Below is our understanding of Mrs. Samantha and Mr. Sonny Thompson's situation at the time of writing this assessment.
Background
Below is our understanding of Mrs. Samantha and Mr. Sonny Thompson's situation at the time of writing this assessment.
Samantha (45) and Sonny (48) are married and living in Dundas, Ontario.
Samantha and Sonny have two daughters, Tianna (11), and Tamara (8).
They currently own their principal residence.
Based on the information provided by Samantha and Sonny, you will find below their net worth statement.
Background (continued)
Below is our understanding of Mrs. Samantha and Mr. Sonny Thompson's situation at the time of writing this assessment.
Samantha is currently employed with the Whitby Public School Board as a Diversity Consultant earning an annual income of about $108,293.
Sonny is currently employed with Farm Boy and at this time, we do not know his annual income and is earning about $55,000 per year.
Both Samantha and Sonny are in good health with no history of cancer in their families.
Samantha and Sonny have indicated that they have the following life insurance policies.
Samantha has a group life insurance plan of about $325,000 (three times her salary).
Sonny has a group life insurance benefit of about $150,000 with Farm Boy.
Sonny has a paid-up individual life insurance policy of about $50,000, which was purchased for him by his parents when he was young.
Samantha does not have any individual life insurance policy.
They also do not have any critical illness insurance.
Nor Samantha nor Sonny have any wills or powers of attorneys for property and personal care.
Goals and Objectives
Samantha and Sonny would like to eliminate their mortgage prior to retirement.
Samantha would like to potentially retire, at the earliest, age 55 or 60, and at the latest, age 65 at an annual income of about $5,000 per month or $60,000 per year in todays dollars.
Sonny would also like to retire at either age 55, 60 or 65 with an annual income of $50,000 per year in todays dollars.
They would love to renovate their house, namely their bathroom and kitchen, at a cost of about $40,000.
They would like to fund 100% of the post-secondary cost of education for their two daughters, Tianna and Tamara.
They would also like to create generational wealth for Tianna and Tamara.
They would also like to save towards their retirement.
Assumptions for Projections
Investment Return
For projection purposes, we have assumed that all investment portfolios will generate balanced portfolio pre-tax returns of 6%.
Income
We have made the following assumptions about Samantha and Sonnys income prior to retirement.
For this assessment, we will assume that the couples net monthly surplus is about $2,500.
We will assume that Samantha has $75,000 of RRSP contribution room and Sonny has about $125,000 of RRSP contribution room.
Retirement Income
We have made the following assumptions about their retirement incomes.
Company Defined Benefit Pension Plan
Samanthas Defined Benefit Pension Plan
Qualifying factor is 85 and she joined the pension plan in 2006
Retirement pension income at 65 is $61,948 per year.
Retirement pension income at 50 is $22,071 per year.
Based on qualifying factor 85, she can retire with pension income of $55,821 with a bridge benefit if $6,546 until age 65.
Sonnys Defined Benefit Pension Plan
Retirement at 55 = $11,582 annually
Retirement at 60 = $18,299 annually
Retirement at 65 = $21,590 annually
