Janine and David: Off to the Land Down Under
– A Pre-Retirement Case Study
A hypothetical retirement-income scenario, for illustrative purposes only
Janine and David's Background
The couple, both age 60, are planning to retire in five years. Their retirement goal is to begin traveling extensively, starting off with a four-month trek through the land down under (Australia and New Zealand).
Their retirement date was chosen based around the fact that Janine, a senior sales executive, has a deferred pension, from a previous employer, which commences when she turns 65. Also, at that time, she would have the additional options of starting income from her CPP and/or OAS. They are both planning on retiring at the same time.
5 Key Retirement D-R-E-A-M Questions
Our case studies explore how we apply the Dream approach for different client scenarios to build a sustainable retirement income plan.
D
Determine monthly cash flow targets: How much cash flow (monthly, after-tax target) do they need?
R
Review income-producing assets: What income-producing assets do they have available to deliver that cash flow?
E
Establish tax-efficient delivery: How do we deliver the cash flow needed, on a tax-efficient basis over the long term?
A
Assess long-term plan sustainability: Is the plan to deliver that cash flow sustainable over the course of their retirement?
M
Manage investments for the long run: How would we invest their income-producing assets?
