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Old 12-01-2009, 04:17 PM
Alan Kayman Alan Kayman is offline
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Join Date: Dec 2009
Location: Toronto, Canada
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Default Retirment planning question

Retirement planning question?

This is a hypothetical situation. The answer will help evaluate the extent of knowledge that members of the finance forums possess.
My client is 65 years old and has a significant portfolio of registered and non-registered assets - approximately $200,000 in an RRSP and $400,000 in an investment account with a bank-owned full-service broker. She makes no withdrawals from her RRSP, but does have any investment income earned on her non-registered portfolio deposited into her bank account. A significant portion of her assets are inherited. she also has a small condo worth $180,000 and has an $80,000 mortgage outstanding.The overall asset allocation in her RRSP and investment portfolio is 70% fixed income, 30% equity. The forecast for inflation is 2%, Cash and cash equivalents 2%, Fixed income 4%, Equities 8%.

  1. Assume clients pension is cut by 30%. Estimate her gross and net income next year from all sources. Assume a combined tax rate of 35% for ease of calculation.In your estimation, will the client have enough after-tax income? Please explain.
  2. What type of pension does Ida have? Please explain your reasoning.
    How is it possible that her pension could be reduced by 30%?
  3. When will Ida have to collapse her RRSP? What options will she have with the assets held in her RRSP at that time? Identify one strength and one weakness of each option
You can answer any or all these questions

Last edited by Alan Kayman; 12-01-2009 at 08:26 PM.
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Old 12-18-2009, 05:41 AM
brian brian is offline
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Default Re: Retirment planning question

Is this homework, or are you an advisor who needs help?
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Old 04-28-2010, 08:17 PM
michael.smith michael.smith is offline
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Location: Canada
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Default Re: Retirment planning question

It looks like homework.
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Old 08-22-2010, 09:07 PM
SamuelClark SamuelClark is offline
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Join Date: Aug 2010
Location: Florida, US
Posts: 15
Default Re: Retirment planning question

This is honestly a "homework help" forum for students? What a great idea!
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