CLIENT SIT­U­A­TION

The Globe and Mail (Alberta Edition) - - GLOBE INVESTOR WEEKEND -

The peo­ple: Mike, 45, Jade, 51, and their three chil­dren.

The prob­lem: Try­ing to fig­ure out where the money is go­ing so they can pay off their loans and meet some short-term spend­ing goals.

The plan: Track their spend­ing care­fully and draw up a de­tailed list of in­come and ex­pen­di­tures.

The pay­off: A bet­ter un­der­stand­ing of how to get from here, where they’re feel­ing pinched, to a fu­ture where they will be fi­nan­cially com­fort­able. Monthly net in­come: $7,185

As­sets: Cash $1,750; non-reg­is­tered in­vest­ment port­fo­lio $278,600; his RRSP $268,800; her RRSP $203,200; mar­ket value of his DC pen­sion plan $144,000; RESP $89,000; res­i­dence $315,000. To­tal: $1.3-mil­lion

Monthly out­lays: Prop­erty tax $500; home in­sur­ance $30; util­i­ties $380; main­te­nance, gar­den $175; trans­porta­tion $570; gro­ceries $450; child care $75; cloth­ing $150; line of credit (varies) $300; per­sonal loan $100; gifts $125; char­ity $250; va­ca­tion, travel $100; din­ing, drinks, en­ter­tain­ment $250; groom­ing $100; clubs $10; pets $45; sub­scrip­tions $25; chil­dren’s ac­tiv­i­ties, spe­cial needs $300; vi­ta­mins $25; life in­sur­ance $180; disability in­sur­ance $210; tele­phone, cell­phones, ca­ble $280; RRSPs $1,500; RESP $500. To­tal: $6,630. Sur­plus: $555

Li­a­bil­i­ties: Line of credit $29,500 at 3.7 per cent; per­sonal loan $16,000 at no in­ter­est. To­tal: $45,500

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