Financial Plan - (Sample)

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
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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
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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
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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.
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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.
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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
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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
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
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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 - 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 - 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
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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
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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%)
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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
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.
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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.
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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.
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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
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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
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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.
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
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RPP** $0
DPSP** $0
**Includes employer contributions, if applicable.
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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.
Needs vs. Abilities
2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045
$0K
$40K
$80K
$120K
$420K
Retirement Needs
Other Needs
Shortfall
Surplus
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.
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%)
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.
***The savings amount shown includes regular savings only (including $967 from RRSP maximizer savings strategies).
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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
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
Shortfall
Surplus
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
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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
*The savings amount shown includes regular savings only.
Note: All annual savings reflect 2013 values.
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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
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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
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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
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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
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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.
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· 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.
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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
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.
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Recommendations
· We should review your coverage periodically and adjust it according to changes in your income and
expenses.
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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
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
Pre-Retirement 4.00%
Retirement 4.00%
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
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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
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
Pre-Retirement 4.00% 4.00%
Retirement 4.00% 4.00%
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
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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.
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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.
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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
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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%
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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%
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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
IG Corp Class (Leslie/Non-Reg.) Leslie $15,163 Surplus Savings ($1,264/month)
Total $36,781
Debt Reductions
($1,094/month)
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Activity for 2015
Savings
IG Corp Class (Leslie/Non-Reg.) Leslie $19,620 Surplus Savings ($1,635/month)
Total $41,561
Debt Reductions
($1,094/month)
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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
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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
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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
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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
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.
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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
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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%
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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
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Financial Plan - (Sample)

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