Prepared for Mr. John Smith, Mrs Jane Smith March 13, 2013

Transcription

1 Prepared for Mr. John Smith, Mrs Jane Smith March 13, 2013 Dan Dean, B.Sc., CFP, CLU DAN DEAN Financial Street NW Edmonton(Alberta) T5V 1V2 Telephone: Fax: Copyright Planiste ltd.

2 March 13, 2013 Mr. John Smith, Mrs Jane Smith Personal Retirement Optimizer and Estate Analysis Imagination serving your well-being! This document is the result of a series of calculations applied to your personal situation. The information contained in this simulation is taken from the interview that we conducted. PRO and Estate is specially designed for those who want to properly prepare themselves for retirement and analyze their tax liability upon death. For the retirement perspective, the simulation evaluates your standard of living now and at retirement, and, with the help of tools and original calculations, establishes the optimum method of withdrawing your investments with the goal of maintaining your standard of living objective. The projections are made using assumed rate of return, inflation and income increases. On the estate side, the application identifies and isolates taxable assets at death and applies a different treatment whether they are rolled over to the spouse or not. PRO and Estate calculates each years the latent income tax in relation with withdrawals, deposits, growth and future transactions. With PRO and Estate, it is now possible to forecast with a comfortable level of precision the tax liability by simulating the reputed disposition of all assets each year. Depending on the outcome, we will be in a position to recommend right away some reliable strategies to help you fulfill your retirement and estate objectives. Regards, * Warning: The results of this simulation are based on information provided to us. We ensure the fiscal legitimacy and accuracy of mathematical calculations used in the simulation, but are not able to verify specific data included in this document. The returns used for this simulation are not guaranteed and all future projections are included as a general guide and do not represent a prediction of your financial future. Dan Dean, B.Sc., CFP, CLU DAN DEAN Financial Page 2 of 30

3 TABLE OF CONTENTS Introduction... 2 Summary... 4 Statement of net worth... 5 Current standard of living... 6 After retirement standard of living objective, current scenario... 7 Standard of living simulation at retirement, current scenario... 8 Balance sheet simulation, current scenario... 9 Estate Simulation, current scenario Optimizations Standard of living simulation at retirement, optimized scenario Balance sheet simulation, optimized scenario Estate Simulation, optimized scenario Income projection Quebec / Canadian Benefits Registered portfolio simulation (RRSP/RRIF) Non-registered portfolio simulation TFSA Simulation Insurance policies Balance sheet at Year End Estate Page 3 of 30

4 Summary PERSONAL INFORMATION Client Spouse Name: Mr. John Smith Mrs Jane Smith Date of Birth: 1/1/1959 6/6/1960 Current age: Retirement age: FINANCIAL INFORMATION Current Gross Annual Income (Employment): $70,000 $30,000 Expected annual contributions to RRSP: Annual deposit to the TFSA: Annual deposit to non-registered savings: $0 $0 Current standard of living $70,000 $30,000 Desired standard of living after retirement with inflation: $74,602 $12,682 ASSUMPTIONS Inflation rate: 2.0 % 2.0 % Rate of increase in income until retirement: 2.0 % 2.0 % RRSP Investment returns before retirement 3.0 % 3.0 % RRSP Investment returns after retirement 3.0 % 3.0 % Return on non-registered investments before retirement 3.0 % 3.0 % Return on non-registered investments after retirement 3.0 % 3.0 % Holding company provided yield rate before retirement 3.0 % 3.0 % Holding company provided yield rate after retirement 3.0 % 3.0 % Locked-In account rate before retirement 3.0 % 3.0 % Locked-In account rate after retirement 3.0 % 3.0 % Page 4 of 30

5 Statement of net worth According to data received as at: March 13, 2013 ASSETS Client Spouse Couple LIABILITIES Client Spouse Couple Investments Non-registered investments $100,000 $25,000 $125,000 TFSA $20,000 $20,000 $40,000 Registered investments $100,000 $50,000 $150,000 Mortgages Home $50,000 $50,000 $100,000 Other liabilities Real estate Home $250,000 $250,000 $500,000 Rental Properties Rental Home $125,000 $125,000 $250,000 Other Assets Total assets $595,000 $470,000 $1,065,000 Total Liabilities $50,000 $50,000 $100,000 Net worth $545,000 $420,000 $965,000 Page 5 of 30

6 Current standard of living Calculation of the current standard of living Effective tax rate * Before tax After tax Current income Client Spouse Client Spouse Client Spouse Gross employment income (average annual bonus included) $70,000 $30,000 Net income from rental properties $0 $0 Other taxable income $0 $0 Government benefits $0 $0 Registered annuity $0 $0 Prescribed annuity (taxable portion) $0 $0 Defined benefit pension plan $0 $0 Taxable dividends (before gross-up) $0 $0 Holding company dividends $0 $0 Investment income $3,000 $750 Minimum withdrawals from RIF $0 $0 Subtotal $73,000 $30,750 Personal contributions to the QPP / CPP / E.I. / DBPP / Union $0 $0 $0 $0 Personal contributions to an RRSP / RPP $0 $0 $0 $0 Tax savings $0 $0 $0 $0 Total taxable income 22.9 % 13.2 % $73,000 $30,750 $56,305 $26,768 Annual savings $0 $0 $0 $0 Investment income reinvested ($3,000) ($750) ($2,314) ($651) Non Taxable income $0 $0 $0 $0 Amount from your investment income used to maintain your standard of living $0 $0 $0 $0 Total current standard of living $70,000 $30,000 $53,991 $26,117 * The effective tax rate is calculated after dividend gross-up and includes investment income (interest) Page 6 of 30

7 After retirement standard of living objective, current scenario Before tax After tax Calculation of the standard of living objective at retirement Client Spouse Client Spouse Current standard of living $70,000 $30,000 $53,991 $26,117 Change in current spending End of liability payments ($15,558) ($13,832) ($12,000) ($12,000) Standard of living after retirement before inflation $54,442 $16,168 $41,991 $14,117 Standard of living after retirement (with 2% inflation) $67,692 $20,505 $52,211 $17,904 Standard of living chosen by you, the client (with 2% inflation) $74,602 $12,682 $57,451 $12,512 Page 7 of 30

8 Standard of living simulation at retirement, current scenario $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $ Client Spouse Estimated Standard of Living (couple) Desired Standard of Living (couple) Client retirement age Spouse retirement age Client life expectancy Spouse life expectancy Page 8 of 30

9 Balance sheet simulation, current scenario $2,000,000 $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 ($200,000) Client Spouse Balance of savings Balance of private plans Holding Company Total household assets Total liabilities Page 9 of 30

10 Family estate simulation, current scenario $2,000,000 $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $ Client Spouse Survivor Life Expectancy Latent taxes Taxable assets Insurance policies Non taxable assets Page 10 of 30

11 Optimizations List of selected optimizations Maximize TFSA usage Income Splitting Standard of living Variations Increase RRSP Contributions Increase Savings Description A TFSA is a flexible savings tool that Canadian residents can contribute to each year and then withdraw the funds at their discretion in order to meet any need. Individuals can deposit amounts in the TFSA throughout their adult life and are not required to make withdrawals at any given age. It is also possible to contribute to your spouse s TFSA without breaking the income attribution rules. This optimization allows for an increase in your TFSA contributions and the pooling of both spouses' savings, which increases this tool's potential efficiency. In 2007, new income tax regulations regarding retirement income splitting between spouses came into effect. They basically consists of transferring income to the spouse with the lowest effective tax rate. In certain cases, this strategy could reduce the couple s tax burden, allowing each individual to obtain the pension revenue credit and recover the OAS. The income splitting takes place each year when the income tax returns are completed. The retirement age and desired standard of living were determined at the beginning of the analysis. In order to attain your initial objective, it is possible to make certain modifications to the assumptions. This could mean delaying your retirement by several years to allow for further growth of capital in the RRSP, stopping the indexation of your income or perhaps applying variations to your standard of living for a specific period of time. In the optimized scenario, some assumptions (see commentary for details) are modified to help you attain your retirement objective. The RRSP remains one of the most efficient retirement planning tools. RRSP contributions allow you to reduce your taxable income (deduction) and the growth within the plan remains tax sheltered. In the optimized scenario, we have modified your RRSP contribution (see commentary for details) to help you reach your retirement goal or at least, close the gap between the objective and the current situation. At times, a combination of RRSP and government plans is not sufficient to meet retirement objectives. Increasing deposits to non-registered savings plans is a viable optimization solution. Page 11 of 30

12 Standard of living simulation at retirement, optimized scenario $150,000 $140,000 $130,000 $120,000 $110,000 $100,000 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $ Client Spouse Estimated Standard of Living (couple) Desired Standard of Living (couple) Client retirement age Spouse retirement age Client life expectancy Spouse life expectancy Page 12 of 30

13 Balance sheet simulation, optimized scenario $2,200,000 $2,000,000 $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 ($200,000) Client Spouse Balance of savings Balance of private plans Holding Company Total household assets Total liabilities Page 13 of 30

14 Family estate simulation, optimized scenario $2,200,000 $2,000,000 $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $ Client Spouse Survivor Life Expectancy Latent taxes Taxable assets Insurance policies Non taxable assets Page 14 of 30

15 Income projection, optimized scenario Gross employment income Other income 1 Total government benefits Registered savings Non-reg d w/drwls (Net) Non-reg d w/drwls (Gross) Contributions to different plans Estimated standard of living Desired standard of living Income surplus (deficit) $100,000 $0 $0 $0 $0 $0 $17,701 $82,299 $82,299 $ $102,000 $0 $0 $0 $0 $0 $17,699 $84,301 $84,301 $ $104,040 $0 $0 $0 $0 $0 $17,740 $86,300 $86,300 $ $106,121 $0 $0 $0 $0 $0 $17,771 $88,350 $88,350 $ $108,243 $0 $0 $0 $0 $0 $17,802 $90,441 $90,441 $ $110,408 $0 $0 $0 $0 $0 $17,832 $92,577 $92,577 $ $112,616 $0 $0 $0 $0 $0 $17,851 $94,766 $94,766 $ $114,869 $0 $0 $0 $0 $0 $17,880 $96,989 $96,989 $ $117,166 $0 $0 $0 $0 $0 $17,908 $99,258 $99,258 $ $119,509 $0 $0 $0 $0 $0 $17,936 $101,573 $101,573 $ $121,899 $0 $0 $0 $0 $0 $18,031 $103,868 $103,868 $ $37,301 $15,000 $15,427 $0 $37,995 $44,509 $9,027 $103,210 $103,210 $ $16,261 $15,300 $23,658 $0 $37,576 $44,242 $3,878 $95,583 $95,583 $ $0 $15,606 $29,803 $0 $38,480 $45,144 $0 $90,552 $90,552 $ $0 $15,918 $34,855 $0 $38,954 $45,688 $0 $96,461 $92,364 $4, $0 $16,236 $35,552 $0 $39,792 $46,602 $0 $98,390 $94,211 $4, $0 $16,561 $36,263 $0 $37,766 $47,534 $0 $100,358 $96,095 $4, $0 $16,892 $36,988 $0 $40,876 $48,485 $0 $102,365 $98,017 $4, $0 $17,230 $37,728 $17,384 $26,285 $32,071 $0 $104,413 $99,977 $4, $0 $17,575 $38,483 $28,768 $27,539 $33,635 $0 $118,460 $101,977 $16, $0 $17,926 $39,252 $27,817 $28,819 $35,199 $0 $120,194 $104,016 $16, $0 $18,285 $40,037 $26,896 $30,100 $36,766 $0 $121,985 $106,097 $15, $0 $18,651 $40,838 $26,021 $31,371 $38,321 $0 $123,831 $108,219 $15, $0 $19,024 $41,655 $25,157 $32,668 $39,908 $0 $125,744 $110,383 $15, $0 $19,404 $42,488 $24,312 $33,961 $41,489 $0 $127,694 $112,591 $15, $0 $19,792 $43,338 $23,506 $35,298 $43,073 $0 $129,709 $114,842 $14, $0 $20,188 $44,205 $22,728 $36,678 $44,664 $0 $131,785 $117,139 $14, $0 $20,592 $45,089 $21,970 $38,082 $46,269 $0 $133,919 $119,482 $14, Other income includes: Corporate dividends, Part-time employment, Integrated defined benefit plans, Non-integrated defined benefit plans, Registered annuities, Prescribed annuities, Withdrawals from non-registered investments, Net rental income and other income Page 15 of 30

16 Income projection, optimized scenario Gross employment income Other income 1 Total government benefits Registered savings Non-reg d w/drwls (Net) Non-reg d w/drwls (Gross) Contributions to different plans Estimated standard of living Desired standard of living Income surplus (deficit) $0 $21,004 $45,990 $21,222 $39,514 $47,891 $0 $136,108 $121,872 $14, $0 $21,424 $46,910 $20,505 $40,960 $49,511 $0 $138,350 $124,309 $14, $0 $21,852 $47,848 $19,810 $42,440 $51,151 $0 $140,662 $126,795 $13, $0 $22,289 $48,805 $19,127 $43,951 $52,806 $0 $143,028 $129,331 $13, $0 $22,735 $49,782 $18,462 $43,647 $52,258 $0 $143,236 $129,331 $13, $0 $23,190 $50,777 $17,813 $43,267 $51,682 $0 $143,462 $129,331 $14, $0 $23,653 $51,793 $17,186 $42,838 $51,072 $0 $143,705 $129,331 $14, $0 $24,127 $52,829 $16,574 $42,392 $50,437 $0 $143,967 $129,331 $14, $0 $24,609 $53,885 $15,975 $41,914 $49,774 $0 $144,243 $129,331 $14, $0 $25,101 $54,963 $15,393 $41,022 $49,079 $0 $144,536 $129,331 $15, $0 $25,603 $56,062 $14,819 $39,212 $48,363 $0 $144,847 $129,331 $15, $0 $26,115 $57,183 $14,250 $38,579 $47,621 $0 $145,170 $129,331 $15, $0 $26,638 $58,327 $13,691 $39,110 $46,851 $0 $145,507 $129,331 $16, $0 $27,170 $59,494 $13,014 $38,966 $46,181 $0 $145,859 $129,331 $16, $0 $27,714 $60,683 $11,380 $39,162 $46,363 $0 $146,140 $129,331 $16, $0 $28,268 $61,897 $33,369 $15,143 $18,030 $0 $141,564 $129,331 $12, $0 $28,833 $63,135 $15,213 $21,217 $25,802 $0 $132,984 $129,331 $3, $0 $29,410 $64,398 $0 $11,656 $13,474 $0 $107,281 $129,331 ($22,050) $0 $0 $31,399 $0 $0 $0 $0 $31,399 $18,476 $12, $0 $0 $14,424 $0 $0 $0 $0 $14,424 $7,925 $6, Other income includes: Corporate dividends, Part-time employment, Integrated defined benefit plans, Non-integrated defined benefit plans, Registered annuities, Prescribed annuities, Withdrawals from non-registered investments, Net rental income and other income Page 16 of 30

17 Quebec / Canadian Benefits, optimized scenario QPP/CPP Old Security Pension Reimbursement of transfer payments Total government benefits $0 $0 $0 $ $0 $0 $0 $ $0 $0 $0 $ $0 $0 $0 $ $0 $0 $0 $ $0 $0 $0 $ $0 $0 $0 $ $0 $0 $0 $ $0 $0 $0 $ $0 $0 $0 $ $0 $0 $0 $ $12,150 $3,277 $0 $15, $16,974 $6,684 $0 $23, $20,801 $9,002 $0 $29, $21,217 $13,638 $0 $34, $21,641 $13,911 $0 $35, $22,074 $14,189 $0 $36, $22,516 $14,473 $0 $36, $22,966 $14,762 $0 $37, $23,425 $15,058 $0 $38, $23,894 $15,359 $0 $39, $24,372 $15,666 $0 $40, $24,859 $15,979 $0 $40, $25,356 $16,299 $0 $41, $25,863 $16,625 $0 $42, $26,381 $16,957 $0 $43, $26,908 $17,296 $0 $44, $27,446 $17,642 $0 $45, $27,995 $17,995 $0 $45, $28,555 $18,355 $0 $46, $29,126 $18,722 $0 $47,848 Page 17 of 30

18 Quebec / Canadian Benefits, optimized scenario QPP/CPP Old Security Pension Reimbursement of transfer payments Total government benefits $29,709 $19,097 $0 $48, $30,303 $19,479 $0 $49, $30,909 $19,868 $0 $50, $31,527 $20,266 $0 $51, $32,158 $20,671 $0 $52, $32,801 $21,084 $0 $53, $33,457 $21,506 $0 $54, $34,126 $21,936 $0 $56, $34,809 $22,375 $0 $57, $35,505 $22,822 $0 $58, $36,215 $23,279 $0 $59, $36,939 $23,744 $0 $60, $37,678 $24,219 $0 $61, $38,431 $24,704 $0 $63, $39,200 $25,198 $0 $64, $17,710 $13,688 $0 $31, $8,000 $6,424 $0 $14,424 Page 18 of 30

19 Registered portfolio simulation (RRSP/RRIF), optimized scenario Starting balance Utilization of unused contribution room Contribution 1 Investment income Desired minimum RRIF withdrawal Minimum required withdrawal Withdrawal to cover the desired standard of living Ending balance $150,000 $4,000 $8,000 $4,740 $0 $0 $0 $162, $162,740 $4,000 $8,000 $5,122 $0 $0 $0 $175, $175,862 $4,308 $8,000 $5,516 $0 $0 $0 $189, $189,378 $5,926 $8,000 $5,921 $0 $0 $0 $203, $203,299 $7,657 $8,000 $6,339 $0 $0 $0 $217, $217,638 $8,000 $8,000 $6,769 $0 $0 $0 $232, $232,408 $8,000 $8,000 $7,212 $0 $0 $0 $247, $247,620 $8,000 $8,000 $7,669 $0 $0 $0 $263, $263,288 $8,000 $8,000 $8,139 $0 $0 $0 $279, $279,427 $8,000 $8,000 $8,623 $0 $0 $0 $296, $296,050 $8,000 $8,000 $9,121 $0 $0 $0 $313, $313,171 $4,333 $4,333 $9,525 $0 $0 $0 $327, $327,030 $2,000 $2,000 $9,871 $0 $0 $0 $338, $338,901 $0 $0 $10,167 $0 $0 $0 $349, $349,068 $0 $0 $10,472 $0 $0 $0 $359, $359,540 $0 $0 $10,786 $0 $0 $0 $370, $370,326 $0 $0 $11,110 $0 $0 $0 $381, $381,436 $0 $0 $11,443 $0 $0 $0 $392, $392,879 $0 $0 $11,265 $0 $17,384 $0 $386, $386,760 $0 $0 $10,740 $0 $28,768 $0 $368, $368,732 $0 $0 $10,227 $0 $27,817 $0 $351, $351,143 $0 $0 $9,727 $0 $26,896 $0 $333, $333,974 $0 $0 $9,239 $0 $26,021 $0 $317, $317,192 $0 $0 $8,761 $0 $25,157 $0 $300, $300,796 $0 $0 $8,295 $0 $24,312 $0 $284, $284,778 $0 $0 $7,838 $0 $23,506 $0 $269, $269,110 $0 $0 $7,391 $0 $22,728 $0 $253, $253,773 $0 $0 $6,954 $0 $21,970 $0 $238, $238,758 $0 $0 $6,526 $0 $21,222 $0 $224, Contribution includes : Transfered amounts at death Page 19 of 30

20 Registered portfolio simulation (RRSP/RRIF), optimized scenario Starting balance Utilization of unused contribution room Contribution 1 Investment income Desired minimum RRIF withdrawal Minimum required withdrawal Withdrawal to cover the desired standard of living Ending balance $224,062 $0 $0 $6,107 $0 $20,505 $0 $209, $209,663 $0 $0 $5,696 $0 $19,810 $0 $195, $195,549 $0 $0 $5,293 $0 $19,127 $0 $181, $181,714 $0 $0 $4,898 $0 $18,462 $0 $168, $168,150 $0 $0 $4,510 $0 $17,813 $0 $154, $154,847 $0 $0 $4,130 $0 $17,186 $0 $141, $141,791 $0 $0 $3,756 $0 $16,574 $0 $128, $128,973 $0 $0 $3,390 $0 $15,975 $0 $116, $116,388 $0 $0 $3,030 $0 $15,393 $0 $104, $104,025 $0 $0 $2,676 $0 $14,819 $0 $91, $91,881 $0 $0 $2,329 $0 $14,250 $0 $79, $79,960 $0 $0 $1,988 $0 $13,691 $0 $68, $68,257 $0 $0 $1,657 $0 $13,014 $0 $56, $56,900 $0 $0 $1,366 $0 $11,380 $0 $46, $46,886 $0 $0 $1,253 $0 $9,377 $23,992 $14, $14,770 $0 $0 $443 $0 $2,954 $12,259 $ $0 $0 $0 $0 $0 $0 $0 $ $0 $0 $0 $0 $0 $0 $0 $ $0 $0 $0 $0 $0 $0 $0 $0 1 - Contribution includes : Transfered amounts at death Page 20 of 30

21 Non-registered portfolio simulation, optimized scenario Annual deposit Lump sum Income surplus at retirement Tax on income surplus at retirement Tax on disposition of assets Transfers 1 Investment income Tax on investment income Cumulative withdrawal 2 Ending balance $8,000 $0 $0 $0 $0 $0 $3,990 $810 $0 $136, $8,000 $0 $0 $0 $0 $0 $4,325 $864 $0 $147, $8,000 $0 $0 $0 $0 $0 $4,669 $942 $0 $159, $8,000 $0 $0 $0 $0 $0 $5,021 $1,018 $0 $171, $8,000 $0 $0 $0 $0 $0 $5,381 $1,098 $0 $183, $8,000 $0 $0 $0 $0 $0 $5,750 $1,180 $0 $196, $8,000 $0 $0 $0 $0 $0 $6,127 $1,262 $0 $209, $8,000 $0 $0 $0 $0 $0 $6,513 $1,351 $0 $222, $8,000 $0 $0 $0 $0 $0 $6,908 $1,442 $0 $235, $8,000 $0 $0 $0 $0 $0 $7,311 $1,537 $0 $249, $8,000 $0 $0 $0 $0 $0 $7,725 $1,685 $0 $263, $4,000 $0 $0 $0 $0 $0 $8,026 $1,179 $37,995 $236, $1,710 $0 $0 $0 $0 $0 $7,143 $918 $37,576 $206, $0 $0 $0 $0 $0 $0 $6,202 $594 $38,480 $173, $0 $0 $4,098 $296 $0 $0 $5,216 $552 $38,954 $143, $0 $0 $4,180 $321 $0 $0 $4,301 $416 $39,792 $111, $0 $0 $4,263 $727 $8,758 $346,733 $3,340 $572 $37,766 $414, $0 $0 $4,349 $503 $0 $0 $12,429 $1,600 $40,876 $388, $0 $0 $4,435 $659 $0 $0 $11,643 $1,819 $26,285 $375, $0 $0 $16,483 $2,987 $0 $0 $11,263 $2,041 $27,539 $370, $0 $0 $16,178 $2,933 $0 $0 $11,118 $2,015 $28,819 $364, $0 $0 $15,888 $2,881 $0 $0 $10,924 $1,981 $30,100 $355, $0 $0 $15,612 $2,832 $0 $0 $10,680 $1,937 $31,371 $346, $0 $0 $15,361 $2,787 $0 $0 $10,384 $1,884 $32,668 $334, $0 $0 $15,104 $2,740 $0 $0 $10,036 $1,821 $33,961 $321, $0 $0 $14,867 $2,683 $0 $0 $9,635 $1,739 $35,298 $305, This column includes transactions for any fixed assets and special project. 2 - Cumulative withdrawal includes: Standard of living and Transfer to TFSA 3 - This column includes insurance premiums. Page 21 of 30

22 Non-registered portfolio simulation, optimized scenario Annual deposit Lump sum Income surplus at retirement Tax on income surplus at retirement Tax on disposition of assets Transfers 1 Investment income Tax on investment income Cumulative withdrawal 2 Ending balance $0 $0 $14,646 $2,619 $0 $0 $9,178 $1,641 $36,678 $288, $0 $0 $14,436 $2,554 $0 $0 $8,665 $1,533 $38,082 $269, $0 $0 $14,236 $2,490 $0 $0 $8,093 $1,416 $39,514 $248, $0 $0 $14,041 $2,425 $0 $0 $7,460 $1,288 $40,960 $225, $0 $0 $13,866 $2,361 $0 $0 $6,765 $1,152 $42,440 $200, $0 $0 $13,697 $2,297 $0 $0 $6,005 $1,007 $43,951 $172, $0 $0 $13,905 $2,291 $0 $0 $5,179 $853 $43,647 $144, $0 $0 $14,131 $2,301 $0 $0 $4,347 $708 $43,267 $117, $0 $0 $14,373 $2,317 $0 $0 $3,513 $566 $42,838 $89, $0 $0 $14,636 $2,335 $0 $0 $2,678 $427 $42,392 $61, $0 $0 $14,912 $2,355 $0 $0 $1,843 $291 $41,914 $33, $0 $0 $15,205 $2,376 $0 $0 $1,009 $158 $34,485 $12, $0 $0 $15,516 $2,406 $0 $0 $385 $60 $13,155 $13, $0 $0 $15,839 $2,462 $0 $0 $393 $61 $13,443 $13, $0 $0 $16,176 $2,522 $0 $0 $401 $63 $13,716 $13, $0 $0 $16,528 $2,582 $0 $0 $410 $64 $13,999 $13, $0 $0 $16,809 $2,610 $0 $0 $418 $65 $14,299 $14, $0 $0 $12,233 $1,959 $0 $0 $426 $68 $14,559 $10, $0 $0 $12,847 $2,283 $0 $0 $308 $55 $21,089 $ $0 $0 $13,474 $1,818 $0 $0 $0 $0 $11,656 $ $102,758 $0 $12,923 $1,259 $0 $0 $0 $0 $2,758 $111, $0 $0 $6,498 $2,572 $0 $0 $3,350 $1,326 $0 $117, This column includes transactions for any fixed assets and special project. 2 - Cumulative withdrawal includes: Standard of living and Transfer to TFSA 3 - This column includes insurance premiums. Page 22 of 30

23 TFSA Simulation, optimized scenario Starting balance Annual deposit Investment income Withdrawal to cover the desired standard of living Withdrawals for asset needs Ending balance $40,000 $0 $1,200 $0 $0 $41, $41,200 $0 $1,236 $0 $0 $42, $42,436 $0 $1,273 $0 $0 $43, $43,709 $0 $1,311 $0 $0 $45, $45,020 $0 $1,351 $0 $0 $46, $46,371 $0 $1,391 $0 $0 $47, $47,762 $0 $1,433 $0 $0 $49, $49,195 $0 $1,476 $0 $0 $50, $50,671 $0 $1,520 $0 $0 $52, $52,191 $0 $1,566 $0 $0 $53, $53,757 $0 $1,613 $0 $0 $55, $55,369 $0 $1,661 $0 $0 $57, $57,030 $0 $1,711 $0 $0 $58, $58,741 $0 $1,762 $0 $0 $60, $60,504 $0 $1,815 $0 $0 $62, $62,319 $0 $1,870 $0 $0 $64, $64,188 $0 $1,926 $0 $0 $66, $66,114 $0 $1,983 $0 $0 $68, $68,097 $0 $2,043 $0 $0 $70, $70,140 $0 $2,104 $0 $0 $72, $72,244 $0 $2,167 $0 $0 $74, $74,412 $0 $2,232 $0 $0 $76, $76,644 $0 $2,299 $0 $0 $78, $78,943 $0 $2,368 $0 $0 $81, $81,312 $0 $2,439 $0 $0 $83, $83,751 $0 $2,513 $0 $0 $86, $86,264 $0 $2,588 $0 $0 $88, $88,852 $0 $2,666 $0 $0 $91, $91,517 $0 $2,746 $0 $0 $94, $94,263 $0 $2,828 $0 $0 $97,090 Page 23 of 30

24 TFSA Simulation, optimized scenario Starting balance Annual deposit Investment income Withdrawal to cover the desired standard of living Withdrawals for asset needs Ending balance $97,090 $0 $2,913 $0 $0 $100, $100,003 $0 $3,000 $0 $0 $103, $103,003 $0 $3,090 $0 $0 $106, $106,093 $0 $3,183 $0 $0 $109, $109,276 $0 $3,278 $0 $0 $112, $112,554 $0 $3,377 $0 $0 $115, $115,931 $0 $3,478 $0 $0 $119, $119,409 $0 $3,582 $6,537 $0 $116, $116,454 $0 $3,494 $26,057 $0 $93, $93,891 $0 $2,817 $25,137 $0 $71, $71,571 $0 $2,147 $25,394 $0 $48, $48,324 $0 $1,450 $24,967 $0 $24, $24,806 $0 $744 $24,863 $0 $ $688 $0 $21 $584 $0 $ $125 $0 $4 $128 $0 $ $0 $0 $0 $0 $0 $ $0 $0 $0 $0 $0 $ $0 $0 $0 $0 $0 $0 Page 24 of 30

25 Insurance, optimized scenario Actual Individual Insurance Actual first-to-die Insurance Actual last-to-die Insurance Recommended Individual Insurance Recommended first-to-die Insurance Recommended last-to-die Insurance Total Insurance Policies $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150,000 Page 25 of 30

26 Insurance, optimized scenario Actual Individual Insurance Actual first-to-die Insurance Actual last-to-die Insurance Recommended Individual Insurance Recommended first-to-die Insurance Recommended last-to-die Insurance Total Insurance Policies $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $150,000 $0 $0 $0 $0 $0 $150, $50,000 $0 $0 $0 $0 $0 $50,000 Page 26 of 30

27 Balance sheet at Year End, optimized scenario Balance from nonregistered portfolios Balance from registered portfolios Holding Company Amount Residences (main / secondary) Assets for personal use Total household assets Rental properties *Values rounded to thousand dollars ($). Total assets Total liabilities Total net worth before tax Page 27 of 30

28 Balance sheet at Year End, optimized scenario Balance from nonregistered portfolios Balance from registered portfolios Holding Company Amount Residences (main / secondary) Assets for personal use Total household assets Rental properties *Values rounded to thousand dollars ($). Total assets Total liabilities Total net worth before tax Page 28 of 30

29 Estate, optimized scenario Balance from non-registered portfolios Balance from registered portfolios Residences (main / secondary) Rental properties Total assets Total liabilities Total net assets before tax *Values rounded to thousand dollars ($). Deferred Taxes (Presumed disposition at death) Life Insurance Policies Total (Actual and proposed) Estate Net Value (After taxes) Page 29 of 30

30 Estate, optimized scenario Balance from non-registered portfolios Balance from registered portfolios Residences (main / secondary) Rental properties Total assets Total liabilities Total net assets before tax *Values rounded to thousand dollars ($). Deferred Taxes (Presumed disposition at death) Life Insurance Policies Total (Actual and proposed) Estate Net Value (After taxes) Page 30 of 30