CLIENT SIT­U­A­TION

The Globe and Mail (BC Edition) - - REPORT ON BUSINESS -

The peo­ple: Herb, 63, and Hat­tie, 52 The prob­lem: How to make the most of their sav­ings and in­vest­ments af­ter Herb re­tires

The plan: Re­tire as planned. Herb splits pen­sion in­come with Hat­tie and they draw short­fall from non-reg­is­tered port­fo­lio first.

The pay­off: Fi­nan­cial se­cu­rity Monthly net in­come (past year): $8,655 As­sets: tFSAs $143,500; in­vest­ment port­fo­lio (in­clud­ing cash) $766,500; his RRSP $350,000; her RRSP $115,000;

RESP $24,000; res­i­dence $400,000; es­ti­mated present value of his de­fined-ben­e­fit pen­sion plan $400,000. to­tal: $2.2-mil­lion

Monthly out­lays: Prop­erty tax $210; home in­sur­ance $60; main­te­nance $525; util­i­ties $265; gro­ceries $750; cloth­ing $25; health care $75; phones, tV, in­ter­net $190; en­ter­tain­ment/ din­ing $150; hob­bies, ac­tiv­i­ties $100; gifts, do­na­tions $75; travel $500; per­sonal dis­cre­tionary $200; miscellaneous $50; trans­porta­tion $310. to­tal: $3,485. Sur­plus avail­able for sav­ing $5,170

Li­a­bil­i­ties: None

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