Occupation:

Scott is a senior tradesperson at a power distribution company. Hannah retired from her nursing job 2 years after the COVID pandemic started and now manages Scott’s part-time weekend electrical business.

Financial Assets:

Scott has a pension at work and TFSA while Hannah has a HOOP pension, RRSP and TFSA. Most of their investments are at big banks and insurance companies. They have paid off on their home and cottage.

Goals:

Scott wants to retire from his stressful job in the next 2 years and just work part-time on his business to earn some extra money until his health supports him. Since it’s his own business, he can take longer vacations during summer and enjoy cottage life. He also likes to visit different countries while he is still healthy.

Challenges:

• Scott was offered a retirement package from the company’s HR. He would like to know if he can retire with the company pension, CPP and OAS. They are not sure about the impact of company pension, CPP and OAS timing on their overall financial picture.
• They want to help Lisa with her downpayment and set aside money for Jack’s upcoming wedding. However, they don’t know if they have enough retirement money. They were never savvy about their finances.
• They also worry about the recent government tax change and its impact on the cottage since they have a significant gain.
• Scott lost a lot of money during the financial crisis in 2007-08 on his friends’ advice. Hannah does not trust Scott’s ability to manage investments.
• Their son Jack pointed out that they are paying high fees on their bank and insurance companies' investment accounts while not getting any advice on taxes, retirement, or insurance. Their advisors never talked about tax planning or retirement goals.
• Hannah sees how her aging parents are financially constrained as they are spending a significant amount on assisted living facilities. This makes her worry about her retirement years.

Our Solution:

• Our retirement planning engagement analyzes all your retirement income options including company pension, CPP, OAS etc. The goal is to make an educated guess to maximize these amounts while keeping the taxes low.
• We help you decide how to reduce the tax burden on capital gain by coordinating the cottage selling with other income sources. This ensures you don’t end up paying a lot of tax in a year.
• We are independent and do not have any restrictions on the use of proprietary products. Since we work in your best interest, we shop around for the best product that fits your needs.
• We only use low-cost Exchange Traded Funds (ETFs) which bring transparency in fees structure. Our total fees, which include personal tax return, financial planning and investment management, are generally lower than average advisors’ fees.