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Retirement Planning

please help me work out the case below

You are to create a retirement presentation for Bill and Nancy Simpson based on the information presented in the case. The presentation is to be a maximum of 10 minutes and will be presented on Zoom. Please contact your professor by email to provide a time that works for you. Your presentation should include an analysis of their current retirement plan, a recommended retirement plan and any necessary steps to achieve the recommended plan.

The Case: Bill and Nancy Simpson

As at 31 January 2021

Personal Information

Bill and Nancy Simpson are 42 years old and 41 years old respectively and currently live in London, Ontario. They were both born in London, Ontario. They have one child, Ashley age 10, and do not have plans for more children. Ashley plans to go to school at age 18, and her parents plan to use the RESP they have set up for her to cover the cost.

Other Information

Bill is a professor at Western University and has a salary of $100,000, while Nancy is an executive at an accounting firm and also earns $100,000. Bill and Nancy have plans for retirement. They would like to retire at the same time, when Bill turns 65, with an after tax income of $70,000 per year indexed to inflation in todays dollars. They would also like to spend 3 months in Florida in the winter. As mentioned above, they would like to cover the cost of Ashleys education. The following is a list of assets that they have as part of your recommended asset allocation.

Assets

Bill	Asset Type	Value	Fund
RRSP	Mutual Fund	$65,432	Manulife Canadian Equity Class
RRSP	Mutual Fund	$29,432	BMO Growth ETF Portfolio
RRSP	Segregated Fund	$38,662	Manulife Monthly High Income GIF Select Segregated Fund
RRSP	Mutual Fund	$11,876	Scotia Canadian Income Fund
TFSA	Cash	$5,600
TFSA	Mutual Fund	$10,281	Manulife Canadian Equity Class

Nancy	Asset Type	Value	Fund
RRSP	Mutual Fund	$10,111	TD Canadian Equity Fund
RRSP	Mutual Fund	$5,010	TD Monthly Income Fund
DC Pension	Mutual Fund	$31,876	RBC US Equity Fund A
DC Pension	Mutual Fund	$23,244	RBC Bond Fund
DC Pension	Mutual Fund	$47,281	RBC Canadian Equity Fund

Joint Assets	Asset Type	Value	Fund
RESP	Mutual Fund	$12,111	RBC Canadian Equity Fund
RESP	Mutual Fund	$15,010	RBC Bond Fund
RESP	Mutual Fund	$9,777	RBC Monthly Income Fund

Estimated Rates of Return

Bills RRSP Portfolio 4.12%

Nancys RRSP Portfolio 4.05%

Bills TFSA 4.5%

Nancys DC Pension 4%

Pension Plans

Nancy DC Pension Contributing 2% of salary, matched by employer

Bill DB Pension 1.5% credit of best five years, joined pension this year

RRSP contributions

Bill and Nancy are contributing $5,500 each on an annual basis to their RRSPs.

Government Benefits

Based on the information received from Service Canada, Bill and Nancy are both expected to be eligible to receive 100% of the maximum CPP.

Assumptions

Make any necessary assumptions you need to complete the retirement plan.

Bill and Nancy have not had a retirement plan completed for them. They are looking forward to meeting with you to see your presentation.

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