Concern:

Despite a healthy income, Trevor and Cindy struggle with cash flow due to high mortgage payments, discretionary spending, and irregular business income.

Plan:

A detailed cash flow helps them track spending and allocate funds toward debt reduction and savings. They are also able to set aside additional funds that could be used for extraordinary expenses like travel or emergencies.

Concern:

Their investments are scattered in various accounts with no clear strategy, and they are unsure if they are on track for their long-term goals.

Plan:

A diversified portfolio aligned with their risk tolerance and goals is developed, focusing on growth investments in TFSAs and RRSPs while using a balanced approach for their RESP investments.

Concern:

Cindy’s business income fluctuates, leading to inconsistent tax liabilities, and they are unsure how to reduce their tax burden.

Plan:

A tax-efficient strategy is implemented by maximizing RRSP contributions, taking money from her corporation, and leveraging tax credits such as childcare expenses and charitable donations. 

Concern:

They want to retire by age 60 but are unsure if they are saving enough to sustain their desired lifestyle.

Plan:

A retirement projection shows they need to increase their RRSP and TFSA contributions. A phased decumulation approach in retirement is introduced that illustrates options for Trevor to retire or work part-time as he desires, while Cindy also identifies options for unlocking her locked-in RRSP at retirement. Overall they identify a combined approach to integrate personal and corporate wealth, and how their overall savings, pension income, and government benefits integrate to sustain their income needs through retirement.

Concern:

They have powers of attorney, personal directives, and wills in place. They would like to provide financial gifts to their children but are unsure if they can afford it during their lifetimes, or if there will be anything left in their final estate.

Plan:

Resources required to sustain their lifetime needs are identified. Scenarios are assessed that include gifting to the children in their lifetime versus upon their final estate. They identity gifting to their children through the use of First Home Savings accounts when they turn 18.