Calculate the non-registered investments, Operation Management

Calculate how much  they will be  able  to  save  in non-registered investments each year until their retirement. This is Rose and Leonard's first look at a retirement plan. Will they be able to save enough to meet their retirement objectives or do they need to revisit some of their assumptions and plans?

Conventional wisdom states that retirees need 60 to 70% of their pre-retirement income after they retire. Prepare a retirement budget for Leonard and Rose for both the first 25 years before Leonard dies and the last 10 years after Leonard dies. Make some reasonable assumptions. The following are some of the choices they can make. You do not need to use them and you can make different choices.

a. Rose will sell the house and move to a condo after Leonard dies.

b. After Leonard dies, Rose will give up the car and take taxis, the train and rent cars as needed.

c. They will both take classes and will take up new hobbies in retirement.

d. They will not go on great cruises but want to have enough to visit their children if they do not live close.

e. Medical costs may very well increase. Certainly, like many people, they will take more vitamins and other supplements.

f. They now read the Globe and Mail. Might they subscribe to more newspapers, perhaps buy more books in retirement (or just use the library more)?

g. Will they still need life and disability insurance?

Leonard and Rose are not real people but they could be. The author has made assumptions about their preferences. You, the student, can now make some of your own assumptions. Be sure to state them and make the budget numbers realistic. If they can effectively income split in retirement, what percentage of their gross pre-retirement income do they need in retirement?

7. Investment planning. Outline an investment strategy which  will give them a  well-diversified investment portfolio for both their registered and non-registered assets, based on the outcome of the retirement plan and your recommendations from above. You are going to refer them to a col league who is licensed to sell securities  to implement your strategy. In general, what  types of securities should they be buying to meet their objectives? Since you are not licensed  to sell securities, you cannot recommend specific investments. However, you can recommend categories, levels of acceptable risk and provide them some examples of securities which would meet their objectives and risk-tolerance.

8. Contingency plans. Evaluate a range of "what if" retirement planning scenarios in order to assess "best-case" and "worst-case" scenarios. For example, what if one of them becomes disabled, dies or loses his/her job? These should be brief, general considerations, not a detailed plan.

Posted Date: 3/1/2013 7:15:03 AM | Location : United States







Related Discussions:- Calculate the non-registered investments, Assignment Help, Ask Question on Calculate the non-registered investments, Get Answer, Expert's Help, Calculate the non-registered investments Discussions

Write discussion on Calculate the non-registered investments
Your posts are moderated
Related Questions
Number of Defects - Control Chart Sometimes the attribute of concern is the number of defects (c) in an item rather than the number of defective items in a sample: for example

Identify the four individual level barriers to communication and the ways to overcome them

Introduction of Operations Strategy The term strategy, given in the Collins English Dictionary is, 'the art or science of the planning and conduct of a war; generalship; a lon


Define the use of regional trade organizations in international business. Identify the Regional Trade Organization of which the United States is a member. What are some of the adva

Structural Adjustments - Factors Affecting Productivity Improvement Structural adjustment relates to the composition of society, the industries in which people work, fashions

A food processor uses approximately 29,730 glass jars a month for its fruit juice product. Because of storage limitations, a lot size of 4,000 jars has been used. Monthly holding c

Discuss the five (5) major components of information management / information technology (IM / IT) governance with a focus on how they will collectively improve the quality of heal

Identify three potential unethical actions or inactions related to decision analysis and the ethical principle each violates?

Lean" thinking was first developed with manufacturing organisations in mind. Explain FIVE examples of ways in which these waste elimination principles may be applied to improve eff