financial overview · we have made no attempt to review your property and liability insurance...

Financial Overview

Advisor

Sheldon Niemiec, MBA

John and Jane Smith

June 23, 2020

® Registered trademark of The Bank of Nova Scotia, used under licence. ™ Trademark of The Bank of Nova Scotia, used under licence. Scotia Wealth

Management™ consists of a range of financial services provided by The Bank of Nova Scotia (Scotiabank®); The Bank of Nova Scotia Trust Company

(Scotiatrust®); Private Investment Counsel, a service of 1832 Asset Management L.P.; 1832 Asset Management U.S. Inc.; Scotia Wealth Insurance Services Inc.; and

ScotiaMcLeod®, a division of Scotia Capital Inc. Financial Planning services are provided by ScotiaMcLeod, a division of Scotia Capital Inc. Scotia Capital Inc. is a

member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.

Disclaimer

This analysis is hypothetical in nature and is intended to help you in making decisions on your

financial future based on information that you have provided and reviewed.

Important: The calculations or other information generated by NaviPlan regarding the likelihood of

various investment outcomes are hypothetical in nature, do not reflect actual investment results, and

are not guarantees of future results.

Criteria, Assumptions, Methodology, and Limitations of the Analysis

The assumptions used in this analysis are based on information provided and reviewed by you. Those

assumptions must be reconsidered on a frequent basis to ensure the results are adjusted accordingly.

The smallest of changes in assumptions can have a dramatic impact on the outcome of this analysis.

Any inaccurate representation by you of any facts or assumptions used in this analysis invalidates the

results.

We have made no attempt to review your property and liability insurance policies (auto and

homeowners, for example). We strongly recommend that in conjunction with this analysis, you

consult with your property and liability agent to review your current coverage to ensure it continues

to be appropriate. In doing so, you may wish to review the dollar amount of your coverage, the

deductibles, the liability coverage (including an umbrella policy), and the premium amounts.

This analysis does not constitute advice in the areas of legal, accounting or tax. It is your

responsibility to consult with the appropriate professionals in those areas either independently or in

conjunction with this planning process.

Results May Vary With Each Use and Over Time

The results presented in this analysis are not predictions of actual results. Actual results may vary to a

material degree due to external factors beyond the scope and control of this analysis. Historical data

is used to produce future assumptions used in the analysis, such as rates of return. Past performance

is not a guarantee or predictor of future performance. Actual return rates and performance may vary

to a significant degree from that represented in this analysis.

Investments Considered*

Prepared by Sheldon Niemiec, MBA of 26

This analysis does not consider the selection of individual securities; the analysis provides model

portfolios. The results contained herein do not constitute an actual offer to buy, sell or recommend a

particular investment or product. All investments are inherently risky. The asset classes and return

rates used in the analysis are broad in nature. The illustrations are not indicative of the future

performance of actual investments, which will fluctuate over time and may lose value.

There are risks associated with investing, including the risk of losing a portion or all of your initial

investment.

* Asset classes and Asset Allocation may not apply to the Forecaster Assessments.


Financial Assumptions In preparing projections we use actual figures where they are known, applicable assumptions based on historical data, and your evaluations of your future. Please keep in mind that these assumptions are subject to change over time. It is important for you to monitor and evaluate your assumptions periodically.

• Inflation Rate: Canada’s inflation rate during the last three decades has ranged from a high of 12.5% in 1981 to a low of 0.2% in 1994. In preparing your plan, we have used 2.00% annual inflation for all projections, except CPP where we used 1.5%

• Canada Pension Plan (CPP): Both John and Jane will begin receiving CPP benefits at age 65. CPP benefits will continue as long as you live

• Old Age Security (OAS): Both of you will begin receiving OAS benefits at age 65 and OAS benefits will continue as long as you live. The OAS clawback will automatically apply if you are above the prescribed government amount

• Life Expectancy: We have projected this plan to age 95

• Non-Registered Assets are used first to cover retirement expenses

• Registered Retirement Savings Plan (RRSP): Contributions are maximized, cashflow permitting, until retirement for both of you

• Locked-in Retirement Account (LIRA): Accounts are split with 50% of the converted amount into a Life Income Funds (LIFs) at age 71, with payments beginning the following year

• Defined Benefit Pension for John: Lifetime defined benefit pension starting at age 65 of $80,000 a year to be paid monthly, has been assumed as indexed to the inflation. The spousal survivor benefits are assumed to be 60%

• Pension Income Splitting: The option “Joint Election to Split Pension Income” was selected. By selecting this option both clients have agreed to split their pension income and share CPP income for tax purposes

• Registered Education Savings Plan (RESP): Annual contributions of $7,200 are made towards your children’s RESP accounts until the youngest reaches age 17 or your education funding goals are met

• Surplus Strategy: o Current Plan: All cash surpluses which are projected to occur from 2020 until age 95 are assumed

to be spent o Proposed Plan: 50% of cash surpluses which are projected to occur from 2020 until age 95 have are

assumed to be saved into your joint non-registered, the remaining 50% spent

• Tax Free Savings Accounts (TFSA): Annual TFSA contributions of $6,000 each have been made for the life of the plan with no redemptions until the final estate disposition

• Other Assumptions:

• Vacations of $10,000 a year end at age 85

• Rates of Return: All rates of return for your investment accounts applied in this projection are before tax and after management fees.

In preparing the projections, we assume that tax rates will not change unless such changes have already been legislated. We have also assumed that the tax brackets and tax items such as the basic personal amount will increase over time by the chosen inflation rate.

Current Plan - John and Jane Smith

Financial Snapshot

Goal Coverage100%Retirement

100%University Education (Adam)

100%University Education (Jenn)

Insurance Coverage

John Benefit Amount

Term 10 Life $500,000

Cash to Insured Coverage $100,000

Jane Benefit Amount

Term 10 Life $500,000

Cash to Insured Coverage $100,000

Your AdvisorSheldon Niemiec, MBA

Net Worth

$319,339

$1,570,000Assets

Liabilities

$1,250,661

Cash Flow $0

$261,591

$261,591Inflows

Outflows

AssumptionsJohn Jane

Inflation Rate 2.00% 2.00%

Retire At 65 65

Life Expectancy 95 95


Executive Summary

Net Worth Our analysis of your current situation is based on the following net worth: Assets $1,570,000 Liabilities -$320,000 Net Worth $1,250,000

Retirement Planning • John and Jane, both 50 years old, wish to retire at age 65 in 2035

• John will continue to draw a salary from his business until age 65, will then sell the business

• The business sale will generate approximately $1,000,000 before tax, with the after tax proceeds invested in your joint non-registered account

• John’s defined benefit pension of $80,000 a year will start at 65

• Based on the information and assumptions detailed within this report, it appears that you will be able to sustain current after-tax expenses of $87,600 per year, in today’s dollar’s, indexed to inflation

Discussion points for your consideration to manage current shortfalls and/or maximize your retirement income: ✓ Delay converting your RRSPs to RRIFs until age 71 ✓ Continue your annual contributions of $6,000 into each of your RRSPs until retirement ✓ Continue your annual contributions of $3,600 each into your TFSAs ✓ Consider utilizing your RRSPs/TFSAs carry forward room, if any ✓ Consider consolidating your other portfolios under Scotia Wealth Management for ease of retirement

income planning (or wealth planning) and investment management

Cash Flow Planning • Annual savings of $3,600 each are made into your TFSAs until the end of the plan

• Annual savings of $6,000 are made into your RRSPs until retirement

• Annual savings of $7,200 are made into your children’s RESP

• Monthly mortgage payments of $2,200 are made until 2031

• Monthly car payments of $1,000 are made until 2026

• Yearly vacations of $10,000 until age 85

• Current year surplus of approximately $36,000 o 50% of annual cash surpluses are to be invested into your joint investment account with the

remaining 50% assumed to be spent

• Retirement income surpluses which occur in the plan are invested into your joint account. Discussion points for your consideration to help optimize your saving potential:

✓ Structure a disciplined savings strategy into your current non-registered investment account ✓ Review your expenses and determine which are discretionary versus those that are non-discretionary ✓ Reduce your debt by making additional payments or increasing the frequency of your payments ✓ Eliminate debt by retirement ✓ Meet with a Private Banker/Personal Banker to discuss innovative borrowing strategies

Education Planning • You have indicated that you would like to fund University Education for both children for 4 years,

costing $10,000 per year in today’s dollars. Based on assumptions included in this report, funds from the RESP are sufficient to cover the entire cost of education.

Discussion points for your consideration to help fund post-secondary education costs: ✓ Continue contributing to your children’s RESP ✓ Catch up on CESG carry forward room to ensure the maximum CESG is received for each child

Tax Planning • Current year taxable income, before deductions, for John is estimated to be $128,158

• Current year taxable income, before deductions, for Jane is estimated to be $133,168 Discussion points for your consideration to reduce your taxable income now and in retirement:

✓ Consider maximizing both of your RRSPs to lower taxable income while in higher tax brackets ✓ Consider implementing an income splitting strategy on all eligible pension income during retirement,

including sharing of CPP ✓ Restructure debt to make interest payment tax deductible ✓ Continue making charitable donations ✓ Meet with Scotia’s Philanthropic Services department to develop and explore your philanthropic goals ✓ Explore ways of drawing from your registered investment assets in the most tax efficient manner,

based on your personal tax rate and cash flow needs

Protection Planning • You currently have the following:

Life Insurance John - $500,000 Term 10 life insurance Jane - $500,000 Term 10 life insurance Critical Illness Insurance John - $100,000 Jane - $100,000

Discussion points for your consideration to protect income and assets and to optimize your wealth: ✓ Re-evaluate the cost of your current insurance ✓ Review your current risk management needs for life insurance as well as living benefits coverage

(Disability, Critical Illness, Long Term Care) ✓ You may wish to consider insurance as part of your wealth planning strategy, so we recommend you

meet with one of our Insurance Consultants

Estate Planning • The proposed plan should help you realize a projected net after-tax estate, at age 95 of approximately

$10,510,000 for your heirs, in future dollars or $4,310,000 in today’s dollars

• Additional tax liability to your estate at the end of the plan is $380,000 (Note: it is significantly higher should both of you pass earlier in your retirement years – see the ‘Estate Analysis’ section)

• Your wills were last updated in 2015

• You have Powers Attorney for Property and Personal Care

• You have pensions, insurance policies, RRSPs, LIRA (LRSP), and TFSAs that can have named beneficiaries or successor holder

Discussion point for your consideration to ensure the most beneficial transfer of your estate to intended beneficiaries:

✓ Address the income needs of the surviving spouse and potential dependents should either of you pass away prematurely

✓ Explore options regarding estate preservation, legacy planning, and wealth transfer (e.g. charitable giving, life insurance, trusts)

✓ If not done so already, have wills and POAs for Property and Personal Care drafted or updated ✓ Maintain updated beneficiary designations or successor holder on your pensions, insurance policies,

RRSPs, LIRA (LRSP), RRIFs, and TFSAs

Business Planning • You wish to continue operating your business until 2035, at which point you will sell the business

• Involve Scotia’s Business Financial Advisory Service team 3-5 years in advance of sale. They will work with you to determine a business sale plan, ensure the corporate structure results in the most tax efficient result, and work with other shareholders

o If you are a ScotiaMcLeod client, there is no additional fee involved for this service as long as net worth is above a certain threshold

• Keyman insurance of $1,500,000 is in place

• Meet with private banker for potential unique lending strategies, a small business banker or a commercial banker for other unique financing solutions

Discussion points for your consideration: ✓ Ensure business succession plan is in place if you have an OpCo ✓ Benefits of insurance held within a holding company, discuss with Insurance Consultant ✓ Benefits of an estate freeze if appropriate ✓ Consider a Power of Attorney for Business ✓ Consider the creation of a pension via Individual Pension Plans ✓ Seek professional tax advice to determine the most tax efficient way to draw funds from your Business

Net Worth Timeline Comparison

This report displays a comparison of net worth data in all selected scenarios over time. These projections show end-of-year

values beginning with the year of the analysis and are projected until the death of the last surviving client. Use this report

to compare the effects of different scenarios on net worth.

2020 2023 2026 2029 2032 2035 2038 2041 2044 2047 2050 2053 2056 2059 2062 2065

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

Non-Registered Investments Registered Investments Non-Registered GWBs Registered GWBs

Lifestyle Assets Real Estate Assets Private Corporations Net Worth

Current Plan

2020 2023 2026 2029 2032 2035 2038 2041 2044 2047 2050 2053 2056 2059 2062 2065

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

Non-Registered Investments Registered Investments Non-Registered GWBs Registered GWBs

Lifestyle Assets Real Estate Assets Private Corporations Net Worth

Proposed Plan


Current Plan

Net Worth Statement

This report displays a comprehensive list of your assets and liabilities as of Jan 1, 2020. Use this report to better

understand your net worth situation. Note: Term life insurance policies and existing annuities do not appear on this report

as they have no cash value.

Assets John Jane Joint Total

Non-Registered Investments

John's Non-Registered $195,000 $195,000

Total $0 $0 $195,000 $195,000

Registered Investments

John's RRSP $245,000 $245,000

Jane's RRSP $250,000 $250,000

John's TFSA $40,000 $40,000

RESP $50,000 $50,000

Jane's TFSA $40,000 $40,000

Total $585,000 $40,000 $0 $625,000

Lifestyle Assets

Principal Residence $750,000 $750,000

Total $0 $0 $750,000 $750,000

Liabilities John Jane Joint Total

Mortgage $256,368 $256,368

Car Loans $62,971 $62,971

Total $0 $0 $319,339 $319,339

Total Net Worth $585,000 $40,000 $625,661 $1,250,661


Current Plan

Detailed Cash Flow Analysis

This report displays all cash inflows and outflows for the selected plan scenario beginning with the date of plan analysis and continuing through the plan’s end.

Cash inflows and outflows are categorized by source and summarized as aggregate totals.

Cash Inflows Cash Outflows

Pre-Tax Income

Withdrawals and Investment

Income Total Expenses

Contributions and

Reinvestments

Year &

Age

Earned

Income

Pension

Income

CPP/QPP

& OAS

Other

Incomes

Non-

Registered Registered

Total Cash

Inflows Expenses

Personal

Income Tax

Non-


Total Cash

Outflows

Yearly

Surplus/

(Deficit)

2020

(50/50)$255,000 $0 $0 $0 $6,591 $0 $261,591 $165,721 $62,879 $6,591 $26,400 $261,591 $0

2021

(51/51)$260,100 $0 $0 $0 $6,888 $0 $266,988 $169,617 $64,083 $6,888 $26,400 $266,988 $0

2022

(52/52)$265,302 $0 $0 $0 $7,198 $11,025 $283,525 $185,908 $64,019 $7,198 $26,400 $283,525 $0

2023

(53/53)$270,608 $0 $0 $0 $7,521 $11,576 $289,706 $190,535 $65,250 $7,521 $26,400 $289,706 $0

2024

(54/54)$276,020 $0 $0 $0 $7,860 $12,155 $296,035 $195,198 $66,578 $7,860 $26,400 $296,035 $0

2025

(55/55)$281,541 $0 $0 $0 $8,214 $12,763 $302,517 $203,272 $67,932 $8,214 $23,100 $302,517 $0

2026

(56/56)$287,171 $0 $0 $0 $8,583 $13,401 $309,156 $208,323 $69,449 $8,583 $22,800 $309,156 $0

2027

(57/57)$292,915 $0 $0 $0 $8,969 $14,071 $315,955 $216,487 $70,999 $8,969 $19,500 $315,955 $0

2028

(58/58)$298,773 $0 $0 $0 $9,373 $14,775 $322,921 $221,765 $72,583 $9,373 $19,200 $322,921 $0

2029

(59/59)$304,749 $0 $0 $0 $9,795 $15,513 $330,057 $226,862 $74,200 $9,795 $19,200 $330,057 $0

2030

(60/60)$310,844 $0 $0 $0 $10,236 $0 $321,079 $214,520 $77,124 $10,236 $19,200 $321,079 $0

2031

(61/61)$317,060 $0 $0 $0 $10,696 $0 $327,757 $219,049 $78,812 $10,696 $19,200 $327,757 $0

2032

(62/62)$323,402 $0 $0 $0 $11,178 $0 $334,579 $223,665 $80,536 $11,178 $19,200 $334,579 $0

* = year of retirement



Pre-Tax Income



Contributions and

Reinvestments

Year &

Age

Earned

Income

Pension

Income

CPP/QPP

& OAS

Other

Incomes

Non-


Total Cash

Inflows Expenses

Personal

Income Tax

Non-


Total Cash

Outflows

Yearly

Surplus/

(Deficit)

2033

(63/63)$329,870 $0 $0 $0 $11,681 $0 $341,550 $228,371 $82,298 $11,681 $19,200 $341,550 $0

2034

(64/64)$336,467 $0 $0 $0 $12,206 $0 $348,673 $233,169 $84,099 $12,206 $19,200 $348,673 $0

2035

(*65/65*)$0 $107,669 $55,713 $1,345,868 $19,515 $0 $1,528,766 $646,689 $662,562 $219,515 $0 $1,528,766 $0

2036

(66/66)$0 $109,823 $61,690 $0 $20,394 $0 $191,906 $138,499 $34,966 $18,441 $0 $191,906 $0

2037

(67/67)$0 $112,019 $62,615 $0 $21,245 $0 $195,880 $141,228 $35,666 $18,985 $0 $195,880 $0

2038

(68/68)$0 $114,260 $63,554 $0 $22,125 $0 $199,939 $144,012 $36,382 $19,545 $0 $199,939 $0

2039

(69/69)$0 $116,545 $64,508 $0 $23,033 $0 $204,086 $146,851 $37,112 $20,122 $0 $204,086 $0

2040

(70/70)$0 $118,876 $65,475 $0 $23,972 $0 $208,323 $149,748 $37,858 $20,717 $0 $208,323 $0

2041

(71/71)$0 $121,253 $66,457 $0 $24,940 $0 $212,651 $152,702 $38,620 $21,329 $0 $212,651 $0

2042

(72/72)$0 $123,678 $67,454 $0 $25,941 $87,188 $304,261 $204,548 $73,773 $25,941 $0 $304,261 $0

2043

(73/73)$0 $126,152 $68,466 $0 $27,108 $88,360 $310,086 $207,909 $75,069 $27,108 $0 $310,086 $0

2044

(74/74)$0 $128,675 $69,493 $0 $28,328 $89,555 $316,050 $211,326 $76,396 $28,328 $0 $316,050 $0

2045

(75/75)$0 $131,248 $70,535 $0 $29,602 $90,753 $322,139 $214,789 $77,748 $29,602 $0 $322,139 $0

2046

(76/76)$0 $133,873 $71,593 $0 $30,935 $91,936 $328,337 $218,285 $79,118 $30,935 $0 $328,337 $0

2047

(77/77)$0 $136,551 $72,667 $0 $32,327 $93,083 $334,628 $221,804 $80,498 $32,327 $0 $334,628 $0

2048

(78/78)$0 $139,282 $73,757 $0 $33,781 $94,480 $341,301 $225,514 $82,005 $33,781 $0 $341,301 $0

2049

(79/79)$0 $142,068 $74,864 $0 $35,301 $95,618 $347,850 $229,115 $83,434 $35,301 $0 $347,850 $0




Pre-Tax Income



Contributions and

Reinvestments

Year &

Age

Earned

Income

Pension

Income

CPP/QPP

& OAS

Other

Incomes

Non-


Total Cash

Inflows Expenses

Personal

Income Tax

Non-


Total Cash

Outflows

Yearly

Surplus/

(Deficit)

2050

(80/80)$0 $144,909 $75,987 $0 $36,890 $96,933 $354,718 $232,866 $84,962 $36,890 $0 $354,718 $0

2051

(81/81)$0 $147,807 $77,126 $0 $38,550 $98,218 $361,702 $236,645 $86,507 $38,550 $0 $361,702 $0

2052

(82/82)$0 $150,763 $78,283 $0 $40,285 $99,429 $368,760 $240,425 $88,051 $40,285 $0 $368,760 $0

2053

(83/83)$0 $153,779 $79,458 $0 $42,098 $100,790 $376,124 $244,339 $89,687 $42,098 $0 $376,124 $0

2054

(84/84)$0 $156,854 $80,649 $0 $43,992 $102,076 $383,572 $248,256 $91,324 $43,992 $0 $383,572 $0

2055

(85/85)$0 $159,991 $81,859 $0 $45,972 $103,341 $391,163 $252,206 $92,985 $45,972 $0 $391,163 $0

2056

(86/86)$0 $163,191 $83,087 $0 $48,040 $104,731 $399,049 $256,277 $94,732 $48,040 $0 $399,049 $0

2057

(87/87)$0 $166,455 $84,333 $0 $50,202 $105,973 $406,964 $260,308 $96,453 $50,202 $0 $406,964 $0

2058

(88/88)$0 $169,784 $85,598 $0 $52,461 $107,275 $415,118 $264,421 $98,236 $52,461 $0 $415,118 $0

2059

(89/89)$0 $173,180 $86,882 $0 $54,822 $108,631 $423,515 $268,614 $100,079 $54,822 $0 $423,515 $0

2060

(90/90)$0 $176,643 $88,185 $0 $57,289 $109,964 $432,082 $272,840 $101,953 $57,289 $0 $432,082 $0

2061

(91/91)$0 $180,176 $89,508 $0 $59,867 $111,211 $440,763 $277,064 $103,832 $59,867 $0 $440,763 $0

2062

(92/92)$0 $183,780 $90,851 $0 $62,561 $112,454 $449,646 $281,333 $105,752 $62,561 $0 $449,646 $0

2063

(93/93)$0 $187,455 $92,214 $0 $65,376 $113,692 $458,738 $285,647 $107,714 $65,376 $0 $458,738 $0

2064

(94/94)$0 $191,204 $93,597 $0 $68,318 $114,950 $468,069 $290,021 $109,730 $68,318 $0 $468,069 $0

2065

(95/95)$0 $195,028 $100,001 $1,000,000 $71,393 $116,011 $1,482,433 $297,281 $113,760 $1,071,393 $0 $1,482,433 $0



Proposed Plan

Detailed Cash Flow Analysis

This report displays all cash inflows and outflows for the selected plan scenario beginning with the date of plan analysis and continuing through the plan’s end.

Cash inflows and outflows are categorized by source and summarized as aggregate totals.


Pre-Tax Income



Contributions and

Reinvestments

Year &

Age

Earned

Income

Pension

Income

CPP/QPP

& OAS

Other

Incomes

Non-


Total Cash

Inflows Expenses

Personal

Income Tax

Non-


Total Cash

Outflows

Yearly

Surplus/

(Deficit)

2020

(50/50)$255,000 $0 $0 $0 $6,591 $0 $261,591 $154,157 $62,879 $13,354 $31,200 $261,591 $0

2021

(51/51)$260,100 $0 $0 $0 $7,116 $0 $267,216 $157,264 $64,138 $14,614 $31,200 $267,216 $0

2022

(52/52)$265,302 $0 $0 $0 $7,690 $11,025 $284,017 $172,131 $64,138 $16,548 $31,200 $284,017 $0

2023

(53/53)$270,608 $0 $0 $0 $8,335 $11,576 $290,520 $175,951 $65,445 $17,924 $31,200 $290,520 $0

2024

(54/54)$276,020 $0 $0 $0 $9,034 $12,155 $297,210 $179,854 $66,860 $19,296 $31,200 $297,210 $0

2025

(55/55)$281,541 $0 $0 $0 $9,788 $12,763 $304,091 $185,502 $68,310 $22,379 $27,900 $304,091 $0

2026

(56/56)$287,171 $0 $0 $0 $10,654 $13,401 $311,226 $184,071 $69,947 $29,608 $27,600 $311,226 $0

2027

(57/57)$292,915 $0 $0 $0 $11,774 $14,071 $318,760 $189,042 $71,673 $33,744 $24,300 $318,760 $0

2028

(58/58)$298,773 $0 $0 $0 $13,046 $14,775 $326,594 $193,179 $73,465 $35,950 $24,000 $326,594 $0

2029

(59/59)$304,749 $0 $0 $0 $14,408 $15,513 $334,670 $197,258 $75,309 $38,103 $24,000 $334,670 $0

2030

(60/60)$310,844 $0 $0 $0 $15,857 $0 $326,700 $184,510 $78,474 $39,716 $24,000 $326,700 $0

2031

(61/61)$317,060 $0 $0 $0 $17,377 $0 $334,437 $180,041 $80,417 $49,980 $24,000 $334,437 $0

2032

(62/62)$323,402 $0 $0 $0 $19,261 $0 $342,662 $178,266 $82,478 $57,918 $24,000 $342,662 $0




Pre-Tax Income



Contributions and

Reinvestments

Year &

Age

Earned

Income

Pension

Income

CPP/QPP

& OAS

Other

Incomes

Non-


Total Cash

Inflows Expenses

Personal

Income Tax

Non-


Total Cash

Outflows

Yearly

Surplus/

(Deficit)

2033

(63/63)$329,870 $0 $0 $0 $21,434 $0 $351,304 $181,798 $84,642 $60,864 $24,000 $351,304 $0

2034

(64/64)$336,467 $0 $0 $0 $23,731 $0 $360,199 $185,391 $86,868 $63,939 $24,000 $360,199 $0

2035

(*65/65*)$0 $107,669 $55,713 $1,345,868 $32,918 $0 $1,542,169 $389,380 $666,314 $486,475 $0 $1,542,169 $0

2036

(66/66)$0 $109,823 $61,690 $0 $42,970 $0 $214,482 $138,499 $39,737 $36,246 $0 $214,482 $0

2037

(67/67)$0 $112,019 $62,615 $0 $44,676 $0 $219,311 $141,228 $40,612 $37,470 $0 $219,311 $0

2038

(68/68)$0 $114,260 $63,554 $0 $46,443 $0 $224,257 $144,012 $41,508 $38,737 $0 $224,257 $0

2039

(69/69)$0 $116,545 $64,508 $0 $48,273 $0 $229,325 $146,851 $42,426 $40,048 $0 $229,325 $0

2040

(70/70)$0 $118,876 $65,475 $0 $50,167 $0 $234,518 $149,748 $43,366 $41,405 $0 $234,518 $0

2041

(71/71)$0 $121,253 $66,457 $0 $52,128 $0 $239,839 $152,702 $44,329 $42,808 $0 $239,839 $0

2042

(72/72)$0 $123,678 $67,454 $0 $54,159 $87,188 $332,480 $175,732 $82,573 $74,176 $0 $332,480 $0

2043

(73/73)$0 $126,152 $68,466 $0 $57,273 $88,360 $340,251 $178,645 $84,478 $77,129 $0 $340,251 $0

2044

(74/74)$0 $128,675 $69,493 $0 $60,521 $89,555 $348,244 $181,603 $86,441 $80,200 $0 $348,244 $0

2045

(75/75)$0 $131,248 $70,535 $0 $63,910 $90,753 $356,446 $184,601 $88,456 $83,389 $0 $356,446 $0

2046

(76/76)$0 $133,873 $71,593 $0 $67,444 $91,936 $364,847 $187,634 $90,517 $86,696 $0 $364,847 $0

2047

(77/77)$0 $136,551 $72,667 $0 $71,130 $93,083 $373,431 $190,698 $92,616 $90,118 $0 $373,431 $0

2048

(78/78)$0 $139,282 $73,757 $0 $74,972 $94,480 $382,492 $193,869 $94,884 $93,739 $0 $382,492 $0

2049

(79/79)$0 $142,068 $74,864 $0 $78,980 $95,618 $391,529 $197,010 $97,092 $97,426 $0 $391,529 $0




Pre-Tax Income



Contributions and

Reinvestments

Year &

Age

Earned

Income

Pension

Income

CPP/QPP

& OAS

Other

Incomes

Non-


Total Cash

Inflows Expenses

Personal

Income Tax

Non-


Total Cash

Outflows

Yearly

Surplus/

(Deficit)

2050

(80/80)$0 $144,909 $75,987 $0 $83,158 $96,933 $400,986 $200,240 $99,442 $101,304 $0 $400,986 $0

2051

(81/81)$0 $147,807 $77,126 $0 $87,514 $98,218 $410,665 $203,503 $101,842 $105,321 $0 $410,665 $0

2052

(82/82)$0 $150,763 $78,283 $0 $92,054 $99,429 $420,529 $206,786 $104,272 $109,471 $0 $420,529 $0

2053

(83/83)$0 $153,779 $79,458 $0 $96,785 $100,790 $430,811 $210,152 $106,838 $113,821 $0 $430,811 $0

2054

(84/84)$0 $156,854 $80,649 $0 $101,716 $102,076 $441,295 $213,538 $109,440 $118,317 $0 $441,295 $0

2055

(85/85)$0 $159,991 $81,859 $0 $106,854 $103,341 $452,045 $216,960 $112,105 $122,979 $0 $452,045 $0

2056

(86/86)$0 $163,191 $83,087 $0 $112,208 $104,731 $463,216 $210,259 $114,903 $138,054 $0 $463,216 $0

2057

(87/87)$0 $166,455 $84,333 $0 $118,131 $105,973 $474,892 $213,499 $117,823 $143,570 $0 $474,892 $0

2058

(88/88)$0 $169,784 $85,598 $0 $124,306 $107,275 $486,963 $216,790 $120,858 $149,316 $0 $486,963 $0

2059

(89/89)$0 $173,180 $86,882 $0 $130,745 $108,631 $499,439 $220,130 $124,008 $155,300 $0 $499,439 $0

2060

(90/90)$0 $176,643 $88,185 $0 $137,459 $109,964 $512,252 $223,497 $127,243 $161,511 $0 $512,252 $0

2061

(91/91)$0 $180,176 $89,508 $0 $144,457 $111,211 $525,353 $226,876 $130,537 $167,940 $0 $525,353 $0

2062

(92/92)$0 $183,780 $90,851 $0 $151,752 $112,454 $538,837 $230,287 $133,931 $174,618 $0 $538,837 $0

2063

(93/93)$0 $187,455 $92,214 $0 $159,353 $113,692 $552,715 $233,731 $137,428 $181,556 $0 $552,715 $0

2064

(94/94)$0 $191,204 $93,597 $0 $167,275 $114,950 $567,026 $237,212 $141,044 $188,769 $0 $567,026 $0

2065

(95/95)$0 $195,028 $100,001 $1,000,000 $175,529 $116,011 $1,586,569 $242,154 $146,724 $1,197,691 $0 $1,586,569 $0



Retirement Needs vs. Abilities

The following graphs represent your ability to cover needs during the retirement period. Retirement needs do not include

any tax liability. Retirement abilities assume an after tax income to cover needs. Yearly deficits are reflected by any red bars

below and represent a year in which your ability to cover needs will not be sufficient. Preparation can help to mitigate the

risk of these shortfalls occurring.

Current Plan

2035 2037 2039 2041 2043 2045 2047 2049 2051 2053 2055 2057 2059 2061 2063 2065

$0

$200,000

$400,000

$600,000

$800,000

Shortfall Abilities (After Tax) Needs (w/o Tax)

Proposed Plan

2035 2037 2039 2041 2043 2045 2047 2049 2051 2053 2055 2057 2059 2061 2063 2065

$0

$200,000

$400,000

$600,000

$800,000

Shortfall Abilities (After Tax) Needs (w/o Tax)


Current Plan

Retirement Income & Expenses

This report shows your annual cash flow during the retirement period, for the selected scenario. Positive cash flow values are shown in bold whereas negative values

are shown in red and in parentheses. Use this report to show detailed cash flow information and thereby demonstrate the underlying numbers that comprise the

year-over-year cash flow graphs.

Year Age CPP/QPP & OAS Defined Benefit

Pension

Minimums Non-Registered

Proceeds

Other Inflows Fixed Needs (incl.

taxes)

Total Needs (incl.

taxes)

Shortfall

2035 *65/65* $55,713 $107,669 $0 $0 $1,345,868 $998,385 $998,385 -

2036 66/66 $61,690 $109,823 $0 $1,952 $0 $173,465 $173,465 -

2037 67/67 $62,615 $112,019 $0 $2,260 $0 $176,895 $176,895 -

2038 68/68 $63,554 $114,260 $0 $2,580 $0 $180,394 $180,394 -

2039 69/69 $64,508 $116,545 $0 $2,911 $0 $183,964 $183,964 -

2040 70/70 $65,475 $118,876 $0 $3,255 $0 $187,606 $187,606 -

2041 71/71 $66,457 $121,253 $0 $3,611 $0 $191,321 $191,321 -

2042 72/72 $67,454 $123,678 $87,188 $0 $0 $229,488 $229,488 -

2043 73/73 $68,466 $126,152 $88,360 $0 $0 $233,857 $233,857 -

2044 74/74 $69,493 $128,675 $89,555 $0 $0 $238,320 $238,320 -

2045 75/75 $70,535 $131,248 $90,753 $0 $0 $242,869 $242,869 -

2046 76/76 $71,593 $133,873 $91,936 $0 $0 $247,501 $247,501 -

2047 77/77 $72,667 $136,551 $93,083 $0 $0 $252,207 $252,207 -

2048 78/78 $73,757 $139,282 $94,480 $0 $0 $257,108 $257,108 -

2049 79/79 $74,864 $142,068 $95,618 $0 $0 $261,998 $261,998 -

2050 80/80 $75,987 $144,909 $96,933 $0 $0 $267,057 $267,057 -

2051 81/81 $77,126 $147,807 $98,218 $0 $0 $272,203 $272,203 -

2052 82/82 $78,283 $150,763 $99,429 $0 $0 $277,419 $277,419 -

2053 83/83 $79,458 $153,779 $100,790 $0 $0 $282,802 $282,802 -



Pension


Proceeds


taxes)

Total Needs (incl.

taxes)

Shortfall

2054 84/84 $80,649 $156,854 $102,076 $0 $0 $288,261 $288,261 -

2055 85/85 $81,859 $159,991 $103,341 $0 $0 $293,820 $293,820 -

2056 86/86 $83,087 $163,191 $104,731 $0 $0 $279,144 $279,144 -

2057 87/87 $84,333 $166,455 $105,973 $0 $0 $284,513 $284,513 -

2058 88/88 $85,598 $169,784 $107,275 $0 $0 $290,016 $290,016 -

2059 89/89 $86,882 $173,180 $108,631 $0 $0 $295,654 $295,654 -

2060 90/90 $88,185 $176,643 $109,964 $0 $0 $301,398 $301,398 -

2061 91/91 $89,508 $180,176 $111,211 $0 $0 $307,225 $307,225 -

2062 92/92 $90,851 $183,780 $112,454 $0 $0 $313,172 $313,172 -

2063 93/93 $92,214 $187,455 $113,692 $0 $0 $319,242 $319,242 -

2064 94/94 $93,597 $191,204 $114,950 $0 $0 $325,448 $325,448 -

2065 95/95 $100,001 $195,028 $116,011 $0 $0 $333,751 $333,751 -



Proposed Plan

Retirement Income & Expenses

This report shows your annual cash flow during the retirement period, for the selected scenario. Positive cash flow values are shown in bold whereas negative values

are shown in red and in parentheses. Use this report to show detailed cash flow information and thereby demonstrate the underlying numbers that comprise the

year-over-year cash flow graphs.


Pension


Proceeds


taxes)

Total Needs (incl.

taxes)

Shortfall

2035 *65/65* $55,713 $107,669 $0 $0 $1,345,868 $1,002,137 $1,002,137 -

2036 66/66 $61,690 $109,823 $0 $6,724 $0 $178,237 $178,237 -

2037 67/67 $62,615 $112,019 $0 $7,206 $0 $181,840 $181,840 -

2038 68/68 $63,554 $114,260 $0 $7,706 $0 $185,520 $185,520 -

2039 69/69 $64,508 $116,545 $0 $8,225 $0 $189,277 $189,277 -

2040 70/70 $65,475 $118,876 $0 $8,762 $0 $193,113 $193,113 -

2041 71/71 $66,457 $121,253 $0 $9,320 $0 $197,031 $197,031 -

2042 72/72 $67,454 $123,678 $87,188 $0 $0 $238,288 $238,288 -

2043 73/73 $68,466 $126,152 $88,360 $0 $0 $243,266 $243,266 -

2044 74/74 $69,493 $128,675 $89,555 $0 $0 $248,364 $248,364 -

2045 75/75 $70,535 $131,248 $90,753 $0 $0 $253,578 $253,578 -

2046 76/76 $71,593 $133,873 $91,936 $0 $0 $258,900 $258,900 -

2047 77/77 $72,667 $136,551 $93,083 $0 $0 $264,325 $264,325 -

2048 78/78 $73,757 $139,282 $94,480 $0 $0 $269,987 $269,987 -

2049 79/79 $74,864 $142,068 $95,618 $0 $0 $275,657 $275,657 -

2050 80/80 $75,987 $144,909 $96,933 $0 $0 $281,537 $281,537 -

2051 81/81 $77,126 $147,807 $98,218 $0 $0 $287,538 $287,538 -

2052 82/82 $78,283 $150,763 $99,429 $0 $0 $293,641 $293,641 -

2053 83/83 $79,458 $153,779 $100,790 $0 $0 $299,954 $299,954 -



Pension


Proceeds


taxes)

Total Needs (incl.

taxes)

Shortfall

2054 84/84 $80,649 $156,854 $102,076 $0 $0 $306,377 $306,377 -

2055 85/85 $81,859 $159,991 $103,341 $0 $0 $312,940 $312,940 -

2056 86/86 $83,087 $163,191 $104,731 $0 $0 $299,315 $299,315 -

2057 87/87 $84,333 $166,455 $105,973 $0 $0 $305,882 $305,882 -

2058 88/88 $85,598 $169,784 $107,275 $0 $0 $312,638 $312,638 -

2059 89/89 $86,882 $173,180 $108,631 $0 $0 $319,583 $319,583 -

2060 90/90 $88,185 $176,643 $109,964 $0 $0 $326,689 $326,689 -

2061 91/91 $89,508 $180,176 $111,211 $0 $0 $333,931 $333,931 -

2062 92/92 $90,851 $183,780 $112,454 $0 $0 $341,352 $341,352 -

2063 93/93 $92,214 $187,455 $113,692 $0 $0 $348,957 $348,957 -

2064 94/94 $93,597 $191,204 $114,950 $0 $0 $356,762 $356,762 -

2065 95/95 $100,001 $195,028 $116,011 $0 $0 $366,715 $366,715 -



Current Plan

Detailed Estate Analysis

This report is designed to show the effects of dying in a given year, and the resulting impact of taxation on the estate.

2020 2031 2042 2053 2065


John's Non-Registered $203,775 $330,697 $802,008 $1,301,541 $2,207,259

Subtotal $203,775 $330,697 $802,008 $1,301,541 $2,207,259


John's RRSP $262,170 $510,524 $811,626 $656,692 $261,086

Jane's RRSP $267,395 $519,003 $824,675 $667,250 $265,284

John's TFSA $45,487 $124,855 $219,070 $355,519 $602,918

Jane's TFSA $45,487 $124,855 $219,070 $355,519 $602,918

RESP $60,863 $17,060 $27,685 $44,929 $76,195

Subtotal $681,403 $1,296,296 $2,102,127 $2,079,910 $1,808,401

Private Corporations

Subtotal $0 $0 $0 $0 $0

Lifestyle Assets

Principal Residence $760,000 $944,964 $1,174,945 $1,460,896 $1,852,769

Subtotal $760,000 $944,964 $1,174,945 $1,460,896 $1,852,769

Real Estate Assets

Subtotal $0 $0 $0 $0 $0

Liabilities

Mortgage ($237,080) ($0) ($0) ($0) ($0)

Car Loans ($53,908) ($0) ($0) ($0) ($0)

Subtotal ($290,988) ($0) ($0) ($0) ($0)

Pro-Forma Net Worth $1,354,164 $2,571,957 $4,079,079 $4,842,346 $5,868,429

Insurance Proceeds

Life Insurance $500,000 $500,000 $500,000 $500,000 $500,000

Life Insurance $500,000 $500,000 $500,000 $500,000 $500,000

Subtotal $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000

Death Benefits

CPP/QPP Death Benefits $5,000 $5,000 $5,000 $5,000 $5,000

Subtotal $5,000 $5,000 $5,000 $5,000 $5,000

Change in Value of

Private Corporations$0 $0 $0 $0 $0


2020 2031 2042 2053 2065

Estate Before

Taxes & Expenses$2,359,164 $3,576,957 $5,084,079 $5,847,346 $6,873,429

Additional Income Taxes ($275,465) ($513,321) ($823,563) ($704,709) ($380,272)

Transfers on Death $0 $0 $0 $0 $0

Charitable Bequests ($0) ($0) ($0) ($0) ($0)

Estate Expenses

Subtotal $0 $0 $0 $0 $0

Net Estate $2,083,672 $3,063,637 $4,260,516 $5,142,637 $6,493,157

Net Estate (Today's $) $2,083,672 $2,463,970 $2,755,868 $2,675,348 $2,663,472


Proposed Plan

Detailed Estate Analysis

This report is designed to show the effects of dying in a given year, and the resulting impact of taxation on the estate.

2020 2031 2042 2053 2065


John's Non-Registered $210,538 $569,847 $1,694,460 $3,009,342 $5,447,532

Subtotal $210,538 $569,847 $1,694,460 $3,009,342 $5,447,532


John's RRSP $262,170 $510,524 $811,626 $656,692 $261,086

Jane's RRSP $267,395 $519,003 $824,675 $667,250 $265,284

John's TFSA $47,945 $162,868 $291,726 $473,429 $802,879

Jane's TFSA $47,945 $162,868 $291,726 $473,429 $802,879

RESP $60,863 $17,060 $27,685 $44,929 $76,195

Subtotal $686,319 $1,372,322 $2,247,438 $2,315,729 $2,208,323

Private Corporations

Subtotal $0 $0 $0 $0 $0

Lifestyle Assets

Principal Residence $760,000 $944,964 $1,174,945 $1,460,896 $1,852,769

Subtotal $760,000 $944,964 $1,174,945 $1,460,896 $1,852,769

Real Estate Assets

Subtotal $0 $0 $0 $0 $0

Liabilities

Mortgage ($237,080) ($0) ($0) ($0) ($0)

Car Loans ($53,908) ($0) ($0) ($0) ($0)

Subtotal ($290,988) ($0) ($0) ($0) ($0)

Pro-Forma Net Worth $1,365,844 $2,887,134 $5,116,843 $6,785,967 $9,508,624

Insurance Proceeds

Life Insurance $500,000 $500,000 $500,000 $500,000 $500,000

Life Insurance $500,000 $500,000 $500,000 $500,000 $500,000

Subtotal $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000

Death Benefits

CPP/QPP Death Benefits $5,000 $5,000 $5,000 $5,000 $5,000

Subtotal $5,000 $5,000 $5,000 $5,000 $5,000

Change in Value of

Private Corporations$0 $0 $0 $0 $0


2020 2031 2042 2053 2065

Estate Before

Taxes & Expenses$2,370,844 $3,892,134 $6,121,843 $7,790,967 $10,513,624

Additional Income Taxes ($275,465) ($516,060) ($840,657) ($756,317) ($505,209)

Transfers on Death $0 $0 $0 $0 $0

Charitable Bequests ($0) ($0) ($0) ($0) ($0)

Estate Expenses

Subtotal $0 $0 $0 $0 $0

Net Estate $2,095,352 $3,376,074 $5,281,186 $7,034,650 $10,008,415

Net Estate (Today's $) $2,095,352 $2,715,251 $3,416,077 $3,659,627 $4,105,420


Action Plan

• Continue to pay down your mortgage, contribute additional funds on anniversary date of mortgage if possible

• Use surplus funds to pay down car loans, reduce balances to save on interest costs

• Continue contributing $500 a month to the RESP for your children • Continue contributing $500 a month to each of your RRSPs • Increase your contributions from $300 a month to $500 a month each to your

TFSAs • Review keyman insurance policy for business, ensure sufficient coverage • Before you sell the business, develop a five year plan and discuss what you

would like to do with the capital and how your advisor can help • Meet with Scotia’s Insurance Consultant to review your current coverage,

ways to reduce monthly costs and alternative insurance strategies • Meet with private banker to discuss:

o Tailored lending strategy to convert your mortgage and car loans into a tax-deductible investment loan

• Meet with insurance consultant to discuss strategies to reduce taxes payable at death

• Update wills if necessary and include guardianship clause and power of attorney, personal directive

financial overview · we have made no attempt to review your property and liability insurance...

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