (ROR) Pre-Retirement Current - Rebalanced (7.00%) Investment Objective (ROR) Retirement Current - Rebalanced (5.00%) Total Monthly Savings Non-Registered $0 RRSP $1,800*** TFSA $750 RPP** $0 DPSP** $0 Note: Numbers in bold indicate a change from the current plan. Note: Information in the table above is for the June 30, 2013 period. Any strategies occurring in the future are not displayed in this table. **Includes employer contributions, if applicable. ***The savings amount shown includes regular savings only (including $967 from RRSP maximizer savings strategies). Prepared: November 26, 2014 Page 18 of 44 D R AFT
  19. 19. Retirement – Details – Comparison This section illustrates the difference between two alternative retirement scenarios where the strategies, return rates and/or other variables are different. The scenarios are contrasted in the table below the graphs. Retirement Needs vs. Abilities Retirement Needs includes most expenses that occur during retirement. Other Needs may include liability payments, insurance premiums and savings. Current 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 $0K $100K $200K $300K $400K Wealth Plan 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 $0K $100K $200K $300K $400K Retirement Needs Other Needs Ability to Cover Needs Shortfall Surplus After-Tax Cash Inflow Scenario Comparison Table Financial Objectives Current Wealth Plan Leslie's Retirement Age/Year 69/2023 69/2023 Leslie's Life Expectancy Age/Year 92 92 Annual Needs at Retirement, in Today’s Dollars $72,000 $72,000 Desired Fixed Expense Covered 100% 100% Desired Discretionary Expense Covered 100% 100% Goal Coverage 70% 158% Inflation Rate 2.50% 2.50% Return Rate: Pre-Retirement 7.00% 7.00% Return Rate: Retirement 5.00% 5.00% Available Assets $474,848 $452,348 Prepared: November 26, 2014 Page 19 of 44 D R AFT
  20. 20. Financial Objectives Current Wealth Plan Monthly Savings Non-Registered $0 $0 Leslie RRSP $833 $1,800* TFSA $292 $750 RPP** $0 $0 DPSP** $0 $0 Note: Numbers in bold indicate a change from the current plan. *The savings amount shown includes regular savings only. **Includes employer contributions, if applicable. Note: All annual savings reflect 2013 values. Prepared: November 26, 2014 Page 20 of 44 D R AFT
  21. 21. Net Worth Accumulation – Retirement – Current The following report illustrates a projection of the accumulation and/or depletion of your assets during retirement. It displays the start of year (SOY) Total Capital, along with any Regular Savings contributions, Redemptions From Assets, Reinvestments and Growth that are applicable throughout each year, as well as the end of year (EOY) Total Capital. Year Age(s) SOY Total Capital Regular Savings Redemptions From Assets Reinvestments Growth EOY Total Capital 2023 70* 1,944,611 13,500 51,415 19,970 64,064 1,990,730 2024 71 1,990,730 0 93,205 17,451 52,496 1,967,471 2025 72 1,967,471 0 105,331 16,168 51,558 1,929,865 2026 73 1,929,865 0 106,601 14,742 51,018 1,889,024 2027 74 1,889,024 0 120,100 13,277 50,473 1,832,675 2028 75 1,832,675 0 137,095 11,892 48,895 1,756,367 2029 76 1,756,367 0 140,274 10,603 46,013 1,672,709 2030 77 1,672,709 0 143,552 9,214 42,881 1,581,253 2031 78 1,581,253 0 146,915 7,720 39,483 1,481,540 2032 79 1,481,540 0 150,369 6,114 35,803 1,373,088 2033 80 1,373,088 0 153,914 4,392 31,829 1,255,395 2034 81 1,255,395 0 157,555 2,548 27,546 1,127,934 2035 82 1,127,934 0 44,473 579 22,938 1,106,979 2036 83 1,106,979 0 0 26 21,932 1,128,937 2037 84 1,128,937 0 0 25 22,371 1,151,333 2038 85 1,151,333 0 0 26 22,818 1,174,177 2039 86 1,174,177 0 0 27 23,275 1,197,479 2040 87 1,197,479 0 0 27 23,740 1,221,246 2041 88 1,221,246 0 0 28 24,215 1,245,489 2042 89 1,245,489 0 0 29 24,699 1,270,217 2043 90 1,270,217 0 0 29 25,193 1,295,440 2044 91 1,295,440 0 0 30 25,697 1,321,167 * = Year of retirement Prepared: November 26, 2014 Page 21 of 44 D R AFT
  22. 22. Net Worth Accumulation – Retirement – Wealth Plan The following report illustrates a projection of the accumulation and/or depletion of your assets during retirement. It displays the start of year (SOY) Total Capital, along with any Regular Savings contributions, Redemptions From Assets, Reinvestments and Growth that are applicable throughout each year, as well as the end of year (EOY) Total Capital. Year Age(s) SOY Total Capital Regular Savings Redemptions From Assets Reinvestments Growth EOY Total Capital 2023 70* 2,527,640 24,960 367,983 26,147 91,975 2,302,739 2024 71 2,302,739 0 81,630 14,004 71,875 2,306,989 2025 72 2,306,989 0 92,793 13,753 71,097 2,299,045 2026 73 2,299,045 0 93,376 13,428 70,414 2,289,511 2027 74 2,289,511 0 94,137 13,237 69,661 2,278,272 2028 75 2,278,272 0 94,916 12,976 68,831 2,265,163 2029 76 2,265,163 0 95,741 12,697 67,915 2,250,035 2030 77 2,250,035 0 96,561 12,399 66,914 2,232,787 2031 78 2,232,787 0 97,439 12,081 65,818 2,213,248 2032 79 2,213,248 0 98,364 11,742 64,622 2,191,247 2033 80 2,191,247 0 99,430 11,379 63,318 2,166,514 2034 81 2,166,514 0 100,769 11,026 61,896 2,138,667 2035 82 2,138,667 0 115,089 10,609 60,340 2,094,528 2036 83 2,094,528 0 119,836 9,942 58,198 2,042,832 2037 84 2,042,832 0 121,682 9,201 55,777 1,986,128 2038 85 1,986,128 0 123,692 8,481 53,168 1,924,085 2039 86 1,924,085 0 125,879 7,788 50,358 1,856,352 2040 87 1,856,352 0 127,968 6,974 47,336 1,782,695 2041 88 1,782,695 0 130,111 6,112 44,100 1,702,796 2042 89 1,702,796 0 132,328 5,202 40,646 1,616,316 2043 90 1,616,316 0 93,981 4,245 36,970 1,563,550 2044 91 1,563,550 0 93,724 3,798 34,339 1,507,963 * = Year of retirement Prepared: November 26, 2014 Page 22 of 44 D R AFT
  23. 23. Retirement Income and Expense Details Report – Current The following report illustrates a projection of the annual sources of income that are used to cover your needs throughout retirement. Pensions refers to Defined Benefit pensions and Minimums refers to required minimum payments from registered plans such as RRIFs. TFSA Distributions, Non-Registered Distributions and Additional Registered Distributions include both income and capital. Previous Year Surplus Used illustrates any shortfall of income where Total Needs exceed all income sources. Expenses are separated into Fixed Needs (essential expenses including income taxes) and Total Needs which includes both essential and discretionary needs. Total Taxes are included in both Fixed Needs and Total Needs. Annual Income Surplus/(Deficit) is the difference between all the income sources and all the expenses and other outflows. Year Age(s) CPP/OAS/QPP Pensions Annuity Income Earned Income Minimums TFSA Distributions Non-Registered Distributions Additional Registered Distributions Other Inflows Previous Year Surplus Used Fixed Needs Total Needs Total Taxes Annual Income Surplus/(Deficit) 2023 70* 19,623 0 0 87,366 0 51,415 1,829 0 9,707 0 154,264 169,940 23,208 0 2024 71 20,049 0 0 0 49,797 30,254 15,009 0 0 0 115,092 115,109 14,600 0 2025 72 20,485 0 0 0 73,402 0 33,693 0 0 0 127,562 127,580 24,708 0 2026 73 20,930 0 0 0 72,479 0 35,465 0 0 0 128,857 128,875 23,582 0 2027 74 21,386 0 0 0 71,574 0 19,145 30,177 0 0 142,269 142,288 34,513 (6) 2028 75 21,852 0 0 0 68,349 0 28 69,194 0 0 159,399 159,416 49,099 7 2029 76 22,329 0 0 0 62,129 0 28 78,552 0 0 163,022 163,038 50,115 0 2030 77 22,816 0 0 0 55,026 0 29 88,886 0 0 166,741 166,757 51,162 0 2031 78 23,315 0 0 0 47,086 0 30 100,138 0 0 170,551 170,568 52,233 0 2032 79 23,825 0 0 0 38,163 0 30 112,455 0 0 174,456 174,473 53,331 0 2033 80 24,346 0 0 0 28,099 0 31 125,999 0 0 178,458 178,475 54,455 0 2034 81 24,880 0 0 0 16,716 0 31 140,949 0 0 182,558 182,576 55,606 0 2035 82 25,426 0 0 0 3,819 0 32 40,679 0 0 138,703 138,721 8,728 (68,766) 2036 83 25,984 0 0 0 0 0 33 0 0 0 133,374 133,401 300 (107,384) 2037 84 26,555 0 0 0 0 0 34 0 0 0 136,551 136,576 300 (109,987) 2038 85 27,140 0 0 0 0 0 34 0 0 0 139,806 139,832 300 (112,658) 2039 86 27,737 0 0 0 0 0 35 0 0 0 143,144 143,170 300 (115,397) 2040 87 28,349 0 0 0 0 0 36 0 0 0 146,564 146,591 300 (118,206) 2041 88 28,974 0 0 0 0 0 37 0 0 0 150,070 150,098 300 (121,086) 2042 89 29,614 0 0 0 0 0 38 0 0 0 153,664 153,692 300 (124,040) 2043 90 30,269 0 0 0 0 0 39 0 0 0 157,347 157,377 300 (127,069) 2044 91 30,938 0 0 0 0 0 40 0 0 0 161,123 161,153 300 (130,174) 2045 92 34,124 0 0 0 0 0 1,347,420 0 0 0 164,993 367,010 300 1,014,534 * = Year of retirement Prepared: November 26, 2014 Page 23 of 44 D R AFT
  24. 24. Retirement Income and Expense Details Report – Wealth Plan The following report illustrates a projection of the annual sources of income that are used to cover your needs throughout retirement. Pensions refers to Defined Benefit pensions and Minimums refers to required minimum payments from registered plans such as RRIFs. TFSA Distributions, Non-Registered Distributions and Additional Registered Distributions include both income and capital. Previous Year Surplus Used illustrates any shortfall of income where Total Needs exceed all income sources. Expenses are separated into Fixed Needs (essential expenses including income taxes) and Total Needs which includes both essential and discretionary needs. Total Taxes are included in both Fixed Needs and Total Needs. Annual Income Surplus/(Deficit) is the difference between all the income sources and all the expenses and other outflows. Year Age(s) CPP/OAS/QPP Pensions Annuity Income Earned Income Minimums TFSA Distributions Non-Registered Distributions Additional Registered Distributions Other Inflows Previous Year Surplus Used Fixed Needs Total Needs Total Taxes Annual Income Surplus/(Deficit) 2023 70* 12,668 0 0 67,204 0 0 370,974 0 0 0 154,968 450,849 27,197 (3) 2024 71 25,640 0 0 0 56,395 0 27,173 0 0 0 108,354 109,205 18,831 2 2025 72 26,215 0 0 0 83,127 0 11,674 0 0 0 120,093 121,019 28,779 (3) 2026 73 26,804 0 0 0 82,083 0 13,357 0 0 0 121,359 122,248 28,219 (5) 2027 74 27,406 0 0 0 81,058 0 15,135 0 0 0 122,659 123,601 27,656 (1) 2028 75 28,023 0 0 0 80,040 0 16,943 0 0 0 124,033 124,996 27,131 10 2029 76 28,654 0 0 0 79,117 0 18,697 0 0 0 125,485 126,468 26,644 0 2030 77 29,299 0 0 0 78,064 0 20,573 0 0 0 126,931 127,937 26,114 0 2031 78 29,960 0 0 0 77,077 0 22,437 0 0 0 128,446 129,474 25,612 0 2032 79 30,636 0 0 0 76,126 0 24,306 0 0 0 130,018 131,069 25,128 0 2033 80 31,328 0 0 0 75,185 0 26,303 0 0 0 131,743 132,817 24,755 (1) 2034 81 32,036 0 0 0 74,226 0 28,580 0 0 0 133,716 134,843 24,588 0 2035 82 32,761 0 0 0 73,224 0 6,159 37,723 0 0 148,714 149,867 37,404 1 2036 83 33,503 0 0 0 68,814 0 1,713 51,336 0 0 154,259 155,366 40,723 0 2037 84 34,262 0 0 0 62,984 0 1,749 58,985 0 0 156,922 157,981 41,114 (1) 2038 85 35,039 0 0 0 56,271 0 1,784 67,678 0 0 159,693 160,774 41,569 (2) 2039 86 35,834 0 0 0 48,505 0 1,820 77,595 0 0 162,580 163,756 42,094 (1) 2040 87 36,648 0 0 0 39,453 0 1,859 88,695 0 0 165,452 166,653 42,556 2 2041 88 37,481 0 0 0 28,860 0 1,898 101,383 0 0 168,394 169,620 43,040 2 2042 89 38,334 0 0 0 16,319 0 1,939 116,084 0 0 171,430 172,683 43,570 (8) 2043 90 39,206 0 0 0 1,326 83,073 1,980 9,589 0 0 133,885 135,165 3,467 9 2044 91 40,099 0 0 0 0 93,724 2,022 0 0 0 134,228 135,845 1,202 0 2045 92 43,513 0 0 0 0 140,224 1,402,703 0 0 0 137,274 137,274 1,587 1,449,166 * = Year of retirement Prepared: November 26, 2014 Page 24 of 44 D R AFT
  25. 25. Holding Company Overview Ho l d i n g Co mp a n y What Are Holding Companies? A holding company is a corporation that is a separate legal entity from its owners. A holding company does not produce goods or provide services but instead is used to accumulate wealth with a primary purpose of holding or owning investment assets. Examples are investment portfolios, shares in other private corporations and other property, such as real estate. The individuals do not own the underlying assets of the corporation directly but rather are shareholders in the corporation. Establishing a holding company provides the shareholders the potential opportunity to defer tax, limit liability, and reduce risk by holding diverse corporate investments. A holding company is often referred to as a “holdco,” “investment holding company,” or a “personal holding company.” These are words of convenience to describe the purpose of the corporation while, in reality, tax laws applicable to all corporations are the same. Taxation of Holding Companies A holding company is a taxable entity required to produce annual financial statements and file a separate annual corporate tax return from its owners. Personal taxation has progressive tax rates and income tax brackets, both federal and provincial. Corporate taxation, however, is different, as there are different tax rates depending on the type of income, i.e., investment income versus Canadian dividends, and no tax brackets. Taxes are applied at the federal and provincial level. Investment income and Canadian dividends earned in a holding company are considered to be “passive” income rather than “active” business income. A portion of the tax on passive income is refundable to the corporation upon it paying a taxable dividend distribution to its shareholders. In most provinces, there can be an advantage to paying a taxable dividend in the same year the income is earned to minimize the overall tax paid by the corporation and the shareholders. Planning Strategies and Taxation on Death Upon death, an individual is deemed to have disposed of all assets for tax purposes. In the context of a holding company, this means the shares a shareholder owns are deemed to be disposed of, not the assets of the company. The disposition generally occurs at fair market value (FMV), but the deemed disposition of shares transferring to a surviving spouse can occur at cost (referred to as a “rollover”) without immediate tax consequences. The amount of any capital gain realized upon the deemed disposition of the shares of the holding company as a result of the death of the shareholder is based on the FMV of those shares. The value of the shares is based on the underlying investments within the holding company at the time the death occurs. Shareholders can consider implementing an estate freeze during their lifetime to limit tax exposure on death and transfer future growth in the value of the holding company to family members in the next generation. See below for more details on estate freezes. Postmortem planning is focused on reducing immediate taxation and limiting the possibility of double taxation. The estate of the deceased shareholder and directors of the corporation may want to consider the following: · Transferring these shares to the surviving spouse, thereby deferring the tax on the capital gains. · Redeeming the estate’s shares or winding up and dissolving the company, resulting in a dividend to the estate and a capital loss that may be applied against the deceased’s deemed capital gain. Estate Freezes The purpose of an estate freeze is to “freeze” the value of the shares owned by the original shareholder at the point in time the freeze is put in place, so that any future increase in the value of the shares will be passed on to the owner’s intended beneficiaries. This minimizes taxes at death and probate fees for the original owner of the shares, as taxation on the future growth will be incurred by the beneficiaries when they dispose of their shares. An estate freeze is a very complex tax planning strategy, but it may be an option that an owner of a holding company may want to consider in consultation with their legal and tax advisors. Insurance Strategies Owners of a holding company may wish to make use of corporate owned and funded life insurance to achieve one or more of the following strategies: · Offset expected income tax to be incurred by the estate of a shareholder, since such liquidity may not otherwise exist in the estate. · Fund a repurchase (also called a redemption) of shares from a deceased shareholder’s estate. Prepared: November 26, 2014 Page 25 of 44 D R AFT
  26. 26. · Enhance the value of a shareholder’s estate for the benefit of heirs. · Fund a tax deductible gift by the corporation upon death of a shareholder to one or more charities. · Together with the use of a life annuity, reduce capital gains tax payable at death with respect to shares, and preserve corporate capital. The use of life insurance to achieve these objectives may also allow the company to take advantage of an investment component that accumulates on a tax-deferred basis within the policy. Assumptions Within the Plan: · Preferred and common shares are generic and do not possess any rights or preferences. The preferred share value never changes and is determined by the Redemption value per share entered. The overall value of all preferred shares owned by all shareholders is the Redemption value per share multiplied by the total number of preferred shares outstanding at the time of valuation. The total value of each individual shareholder’s preferred shares is equal to the Redemption value per share multiplied by the number of preferred shares owned by that particular shareholder at the time of valuation. The common share value per share is the overall value of all common shares at the time of valuation divided by the common shares outstanding at the time of valuation. The collective value of all common shares is calculated from the overall value of the holding company minus the overall value of preferred shares. The total value of each individual shareholder’s common shares is equal to the calculation value of each common share at the time of valuation multiplied by the number of common shares owned by that particular shareholder at the time of valuation. · The value of the shares issued by a holding company and still outstanding is equal to the market value of the holding company’s investment account plus the value of other assets plus the cash surrender value of the holding company’s life insurance policies, minus its outstanding shareholder loans minus its deferred taxes. · Dividend distributions made by a holding company are paid to all its shareholders of a given class of shares. A distribution can apply to either preferred or common shares, and can be either taxable or non-taxable. Automatic dividend distribution only applies to preferred shares, while manual distribution can apply to either preferred or common shares. Automatic dividends are limited by the value of a holding company’s investment account. The number of shares owned by a shareholder determines the amount of the distribution that the shareholder will receive at the time of distribution. Funds available for dividend distribution are calculated on a monthly basis. · A non-taxable dividend distribution will only be paid from a holding company to the extent of its Capital Dividend Account (CDA). If the distribution exceeds the available CDA balance, then the balance of the dividend will be paid as a taxable dividend with funds taken from the holding company’s investment account. · Shareholder loans to a holding company are non-interest bearing. Loan repayments to a shareholder are limited by the holding company’s outstanding shareholder loan balance at the time of the shareholder loan repayment. Loan repayments are withdrawn from the holding company’s investment account. · The holding company investment account is a non-registered investment portfolio. Clients cannot directly withdraw or save to this account. Inflows/outflows occur indirectly by transaction activity in the form of contributions, withdrawals, dividend distributions, life insurance premiums, etc. · Other assets, such as shares in other private corporations and other property, like real estate, within a holding company cannot generate income or expenses, and they cannot be purchased or sold. These other assets, however, contribute to the overall net worth of the holding company and offer value, with the value increasing as per each other asset’s growth rate entered. · Life insurance premiums for life insurance policies owned by a holding company are paid by the holding company, which is also the beneficiary of these policies. Premiums are paid from the holding company investment account. Death benefits received are non-taxable and invested in the holding company’s investment account and an update is applied to the CDA. Life insurance policies within a holding company cannot be sold. · Goal funding by a holding company is achieved by directing the after-tax proceeds of a holding company withdrawal to an individually held non-registered account funding the particular goal, or in the case of the retirement goal to cash flow if the withdrawal is made during the retirement period. · Withdrawals from a holding company are limited by the value of the holding company’s investment account. Share redemptions are limited to whole share numbers and will be rounded down to the nearest whole share number, which could result in a residual. · The corporate year-end of a holding company is assumed to be December 31. · Tax owing of a holding company is assumed to be paid on December 31 of each year. · The Province of Taxation selected for a holding company determines the provincial tax rate applied. Prepared: November 26, 2014 Page 26 of 44 D R AFT
  27. 27. Disability Insurance Overview – Leslie – Current Di s a b i l i t y I n s u r a n c e Overview Disability insurance is designed to protect you against lost earning power due to a disability. Disability policies generally provide benefits that replace a portion of your earned income, usually 50% to 70%. A short-term disability (STD) policy generally provides benefits from six months to two years, following a short waiting period. A long-term disability (LTD) policy generally provides benefits until the insured reaches an age specified in the contract, or for the insured’s lifetime. For both types, benefits end when the disability ends. You should have enough disability insurance to maintain your standard of living at an acceptable level if you are no longer able to work due to a disabling injury or illness. Objectives In the event that you were to become disabled, you want to ensure there is continuity of sufficient income to cover both your expenses and any investment plans needed to fund your goals. The analysis is based on your Current financial situation and reflects the financial assets and savings strategies in this scenario. The expected rate of return on your investment assets is 6.86%. Needs vs. Abilities 2014 2015 2016 2017 2018 $0K $50K $100K $150K $200K $250K Desired Needs Ability to Cover Needs Shortfall Analysis & Key Assumptions The table below illustrates both key assumptions and your disability insurance analysis for this scenario. Objectives Current Leslie's Retirement Age/Year for Disability Analysis 64/2018 Leslie's Life Expectancy Age/Year for Disability Analysis 92/2045 Analyze Disability Through 65 Total Rate of Return on Surpluses and Liquidations Pre-Retirement 4.00% Retirement 4.00% Disability Insurance Benefit Long Term $0 Short Term $0 Individual $0 Premium $0 Additional Monthly Disability Coverage Required* $15,324 Income prior to Disability (includes investment income) $130,021 Deficit in the First Year of Disability $231,291 Disability is assumed to occur at the start of 2014. *Depending on the circumstances, you may not be able to purchase this amount of disability insurance. Insurance products are only offered through Consultants holding the appropriate insurance license. Prepared: November 26, 2014 Page 27 of 44 D R AFT
  28. 28. Recommendations · We should review your coverage periodically and adjust it according to changes in your income and expenses. Prepared: November 26, 2014 Page 28 of 44 D R AFT
  29. 29. Disability Insurance Overview – Leslie – Wealth Plan The analysis is based on your Wealth Plan financial situation and reflects the financial assets and savings strategies in this scenario. The expected rate of return on your investment assets is 6.75%. Needs vs. Abilities 2014 2015 2016 2017 2018 $0K $100K $200K $300K $400K $500K Desired Needs Ability to Cover Needs Shortfall Analysis & Key Assumptions The table below illustrates both key assumptions and your disability insurance analysis for this scenario. Objectives Wealth Plan Leslie's Retirement Age/Year for Disability Analysis 64/2018 Leslie's Life Expectancy Age/Year for Disability Analysis 92/2045 Analyze Disability Through 65 Total Rate of Return on Surpluses and Liquidations Pre-Retirement 4.00% Retirement 4.00% Disability Insurance Benefit Long Term $0 Short Term $0 Individual $3,888 Premium $0 Additional Monthly Disability Coverage Required* $2,652 Income prior to Disability (includes investment income) $125,975 Deficit in the First Year of Disability $41,776 Note: Numbers in bold indicate a change from the current plan. Disability is assumed to occur at the start of 2014. *Depending on the circumstances, you may not be able to purchase this amount of disability insurance. Insurance products are only offered through Consultants holding the appropriate insurance license. Prepared: November 26, 2014 Page 29 of 44 D R AFT
  30. 30. Disability Insurance – Comparison – Leslie This section illustrates the difference between two disability insurance scenarios where the strategies, return rates and/or other variables are different. The scenarios are contrasted in the table below the graphs. Needs vs. Abilities Current 2014 2015 2016 2017 2018 $0K $100K $200K $300K $400K $500K Wealth Plan 2014 2015 2016 2017 2018 $0K $100K $200K $300K $400K $500K Desired Needs Ability to Cover Needs Shortfall Scenario Comparison Objectives Current Wealth Plan Leslie's Retirement Age/Year for Disability Analysis 64/2018 64/2018 Leslie's Life Expectancy Age/Year for Disability Analysis 92/2045 92/2045 Analyze Disability Through 65 65 Total Rate of Return on Surpluses and Liquidations Pre-Retirement 4.00% 4.00% Retirement 4.00% 4.00% Disability Insurance Benefit Long Term $0 $0 Short Term $0 $0 Individual $0 $3,888 Premium $0 $0 Additional Monthly Disability Coverage Required* $15,324 $2,652 Income prior to Disability (includes investment income) $130,021 $125,975 Deficit in the First Year of Disability $231,291 $41,776 Note: Numbers in bold indicate a change from the current plan. Disability is assumed to occur at the start of 2014. *Depending on the circumstances, you may not be able to purchase this amount of disability insurance. Insurance products are only offered through Consultants holding the appropriate insurance license. Prepared: November 26, 2014 Page 30 of 44 D R AFT
  31. 31. Critical Illness Insurance Overview Cr i t i c a l I l l n e s s I n s u r a n c e Objectives The purpose of critical illness insurance is to lessen the financial burden associated with the onset of an insured medical condition. This may take the form of extra cash to pay bills, to support dependants, to replace income, to carry out necessary home renovations, to pay for urgent medical treatment or to purchase prosthetics and similar devices. However, there is no requirement that a critical illness insurance benefit be used for a specific purpose. That flexibility may be invaluable at a time when you are weighing your options. A critical illness insurance analysis is complicated by the fact that no one can know what illness might strike, how serious it might be, or what circumstances it might create. The purchaser of the insurance coverage must carefully consider the needs and wants that might arise and evaluate the costs of those needs in order to determine the type and amount of coverage to acquire. The four most common critical illness insurance claims are for heart attack, coronary bypass surgery, stroke and cancer, but it is possible to apply for coverage of more than twenty ailments and conditions. The amount of critical insurance coverage required depends on your specific financial circumstances. Your financial needs and wants will change over time. For example, when children move away and become financially independent, the need to provide additional cash to help support them may disappear. Accumulated savings could provide income if the need arose, which might reduce the need for critical illness insurance. However, your investments are intended for specific objectives, such as retirement. Depleting them for costs associated with a critical illness will necessarily leave less for the original goal. As technology advances, new medical options could arise that will make you more treatable and more comfortable in the event of a critical illness. Augmented critical illness insurance coverage could make these options more available to you while preserving your other financial resources for the benefit of your family. Recommendations · We should review your coverage periodically to ensure it continues to meet your objectives. Insurance products are only offered through Consultants holding the appropriate insurance license. Prepared: November 26, 2014 Page 31 of 44 D R AFT
  32. 32. Long-Term Care Overview Lo n g - Te r m Ca r e The purpose of long-term care insurance is to help minimize the financial impact associated with the costs of care for those who are no longer able to care for themselves. Long-term care can include nursing care, therapy and rehabilitation and other support services either in a facility setting such as a personal care or nursing home, or within your own home. Thanks to better nutrition, fitness and health care, Canadians are living longer than ever before. As we age, however, our need for health care increases dramatically. Younger people might also need long-term care after surviving an accident or other health problems faced at an early age. Government coverage, quality, and availability of care already vary, sometimes widely, depending on where you live within Canada. With this in mind, it is important to determine if your income from pensions, annuities, RRIFs and/or other sources would adequately cover the care you need during a long-term illness. Long-term care insurance is an avenue to afford the quality health-care you may require. The following are important when considering your long-term care insurance policy options: · Type of plan: · Reimbursement plans refund what you have already paid (receipts required). · Indemnity plans pay a scheduled amount to a licensed service provider. · Income plans provide a weekly income in the form of the benefit amount you purchased, to be used for whatever form of care you desire. · Amount and length of coverage. · Types of care covered (skilled nursing care, custodial care, home care, assistance with activities of daily living, etc.). · Coverage limitations and exclusions, including pre-existing conditions and length of any “waiting periods” (i.e. the number of days you must wait before receiving benefits after becoming eligible). · Inflation protection and coverage allowing for an increase in benefits. It can make sense to apply for long-term care insurance sooner rather than later, when applicants are healthier and premiums tend to be lower. Prepared: November 26, 2014 Page 32 of 44 D R AFT
  33. 33. Net Estate – Comparison (Future Dollars) Es t a t e P l a n n i n g The following graph compares your projected net estate between two scenarios for each year in the analysis. The amounts are expressed in future (inflated) dollars as of the end of the year. 2013 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 -$0.2M $0.0M $0.2M $0.4M $0.6M $0.8M $1.0M $1.2M $1.4M $1.6M $1.8M $2.0M $2.2M Current: Net Estate Wealth Plan: Net Estate Prepared: November 26, 2014 Page 33 of 44 D R AFT
  34. 34. Estate Analysis Report – Current The report below illustrates a projection of select years if you were to die in a given year, and the resulting impact of taxation on your estate. Pro-Forma Net Worth is your projected net worth (assets minus liabilities) prior to death. Pay particular attention to the Estate Shrinkage which is the difference between your Final Estate and your Pro-Forma Net Worth. If this value is a negative number, your estate value would be higher than your net worth that year (possibly due to receiving life insurance proceeds). If this value is a positive number, your estate value would be lower than your net worth and you should consider permanent insurance if you wish to avoid a reduction in your estate at death. 2013 2020 2027 2034 2045 Non-Registered Non Reg - Macquarie 597 685 797 916 1,212 Non Reg - Pembrooke & Caitlyn 47,100 75,632 0 0 0 TD Cheq 9,430 9,430 9,430 9,430 9,430 Subtotal 57,127 85,747 10,227 10,346 10,642 Registered RRSP - Macquarie 435,107 791,284 886,497 42,476 0 TFSA - Macquarie 14,801 56,176 0 0 0 Subtotal 449,908 847,461 886,497 42,476 0 Lifestyle 49 Ted Reeve Dr 709,333 814,801 935,950 1,075,113 1,336,767 Subtotal 709,333 814,801 935,950 1,075,113 1,336,767 Liabilities First Line - Home Equity Line (202,017) (202,017) (202,017) (202,017) (202,017) First Line - Mortgage (34,596) 0 0 0 0 Subtotal (236,612) (202,017) (202,017) (202,017) (202,017) Current Surplus/Deficit 14,108 266,524 (7) 0 (1,268,126) Pro-Forma Net Worth 993,864 1,812,516 1,630,651 925,918 (122,734) Death Benefits CPP/QPP Death Benefits 2,500 2,500 2,500 2,500 2,500 Subtotal 2,500 2,500 2,500 2,500 2,500 Estate Before Taxes & Expenses 996,364 1,815,016 1,633,151 928,418 (120,234) Additional Income Taxes (202,940) (384,333) (421,388) (19,802) 0 Estate Expenses Accrued Interest on Loans (24) (17) (17) (17) (17) Subtotal (24) (17) (17) (17) (17) Final Estate 793,400 1,430,666 1,211,747 908,599 (120,250) Estate Shrinkage ($) 200,464 381,850 418,905 17,318 (2,483) Estate Shrinkage (%) 20% 21% 26% 2% 2% Prepared: November 26, 2014 Page 34 of 44 D R AFT
  35. 35. Estate Analysis Report – Wealth Plan The report below illustrates a projection of select years if you were to die in a given year, and the resulting impact of taxation on your estate. Pro-Forma Net Worth is your projected net worth (assets minus liabilities) prior to death. Pay particular attention to the Estate Shrinkage which is the difference between your Final Estate and your Pro-Forma Net Worth. If this value is a negative number, your estate value would be higher than your net worth that year (possibly due to receiving life insurance proceeds). If this value is a positive number, your estate value would be lower than your net worth and you should consider permanent insurance if you wish to avoid a reduction in your estate at death. 2013 2020 2027 2034 2045 Non-Registered 50% of Non Reg - Pembrooke & Caitlyn 22,861 26,907 31,616 37,210 48,025 IG Corp Class 29,949 236,810 0 0 0 IG Leverage Plan 103,804 162,042 122,501 4,271 0 Investment Loan (99,152) (99,152) 0 0 0 Non Reg - Macquarie 598 704 828 974 1,257 TD Cheq 9,538 10,720 12,033 13,523 16,236 Subtotal 67,599 338,030 166,978 55,979 65,519 Registered IG RRSP 447,090 874,055 1,038,131 814,502 0 IG TFSA 20,520 79,750 137,214 193,074 44,768 Subtotal 467,610 953,805 1,175,344 1,007,575 44,768 Lifestyle 49 Ted Reeve Dr 709,333 814,801 935,950 1,075,113 1,336,767 Subtotal 709,333 814,801 935,950 1,075,113 1,336,767 Liabilities Investment Loan (848) (848) 0 0 0 IG Mortgage (243,748) (187,498) 0 0 0 Subtotal (244,596) (188,346) 0 0 0 Current Surplus/Deficit 6,458 27,804 (10) (1) 0 Pro-Forma Net Worth 1,006,405 1,946,094 2,278,262 2,138,666 1,447,054 Death Benefits CPP/QPP Death Benefits 2,500 2,500 2,500 2,500 2,500 Subtotal 2,500 2,500 2,500 2,500 2,500 Estate Before Taxes & Expenses 1,352,653 2,236,092 2,280,762 2,141,166 1,449,554 Additional Income Taxes (205,380) (437,664) (509,564) (380,216) (388) Estate Expenses Accrued Interest on Loans (31) (24) 0 0 0 Subtotal (31) (24) 0 0 0 Final Estate 1,147,242 1,798,404 1,771,199 1,760,950 1,449,166 Estate Shrinkage ($) (140,837) 147,689 507,064 377,716 (2,112) Estate Shrinkage (%) -14% 8% 22% 18% 0% Prepared: November 26, 2014 Page 35 of 44 D R AFT
  36. 36. Action Plan Ac t i o n P l a n Activities The following section illustrates action items for 2013 and the following two years. Activity for 2013 Savings Asset Contributor Amount Comment IG Corp Class (Leslie/Non-Reg.) Leslie $6,458 Surplus Savings ($538/month) IG Leverage Plan (Leslie/Non-Reg.) Leslie $100,000 Lump-Sum Savings on Jun 1 2013 IG RRSP (Leslie) Leslie $11,600 Maximize RRSP Contributions IG TFSA (Leslie) Leslie $5,500 Regular Savings Plan (once a year) RRSP - Macquarie (Leslie) Leslie $10,000 Regular Savings Plan (once a year) TFSA - Macquarie (Leslie) Leslie $3,500 Regular Savings Plan (once a year) Total $137,058 Insurance Policy Payer Premium Coverage Canada Life - Term 10 Life (Leslie) Leslie $645 Life Insurance $250,000 Total $645 Transfers 1) Transfer $22,631 of 50% of Non Reg - Pembrooke & Caitlyn to IG Corp Class on Jun 1 2013. 2) Transfer $418,119 of RRSP - Macquarie to IG RRSP on Jun 1 2013. 3) Transfer $14,223 of TFSA - Macquarie to IG TFSA on Jun 1 2013. Debt Reductions Liability Contributor Amount Comment First Line - Home Equity Line Leslie $2,509 Regular Payments, Interest Only ($502/month) First Line - Mortgage Leslie $7,352 Regular Payments, Principal & Interest ($730 every 2 weeks) Investment Loan Leslie $2,333 Regular Payments, Interest Only ($333/month) IG Mortgage Leslie $7,657 Regular Payments, Principal & Interest ($1,094/month) Other Transactions 1) Early payout of First Line - Home Equity Line on May 30 2013 - estimated penalty of $0 is payable 2) Early payout of First Line - Mortgage on May 30 2013 - estimated penalty of $0 is payable 3) New liability (Investment Loan) of $100,000 on Jun 1 2013 4) New liability (IG Mortgage) of $248,000 on May 30 2013 Activity for 2014 Savings Asset Contributor Amount Comment IG Corp Class (Leslie/Non-Reg.) Leslie $15,163 Surplus Savings ($1,264/month) IG RRSP (Leslie) Leslie $16,200 Maximize RRSP Contributions IG TFSA (Leslie) Leslie $5,418 Regular Savings Plan (once a year) Total $36,781 Debt Reductions Liability Contributor Amount Comment Investment Loan Leslie $4,000 Regular Payments, Interest Only ($333/month) IG Mortgage Leslie $13,127 Regular Payments, Principal & Interest ($1,094/month) Prepared: November 26, 2014 Page 36 of 44 D R AFT
  37. 37. Activity for 2015 Savings Asset Contributor Amount Comment IG Corp Class (Leslie/Non-Reg.) Leslie $19,620 Surplus Savings ($1,635/month) IG RRSP (Leslie) Leslie $16,605 Maximize RRSP Contributions IG TFSA (Leslie) Leslie $5,336 Regular Savings Plan (once a year) Total $41,561 Debt Reductions Liability Contributor Amount Comment Investment Loan Leslie $4,000 Regular Payments, Interest Only ($333/month) IG Mortgage Leslie $13,127 Regular Payments, Principal & Interest ($1,094/month) Prepared: November 26, 2014 Page 37 of 44 D R AFT
  38. 38. 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. Leslie (Sample Plan) Date Prepared: November 26, 2014 Page 38 of 44 D R AFT
  39. 39. 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). ™ Trademark owned by IGM Financial Inc. and licensed to its subsidiary corporations Prepared: November 26, 2014 Page 39 of 44 D R AFT
  40. 40. Verification/Synopsis – Wealth Plan Ap p e n d i x : Ve r i f i c a t i o n / S y n o p s i s This report summarizes the data in your Wealth Plan scenario. General Information Detail Leslie Birth Date Sep 28 1953 Proposed Retirement Date Aug 2023 Life Expectancy Dec 2045 CPP/QPP Benefits Start On Sep 2023 OAS Benefits Start On Oct 2018 Qualify for % of Max. CPP/QPP Benefits 85% Qualify for % of OAS Benefits 85% Earned Income (2012) $120,000 Unused RRSP Deduction Room $0 Assumptions Detail Income Tax Method Detailed Tax Return on Excess Cash Flow: 0.00% Inflation Rate 2.50% Marital Status - Leslie Single Estate Assumptions Detail Leslie Is there a will? No Where are the wills kept? Family Information Client Name Leslie (Sample Plan) Date of Birth Sep 28 1953 Gender Female Address 29 Rose Lawn Dr Toronto, Ontario M4E3X1 Canada Citizenship Canada Professional Advisors Type Name Business Phone # Cell Phone # Advisor John Doe (416) 483-7667 Regular Income Income Source Member Applicable Amount Indexed Salary Leslie Jan 1 2013 to Jul 31 2023 $7,500/mo Inflation Dividend - Diana Leslie Jan 1 2013 to Jul 31 2021 $17,000/yr No Dividend - Pamela Leslie Jan 1 2013 to Jul 31 2021 $17,000/yr No Lump-Sum Incomes Income Source Member Applicable Amount Indexed *Accrued Income - Interest Leslie May 30 2013 $7 No Regular Expenses Expense Member Applicable Amount Indexed Fixed Expense Total household expense Leslie Jan 1 2013 to Jul 31 2023 $3,668/mo Inflation Yes Prepared: November 26, 2014 Page 40 of 44 D R AFT
  41. 41. Expense Member Applicable Amount Indexed Fixed Expense Retirement Expense Leslie Aug 1 2023 to Dec 31 2045 $72,000/yr Inflation1 Yes 1 Indexed annually by inflation + -0.5% Lump-Sum Expenses Expense Member Applicable Amount Indexed Fixed Expense Critical Illness Expense Leslie Never (Leslie's Critical Illness Date) $120,000 Inflation Yes *Income already represented in valuation date market values Leslie May 30 2013 $7 No Yes Lifestyle Assets Asset Name: 49 Ted Reeve Dr Asset Type: Principal Residence Sale Date: N/A Owner: Leslie Direct After Tax Proceeds To: N/A Purchase Date: Dec 31 2012 Projected Value as of Sale Dates: Purchase Amount: $0 Before Tax: N/A Market Value: $700,000 After Tax: N/A Valuation Date: May 16 2013 Growth Rate:1 2.00% Standard Deviation: 0.00% 1 The growth rate is a pre-tax amount Portfolio Assets Asset Name Goal Market Value Date Market Value Cost Base Int. (%) Div. (%) Cap. Gain (%) Def. Growth (%) Std. Dev. (%) Total (%) Annual Fee (%) 50% of Non Reg - Pembrooke & Caitlyn (Leslie/Non-Reg.) Retirement May 16 2013 $22,500 $25,000 0.56 0.00 1.52 4.92 11.46 7.00 0.00 50% of Non Reg - Pembrooke & Caitlyn (Leslie/Non-Reg.) Emergency Fund May 16 2013 $22,500 $25,000 3.50 0.00 0.00 0.00 4.00 3.50 0.00 IG Corp Class (Leslie/Non-Reg.) Retirement May 30 2013 $0 $0 0.56 0.00 1.52 4.92 11.46 7.00 0.00 IG Leverage Plan (Leslie/Non-Reg.) Retirement May 30 2013 $0 $0 0.56 0.00 1.52 4.92 11.46 7.00 0.00 IG Non-Reg (Leslie/Non-Reg.) Emergency Fund May 16 2013 $0 $0 2.50 0.00 0.00 0.00 1.00 2.50 0.00 Non Reg - Macquarie (Leslie/Non-Reg.) May 16 2013 $589 $0 3.50 0.00 0.00 0.00 4.00 3.50 0.00 Retirement Fund (Leslie/Non-Reg.) Retirement Jan 1 2013 $0 $0 0.56 0.00 1.52 4.92 11.46 7.00 0.00 TD Cheq (Leslie/Non-Reg.) Emergency Fund May 30 2013 $9,430 $9,430 2.50 0.00 0.00 0.00 1.00 2.50 0.00 IG RRSP (Leslie) Retirement May 30 2013 $0 $0 0.56 0.00 1.52 4.92 11.46 7.00 0.00 IG TFSA (Leslie) Retirement May 30 2013 $0 $0 0.56 0.00 1.52 4.92 11.46 7.00 0.00 RRSP - Macquarie (Leslie) Retirement May 16 2013 $415,707 $0 0.56 0.00 1.52 4.92 11.46 7.00 0.00 Retirement Fund (Leslie/RRSP) Retirement Jan 1 2013 $0 $0 0.56 0.00 1.52 4.92 11.46 7.00 0.00 TFSA - Macquarie (Leslie) Retirement May 16 2013 $14,141 $14,141 0.56 0.00 1.52 4.92 11.46 7.00 0.00 The Portfolio Assets table includes your major investment assets. It supplies the market value and cost basis of these assets. Your total pretax growth rate is broken down into specific return rate types, as some of these items receive special tax treatment. Interest is taxed as ordinary income at the marginal tax rate. Dividends receive preferential tax treatment, while one-half the capital gains are taxed at the marginal tax rate. Income from the deferred growth component is not subject to tax until the asset is sold and is usually taxed as a capital gain. The actual total return rates that you will receive will depend on many factors, including inflation, type of investment, market conditions and investment performance. Prepared: November 26, 2014 Page 41 of 44 D R AFT
  42. 42. Life Insurance Policies Description: Canada Life - Term 10 Life Policy Type: Term 10 Life Owner: Leslie Insured: Leslie Death Benefit: $250,000 Beneficiary: Other Cash Surrender Value (CSV): $0 Premium Payer: Leslie Premiums Cease On: May 30 2013 Annual Premium Payments: $645 CSV Payable With Death Benefit: No Coverage Ceases On: May 30 2013 Disability Waiver: Yes Disability Insurance Policies Description: Additional Disability Insurance Policy Type: Individual Disability Insured: Leslie Effective Date: Dec 31 2012 Owner: Leslie Premium Payer: Leslie Benefits are $3,888/month (tax-free). Benefits begin after 3 months and are paid until age 64. Premiums are $0/month and end on Jul 31 2023. Liabilities Liability Name Liability Date End Date Original Principal Current Principal Int. Rate Payment Type Linked to Asset First Line - Home Equity Line Dec 31 2012 Never $202,000 $202,000 3.00% Interest Only 49 Ted Reeve Dr First Line - Mortgage Dec 31 2012 Dec 11 2015 $46,000 $46,663 3.80% Principal & Interest 49 Ted Reeve Dr Investment Loan Jun 1 2013 Never $100,000 $100,000 4.00% Interest Only IG Leverage Plan IG Mortgage May 30 2013 May 29 2038 $248,000 $248,000 2.35% Principal & Interest 49 Ted Reeve Dr Regular Savings Strategies Asset Name Applicable Amount Indexed RRSP - Macquarie (Leslie) Jan 1 2013 to May 30 2013 $10,000/year 0.0% RRSP - Macquarie (Leslie) Not applicable $10,000/year 0.0% TFSA - Macquarie (Leslie) Jan 1 2013 to May 30 2013 $3,500/year 0.0% TFSA - Macquarie (Leslie) Not applicable $3,500/year 0.0% IG TFSA (Leslie) Jun 1 2013 to Jul 31 2023 $5,500/year -1.5% The table above includes all your periodic (annual or monthly) investment contributions. Lump-Sum Savings Strategies Asset Name Applicable Amount Indexed IG Leverage Plan (Leslie/Non-Reg.) Jun 1 2013 $100,000 0.0% Lump sum savings represent planned savings that occur on a one time basis. Any lump sum savings planned for future years that are indexed by inflation will be increased accordingly - refer to your Action Plan in the appropriate years for the estimated savings amounts that will be required. RRSP Maximizer Savings Strategies Asset Name Applicable Constrained by Cash Flow Time of Year IG RRSP (Leslie) Jun 1 2013 to Jul 1 2023 No June Prepared: November 26, 2014 Page 42 of 44 D R AFT
  43. 43. The maximum allowable RRSP contribution for a particular taxpayer in a particular year depends on factors such as earned income for the prior year, pension adjustments and any RRSP carryforward room that the taxpayer has available. Even with the regular RRSP contributions under your regular savings strategy, there is room for additional contributions. The RRSP maximizer strategies listed above will project the maximum contributions you can make on an annual basis, based on the assumptions in this plan. If the constrained by cash flow option is YES then the recommended contributions will take into consideration whether your available cash flow in each year is sufficient to fund the maximum contributions you are allowed to make. Surplus Savings Strategies (Regular Cash Flow) Asset Name Applicable % of Surplus IG Corp Class (Leslie/Non-Reg.) Jan 1 2013 to Jul 1 2023 50.00% You may still have surplus cash available for investment, after having established a regular savings program and/or maximized your RRSP contributions. Surplus savings strategies specify how unallocated surplus cash is to be invested each year. Unallocated surplus cash may change from year to year based on changes in your incomes and expenses. Your Action Plan will provide the estimated savings on a yearly basis for these savings strategies. The surplus savings strategies assume that you will invest surplus cash and not spend it on current needs or desires. Be sure to review your plan annually with your financial advisor to determine if these investments are occurring according to plan. If not, your plan should be revised and new projections should be prepared to reflect a realistic savings strategy. Transfer Strategies Source Asset Destination Asset Amount When 50% of Non Reg - Pembrooke & Caitlyn IG Corp Class 100% Jun 1 2013 RRSP - Macquarie IG RRSP 100% Jun 1 2013 TFSA - Macquarie IG TFSA 100% Jun 1 2013 Transfers specify a plan for moving your investments from one type of asset to another on specific dates or events such as retirement. Also, transfers will be desirable in some cases to move from one type of investment to another type at a certain point in time. Refer to your Action Plan for the years in which transfers are scheduled to view the amounts to be transferred. Liquidation Order During Retirement Description Plan Type Owner IG Corp Class Non Registered Leslie IG Leverage Plan Non Registered Leslie *Non Reg - Pembrooke & Caitlyn Non Registered Leslie RRSP - Macquarie RRSP Leslie IG RRSP RRSP Leslie TFSA - Macquarie TFSA Leslie IG TFSA TFSA Leslie *Account is not used entirely to fund the retirement goal. The assets listed are available, and will be liquidated in the order they appear, for redemption to meet cash flow needs during the retirement period. Emergency Expenses Expense Amount Index Rate Emergency Fund $23,221 0% Prepared: November 26, 2014 Page 43 of 44 D R AFT
  44. 44. Assets Allocated to Emergency Expenses Asset Name Market Value Date Market Value Growth Rate 50% of Non Reg - Pembrooke & Caitlyn (Leslie/Non-Reg.) May 16 2013 $22,500.00 3.50% IG Non-Reg (Leslie/Non-Reg.) May 16 2013 $0.00 2.50% TD Cheq (Leslie/Non-Reg.) May 30 2013 $9,430.00 2.50% HOLDING COMPANIES - Vivian Hold Co. Share Ownership Asset Name Leslie Other Common Shares $0 $0 Preferred Shares $0 $0 Detail Amount Preferred Redemption Value per share $1 Preferred Automatic Dividend (% of Redemption Value) 0.00% Dividend Type Non-taxable Historical Data Detail Amount RDTOH End-of-Year Value for 2012 $0 CDA End-of-Year Value for 2012 $0 Dividend Refund for 2012 $0 Capital Losses Carryover End-of-Year Value for 2012 $0 Asset Name Leslie Other Outstanding Shareholder Loans $0 $0 Investment Account Asset Name Goal Valuation Date Market Value Cost Base Int. (%) Div. (%) Cap. Gain (%) Def. Growth (%) Std. Dev. (%) Total (%) Annual Fee (%) 0 May 16 2013 $0 $0 0.00 0.00 0.00 7.00 9.40 7.00 0.00 Estate Detail Share options at first death Sold to Other shareholder Estate Freeze No Prepared: November 26, 2014 Page 44 of 44 D R AFT

×