They have set up two TFSAs for long-term savings.
When they have prepared their budgets for the years until retirement, any excess funds not invested in the long-term TFSA will be invested in a Balanced Mutual Fund. Leonard is going to assume that he will be able to earn 8.0% rate of return on both of the long-term accounts - the TFSA and the Balanced Mutual Funds.
The Mutual Funds will be in Rose's name to minimize taxes.
Leonard's RRSP Investment Assets
Leonard currently has $120,400 in his personal RRSP, which is invested in a Canadian equity fund. He has a pre-authorized purchase plan (PPP) and for the past few years has contributed the maximum possible each year on a monthly basis to his personal RRSP. These contributions are made from his bank account every month - they are not deducted from his pay. He is fairly knowledgeable about investing and the score from his investor profile questionnaire categorizes him as an "aggressive growth" investor. Until the downturn inthe market a few years ago, Leonard was earning double-digit real returns. He has revised his expectations and now aims to earn an average of 8% a year instead. He has no unused contribution room.